The submission is in the form of a strategic management plan report. This should be written in a concise, formal business style using 1.5 spacing and font size 12. You are required to make use of headings, paragraphs and subsections as appropriate and ensure that the report is justified and aligned. All work must be supported with research and referenced using the Harvard referencing system. Please also provide a bibliography using the Harvard referencing system. The recommended word limit is 3,000–3,500 words, although you will not be penalized for exceeding the total word limit.
LO1 Analyse the impact and influence that the macro environment has on an organisation and its business strategies
LO2 Assess an organisation’s internal environment and capabilities
LO3 Apply the outcomes of analysis, using an appropriate strategic management tool, in a given market sector
LO4 Develop a strategic management plan in an organisation, informed by models, theories and concepts, to achieve competitive advantage in a given market sector
The aviation industry is one of the many sectors that are an important element towards economic development. It supports the rise in connectivity between cities and countries to enable the flow of goods, people, capital and technology. It facilitates tourism connectivity by bringing people and cultures around the world together. It also generates economic growth as the aviation industry contributes to $3.5 trillion of the world’s gross domestic product (GDP). In addition, the industry provides employment as it supports 87.7 million jobs around the world. However, though, it is certain that the airline sector plays a fundamental role in society, it also has its own fair share of challenges.
The COVID19 pandemic remains one of the worst crises in the history of commercial aviation. Before the crisis, nearly 88 million jobs supported worldwide in the aviation industry. Of this, 11.3 million people worked directly in the aviation industry. In addition, the average occupancy of aircraft is almost 83% greater than other forms of transport worldwide. This is a great advantage for airline businesses compared to other modes of transport. However, though transportation via air is considered as the most popular option, cruise transportation is becoming more popular as people use this as an opportunity for tourism as the idea of cruising is less stressful and people do not loose time in commuting and travelling to a destination. People will be eating, watching shows, and socialising with friends, It’s a more efficient and enjoyable use of your time. This therefore has an impact on aviation industry as they potentially lose their customers to their competitors. Another challenge states that around 80% of aviation CO2 emission are emitted from flights of over 1,500 kilometers. In addition, 80% Jet aircraft in service today are well over 80% more fuel efficient per seat kilometre than the first jets in 1960. This suggests that although the aviation industry is prominent and crucial, it also has a negative impact in the environment
Moreover, the airline industry is widely impacted by regulations and restrictions related to international trade, tax policy and competition. However more importantly especially as it’s a current issue; war and terrorism. For example, the Russian invasion of Ukraine has also affected oil prices. This will have a severe impact on the aviation sector, with fuel prices being hugely important for airline companies when it comes to operating costs. With regards to technological issues affecting the aviation industry a challenge that could arise is system failures and aging technical infrastructure, for example flight control software in its 737 max planes was one of the key factors causes accidents.
Based on the case scenario above, you have been recruited as an Enterprise Strategy Manager by one of the following well-known, large global organizations:
KLM
Ryanair
Wizz air
British Airways
Easy Jet
Select one of the organisations listed above and produce an environmental analysis report to include a strategic growth management plan based on the use of recognised internal and external analytical tools.
You are asked to: Create a set of valid strategic directions, objectives, and tactical actions for successfully achieving strategic alignment, based on critical interpretation of internal and external data, and information.
You are required to cover the following task:
You need to critically analyse applying appropriate frameworks the impact and influence that the macro environment has on your chosen organisation and its business strategies.
You must assess your organisation’s internal environment and capabilities by conducting an analysis using appropriate frameworks and interpret information and data to assess strengths and weaknesses of the organisation’s internal capabilities, structure, and skill set.
Using the outcomes of these analyses (you can summarise them in a SWOT) you should use appropriate management tools to identify possible strategic directions and justify one of these to inform future strategy.
Finally, using this suggested strategic direction you should produce (using a range of models, concepts and theories) a new strategic management plan to improve competitive edge and market position, and that has tangible and tactical strategic priorities and objectives.
LO1 Analyse the impact and influence that the macro environment has on an organisation and its business strategies.
P1 Applying appropriate frameworks to analyse the impact and influence of the macro environment on a given organisation and its strategies
M1 Critically analyse the macro environment to determine and inform strategic management decisions.
LO2 Assess an organisation’s internal environment and capabilities
P2 Conduct an internal environment and capabilities assessment of a given organisation using appropriate frameworks
M2 Interpret information and data to assess strengths and weaknesses of an organisation’s internal capabilities, structure and skill set.
LO3 Apply the outcomes of analysis, using an appropriate strategic management tool, in a given market sector
P3 Determine appropriate management tools to analyse a given market sector for an organisation and inform strategy
M3 Justify the use of an appropriate strategic management tool for a given market sector, to inform strategy and strategic objectives for an organisation.
LO4 Develop a strategic management plan in an organisation, informed by models, theories and concepts, to achieve competitive advantage in a given market sector
P4 Devise appropriate strategic objectives, based on the outcomes of analysis for an organisation to inform strategy
P5 Apply a range of models, concepts or theories to interpret and devise strategic planning for a given organisation.
P6 Design a strategic management plan, applying appropriate strategies to improve competitive edge and market position based on the outcomes.
M4 Produce a strategic management plan that has tangible and tactical strategic priorities and objectives.
