Business Excellence

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List of Questions:

Q2: What are the lead facilitators roles during the site-visit?

Q 4: When writing an award-submission document for the EFQM Excellence Award, how many pages should be allocated (approximately) for each main criterion?

Q 5: What are the important milestones for an award submission?

Q 11: One of the key steps in Self-assessment is: Site-visit. How can we make it effective and efficient?

Q 15: One approach of self-assessment is called: Matrix approach. Describe briefly this approach and list its advantages and disadvantages?

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Business Excellence

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Abstract

            The UAE hosts a variety of organizations. Etihad Airways is one of the organizations that have led to the development of the UAE economy since the year 2003. This research is important to reveal the capability of Etihad to survive in one of the fastest growing economies in the world today. The information provided in this paper is retrieved from various sources to portray the organizations competence in terms of its strategic alignment, processes, and customer results. It is important to note that this research acts as a useful tool in understanding efforts made in the airline industry to attain excellence in business by most of the successful organizations.

 

 

 

 

 

 

 

 

 

 

Table of contents

1.0 Abstract ……………………………………………………………………………………………….. 2

2.0 Introduction……………………………………………………….………………………………….…4

3.0 Strategy ………………………… …………………………………………………………………..…5

3.1 Marketing Stratagem

3.2 Stakeholder Satisfaction and Consideration

3.3 Internalization of new technology

3.4 Balancing Objectives

4.0 Processes ……………………………………………………………………………………………….7

4.1 Internal Communiqué

4.2 Human Resource procedures

4.3 Performance Evaluation Process

5.0 Customer Results ……………………………………………………………………………………….8

5.1 Client Fulfillment

5.2 Company Map Deliverables

5.3 Feedback

6.0 Summary and Conclusion …………………………………………………………………………….10

7.0 References …………………………………………………………………………………………….11

 

 

 

 

Introduction

Etihad Airways is an organization in the UAE. The word Etihad supposedly means an amalgamation. It is borrowed from the Arabic tongue. Etihad was established in the year 2003 and began its operations during the month of November the same year. It is one of the fastest growing corporations in the UAE. The records of the organization reveal that it serves 66 target markets. In addition, it manages over 1000 trips on a weekly basis to 44 nations (Books, LLC, 2010). However, the operations of this UAE organization are centered in various continents. These are Asia, Africa, North America, and Europe. The head office for the organization are located in the city of Khalifa, Abu Dhabi. The first year of the organization’s operations saw it provide services to 340,000 people. Apart from the flight services, Etihad has maintained a steady income from dealing with cargo.

The organization was put in place as the countrywide airline in UAE in the month of July the year 2003.  Etihad began with a start up capital approximated at 500 million Arab emirate Dollars with its first flight serving the Al Ain destination (Books, LLC, 2010). As the organization sought to gain access in the international arena, it launched its first global services for Beirut. A board of managers runs the Etihad organization. Its executive panel of managers is inclusive of seven autonomous non-executive affiliates as well as a pair of sub agencies. The sub agencies are the executive agency and the inspection committee. For purposes of efficiency, autonomous chairperson and charter govern the two sub agencies. Etihad serves as a backer to sporting clubs in the UAE. It is however amazing that the organization manages to record minimal profits since its inception. Despite this fact, Etihad has been identified as one of the leading international airline organizations since the year 2003. This paper is going to provide an overview of the submission documents by paying close attention to the organizations Strategy, procedures, and client results.

 

 

 

 

 

 

3.0 Strategy

The organizations stratagems are dependent on both the present and upcoming requirements and prospects of the stakeholders. This is because stakeholders play a vital role in ensuring the success of any global organization. In order to maintain its statistical and practical positions on the global map, the organization has put in place diverse stratagems.

Marketing stratagem

The recent years have borne witness to a rise in the level of competitiveness in the airline business. This fact has necessitated the development of effective marketing strategies. One of the marketing stratagems used by this organization is the idea of marketing via the internet. Etihad came in to existence during an era of internet awareness. The organization has managed to use this as an asset especially in gaining a stable foothold in the international arena. Internet marketing has boosted the popularity of Etihad from year to year. This was initiated by coming up with a well-structured website where the organization has provided all the information required by potential customers. In addition to this, Etihad has signed contracts with owners of social websites such as face book (Namaki, 2008). This ensures that once a potential customer logs in to the website he/she is able to share the information provided to friends. Such contracts have been a major marketing breakthrough for Etihad.

Stakeholder satisfaction and consideration

The Etihad organization has a variety of stakeholders. These are inclusive of municipal service sources, local citizens, and government representatives. In order to keep the stakeholders interested in business, Etihad has a strategy aimed at stakeholders’ satisfaction this means that the organization’s approach is based on its skills and experiential legacy in terms of skills in the industry. It also incorporates the moderation of as well as amendment as per the feedback obtained from its stakeholders. In addition to this, Etihad gives its stakeholders the opportunity to perform an annual review of the organizations objectives and achievements (Namaki, 2008). This is a very vital tactic. It has helped Etihad to stay afloat even in the face of economic and universal pecuniary crisis. As such, the feedback obtained from the firms’ stakeholders is unequalled in keeping the firm on toes in terms of policies, services provided, and strategies. This strategy for stakeholder satisfaction also assists in ensuring that projects associated with the interests of the stakeholders are updated when need arises.

Internalization of new technology

In this era of information, the ability of organizations to stay afloat depends largely on its capacity to internalize new technological enhancements. This strategy was introduced in Etihad a year before its first international flight. Since then, the company has engraved the stratagem of technology internalization in every annual strategy report. In order to ensure that the organization remains abreast new technological advancements, two sub-stratagems have been put in place. To begin with, the experimental infrastructure of Etihad is always kept up to date. This plays an essential role in the simulation of hardware as well as software requirements. Complex molds and gears of the organization are placed under competent personnel to increase its computing ability. In addition to this, the organization has also ensured that its services are compatible with the modern ATM equipment (Namaki, 2008). The displays of the regulator ATC are simulated to include modernized simulations of the enormous flat pane instruments. Secondly, Etihad has invested enormously in the arena of innovation. It has directed a great percentile of its resources to ensure exceptional innovation. This stratagem enables the organization to venture in to new and radical expertise. This particular strategy has enabled Etihad to link up with universities with the motive of coming up with better technological expertise. As such, the strategy of internalizing new expertise has resulted to major improvements in the modeling of Etihad’s airlines.

Balancing organizational objectives

This strategy serves to create stability within Etihad. It also helps in the evaluation of the organizations performance. For this strategy to be effective, Etihad has put in to consideration the preferences of its stakeholders. It means that the organization is aware of the fact that stakeholders are more short term oriented when it comes to objectives. This is because they are greatly affected by the prevailing financial and economic conditions. With this stratagem in place, Etihad is able to analyze forecasts as well as setback figures thus coming up with a prediction of future performances. The balance between the two objectives is achieved by providing the necessary support to the providers of air travel services especially when prototyping and testing of new-fangled regulator interface blueprints are required (Hanlon, 2006).  This has also been achieved via the centralization of long-standing goals and activities. Centralization is encouraged by the stakeholders because it ensures that their short-term interests are well protected.

The balancing of the time-differentiated objectives is also a strategy accomplished via industrialization. To make this strategy effective, Etihad has identified products that can be developed additionally by external partners. This means that the organization has signed contracts with the external technically oriented world to ensure improvements in the manner in which it offers its services. With such a stratagem, the organization is able to blend both its long-standing and short-standing objectives because any technological advancement along the way leads to the alteration of goals that are already set. In addition to this, the strategy plays a vital role in the creation of commercial responsiveness (Hanlon, 2006).

Processes

The effectual performance of every international firm depends on the ability to ensure competent procedures. At inception, Etihad started by devoting its time and resources towards mapping and certification processes. During the first year of its operation, the organization arrived at a consensus regarding the major scaffold of vital processes needed to implement its strategies.

Internal communiqué

This is one of the key processes in the Etihad organization. After every two weeks, the organization facilitates for employee meetings. These meetings are geared towards the exchange of information amongst employees so that the set working program can be carried out effectively. Occasionally, the organization involves stakeholders in its work curriculum management gatherings (Taneja, 2010). This is done to enhance the organizations visibility at the performance level. It also serves as a route to attaining vital feedback. Also inclusive of this process is the systematic assessment of personal employee projects. This is done to ensure that every employee in the organization understands the vitality of his/her contribution to the overall organizations objective. Such sharing of information is essential in facilitating procedures in the organization. It also aligns individual efforts and objectives to the policies of Etihad.

The organization ensures staff gatherings are held twice every year to communicate new policies that are added in to the organizations log-term goals. During these gatherings, the vital initiatives are elucidated.  Moreover, management summits are held four times every year. All the central managers of the organization attend such summits. In addition, the organization ensures that weekly magazines are provided to each of its employers. This is correlated with information corners provided a weekly basis to all employees. The purpose of these two is to ensure that no worker lags behind in terms of information. These informative processes also crate a consistent awareness of each employee’s contribution to the overall success of the firm.

Human resource procedures

Etihad records its HR procedures by using the intranet. The department in charge of human capital runs its HR procedures. Over the years, the organization has gained applause from the international community for its effective HR routines. However, surveys carried out in the year 2005 reveled that the organizations employees were dissatisfied with the HR routines of that time. It is therefore logical to assert that the organization has in deed made many positive changes since then. This is revealed by a study done on the same issue two years after that. Results showed that a whooping 78% of the employee populace were comfortable with the HR methodologies (Taneja, 2010).

The processes include training, management of staff, and enrollment (Taneja, 2010). In order to make these procedures more effective, Etihad performs a check on the HR department after every six months. The organization’s processes in the management of human capital also take the form of interior audits for all activities performed. Prior to any new recruitment, the entire staff at the head office discusses the positions available and the qualities applicants are supposed to have. After this, the processes of handling recruitments and staff are left to the HR section. Apart from this, this section is left with the responsibility to carry out staff surveys and address the findings thereof. The office in charge of managing staff affairs is also faced with the responsibility of dictating the operation hours. It also takes care of processes that cater for employee discipline and performance. These include questions and administrative problems. Such procedures play a vital role in providing staff with ample time to handle the ever-increasing tasks.

Performance evaluation process

In order to ensure employee motivation for ultimate productivity, Etihad carries out annual processes aimed at evaluating and rewarding its employees. This has been the trend since the inception of the organization. This particular process consists of interviews as well as printed reports. As per the executives, each must have an appraisal once in every two years. Etihad has put in place training programs for the performers of this process. The only people exempted from the appraisal procedure are those expected to retire within the current year. In the year 2006, the company set a record of 86% of completed appraisals (Namaki, 2008). Over the years, this process has turned to become part of the organizational culture at Etihad. As such, its appreciation amongst the firms’ employees has gained popularity.

Customer results

            Etihad has developed a trend for excellence in business that measures comprehensively the achievements and exceptional results with special reference to its clients. It is the responsibility of every organization to satisfy its clients if it is to stay afloat in the global competitive environment. Careful observations reveal that Etihad has successfully engaged in this arena. Patron results involve evaluating the advantages that the existence of an organization accrues to its customers. It is also inclusive of obtaining necessary feedback with the motive of enhancing performance.

Client fulfillment

Etihad carries out an all-inclusive survey on its clients after a period of 18 months. The analysis is structured in such a way that data is gathered in an organized manner to determine the effectiveness of the organization in fulfilling the demands of its clients. Depending on whether the results reveal an increment or stable levels of satisfaction, Etihad responds appropriately to promote efficiency (Hanlon, 2006). However, over the years the organization has encountered the same problem annually on this matter. This has to do with the issuing of questionnaires. A good example is evident from 2005 to 2008. Surveys carried out during this time were not as effective as expected because of low rates of client response. The organization faces such challenges because of the inability of its ground men to issue questionnaires early enough. It is however important to note that Etihad has recorded notable improvements in this area since the year 2009. This is since then the organization has been able to collect accurate data thus making client feedback part of the process. As such, Etihad has managed to improve in the arena of client fulfillment over the past two years.

            Company map deliverables

            In order to ensure proper track of the organizations ability to satisfy the needs of its clients, Etihad came up with organizational deliverables covering al its aspects of operation. Beginning the year 2007, Etihad initiated a strategy to have every client receive email questionnaires. This has been done annually since then with the motive of determining the client satisfaction echelon. Over the years, the emails have been more efficient as compared to sending people in the field. In the year 2008, Etihad recorder its highest performance as per the data collected on customer satisfaction. With a target of 90%, the organization had a rejoinder rate of 48%.  Feedback obtained from the clients showed that 80% were very pleased, 14% were slightly satisfied, and only 6% were not satisfied at all (Taneja, 2010).

Feedback

            The aspect of readily available client feedback has been developed by Etihad to act as a major booster in its ability to meet the requirements of its clients. Once on board, the organization has developed a strategy to seek feedback from clients before they alight. Questionnaires are issued out to the clients on board. The questionnaires are inclusive of comments from the customers. It is expected of each client to fill the questionnaire and leave it in the plane before alighting. Although it is not mandatory for clients to fill the questionnaires, this strategy has provided Etihad with consistent feedback from its clients.

Summary and conclusion                  

This paper has discussed Etihad Airways one of the organizations based in the UAE. It has introduced the organization in question. In addition, the paper has explored Etihad’s Strategy, processes and client relations. The content of this per was discussed with reference to excellence in business. From the information gathered during this research, it is important to note that Etihad is an organization that has developed a strong resistance to economic and financial conditions. Its resilience and ability to stay afloat despite the challenges in the airline industry are because of its effective strategies. Etihad was able to gain a foothold in the competitive airline industry because it embraced the present times and seasons by developing strategies to stay aligned with modern technology.  Its efficient marketing stratagems, ability to balance its objectives, and stakeholder satisfaction represent the core strategies for every successful firm in the same line of operation. However, Etihad can still improve its performance by exploring other strategic avenues such as forming alliances with giants in the industry. One of the most commendable areas of improvement in Etihad airline procedures is the HR processes (Hanlon, 2006). This tells us why the organization has been able to survive in today’s competitive environment. In terms of customer relations, Etihad is one of the world best. The study carried out in the year 2008 reveals the platform on which the organization has thrived on until today.

On a conclusive note, Etihad has already set the platform required for it to become a landmark in the airline business. It is an example of organizations whose main concern is the satisfaction of its clients. This research provides a hint for the failure of other entrants in the airline business. This is derivable from the capacity of Etihad to survive despite its inability to record profits from one financial year to another. It is thus clear that the basis for airline business is customer fulfillment.

 

Reference:

Books, LLC. (2010). Organizations Based in Abu Dhabi: Companies Based in Abu Dhabi, Museums in Abu Dhabi, Etihad Airways, Gasco, Etisalat, Louvre Abu Dhabi. Melbourne: General Books LLC, p 15-21.

Hanlon. (2006). Global airlines. Massachusetts: Butterworth-Heinemann, p 52-54.

Kanji, K. (2002). Measuring business excellence. New York: Routledge, p 18-23.

Namaki, S. (2008). Strategy and entrepreneurship in Arab countries. New York: Palgrave Macmillan, p 41-47.

Taneja, K. (2010). Looking beyond the runway: airlines innovating with best practices while facing realities. New York: Ashgate Publishing, Ltd., p 24-27.