Productivity and Cost Competitiveness System †MyAssignmenthelp.com

Question: Discuss about the Productivity and Cost Competitiveness System. Answer: Introduction The Airlines Industry is the most complex as well as a flourishing industry. It involves capital requirement for the aircraft, monitoring of government regulations, competitiveness from other transportation, state policy and restrictions and higher level of experts in order to manage and operate. In modern days, the industry is facing competitive pressures due to increasing globalization, heavy maintenance and repair costs, labor costs and others (Adler Gellman, 2012). The report throws light on the increasing competitive pressures in the Australias Airline Industry. The airlines industry of Australia has an age old history and presently the country has a huge number of operating airlines across the world. The report highlights the competitive pressures of the industry in Australia. In addition to this, it includes the management accounting information and strategic analysis for a hypothetical medium sized airline, in order to be competitive in the existing industry. The Airlines industry is one of the booming and fastest growing industries, which offers their customers with exciting as well as lucrative services. Customers always look forward to those airlines which pay proper attention to their demands. They prefer Airlines which gives more and more offers and discounts. Their tastes and choices may change over time. Their preference depends on the magnitude of the services provided by the Airlines group. They may prefer travelling with the ones, who provide them with more services, offers and entertainment. The following section of the report discusses about the management procedures regarding the competitiveness of a medium size airline in Australia (Bamber et al., 2013). Market analysis A target market or group is referred to a group of individuals having similar needs or characteristics that the company has targeted to achieve. According to any Airlines Industry, their target customers are those who travel frequently or aspire to be an adept in travelling and who can easily adapt to the unknown and unfamiliar situation. Identification of the target market helps any airlines company to develop efficient marketing communication strategies (Borenstein Rose, 2014). In order to gain the competitive advantage among the competitors, the Airlines companies has started adopting differentiation generic strategies by contributing to the top class quality services. These initiatives are taken to be the best in the airlines industry and create a differentiating margin from the competitors. For instance, Emirates was the first to introduce TV screen for all classes in their flights. They have also used modern equipment, plane simulator for providing training courses. The purpose behind making such changes is to lead the industry and thus increasing national and international awareness which further leads to increase in demand and profit (Bush Starkie, 2014). Customer satisfaction plays a major role in any industry. In an airlines industry, passengers look forward to a comfortable and safe journey with the company. Disabled passengers need proper assistance from the Flight Attendants. They may require a stretcher or an incubator and medical attention during their travel. The Flight Attendants are required to attend the patients with proper care and medical needs. Disabled passengers may also require wheelchair services. They look forward to those who take care of their demands, offering them lucrative discounts and services (Button, 2017). The key success factors of any airlines company is the modern and latest services they offer, like big and comfortable seats, modern e-ticketing system and advanced technology aircrafts. All the factors distinguish the company from its competitors as well as it helps in attracting new customers. Moreover, a strong brand name and value helps in maintaining a good image and loyalty in front of the customers (Oum Yu, 2012). Strong brand recognition cannot be attained easily; it requires proper management and marketing. This is very important for the companys future growth and progress. In the Airlines industry, enhancing strong alliances between various companies is considered as a major trend. Through this trend, other companies share their own resources, via strong network which helps in reducing the operational costs. Furthermore, strong bonds with the suppliers are also compulsory for long-term agreements (Eaton, 2017). Management Agenda Each and every company has a specific cultural frame and successfully leading the cultural structure proves highly beneficial for the companys progress. The Airlines companies must encourage a culturally diverse group of employees, customers and staffs. They should also serve the customers happily, those who belong to different ethnicity or culture. Managing culturally diversified customers is a fundamental element for any business, as they play a very crucial role in the businesss growth and competitive approach (Button, 2017). Moreover, effective communication is the key element for a companys success. The leaders of any airlines company must encourage their employees or staff members to communicate openly, in order to avoid any miscommunication. It is important to understand the demands and desires of their customers and moreover, listens to their employees suggestions. This helps them provide the customers with superior services, which is beneficial for the company (Williams, 2017). Effective leadership process plays a very crucial role in the success of the airlines company in this competitive market. The leaders of an organization must organize, direct and control its employees and resources with morality and provide them with a great working environment. The airlines company must give equal amount of importance to the non monetary factors, like balancing professional as well as personal life, better opportunities of growth, good leadership and a friendly environment of work and training (Bamber et al., 2013). The companys guiding principles and culture have a significant impact on the organizations Human Resource practices and policies which include planning of manpower, selection and recruitment, training as well as development, welfare initiatives and others which makes the business an attractive one (Bush Starkie, 2014). Conclusion To conclude, in this fast and competitive market of Airlines, it is very difficult to stand in a well known position. Companies must take of its effectiveness in the leadership policies and management. Providing the customers with superior services is very important in order to differentiate from other airlines companies. Moreover, airlines companies must encourage diversity at the workplace, which helps in the progress in a huge way. In order to provide the customers with premium services, the Airlines must recruit superior, experienced and talented people from various countries and ethnic groups across the world. The leadership also provides new and innovative ideas and strategies which are actually beneficial for the companys growth and progress. It also helps the company to upgrade and improve their services for their customers. The employees must be offered with professional training, which encourages and motivates them. However, it is being expected that effective implementatio n of these strategies can help the Airlines Company in being competitive in the industry. References Adler, N., Gellman, A. (2012). Strategies for managing risk in a changing aviation environment.Journal of air transport management,21, 24-35. 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. Borenstein, S., Rose, N. L. (2014). How airline markets work or do they? Regulatory reform in the airline industry. InEconomic Regulation and Its Reform: What Have We Learned?(pp. 63-135). University of Chicago Press. Bush, H., Starkie, D. (2014). Competitive drivers towards improved airport/airline relationships.Journal of Air Transport Management,41, 45-49. Button, K. (Ed.). (2017).Airline deregulation: international experiences(Vol. 1). Routledge. Eaton, J. (2017).Globalization and human resource management in the airline industry. Routledge. Oum, T. H., Yu, C. (2012).Winning airlines: Productivity and cost competitiveness of the worlds major airlines. Springer Science Business Media. Williams, G. (2017).The airline industry and the impact of deregulation. Routledge.