Recommendation

Just as the retirement period for the emirates airlines president Tim Clark nears, it is critical that the incoming president to be conversant with the culture of the firm. It is recommended that he will be under the mentorship of Clark for some time before his retirement to ensure that he fully understands the trajectory growth and development associated with the company. The organization has been on a tremendous rise and has been recognized as the 3rd largest airline in the world with the most significant number of passengers internationally. It is for this reason that it is recommended that the incoming president must maintain these standards. Since he is expected to come outside the management of the airline, we also suggest that he will be initiated into the five year strategic plan of the organization and the possible challenges that may hinder realization of these objectives.

Main problem

Being a global organization and the dynamism in the airline industry, it is worth noting that there are numerous challenges facing the airline and the new boss must be equal to the task and decisively deal with them. One of the major challenges of the airline is the ownership problem of the organization. Emirates airline is a single party owned organization that has resulted in conflicts between the organization and other competitors. This has also led to several anticompetitive claims that have made restrictions on the airline’s accessibility to various airports. It is also worth noting that Emirates airlines have also spent heavily in legal suits in its attempt o defend itself from these anticompetitive claims.

Proposed solution

After identification of the main problem at the Emirates airlines, it is essential that we offer the solution to the problem. In order to have an efficient solution to the problem at hand, it is worth understanding the primary cause of the problem. Most of the anticompetitive claims are as a result of the single ownership state of the organization. The competitors are convinced that Emirates airlines get unfavorable benefits from the government. To deal with this problem, the management must think of restructuring the ownership organization to a multiparty enterprise. The incoming president should strive to ensure that the ownership of the organization changes from a single owned party to a publicly traded entity. Listing of shares on the stock market will be critical as it will provide the avenue for restructuring the ownership structure of the organization.

Potential advantages

Restructuring of the ownership structure of the Emirates airlines will have several advantages. For instance, listing of shares in the stock market will help to soliciting funds essential for development and increased efficiency within the organization. Sale of shares will give the airline an opportunity to raise funds that can be used in buying of more types of planes to add to its three types. This money can also be used in diversification of the types of fliers as well as increasing the pay for its staff that is supposedly lower than that offered by the competitors.  It is also important to understand that most of other airlines are publicly traded entities and by publicizing the entity there will be a same play level of competition. This will be an important step towards reducing the ever increasing anti-competitive claims.

Another potential advantage associated with the incorporation of the airline is increased professionalism in the management process of the organization. Publicly traded entities are managed more effectively since they are governed by rules and regulations that promote high business ethics and standards. For instance, the firm will be expected to report its annual financial statements that are essential to reduce cases of corruption and embezzlement of funds. With such professionalism, there is a high possibility that the organization might be ranked the first in terms of air freight within the next five years.

Potential disadvantages

Despite the numerous advantages associated with the incorporation of the Emirates airlines, it is also paramount for the incoming president to be wary of some disadvantages resulting from the process. One of the most notable disadvantages is the slow decision-making process associated with publicly traded organizations. This is because the board of directors must present their choices to the stockholders during the annual general meeting.

Potential consequences

Any action must have its consequences. The new boss must be prepared for the consequences of implementing the proposed solution for the smooth operations of the airline.  For instance, the organization will have to increase its capacity and the number of passengers it serves globally. There are high expectations that there will be more new A 380s that will be deployed to over 20 more destinations. There will also be more funds invested in new fleet thus increasing the demand for a more human resource. It is also hoped that the organization will venture into other destinations, apart from the mega hub in Dubai, to increase its competitiveness and this will demand for more staff and offices to ensure the expected level of service is realized.

Criteria used

I will use two criteria to analyze the recommended solution;

Criterion 1: The approach used to deal with this change must take the least time possible. Restructuring the ownership structure of the organization will not take a long time and will not affect the operations of the organization to a big extent. The process just involves advertising of the intentions trading the shares and making the necessary legal requirement.

Criterion2: Does the approach has a significant impact on the personnel of the organization, are there new skills required for the continuation of the organization. It is worth noting that restructuring of the ownership structure of the organization has little impact on the personnel. There is no need for overhaul change of the organization staff and the organization will just need to add to the already existing staff.

Analysis of the criteria

Using criteria #1: this solution is the best because it is not time-consuming and has less impact on the daily operations of the organization.

Using criteria #2: this solution is the best since the firm does not need to hire new skills or personnel. The only expected change is additional staff that will be as a result of increased capacity of the airline.

Implementation

The problem faced by the emirates airlines is urgent and must be addressed with immediate effect. It imperative to note that the anticompetitive claims are denying the organization potential profits and thus there must be urgency in the implementation process. Since there are no budgetary limitations to this exercise, the change must be concluded within a period of one year. Air travel industry is also very dynamic and this change will be critical for the competitive edge of the Emirates airlines.

Contingency plan

This will be a very critical aspect if the execution of this plan does not go as expected. In this case, Emirates airlines must be well equipped with a strategy forming mergers or acquisitions with other already publicly traded organizations. This will shield the company from the risks of under subscription of the listed shares.  It will also shield the company from the increasing suits of unfair competition since it will be a new different entity.

Conclusion

As earlier stated, it is worth noting that change is a common occurrence in the modern day business. As explained by Joan Magretta, the greatest challenge is how to cope with the changes as far as management is concerned. It is recommendable for the management of the organization to command change rather just reacting to its simulations. The incoming president must learn to accept change and cultivate a competitive edge for the organization. It is clear that Emirates Airlines have registered a trajectory growth over the years. It is, therefore, important for the new CEO to maintain such standards since the organization culture must be maintained at whatever costs.

Works cited

ALCÁCER, JUAN, and JOHN CLAYTON. “Emirates Airline: Connecting the Unconnected.” Emirates Airline: Connecting the Unconnected 1. Print.

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