Business Management Strategies

W H Smith is a company based in the United Kingdom and is one of the leading retail groups that specialize in selling stationary, magazines, books, entertainment products, and other impulse products. Its target market is travelers in places such as airports and train stations in addition to workplaces and hospitals. The company has grown over the years and has managed to open more branches all over Europe and internationally.

Porter’s Five Forces Analysis

The porter’s five forces analysis is mainly used to analyze the competition levels of an industry as well as the growth of strategic business developments. This analysis can be used to determine the overall profitability of a company, which marks a company’s success in its respective industry. The five forces are threat of new entrants, threat of substitute products or services, bargaining power of customers, bargaining power of suppliers, and the intensity of competitive rivalry (Jones & Hill, 2008, p. 45). Threat of new entrants refers to the introduction of new firms or companies into an industry that yields very high profits. Such markets attract new players into the industry that will in turn lead to lower profitability for the existing companies in that industry. Since new entrants will want to tap into the profits of the industry, they will tend to offer their products and services at a cheaper rate to attract more customers. Consequently, this will affect the whole industry, since the new competition will force all the companies in the industry to change their strategies in order to continue making profits (Jones & Hill, 2008, p.46). Therefore, these industries have to have certain barriers to ensure that few companies that enter are performing and the non-performing ones are unable to survive in the industry.

On the other hand, threat of substitute products or services refers to the different alternatives in the market apart from the commonly known products. Existence of such alternatives in a market is more likely to persuade customers to switch to such products or services with regard to their availability and suitability. Customer shift to a competitor’s products or services will mean that, a certain product will be less used at the expense of a new or better substitute (Jones & Hill, 2008, p. 46). The depreciation in the quality or the substandard nature of some products is the main reason for the switching to alternative products in an industry.

Apart from that, bargaining power of customers is also one of Porter’s five forces. This refers to the power that the customers have over a company on their products and services. This means that if a large group of buyers come together and demand a reduction in prices on particular products, then the company will be forced to make that decision due to customer pressure (Jones & Hill, 2008, p. 46). Such pressure is very high if there are many alternatives in the market in question, resulting in higher buyer power. Customer pressure increases the bargaining power of customers since they can put a company under immense pressure, when it comes to pricing of products.

Bargaining power of suppliers is another of the porter’s five forces. It involves supplier power, when there are few substitutes for raw materials, labor, or even components in a particular industry. Suppliers may possess power over a company if the resources they supply are unique and hard to get. This means that the company will have to heed to the demands of the supplier if they are to receive such resources to continue their production. Suppliers, hence, may be able to charge high prices for their products as well as choose which firms to work with due to supplier’s monopolistic nature (Jones & Hill, 2008, p. 48).

Lastly, intensity of competitive rivalry is the last of the Porter’s five forces. In any industry, the intensity of competition determines the success of the different companies in that particular industry. Firms, therefore, have to engage in practices that ensure that they have a competitive edge over their rivals (Jones & Hill, 2008, p. 49). This means that the industry will be more competitive, if more companies invest in advertising and other innovative ways, in order to attract the highest number of customers in a market, which has very many substitutes.

W H Smith’s Competitive Position

W H Smith is a competitive company, since it has diversified its retail stores and opened up various stores all over the country. In the travel sector for instance, the company was able to record high profits even though passenger numbers were small. This means that the stores in the travel sector of the company were able to sell more even in difficult economic conditions. The introduction of new businesses by the company ensured that the sales in travel grew significantly. Innovative strategies such as the rolling out of self-service tills in airside units led to increased customer numbers as well as reducing the management costs for the company. This made the company able to save on costs and use the funds to improve other facilities enabling increase in customer satisfaction.

With competition in the high street sales on the increase, the company has experienced a hard time in improving the sales in the market. It has, however, put in place measures to ensure that customers can have newer products in the market. These retailers in supermarkets and online platforms will ensure that the company is able to provide services to their customers with ease and at comfort, while undertaking their normal daily activities such as, browsing a computer at home, or doing shopping at a supermarket.

Difficulties in Utilizing the Porter’s Five Forces Analysis in Practice

The porter’s five forces analysis is a good tool that may be utilized by many companies, but may only be important for new companies planning to enter a new market. This analysis provides very few and weak links between the internal and external environments of a company, even though the two go hand in hand. This is because both environments play a role in the competitive forces of the company. Therefore, a company may be incapacitated in identifying the impacts that the relationship may have on the competition in the market. The strengths of certain forces are described by Porter’s model relatively, and may have different interpretations by different companies in the different industries (Meir, 2009, p. 36). Therefore, a company will require more analysis to identify any underlying conditions that may make either the buyer or supplier have more or less power.

Ansoff’s Growth Strategy Matrix

This strategy involves the marketing strategies that a company may use to determine both product and market growth. The four alternatives in marketing strategies include market penetration, product development, market development, and diversification. These strategies can be used to ensure that the company employs the right tactics to stay relevant in a competitive industry as well as maximize its profits (Maria, Grandinetti, & Bernardo, 2012, p. 72).

Firstly, market penetration involves methods that will enable a company to get its products into a market. It should be noted, that this is the lowest risk strategy. This may involve promotion of the product, creation of an extensive distribution process to reach a wider consumer area, and putting attractive pricing to lure more customers into purchasing the company’s products. Coming up with innovative ways of increasing the usage of the product will also, help a company improve its sales in an established market (Maria, Grandinetti, & Bernardo, 2012, p. 72).

Product development on the other hand involves the introduction of newer products or modifying the products to suit the customers’ customized needs. Modifying a product in the existing market by changing its outlook, improving both its quality and performance, will create a more appealing product in the market (Maria, Grandinetti, & Bernardo, 2012, p. 73). This will attract more customers into buying the product, therefore, increasing the company’s sales.

Apart from that, market development is another marketing strategy in the Ansoff matrix. This involves the company venturing into new markets to increase its client base. Opening up different branches at different locations will enable the company to reach new customers in areas that the product was not available. Such new markets require a proper strategy that will enable the product attract more people. Selling through the internet or mail order will make work easier for the company, since they will reach a vast number of customers who can access their products online (Maria, Grandinetti, & Bernardo, 2012, p.75).

Finally, the last strategy is diversification of both the market and the product. This means that the company will be producing a new product that will be sold to a totally new market. This requires a lot of research to ensure that the move leads to success. Since it involves two unknowns, the risks involved are very high and the company will have to assess these risks and understand the consequence of such a decision (Maria, Grandinetti, & Bernardo, 2012, p. 77). A company may decide to diversify into the same industry that is less risky or join another completely different industry that has higher risks. Therefore, the company should have a balance between the risk and the reward to ensure that the company gets the highest rewards from the diversification.

Analyzing W H Smith’s Business Objectives Using Ansoff’s Matrix

Travel in W H Smith focuses on delivering value to shareholders through growth in the different sectors it is involved in. This means that the company aims at market development by looking for new contracts and trialing new formats that will improve customer’s productivity. Apart from that, the company has incorporated a product development strategy, with the introduction of newer products that improve efficiency such as the self-service tills. Such new products increase both customer numbers and the average profits of the company.

The high street plan for the company plays a huge role in not only cutting its costs, but also maintaining its presence in core categories of the market. The company is able to develop the market by continued brand awareness and efficient advertising on television and other forms of media. Additionally, introduction of new products such as the Gadget shop products, which is part of the new gifting ranges, will increase the client base since it aims at reaching more customers.

Difficulties of Utilizing Ansoff’s Model in Practice

The Ansoff’s matrix can only be used sparingly because different companies interpret the matrix with respect to their circumstances. This means that it is impossible for it to be used as the basic standard tool for all companies analyzing their marketing strategies. It requires each company to analyze their products well before deciding on a strategy, in order for it to reduce risks that may lead to its demise. Apart from that, risk management is highly required for any decision in the company that involves the product or market. Since the matrix does not put into account the nature of a company, it is possible for a company to undertake a certain risk that may be disastrous hence the need for extensive research, which the matrix does not produce (Maria, Grandinetti, & Bernardo, 2012, p.79).

PESTEL Analysis for W H Smith

The PESTEL analysis aims at looking at external factors that a company is involved with when undergoing a market research or undertaking strategic analysis. It enables the company to understand its position in the market, its growth or decline and its overall potential. The PESTEL analysis involves different factors, which include political factors, economic factors, social factors, technological factors, environmental factors and legal factors. W H Smith has various external factors that affect its overall performance.

Firstly, political factors influence many businesses in a country. In the United Kingdom, the government allows proper competition by giving fair allocation of opportunities for companies that may wish to indulge in different businesses. W H Smith has benefited from this since it has been able to set up retail stores in different travel points such as airports and train stations without many barriers. The proper infrastructure such as hospitals and airports set up by the government has provided different opportunities for the company and enabled it to expand over various sectors.

Secondly, economic factors also have had an effect on W H Smith as a company. The low inflation rates and economic growth of the U.K. in general has enabled the company to thrive. Even though the economic times have had several changes over the year, the company was able to increase its operational profits by 8% within a year. This increase in the company’s profits under the given circumstances shows the company’s capabilities at such times which show the planning put in place and the strategies to ensure a balance in the economies of scale. The ability of the U.K. to attract visitors in major transport lines also played a huge role in the success of the company over the same period.

Thirdly, the social factors in the country also impacted the company. Since trends in social factors are able to affect demands for certain products, the company was able to adapt to new demands of the customers. New products and services were introduced to various parts of the area that were aimed at serving customers more efficient. Additionally, a growing number of travelers in the country provided the right platform for the company to develop over the years. W H Smith has been able to reach more people through its initiatives which have eventually benefited the company. Use of the Internet has increased exponentially and the company has taken advantage of this by sensitizing the society on the Internet. This has grown its market base significantly and increased sales.

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Moreover, technology also influenced the strategic decisions that the company had to undertake, with the company having to introduce automation in some parts of the retail stores such as the self-service tills. Apart from that, the introduction of e-commerce and mail order enabled the company to increase its online presence, since a huge number of people are always on the internet (Sekhar, 2009, p. 52).

Environmental factors that may affect the number of travelers visiting train stations and airports also affected the company at one point. Apart from that, the products that W H Smith sells to its customers are recyclable. This means that the products are environment friendly and does not in any way harm the environment. Such green products are approved by standardizing bodies hence are fit to be used by the different customers.

Lastly, legal factors are the final element in the PESTEL analysis that looks at the laws that govern the operation of companies. The laws that are in place enable W H Smith to operate within an acceptable range, since the company adheres to all the possible laws, which means that the company is able to monitor its costs, demand for the products they sell, and their overall operations.

Evaluation of W H Smith’s Current Position Using the SAF Model

W H Smith has developed and grown over the year and has been able to open up new branches in addition to the already existing 561 travel units and 612 high street stores. Through these various stores, it has made it possible to employ over 16000 employees who manage the running of these retail stores. Using the SAF model which consists of suitability, acceptability and feasibility we can evaluate the company’s current position.

Suitability in the company’s case can be seen with the strategies that it has put in place to address the different issues that the company in the industry. Furthermore, it has also begun e-commerce projects that will enable customers to see and order their products online and be able to purchase them from the comfort of their homes (Jones & Hill, 2008, p. 54). In addition, the mail order service it has begun will facilitate customers to place orders and then receive the products through the mail delivery process. All these are aimed at cementing the company’s position as a leader in this sector, and enabling it to gain access to more customers, therefore, increasing their market share in the U.K. and worldwide.

With regard to acceptability, the company has been able to manage their risks and returns in such a way that it can gain profits in the different ventures it has taken part in. W H Smith is in a position where it has an advantage over its competitors, since it has put its attention to growth drivers that will allow the expansion of the company. Diversification has also helped the retail stores to tap into new markets and gain a huge client base in this industry, with the development of more stores in both the travel units and the high street stores. All these factors have aided the company to develop significantly, and build its brand image, therefore, creating a huge force in this industry.

Lastly, feasibility in the company’s case refers to the resources that are required to implement the different objectives of the company. Through their development strategies the company is able to cope with the different challenges that it has faced in recent times. A significant number of problems affect the company such as, economic changes that affect the country, as well as competition in high street stores by other companies. The company has put in place measures to counter these problems by introducing innovative ways that aim at improving service delivery, efficiency, and sustainability in the company.

References

Jones, G., & Hill, C. (2008). Essentials of Strategic Management. Cengage Learning.

Maria, E. D., Grandinetti, R., & Bernardo, B. D. (2012). Exploring Knowledge-Intensive

Business Services: Knowledge Management Strategies. Palgrave Macmillan.

Meir, R. (2009). Knowledge Management Strategies for Business Development. IGI Global.

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Business Strategy

Business Strategy King Digital Entertainment Company

King Digital Entertainment is the company that developed Candy Crush, which is a globally popular mobile game (Wilhelm). The company has registered rapid growth in the past few years, particularly during the years between 2011 and 2014; the company’s revenue generation grew from USD 63.9 million in 2011 to USD 1.88 billion in 2013. During the same period, the company’s active user count increased from 30 million to 408 million, as of the last quarter of 2013 (Wilhelm). About three-quarters of the revenues of the company accrue from the mobile channel, which demonstrates the centrality of the mobile channel to the company’s business strategy (Chapman). The company employed a very unique strategy in the already saturated games market; it developed and concentrated on a handful of games, which were well received in the market (NBC News). The positive reception and popularity of the games can be attributed to the company’s competitive pricing of its products.

Business Level Generic Strategies

The main business level generic strategies used by King Digital Entertainment include cultivating more competitive advantage over competing companies, through maximizing the value offered to its customers (Kozami). The company does this through increasing the benefits enjoyed by their customers and also offering more service areas, which justify their pricing. In this area, the actions of the company include the development of games with a solidly social nature, the use of cross-platform technology infrastructure during the development process, the utilization of viral channels, and offering highly effective social features. Relevant to this generic business strategy, there is also game longevity and the cross-promotion of new games to the audience, which offers higher value to gaming customers.

The second business level generic strategy used by the company is that of differentiation, where the company has maintained the leadership position in the offering of games with distinctive qualities, which are customer-driven (Kozami). Towards putting this strategy into action, the company maintains a massive layer network, which informs product development and product purchases. The strategy is also informed by the fact that the company spreads the news about the social features of their products through viral channels, which ensure a wide scope of coverage. Additionally, the wide-reaching time-based campaigns help the company to develop products that are reflective of the needs of their customers, which also improves the experience of the customer.

The ways in which functional level strategies support generic strategies

Functional level strategies are the approaches used by the functional centers of a company, towards the realization of business and corporate unit objectives and strategies, through the maximization of productivity and the utilization of resources (Kozami). These strategies support generic strategies by streamlining the resources of a company and its productive capacity towards the generic strategies. For example, towards increasing differentiation, the resources and the productive capacity of the company is channeled towards research into new game designs and incorporating the changing needs of customers (Wilhelm).

Identification and discussion of business-level growth strategies

The business-level growth strategies of the company revolve around the exploitation of the differences of the target customers from the industry-wide balance (Kozami). The company realizes this through isolating a specific buyer classification, isolating their segment, and concentrating on the group to find its niche. In the real world case of King Digital entertainment, it has included diversifying into the mobile game portfolio and broadening the game portfolio through capitalizing on the mobile channel, which yielded 75 percent of the company’s revenues (Wilhelm).

The mission statement of the company revolves around the provision of highly engaging content to the different customer groups, in a way that matches their mobile needs at any time, place and on different devices. This mission statement is encapsulated in the growth strategy of the company, which revolves around increasing app-usage during different times and customer groups (Wilhelm).

The strategic plan of King Digital entertainment revolves around capitalizing on successful brands to foster the growth of newer ones, which increases the uptake of the company’s products within the market (Chapman).

SWOT Analysis

Strengths

Capacity to change strategy; for example, the capitalization on the three leading titles: Candy crush saga, farm heroes saga, and Pet rescue saga to grow other game brands.
Focus on research and development, incorporating discrete campaigns.
The popularity of their games, particularly Candy crush saga.

Weaknesses

Dependence on the success of the current game brands to foster growth
A streamlined niche market: more than 75% of revenues came from the mobile channel
Stagnant global sales

Opportunities

Developments in mobile gaming
Increased uptake of online and mobile gaming
Changing customer needs

Threats

Issues related to consoles
Increases in software copying and piracy
Strategic game release dates, to avoid the slowdowns of holidays among other events (Wilhelm).

References

Chapman, Llizette. IPO-Minded Gaming Co. Kabam Buys Phoenix Age; Largest Buy Yet. Business Strategy – The Wall Street Journal. 10 Mar. 2014. Web. 17 Mar. 2014.

Kozami, Azhar. Business Policy and Business Strategy Management. Second Edition. New Dellhi: Tata Mc-Graw-hill Publishing Company, 2006.

Wilhelm, Alex. Inside The IPO of Candy Crush Maker King Digital. Business Strategy Techcrunch, 13 Mar. 2014. Web. 17 Mar. 2014.

NBC News. Candy Crush Game Maker Aims to Hit $7.6 Billion IPO Sweet Spot. 2014. Web. Business Strategy Snapshot. 18 Mar. 2014.

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Organizational Structure

Organizational Structure and Behavior

The fundamental intention of the study is to focus on the behavior of individuals and groups and how it affects the organizations. This study helps one to survey the links and relationship between the culture and constitution of organizations and how both the factors manipulate the behavior of workforce within the organizations. The impact of culture and structure can be measure with the ways and regularities being applied in organizations. These values basically conclude the functional prototype of behavior of organizations personnel. The structure and culture which are being applied within the organization structure are important aspects which stimulate the workforce at all echelon of the organization.

Understand the relationship between organizational structure and culture

The organizations are basically developed up on the base of communication and culture of any organization is a communicatively accomplished part of the organization which saturates it. According to Anne Maydan Nicotera (2003, p.1) the “organizing is a communication process” and an organization is an entity which is basically embedded in cultures. The relationship between culture and organizational structure is a vast and comprehensive dilemma to discuss because the organizational members create and recreate the organization cultures and organizational structure entities are embedded in this cultural environment. In other words it can be said that members of an organization is a culture part of the organization and this organization is a cultural part of society.

Culture is basically the combination of disciplines, norms, values, customs, beliefs, attitudes, practices, and several other aspects. These factors are not culture itself but culture underlies them in it (Marcia J, 2003, p.2). Culture is a conferred set of communal emblematic systems those direct individuals’ behaviors and incline them to play a role as an assemblage (Chen and Starosta, 1998).

Compare and contrast different organizational structures and culture

Organizational structures

The “organizational structure identifies the responsibilities for each position and relationship among these positions”. A firm basically establishes a structure which determines the job and responsibilities of each individual within the organization under the supervision of someone above all of them who monitors and guides them to perform their job efficiently. In some organizations where the jobs and responsibilities are not supervised by some other position the workforces are not contributed to the production of organization due to not getting proper guidance about their responsibilities towards their organization. In other cases, where the positions are supervised by more than one person the chances of conflicts are much higher (Jeff Madura, 2007, pg. 277 to 278).

Types of organization and associated structures

Different organizations use different organizational structures. The organizational structure is particularly based on the nature and specification of business. Basically the following types of tools are used to build up the organizational structure.

Functional

Rob Dransfield (2004, p.74) stated that the organizations based on the functional structure basically apply the grouping of workers in order to bring the different individuals and groups of workers altogether so they can help and support each other’s in specific projects and jobs. In this structure the individuals and groups mutually share their expertise and ideas with each other so they can produce something innovative and progressive.

Product-based

The product based organizational structure is completely the customer oriented structure. This structure is being organized in product line and each line reports to the CEO or an organization. And these product lines lend themselves in centralized and decentralized decision making process (Sandra M. Reed and Anne M. Bogardus, 2012, pg.77).

Geographically based

Geographically based organizational structure is basically the country based structure in which an organization widens its scope of business at international levels. The organization establishes its business in different countries or merged with other multinational organization globally. It often gets complicated if an organization has a large number or competitors. In other cases, the geographical based structure works successful where all the organizations are organized along product lines (Sharan Jagpal and Shireen Jagpal, 2008, pg. 552).

Multi-functional and multi-divisional structures

Rob Dransfield (2004, pg. 76) demonstrated that some organizations basically use the formal organizational structure while in large firms the multidivisional and multifunctional organizational structures are being applied. To combine the different areas and expertise of organizations such types of structures are used.

Span of control

Management is responsible for the organizational structure span of control. In span of control some individuals are being supervised by any individual manager. In large firms one manager supervise several employees while in small scale organizations, the numbers of employees are less. These spans are also called as narrow span of control and wide span of control (Jeff Madura, 2007, pg. 278).

Hierarchal levels

The organizational division is also an important factor of organizational structure. The organizations which apply the wide span of control use the flat organizational structure because it doesn’t have several layers to determine the workforce and its responsibilities while the other organizations which use narrow span of control have to adopt the tall organizational structures and cultures consisted of many layers (Mason Carpenter, Talya Bauer and Berrin Erdogan, v. 1.0).

Organizational charts

Sakthivel Murugan (2007) defines, “The organizational charts are the useful mean of providing the information about the organizational relationship”. Theses charts are also used as the tools of management controls. They graphically represent the managerial positions and interpretation between them. The charts are the blue print of organizational structure of an organization. There are several kinds of organizational charts, the vertical charts, horizontal chats, circular charts,

Matrix organization

Jeff Madura (2007, pg. 293) stated that organizations are often tackled with some specific conditions which demand some inputs from employees. In matrix organization structure, several parts of the organization interact on specific projects. These projects normally based on the short span of time so these individuals can perform their normal routine work under the supervision of same boss. The matrix organization is combination of product based and traditional functional structure (Carpenter et al, 2012).

Centralization and de-centralization

The centralization is an organizational structure which refers to the organization which is held under the authority of high leveled managers. The middle managers and supervisors monitor and control the day to day task of the organization and then reporting to the top managers. In this type of organizational structure, the middle managers are not liable and allowed to take decisions (Jeff Madura, 2007, pg. 288).

While in decentralization structure, the organizational structure functions are ruled under the supervision of several managerial and supervisions divisions. The self-government organization is the basic illustration of decentralization structure in which the managers and supervisors are responsible to make decisions where necessary (Dave Needham, 1999, pg. 232).

Internal and external network structures

The internal network structure consists of the information which is organized, processed, analyzed and reported to all levels of managerial position within an enterprise. Whilst the external organizational structure encompasses at international level as well as with the parent departments of an organization (F. L. Harrison and Dennis Lock, 2004, pg. 70).

Flexible working

The flexible working organizational structure allows workforce and managerial positions to work in flexible and relaxant working environment within the organization. It helps to adopt and deal with the modern economical and financial business pressures. Every firm basically needs the functional, financial and numerical flexibility working structure (Rob Dransfield, 2004, p.85).

Organizational cultures

Culture is the way of life for individuals or particular group of society. It is consisted of norms, beliefs, customs and values for those specific social groups. People learn values from the environment where they live or work and this culture determines the way of life for these people. The behaviors and responses are being adopted by the environment. In an organization the culture is a personality of an organization. The way of working, rules, norms and values upon which the organization based and workforce is pressurized to act upon is the culture of an organization (Rob Dransfield, 2004, p.87).

Classification of organizational culture

The organizational culture is further divided into different classes according to the culture and social styles. Following are the four main classifications of organizational culture.

Power culture

Power cultures can be illustrated as the spider web, which has a main central power point from which it influences and controls the workforce in outward direction from its center of power.

Role culture

Role culture is most identical culture class, which easily can be determined by the specific role or job rather than the performance of specific individuals or groups.

Task culture

In task culture, the management is basically responsible for all the problems and the solutions of an organization. The main concern is the job or project, not the individual because it is team working culture.

Personal culture

It is purely based on the individual’s performance and job. The talent, education, expertise and skills of an individual for his organization matter here.

Explain how the relationship between an organization’s structure and culture can impact on the performance of the business

Cultural norms and symbols

The cultural norms, beliefs and values are the ways and standards the organizational management or HRM settled up for all the levels of workforce. These values and norms basically motivate the workforce to perform best for their organization in order to make it well developed and progressed. The cultural norms are structured in decision making process according to internal, external behaviors and situations the organization has to deal with.

Development of organizational culture diagnosing behavioral problems

Psychology is the study of human behaviors and organizations take deep interest in studying the psychology because it helps them in seeking about the behaviors of their workforce and managerial positions. The main two concern often make organization complex in knowing ne is why people behave as they do and how can organization tend their workforce to behave as they want them to. The psychology basically helps organizations in behavioral problems and provides deep insight into different strategies such as absenteeism, group interaction, intelligence, stress management, resistance to change and levels of motivations.

Concepts, Principles, Perspectives and Methodology

Cognitive, behaviorist and psychoanalytical are three main approaches of psychology. These approaches assume different methods of researches according to the area of study for an organization. The qualitative, quantitative and action researches, survey and experimental design, psychological assessment, diaries, of an organization are some essential strategies of these concepts and approaches.

Perception

Perception is most identical organizational behavior because it is based on the judgments or decision making according to the given or immediate situations of an organization. The decisions are taken on these perceptions and misperception often leads towards the wrong and inappropriate decision making. Three main elements of a perception process are the perceived, the perceiver and the circumstances or situations. The understanding of individual’s perception of an organization is an essential part for the management. It helps in understanding that the perceptions of individuals are differ from each other so overcoming procedure must be vary from a person to person or specific groups.

Conflict

Organizational structure conflicts cause several internal and external issues for organizations and also for individuals of that organization. Wrong assumptions, perceptions, negative attitudes, opinions, rumors, and several other reasons cause conflicts in an organization. The conflicts are not always negative; they might of productive or destructive nature. They often rise on introducing new working protocols and environments, repositioning of goals, and developing new organizational structure and strategies.

Discuss the factors which influence individual behavior at work

Individual behavior at work

Personality of a worker of an organization is the main factor of determining the individual behavior at work. A worker have two types of personality aspects, one is stable characteristic, while other is distinctive characteristic. The stable characteristic of an individuals’ personality always remains same all time while the distinctive characteristics make him identical among crowds. The traits and types of the worker’s personality depend on the current situations and circumstances in an organization. An individual’s behavior at work is purely based on his traits and types of personality.

Intelligence Significance and nature of individual differences

The intelligence is an entity which is still not defined in any universal term because of its unique diversity. Few groups suppose it as an intellectual power while others takes it as the sense of understanding the environment. However, intelligence plays a vital role in understanding and responding towards the society, people and work. While the personality of an individual worker predicts the success of that person and how he will be working with other workers in an organization. It is a combination of behaviors and mental characteristics of a person which depict the person’s altitude and aptitude. It also has an important impact on how people behave at work.

Attitudes

Attitudes are the likes and dislikes of an individual, we all have some specific attitudes towards our environment and society. Attitudes are basically developed according to the personal experiences and environmental or social effects. When a person get anything positive and good in an organizational environment, it seems he must have a positive attitude towards is work or organization while the person who always make issues and stay annoyed have a negative attitude towards his work and place.

Aptitude or ability

The aptitude or ability is the individual capability of a person to learn something positive from his surroundings. In an organization the employers take much interest in the aptitude or ability of worker rather than his attitude.

Understand different approaches to management and leadership

Different approaches to management and leadership

Michael Armstrong and Tina Stephens (2005, pg. 4) stated that the main purpose of the management and the leadership in an organization is to provide direction, arrange changes and attain results through the accurate, proper and responsible use of resources. The management process is divided into the different methods which are used in achieving the organizational structure objectives. The main processes of the management and leadership approaches are planning, motivating, organizing and controlling.

“Mangers are always leaders, while leaders are not always managers” (Michael Armstrong and Tina Stephens, 2005, pg. 5). But there is a clear distinction between the management and leadership processes. Management basically concerned about the achievement of organizational objectives by using all the available resources, while leadership focus on one an ultimate resource which is the “people”. It is essential for the managers to be a good leader as well.

Compare the effectiveness of different leadership styles in different organizations

Talha Iqbal (2011) stated in his book “The impact of leadership styles on organizational effectiveness” that leadership is an important part of any organization, but often leaders get confused on initial stages about how to do leadership. However, leadership is itself a quite comprehensive approach which has divertive aspects according to all field of life. The leadership styles basically portray the impact and application of leadership process and its effects on an organizational structure. The main three styles of leadership are autocratic, participative, and free rein. In autocratic style of leadership, all the decisions are taken only by leaders while in participative style the leader makes decisions with team involvement. The free rein leadership style is completely different because in this style leader leave all the decision making processes on the team.

Explain how organizational structure theory underpins the practice of management

Development of management thought

Rob Dransfield (2004, pg. 174) stated that the main concern of the managers is to secure maximum profitability and prosperity of the organization and providing the job satisfaction to the employees. The empowerment of employees by giving them responsibility to manage them is being developed to lower down the organizational and managerial responsibility. This hierarchal top down management trend was used in twentieth century for scientific managers.

The scientific management and the classical administration are the hierarchal structure of an organization. Managerial positions are responsible in this organizational structure for specific group of employees while the bureaucracy is a hierarchical authority and goal oriented system of an organization.

Evaluate the different approaches to management used by different organizations

Human relations, systems and contingency approach

The human relation approach is however necessary to get positive and expected outcomes form workforces of an organization rather than just pressurizing them to produce. It is necessary to respect the human forces of an organization by giving them incentive to motivate them for their organizational progress. The system approach refers to the organizational structure systems which are specifically introduced for the wellness and betterment of workforce so they can return the positive production.

Andrew J. DuBrin (2011, pg. 27) demonstrated that the contingency approach basically attained when not any other approach or structure is being applied. In an organization, sometimes such situation occurs when HRM have to decide something on immediate basis according to the current circumstances, so the contingency approach thus applies.

Understand ways of using motivational theories in organizations

Motivation is basically related with the most important question, why people do what they do. Motivation is a key to understand the various types of organizational behaviors. What factors and strategies motivate the employees are some basic considerations an organization supposes first. The organizations with clear motivational protocols always generate the positive outcomes (Steve M. Jex, 2002, pg. 209).

Discuss the impact that different leadership styles may have on motivation in organizations in periods of change

John Darling and Anita Leffel (2010) stated that different leadership styles influences the organizational structure functions in various ways. The team leader affects the other team members through this decisions and practices to motivate and facilitate the competence in organization. The leadership styles adopted by the team members are based on the behaviors, thoughts, communication, and interaction of team members. Organizations get benefited from the well-established leadership styled system among team members and the leader. It inspires the collective and entrepreneurial spirit to the organizational team.

Compare the application of different motivational theories within the workplace

Motivation is a process to stimulate a person to perform his action or role in achieving the goal. Motivation has several kinds, thus the motivational theories are also diverse in numbers. The motivation is becoming more important in present era of competition at work place. The organizational management implies several motivation theories to stimulate themselves as well as to its employees. The scientific management was fir introduced by Fredrick W Taylor and known as the most important motivational theory for organizational structure development. He also introduced the Piece Rate motivational theory through which the employee gets salary according to the production average. This theory better stimulate the workforce to struggle more to increase the organizational productivity so they can get more salary (Friederike Hertel, 2003, pg. 3).

Evaluate the usefulness of a motivation theory for managers

(Dave Needham, 1999, pg. 263) As it is mentioned before that the managers are only concerned about the productivity and profitability of the organization by applying all the resources available, while leaders are responsible for the people of his team members not about the resources. The leadership is an important motivational theory for the managers to make them able to stimulate themselves for their organization. For progressed organization, the manager must be a good leader also. The scientific management is ne mot highlighted motivational theory which better stimulate the managers to boost up themselves and their personnel to struggle more for the profitability of an organization.

Understand mechanisms for developing effective teamwork in organizations

The system of developing the effective teamwork in an organization develops the respect, trust, and support to the leadership environment and thus improves the individually as well as collectively performance and attitudes for the organizational structure achievements by motivating the team members to perform at high levels.

References

Nicotera, A. M., (2003) Understanding organization through culture and structure: Relational and other lessons from the African American organization. Routledge.

Marcia J. (2003) E‐learning: emerging uses, empirical results and future directions. International Journal of Training and Development, 7(4), 245-258.

Chen, G. M., & Starosta, W. J. (1998) Foundations of intercultural communication. Boston, MA: Allyn and Bacon.

Madura, J. (2007) Impact of the QQQ on liquidity and risk of the underlying stocks. The Quarterly Review of Economics and Finance, 47(3), 411-421.

Dransfield, R., (2004) Leeds United scores own goal. Teaching Business and Economics, 8, 20-22.

Reed, S. M., & Bogardus, A. M. (2012) PHR/SPHR: Professional in Human Resources Certification Study Guide. John Wiley & Sons.

Carpenter, M. A., Li, M., & Jiang, H. (2012) Social Network Research in Organizational Structure Contexts A Systematic Review of Methodological Issues and Choices. Journal of Management, 38(4), 1328-1361.

Carpenter, M. A., Bauer, T., & Erdogan, B. (2009) Principles of management. Flat World Knowledge.

Needham, D. (1999) An Innovative Method for Evaluating Strategic Goals in a Public Agency Conservation Leadership in the US Forest Service. Evaluation Review, 23(1), 77-100.

Jagpal, S. (2008) Fusion for Profit: How Marketing and Finance Can Work Together to Create Value. OUP Catalogue.

Murugan, M. S. (2007) Management principles and practices. New Age International.

Harrison, F. L., & Lock, D. (2004) Advanced project management: a structured approach. Gower Publishing, Ltd.

Armstrong, M., & Stephens, T. (2005) A handbook of employee reward management and practice. Kogan Page Publishers.

DuBrin, A. J. (2011) Impression management in the workplace: Research, theory and practice. Routledge.

Jex, S. M. (2002) Organizational structure psychology: A scientist-practitioner approach. John Wiley & Sons.

Hertel, F. (2003) Motivation in the Workplace.

Darling, J., & Leffel, A. (2010) Developing the leadership team in an entrepreneurial venture: a case focusing on the importance of styles. Journal of Small Business & Entrepreneurship, 23(3), 355-371.

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Deregulation of British Telecommunications

The Deregulation of British Telecommunications

Deregulation is the elimination or removal of government controls and restrictions in, for instance, a particular area of business with the aim of encouraging more competition. Deregulation in the telecommunication industry has ensured that there is a public policy that:

Guarantees provision of quality service
Allows for reasonable setting of prices
Ensures the availability of advanced infrastructure

According to a survey done in the UK, there was an overwhelming feeling by many respondents that competition forces should determine the nature of the telecommunication industry instead of regulatory measures. Competition, ideally, spurs innovation which brings about new ideas and ways of doing things. Competition also allows prices do be determined naturally by the forces of demand and supply. The development of telecommunications market in UK has brought forth many new changes. The rise of BT (British Telecom), the first telecommunication company in UK, brought with it some issues worth to note in as far as deregulation is concerned. They include:

The UK telecommunication market was the first market to benefit from deregulation measures in the 1980s. It was an area where ‘price cap regulation’ of commodities was first introduced in the UK
British Telecom was the first major British telecommunications company to be deregulated and privatized in the 1980s
Deregulation which brought in competition in the telecommunication industry was introduced a decade earlier when compared to many other European countries.

However, realizing meaningful competition in the telecommunication sector was a slow process for companies like British Telecom due to certain national dynamics.

Deregulation in UK

British Telecom was privatized in 1984 and it is also in this year that deregulation policies in the telecommunication industry were initiated. The 1980s saw the British government introduce a ‘duopoly policy’ in telecommunications which allowed the entrance of another market player, Mercury, into the industry. Despite this, British Telecom was still the dominant player as compared to Mercury. The UK government further allowed many other firms to enter the telecommunications industry mainly to enhance competition. Entrance of other players also meant that new innovations and infrastructure could be introduced in the industry unlike earlier when British Telecom was the only telecommunication service provider. Deregulation of the sector scrapped the price cap regulation on British Telecom which meant that the company had to depend on normal forces of demand and supply to determine the prices of their products and services.

The changes that the government was introducing in the 1980s were also aimed at making the British telecommunication industry an international standards leader. However, the industry was facing a competition crisis due to the existence of a duopoly policy in the provision of telecommunication infrastructure. The duopoly policy that mainly benefited British Telecom and Mercury was later abolished in 1991. New entrants in the provision of local access services such as Cable Television came into the market consequently increasing competition. It is from this move that major development on radio based telecommunication and mobile based systems such as PCS and radio access emerged. These new technological advancements brought about major influences in the telecommunications sector; something which had not been experienced before in the United Kingdom.

Initially, the privatization of British Telecom saw a price cap formula being introduced which meant that the company had to depend on rate rebalancing to determine prices. Further reforms in deregulation the industry have been deployed in recent years through, for instance, the announcement of the Chancellor of Exchequer, Gordon Brown, that as Better Regulation Action Plan was to be enforced as from May 2005. This new policy reduced the number of regulations from 29% to 7%, bringing about a 25% reduction in bureaucracies which also saw the Better Regulation Executive being transformed into the Regulation Commission.

Telecommunications in the UK

The duopoly policy was scrapped in 1991 following the publication of the White Paper. Earlier in 1989, further liberalization, deregulation and privatization had taken place. However, these changes were only of a domestic nature and not international per se. Until 1989, only two telecommunication services operators had been licensed, Vodafone and BT’s Cellnet. The White Paper which came into effect after duopoly policy, allowed CATV companies to start offering telecommunication services through their cable networks on their own rights. At the same time national public telecommunication companies were not permitted to offer any television services. Armstrong (1994) describes the first period of liberalization in UK telecommunication companies history as a period of opportunity loss due to ban on local service providers. The existence of only two licensed companies and very low competition were also a main feature of this period. Competition in the telecommunication market at that time was low. For example, it was until 1986, after four years of its licensed granted, that Mercury could get access to British Telecom’s local loop unbundled (LLU). Due to lack of competition, British Telecom wasn’t able to restructure itself ahead of a competition boom that was just about to hit the industry in the early 1990s. The essential developments in telecommunication companies are listed below:

Gradualness
Disambiguation
Regulating by negotiating
Expansion of the function of Regulation
Crimson selection
Rival mobile telecommunications
Sluggish reformation of BT

Today, competition is very high due to presence of many telecommunication companies that are periodically releasing of exciting and attractive offers to their customers. The most popular industry players among UK residents are BT Group, Virgin Media, BskyB and TalkTalk.

BT Group

British Telecom is a multinational telecommunication company whose headquarters are in London, United Kingdom. It is one of the largest telecommunication service companies in the world with presence in over 170 countries. Through its global service division, it supplies telecom services to corporate and government customers around the world. British Telecom Retail Division is a major supplier of telephone, broadband and subscription services in UK, having approximately 18 million customers. In 2012, British Telecom was unveiled as an official partner of London Olympics 2012 where it operated data network across 94 locations. The 2012 London Olympic Games were the first Olympic Games to completely rely upon VoIP (Voice over Internet Protocol) and Wi-Fi (Wireless) to relay information to the public.

The History of British Telecom by Years
1878-1969	January 1878: The First telephone was demonstrated to Queen VictoriaOct, 1969: The Post office ceased to be Government Department.
1969-1982	1977: CCR recommend further division of two main services1980: Renaming of the Post Office Telecommunications1981: Liberalization of the telecommunication industry starts 1982: License granted to run a public telecommunication network
1982-1991	1991: BT is privatized. The Government sold half of its remaining shares, reducing it to 21.8 %1993: All the government’s remaining shares are sold in a third flotation raises £5 billion for the Treasury. 750,000 new shareholders are introduced to company
1991-2001	1991: BT name was unveiled with a new organizational structure and corporate company 2000: Offered LLU (local loop unbundling) 2005: 105,055 lines had been unbundled
2001-2006	July, 2003: Office of Communications (Ofcom) introduced to replace Oftel.BT gets its Universal Service Obligation (USO) for UK, excluding the hull area.
2006-present	1 April, 2009: BT Engage IT created14 May, 2009: 15,000 jobs are cut upJuly, 2009: offered workers a long holiday for an upfront sum of 25 % of their annual wedge or a one-off payment if they agree to go part time.

BT and Deregulation

Deregulation has seen British Telecom offer its consumers more pushy telephone packages. On the other hand, Ofcom has led to a decrease in pricing principles which has led to increased competition for all. Most communications companies are deregulating their retail services in the telecommunication market which is making British Telecom even more competitive. FTSE 100 group is also now offering some discounts in its packages (broadband, digital or 3G television) which include fixed-line calls for the very first time.

Ofcom has said that it had isolated the last bits of regulation after BT’s privatization 25 years. The reason raised was that it had no more market value to remain in UK telecommunications markets. Ofcom’s CEO, Ed Richards, said that it was an essential step in deregulating the telecom offers where competition is the main thing to just serve customers with better offers. Apart from BT customers, there are more than twelve million people residing in the UK who are using other telecommunication services. It is said that Virgin Media, BSkyB and TalkTalk are the most effective competitors for British Telecom.

According to estimates released recently, BT has fourteen million customers (fixed-line). Gavin Patterson, CEO of BT’s retail division, said about the new promotion that by this entire competing environment BT will be able to play the game on a better playing field as compared to previous one leading to more exciting offers. He also said that BT will announce new attractive offers in future for its valued consumers. UK residents are taking bundled offers at a large extent.

When we compared consumer’s choices by years, in 2008, UK customers have purchased two or more communication services from one service provider at the 46 % of total as compared to 2005 where 29 % did the same. This is according to Ofcom’s most recent counts. According to Ofcom, the actual competition uplift came into being when BT created Openreach in 2005. It has also provided services to BT’s competitors on equality basis. According to Kingham (2012), BT shares are one of the most popular shares with investors. BT is considered as a market leader operating in a safe and steady industry that is arguably well insulated from economic turmoil.

The following table demonstrates British Telecom’s increase in share prices in for the last ten years (Kingham, 2012). From the table, even if one can ignore the results of 2009, which was the time when most world major economies were experiencing economic downtown, it is suffice to say that, British Telecom has been experiencing a solid growth. Last year alone, despite falling sales and reduced spending by customers, British Telecom still returned a profit. The last quarter of 2012 saw an increased profit of 17% to 575 million Euros. The company also registered a quarterly decline in revenues of 5.8 billion Euros during the same period (Mike, 2012). All these can be attributed to the changes that this company has undergone in the last 20 years.

Conclusion

In conclusion, it is now a fact that BT Group is constantly deregulating which makes competition out there for other telecom companies a bit harder. It is also a fact that BT is enabling UK consumers to access reliable and cheap packages choosing options.

Hutchison 3G UK is currently allowing consumers to enjoy all calls on half prices as compared to other telecom operators. A wide range of bundles available in the market have enabled the consumer to choose according to his/her needs. This not only shows prosperity in the telecommunications industry, but also increases the chances of gaining benefits global wise in every aspect whether its country’s reputation or the company’s reputation.

As this is now the trend in UK, home based and business telecommunication consumers are now able to choose bundles (one or two or so on) according to their needs. Each market player is also offering exciting and attractive packages to its consumers with lots of offers such as free subscription, no initial charges or no line rent or any charges for six months. All these are exciting offers from telecommunication companies which attract consumers.

British Telecom is the first company in the UK to introduce public sector telecommunication service which has made BT has its own stage and own reputation. Apart from few drawbacks, BT is still the best choice of its consumers due to its services provided for its valued customers. Whether in Broad Band or fixed line, BT is a good choice of UK residents.

Bibliography

Mark Armstrong, Simon Cowan and John Vickers (1994) Regulatory Deregulation Reform: Economic Analysis and British Experience, London, Chapter 7 Telecommunications, pp. 195-244.

Mike D. (July 2012). BT profits despite slowdown in sales. European Deregulation Communications.

Kingham (September 7th, 2012). 5 Things about deregulation you should know before you buy BT shares. UK Value Investor

Sylvia Chan-Olmsted and Mark Jamison (2001) .Rivalry Through Alliances: Competitive Strategy in the Global Telecommunications Market, European Management Journal, Vol 19, No. 3, pp. 317-331, 2001.

Peter Curwen (2001) .Rivalry Through Alliances: Competitive Strategy in the Global Telecommunications Market. A Rejoinder to Chan-Olmstedt and Jamison,

European Management Journal, Vol 19, No. 6, pp. 678-681, December 2001.

Peter Curwen (1997) Restructuring Telecommunications Through Deregulation Policy, A Study of Europe in a Global Context, MacMillan Press Ltd, London, Chapter 11 The UK: A Case Study, pp. 129-160.

Ernst & Young (2001) Business Redefined: Connecting Content, Applications, and Customers, Ernst & young LLP and Cap Gemini Ernst & Young Joint publication.

Federal Communications Commission (FCC) deregulation policies in the UK

Financial Times: www.ft.com deregulation policies

Arnoldo C. Hax and Dean L. Wilde II (1999) .The Delta Model: Adaptive Management for a Changing World., Sloan Management Review, 1999 40 (2), pp. 11-28.

Jean-Jacques Laffont and Jean Tirole (2000) Competition in telecommunications, Cambridge, Mass.; London: MIT Press, 2000.

David M. Newbery (1999) Privatization, Restructuring, and Deregulation of Network Utilities, The MIT Press, Cambridge Massachusetts, London, England, Chapter 7 Liberalizing Telecommunications Industry, pp. 291-340.

Michael E. Porter (1995) .Toward a dynamic theory of strategy. In Rumelt, Richard P., Schendel Dan E. and Teece David J. (Eds) Fundamental Deregulation Issues in Strategy. AResearch Agenda, Harvard University Press, pp. 423-461.

Bernard W. Wirtz (2001) Deregulation Reconfiguration of Value Chains in Converging Media and Communications Markets., Long Range Planning, 34 (2001), pp. 489-506.

OFTEL Statement, Deregulation Pricing of Telecommunications Services from 1997, June 1996, 6.54.

Principal Operating Units: BT Ignite; BT open world; BT Retail; BT Wholesale; BT exact Technologies

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Ryanair Business Environment

An Internal and External Business Environment Analysis of Ryanair

The objective of this research paper is to conduct an analysis of internal and external business environment of a service company. For this purpose airline global industry has been chosen as a case study because of its importance in the current economic and political scenario. International investment, world trade and economic growth are some important factors deriving this industry (Porter, 1986). The present paper will undergo strategic analysis of internal and external environment of Ryanair in relation to its performance in the global Airline industry. It will allow identification of factors that affect the profitability and popularity of a company. In the end recommendations will be suggested accordingly. Lets look at the Ryanair business environment.

Company Background – Ryanair Business Environment

Ryaniar has a long standing reputation amongst low cost airlines in Europe. Ryaniar Ltd was founded by the Ryan family in 1985 and within ten years of its establishment the company gained immense popularity because of its image as a low rent airlines. The company provides scheduled services between the UK and Ireland through its 297 Boeing aircrafts. The company still manages to maintain its image as popular airline of the world. The Ryaniar Company focuses on budget conscious leisure and business travelers for its services. People who choose other transport services to reduce the expanses of their travelling remain to but the primary target of the company. The company also aims to expand and improve its services in low fare market. The mission of Ryaniar Ltd is to become the most profitable and attractive low fare airline in Europe low cost carriage sector by brining continuous improvements in its services.

Market Description

Currently the growth and development of low cost airline is being favored in the European Airline industry and it remains the main determining factor for the evolution of an airline company. Almost 18 percent of the transport supply is being done by low cost airlines and the seats are mostly limited to medium and short haul flights. These low cost carriages are also deemed important for the passengers who want to find seat for point to point moves.

Belobaba et al. (2009) writes that global airline industry has grown by 12 percent in 2010 and the major player in this context remains to be the United States of America. The market growth is further expected to increase in years to come. It is believed that by 2015 the growth will reach to $714 billion and the number of passengers will also grow to 3 billion. Domestic market shows the leading market segment in the global airline industry and America holds about 45% value of the industry. A number of challenges are also being faced by the global airline industry after global financial crisis. By 2010 many consumers started to cut back their leisure spending and relapsed air travel by train or other cheaper means of transport. This fall in revenue is mainly fueled by increased unemployment rate and economic uncertainty (Belobaba et al., 2009).

Some negative events have also declined the business of airline industry and amongst them rising fuel prices increasing the cost of operations are most common in the history. Several times they have put a dent on the industry’s operations. Along with that, other negative players are also there amongst them increased security threat, political unrest, uncertain and exchange rates are at the top of the list.

According to a report Published in the Telegraph UK the low cost sector has increased its growth by 12 pc in the last decade. However, even the low cost airlines are not free of the negative market affects that undermines overall activity of the industry but still they are making more business that the high cost European airlines (The telegraph, 2014).

Competition

After its establishment Ryaniar faced a great deal of competition. European Union deregulation in 1990 resulted in some substantial changes on the British industry. The most important of which is the focus of people on budget airlines offering comparatively shorter routes. These airlines provided a great deal of competition and grew on expense of traditional British airlines. Later increase in fuel prices after 2008 economic crisis also resulted in further decline of luxury airlines. Competition is also not very strong as the industry is not in a healthier state to support the business of expensive airlines and a number of airlines are under the threat of disappearance because of bankruptcy. European Union promotes low wage, low cost and low income flag carriers.

Challenges Faced By Ryaniar

Operating environment of the airline industry is being affected by a number of challenges that range from safety issues to consumer preferences, spending patterns, political instability, weather, security and natural disasters. All these factors affect the operating environment of Ryaniar Ltd also and most of them are beyond the control of the management of any airline. The expenses of flight cannot be controlled regardless of the number of passengers travelling in the plane. In addition to this, when shrinkage in airline industry happens, the remaining cost of operations remains the same that presents immense challenges to the management. Dobruszkes (2006) adds that operating environment of some low cost airlines has become favorable because they have adopted some cost reduction strategies that mainly include the management of the marketing cost, fleet reducing services, airport maintenance, route alteration and recharge policies. Appropriate techniques for maintenance of Engines, maintenance cost of hangers, management of staff cost and marketing cost to increase productivity are also adopted. In this scenario, companies that focus on small operating basis and start internet ticketing generate more revenues (Dobruszkes, 2006).

In the European market variation related to differences in the geography and scope of the airline persist. Most of the short and middle haul airlines focus on Western Europe and the distance for flight is 1.4 hours during this time an area of 634 kilo meters is covered. The total area covered by Ryaniar and most of the other low cost airlines is less than 1000 kilometers and in most of the cases international connections are not present. In addition to this, most of the low cost airlines influencing Easy Jet and Ryaniar are poorly penetrated in central and Eastern Europe markets. Some networks are also designed for tourists to take them to their desired destinations. These airlines do not focus on the capital city but they also maintain their attention to small cities and towns where low cost flights are easier to be managed (Mason, 2001).

Services Provided By Airline Industry

The services delivered by the airline can be divided into three main categories mainly including freight services, logistics and rail passenger’s airbus. Superior services are usually delivered to the clients that are willing to pay more. Product scope of Ryaniar Ltd is large as it promotes many services. It offers a range of destination around in Europe. In addition to this, hospitality, carriage, aircraft control system and assistance in booking rest houses is also provided. Like all other airports, services at the Ryanair airports are also available that include flat beds lounges and fast track security system.

Intangibility of Services

Ryanair business environment services are intangible and cannot be smelled, touched and tasted. It cannot be processed physically possessed.

Inseparability of Production and Consumption

Inseparability of production and consumption means the production of a service cannot be separated from its consumption by customers happen simultaneously. Customers buy specific type of product and take it home but services cannot be taken home, instead they are provided in a specific manner.

Perishability

Perishability is another characteristic of the service that means once services are produced they cannot be stored because of which supply demand gap arises.

Heterogeneity

Heterogeneity means that variation in the quality of services because of which standardization cannot be maintained. This makes the maintained of quality of service delivery a difficult task for service providers.

Challenges

Customer safety and quality issues are at the heart of any service sector and same is true for the airline industry. Here the quality of services acquires central place for the organizations. Quality of services is assured by the notion of truth that primarily reflects the importance company gives to handle each and every customer. Therefore, for service industries it becomes extremely important to design and manage activities in a way that can assure good quality services to the passengers (Janawade, 2013).

According to Janawade (2013) service quality management is still the subject of debate for the management of airline companies. The diversity of the airline services makes it harder for the administration to maintain good standard of services at each front. The quality of flight meals clean and airy airports, luxurious waiting areas, hygienic environment of washrooms, customer care and maintenance of airplanes are some areas of quality that remain the focus attention of the administration. Sometimes it becomes harder for the company to maintain superior quality services when budget is low and economic uncertainty prevails in the market. This is the reason for which some airlines fail to maintain good quality in-flight environment. The issue of measuring service quality has always been raised by the customers who pay a huge amount to travel across the world. Business class customers are often more cautious about the way they are treated at the airport and also in the airplane. Some other areas are also there that create major issues for the management and they include mishandling of baggage, late flights and misinformation (Janawade, 2013).

Along with the quality of services the rate of accidents and incidence also becomes the prime concerns for passengers who opt to travel in an airline. Total rate of incidents, rate of accidents, mid air collision and pilot’s deviations are some of the events that affect the safety of airline operations. The overall safety ratio of the global airline industry has declined in the past decade. Many technological issues arise because of poor maintenance of the aircraft. Moreover, the entire industry is under the threat of customer safety issues mainly generated by political unrest and legal bindings of the company. Airline industry remains the center of attention of the government and public as far as the passenger’s safety issues are concerned and many times these issues have resulted in serious debates that presented the industry with a number of challenges (Janawade, 2013).

There are a number of regulatory issues as well that affect the service delivery in the airline industry. Airline industry remains the center of attention of the government of a country and hence is mostly subjected to extensive regulations of the government. Many legal compliance and regulatory requirements are there for the industry. In the US airline industry FAA (Federal Aviation Administration) regulations matter greatly, which change from time to time and put airline industry under scrutiny. Same is true for other areas including Europe, Australia and Asia. Other acts such as transport security act result in federalization of some security procedures. Government of the UK keeps proposing increase in taxes that directly affect the revenue generation of the industry. In addition to all this, other regulatory changes are also expected that may range from security concerns to fuel emission and environment safety issues. All these factors may further affect the business deleteriously.

Success of Organization in the Management of Challenges

As stated above a number of challenges are being faced by the airline industry and they are regulated by the key players in the industry. Key players in the airline industry are those that have direct or indirect affect over the business and amongst them airline manufacturers, air navigation service providers and air-port construction teams are important, along with them, political atmosphere of a country and fuel price are also some intangible factors that affect the business of the airline industry. Policies and procedures of the ‘department of the trade and industry’ can positively or negatively affect then business (Mason, 2001). Along with this, employee’s turnover rate has become a major problem for the companies that tend to develop and make progress. A good human resource management system can aid companies to reduce turnover rate by keeping employees satisfied with the job. Companies with a high rate of employee’s turnover often face a great deal of pressure in terms of the management and training of their employees (Richard et al. 2001). The global airline industry has managed its growth by maintaining its operations in suitable limits of economy. Dobruszkes (2006) explains that European airline industry is the one that prefers evolution of low cost airline networks. Because of the demands and competition trend in the market this concept became famous after 1995. The European low cost airline scope has actually met by Ryaniar and Easy Jet that have felicitated customers who previously chose other transport system because of high rent of the airlines. Ryaniar airline alone has carried 70 million passengers in the year 2012 and is expected to increase its size.

Bamber et al. (2013) writes that though turnover rate of employees in an industry vary greatly with time and many factors play their part in this context. Sometimes nature of the job and low wage becomes the cause of a high turnover rate in case of some industry such as fast food and call centers. When compared to the other sectors the rate of employee’s turnover in airline industry is comparatively low (Bamber et al., 2013).

Richard et al. (2001) also say that airline industry show low turnover rate compared to any other industry of the world. Overall turnover rate of the industry is 9 percent that shows employees are not replaced very quickly over a particular time period. However, increased fuel prices and deregulation act in the late 1980s have made the industry less attractive. Operating cost has increased to a considerable extent and worker’s pay has reduced. Many other airline companies in the world including that of American and Asia have also decided a wage cut off to reduce the cost of operation within the system. In addition to this, 100,000 employees of only American airline industry were laid off after deregulation act. This has given rise to an uncertain working culture and some of the employees opt to find jobs in another industry that is less uncertain than the airline sector (Richard et al. 2001). Bamber et al. (2013) conclude in their research paper that airline industry needs to maintain its attractiveness in order to keep employees happy and contented with their jobs.

Forces Deriving the Airline Industry

A number of forces derive the airlines industry that range from customer satisfaction issues, strategic planning, point to point roots, terminal and aircraft facility, online booking services, reduced lines at the ticket corner and economy of scale. Along with customer safety other factors are also there that create management challenges for the airline companies. Staff safety at the airport is also one of the major concerns of the administration that results in poor working morale of the staff members.

References

Bamber, G. J., Gittell, J. H., Kochan, T. A., & Von Nordenflycht, A. (2013). Up in the air: How airlines can improve performance by engaging their employees. Cornell University Press.

Belobaba, P., Odoni, A., & Barnhart, C. (Eds.). (2009). The global airline industry (Vol. 23). John Wiley & Sons.

Dobruszkes, F. (2006). An analysis of European low-cost airlines and their networks. Journal of Transport Geography, 14(4), 249-264.

Hanlon, J. P. (2007). Global airlines: competition in a transnational industry. Routledge.

Janawade Z., 2013, customer perception quality of complex services, France, Paul Cezanne University, p. 2-14.

Mason, K. J. (2001). Marketing low-cost airline services to business travellers.Journal of Air Transport Management, 7(2), 103-109.

Porter, M. E. (Ed.). (1986). Competition in global industries. Harvard Business Press.

Richard, O. C., & Johnson, N. B. (2001). Strategic human resource management effectiveness and firm performance. International Journal of Human Resource Management, 12(2), 299-310.

Business Management Strategies

Porter’s Five Forces Analysis

W H Smith’s Competitive Position

Difficulties in Utilizing the Porter’s Five Forces Analysis in Practice

Ansoff’s Growth Strategy Matrix

Analyzing W H Smith’s Business Objectives Using Ansoff’s Matrix

Difficulties of Utilizing Ansoff’s Model in Practice

PESTEL Analysis for W H Smith

Evaluation of W H Smith’s Current Position Using the SAF Model

References

Business Strategy King Digital Entertainment Company

Business Level Generic Strategies

The ways in which functional level strategies support generic strategies

Identification and discussion of business-level growth strategies

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

References

Organizational Structure and Behavior

Understand the relationship between organizational structure and culture

Compare and contrast different organizational structures and culture

Organizational structures

Types of organization and associated structures

Functional

Product-based

Geographically based

Multi-functional and multi-divisional structures

Span of control

Hierarchal levels

Organizational charts

Matrix organization

Centralization and de-centralization

Internal and external network structures

Flexible working

Organizational cultures

Classification of organizational culture

Power culture

Role culture

Task culture

Personal culture

Explain how the relationship between an organization’s structure and culture can impact on the performance of the business

Cultural norms and symbols

Development of organizational culture diagnosing behavioral problems

Concepts, Principles, Perspectives and Methodology

Perception

Conflict

Discuss the factors which influence individual behavior at work

Individual behavior at work

Intelligence Significance and nature of individual differences

Attitudes

Aptitude or ability

Understand different approaches to management and leadership

Different approaches to management and leadership

Compare the effectiveness of different leadership styles in different organizations

Explain how organizational structure theory underpins the practice of management

Development of management thought

Evaluate the different approaches to management used by different organizations

Human relations, systems and contingency approach

Understand ways of using motivational theories in organizations

Discuss the impact that different leadership styles may have on motivation in organizations in periods of change

Compare the application of different motivational theories within the workplace

Evaluate the usefulness of a motivation theory for managers

Understand mechanisms for developing effective teamwork in organizations

The Deregulation of British Telecommunications

Deregulation in UK

Telecommunications in the UK

BT Group

The History of British Telecom by Years

BT and Deregulation

Conclusion

Bibliography

An Internal and External Business Environment Analysis of Ryanair

Company Background – Ryanair Business Environment

Market Description

Competition

Challenges Faced By Ryaniar

Services Provided By Airline Industry

Intangibility of Services