Question

Suggest how emirates airlines might employ a level, chase, or mixed strategy to best meet its demand. You should explain how your suggestion would enable the firm to best meet their typical demand in a way that minimizes cost or maximizes profit.

Answer 1

• Level strategy maintains an aggregate plan and keeps providing goods and services as per the plan without varying the strategy, steady production and the steady employment rate is maintained. The major weakness is that production level and employment levels are not altered according to market demands. It works for an organization which has a booking for and constant demand of product planned for next 3 years like the manufacturer of planes, military trucks followings same standard pattern and design with a constant demand till next order or change in specification is addressed.
• Chase Strategy produces exactly as per market demands. They will alter its plans to meet the changing market requirement. It is suitable for restaurant businesses which will change the daily spread of menu according to customer walk-ins and perceived a change in demand.

Emirates airlines providing prime air travel to customers worldwide to 151 locations in 80 countries across 6 continents. The number of passengers traveled was 56 million. The emirates seat factor occupancy has remained constant from 2009 to 2017. The size of the organization has increased multifold.

The company needs to follow a hybrid or a mixed strategy where a certain amount of demand and employees need to be factored in the demand which is constant between 75% to 80% in last decade, it has to be planned and catered for constantly. About 15 to 20% of its services and employment factors can be handled by the changing market demand, adding new sectors, and change in services due to some emergencies or disasters. The other factors to be considered are as follows:

1. Calculate demand for each quarter
2. Calculate the capacity of that quarter
3. Calculate the departments which might need extra or fewer resources and try job rotation or manpower rescheduling.(Cant be done for specialized services like the highly skilled job of a pilot)
4. Calculate the cost of each activity versus the profit to the organization
5. Then Emirates can create a plan to maximize their returns and minimize the costs.