J1EP04 Global Business Management Assignment Sample
Introduction
Air transportation, on the other hand, is a massive operation in and of itself, and it makes substantial contributions to other elements of society such as the economy, politics, and social activities. Due to this phenomena, a significant amount of greenhouse gas emissions are produced, contributing to global warming. Like the need for other modes of transportation, the need for its services is driven by the objectives and aspirations of individuals who want to attain some other, ultimate goal, which in turn drives the demand for its services, as is the case with other forms of transportation. When it comes to the economic growth of flysafe a latent demand for the products and services offered by a particular sector or industry, on the other hand, is necessary before this can be implemented. In the same way that every other input into the economic system may impede effective growth, air transportation can do the same. While a shortage of air transportation can be detrimental to the overall functioning of the economy, the inappropriateness or excesses of supply can be just as detrimental.
Current Scenario
After being established in 1973, the organisation began by operating only 5 aircraft on two routes within the region at the time of its inception. Because there was no competition at the time, they were able to produce significant profits in spite of the fact that they faced several operational difficulties. The organisation has grown considerably in more than forty years, employing over 2000 people and managing a fleet of 300 cutting-edge aircraft, among other things. In recent years, the market has transformed, with a number of non-Middle Eastern airlines operating the route and offering low-cost fare options. Consumption has become more selective, and consumers have developed “price sensitive” attitudes as a result of the current market competitive climate in which they are seeking benefits. When there is no connection between the flying hours of rotating spares, supplier schedules, and supply chain shipping plans, there is no connection between the reporting and data transfer lines that are created. Super Turbines and North Star Aircraft Limited, both of which supply the organisation with engines, landing gear, and other power plant components, have expressed dissatisfaction with the organisation as well. The result has been significant delays in major overhauls, and suppliers have only made minor concessions as a result of these delays. Flysafe has also recently increased the number of products it offers.
Cross functional drivers in the context of current global trends for Flysafe
In the short run, economists’ ideas of equilibrium are correct because the world is a dynamic environment in which to live and work; but, because the world is a dynamic environment in which to live and work, economists’ conceptions of equilibrium are continuously changing. Business companies that supply services to this dynamism, which in this instance is characterised by the unique thrust of globalisation, would suffer as a result; this includes, among other things, firms in the aviation industry. Feedback loops may be generated as a result of developments in air transportation having the ability to have an impact on the structure and rate at which globalisation and associated processes take place, as well as the processes themselves. Even if there is a need for air transportation, the institutional context in which these services are offered has repercussions for the rest of society as well as the aviation sector. The expected consequences of this type of feedback loop include direct economic, political, and social consequences (such as increased commerce and personal mobility), as well as indirect consequences (such as increased environmental costs associated with air travel) as a result of these feedback loops.
Current theories and concepts that might impact the sourcing decisionsfor Flysafe.
In order to be understood, the analysis offered here must be oversimplified in order to account for the varied and dynamic character of globalisation. There is just one channel of causation taken into consideration: the influence of globalisation on the international commercial aviation industry, which is the only one. International commercial aviation is the sole area of study that is not a substantial part of the overall picture, and only one direction of causality is studied. When they are particularly relevant to the situation, some associated concerns are taken into consideration as part of the decision. A number of others are not taken into consideration. Examples include how the line between international and domestic air transportation is becoming increasingly blurred as airlines form alliances and invest in one another in order to form global networks of flights, which is one of many examples. Because of this integration, the European Union’s domestic and international air transportation markets are de facto merging into a single market, as seen by the EU’s domestic and international air transportation markets combining. It is not always the case that feedback loops are ignored, particularly when technological advancements in air transportation enable global trends that have a negative impact on the airline industry; for example, migration of labour is an example of such a situation.According to the company’s website, they are changing two of its older 777 aircraft into freighters to serve their Flysafe Global Caterers division as part of their business plan. For the most part, during the previous two years, their Oman and Saudi-based airlines have complained that their Dubai location does not allow for the shortest delivery.
Current issues facing global supply chains and its relevance to Flysafe Market environment
To put it another way, globalisation is the process of changing things or phenomena into global phenomena, or the process of elevating things or phenomena to a level of significance that is recognised around the globe. It is possible to characterise at the most fundamental level a process by which the peoples of the world are brought together into a single civilization and function as a single unit of action as follows: All of the elements involved in this shift are functioning together, including economic, technological, socio-cultural, and political factors. If we look at globalisation in the narrower sense of economic globalisation, it is the process of integrating national economies into the global economy through trade, foreign direct investment, capital flows, and migration, as well as the diffusion of technological innovation, as defined by the United Nations. As previously said, globalisation is the process of integrating national economies into the global economy, which is what we are referring to when we use the term “globalisation.” 1 It is clear that enhanced mobility and personal interchanges made possible by air transportation have far-reaching socio-cultural and political implications, despite the fact that this study is limited in its scope and concentration.
Outsourcing strategies anddevelop original and creative responses to the issues surrounding outsourcing strategies
There is also much dispute over the origins and effects of current globalisation processes, which began in the second half of this century and have wide-ranging consequences, such as the rise of China. To use a phrase from Thomas Friedman (2005), the world is “flat,” in the sense that globalisation has levelled the playing field between industrialised and poor countries. Consequently, the world of trade has been irrevocably affected as a result of globalisation. In this industry’s progression over time, factors such as outsourcing, supply chain management, and political pressures have all played a part, both for the good and for the bad, in both the positive and negative aspects of the industry’s development. His third point of reasoning is that the pace of globalisation is accelerating, and that it will continue to have an increasing impact on corporate structure and practise in the future, as he says, as globalisation continues to accelerate. Others have linked this flattening to a variety of factors, including the introduction of personal computers, the development of fiber-optic micro cables, and the development of work-flow software. It is he who coined the term “Globalization 3.0” to describe this phase of the globalisation process, which differs from Globalization 1.0 (during which countries and governments played the primary role in globalisation) and Globalization 2.0 (during which multinational corporations played the primary role in global integration), which were the two phases of the globalisation process that came before it. Using a similar method is something that Tingbani, (2019) performs from a somewhat different standpoint than the author when it comes to comparing approaches. The increased accessibility and speed of communication, according to many, is bringing us closer to a future in which distance will no longer be a barrier to our capacity to connect with and communicate with others (LeBaron,2019).
Multimodal systems and system strategies which can be beneficial forFlysafe
It is possible for workers in one part of the globe to build software and then transfer it to another firm hundreds of kilometres away, which will compile the code for marketing reasons and then distribute it to customers in another part of the world. Given the flexibility of workers’ ability to work from anywhere in the globe, governments will find themselves in a position of competition for citizens as individuals relocate for a number of reasons, such as lower taxes or more pleasant weather (Jones,2018).
A number of factors have contributed to the acceleration of these processes, including broad political shifts such as the disintegration of the Soviet Union, the gradual emergence of international free trade organisations such as the European Union and the World Trade Organization, and a reduction in global political tensions, all of which have contributed to their acceleration. A disproportionately large number of these technical improvements have happened in the transportation business, according to 6. Because of the considerable advancements in information and communication technology that have happened in the last decade, this accomplishment is all the more impressive. While the “telecommunications revolution” is frequently regarded as a separate phenomenon and outside the scope of conventional transportation analysts’ research, it actually represents one of the most significant shifts in transportation since the widespread introduction of mechanical transportation in the mid-nineteenth century, according to the International Telecommunications Union (Wilkins,2018).
Implement an operational project that can address some international logisticalchallenges.
In recent years, air transportation has become more entangled with globalisation and the telecommunications revolution, despite the fact that it is still a product of the mechanical period. In addition, as Frances Cairncross has pointed out, it has played a critical part in the opening up of labour markets as well as the development and maintenance of low-cost telecommunications technology, in addition to its function as a facilitator for the expansion of businesses in general. As a consequence of the information and communications revolution, air traffic management and navigation have substantially improved, as has the profitability of airline logistics, which entails the movement of millions of passengers and a large amount of cargo via very complex networks (Hacioglu,2019).
The lack of fixed costs, according to fundamental economic theory, will ensure that the process of bargaining between suppliers and customers will ensure that prices are kept at a minimal level that will allow providers to recover all of their expenses over the long term. Without regard to fixed costs, the marginal cost of meeting customer demand is equal to the overall cost of production when no fixed costs exist, unless there are additional considerations to take into account. In situations when there are fixed expenses, it becomes more difficult to manage and keep control over the situation.
in depth analysis for problems in warehousing and inventorymanagement and prepare a comprehensive action plan
The notion of fixed expenditures in accounting was formed as a result of the requirement of paying for the bricks, steel, and mortar that made up industrial plants, which eventually led to the development of the fundamental concept of fixed expenses in accounting. Fixed expenses linked with service sectors, particularly those needing regular operations, have experienced substantial alteration as a result of the changing nature of the world in a variety of ways. It is true that airlines employ expensive equipment, but this is not the basis of their core fixed cost problem. Increased fuel costs since 2007 have significantly altered the pattern in which labour has traditionally been the most costly component of an airline’s operating expenditures. In the past, labour was the most expensive component of an airline’s operating expenses. 15 To put it another way, these are variable expenses in the traditional sense of the word. As a result, carrier aircraft are no longer owned by the firm, but rather are leased, most often under a wet-lease deal that covers both employees and the aircraft itself (this is prohibited in the United States). Airline enterprises are classified as “virtual carriers” in conventional economics, because they aim to put together bundles of services held by others while incurring just a minimal amount in fixed costs themselves.
The fixed expenditures that may be spent when running a modern service firm can be of many different forms and at various levels of intensity. The sixth month before a scheduled flight is when an airline commits to providing a specific scheduled service — it commits to having a plane and crew on board as well as fuel on hand, gates, landing and take-off slots, and other resources available on the day of the flight at a specified time and defined location, for example. Although collecting tickets before an airline is obligated to provide a service has some advantages, in a highly competitive market, the little amount of cash that may be generated as a consequence of the practise often surpasses the advantages of doing so in the long term. a.
Different approaches for selecting logistics modes and choosing the bestphysical distribution strategies for Flysafe.(25
According to the Flysafe Administration, airlines that operate in deregulated markets engage in pricing discrimination, offering varying prices to different consumers in order to maximise revenue and profits. In practise, this implies that lower prices are given initially when a flight is many weeks or months away from taking place since leisure travellers are willing to pay less for a seat and are more flexible in their scheduling, and they will take advantage of lower prices when they are offered. They are captured by airline personnel within the first five minutes of the flight.
Due to a fierce competition for seats in the last hours before departure, many last-minute travellers, many of whom are business travellers, have caused ticket prices to climb to historic heights. These folks are less sensitive to price rises than the general public, and meeting a last-minute business deadline can make or break a transaction in their eyes. Businesses in this category are typically eligible for tax deductions that may be used to offset the expenses of raising prices, which can be beneficial. When there is a competitive market with a fixed timetable, such as when all of the airlines schedule their departures for each of their many destinations at around the same time, there is a significant issue. Due to intense competition to fill seats, prices have been forced to drop to levels that do not completely cover the expenses of the services that each member is required to provide. 16 As soon as you have filed one seat, you should consider filing another with anybody who is able to afford the increased fees associated with the additional processing as soon as you have filed one seat (Kasemsap,2020).
When you consider the issue throughout the length of a business cycle, as well as when new competitors enter the market, the situation becomes far more complex. This leads to market instability over time since aircraft enter and exit the market at inconvenient times, making the market more volatile as a whole (Radović-Marković,2019). As a result, even when there is excess capacity during the peaks of the cycle, investment levels are suboptimal as a result of this phenomena. The failure to properly refund an organization’s expenses may result in the organisation being compelled to close its doors. The “empty core issue” is a term used in economic research to describe an issue that is completely devoid of any content. A now-forgotten Oxford economist by the name of Francis Edgeworth created the term in the 1880s to describe a revolutionary notion (1881). However, the concept is not new nor limited in its application; rather, it has a long and distinguished history that can be traced all the way back to ancient Greece and Rome. As potential investors become more aware of the situation, they will either reduce their involvement in the industry or completely abandon it in the long term. However, communicating the intricacy of the underlying economic model to policymakers and other stakeholders, as well as to the general public, has proven to be a challenge. 17 Furthermore, this requirement is in direct contrast with the traditional and frequently ideological ideas of competition policy, which hold, among other things, that “there can never be too much competition.” It is often believed that there is “too much rivalry” in this field, and many who work in it are adamant that this is not the (caseagra2018).
Two supply chain management system models and their influence on advance planningand scheduling strategies for Flysafe
A wide range of geographical locations have been affected by the present crisis, which has resulted in significant income losses for important parts of the aviation industry. However, certain places have been disproportionately affected by the crisis. The majority of airlines, even low-cost carriers such as Southwest, have reduced or discontinued their routes, whilst the great majority of other airlines have restricted or terminated their services. In addition to legacy carriers such as Aloha and ATA Airlines, other airlines have gone out of business completely, including Skybus and Skybus Express. The International Air Transport Association (IATA) also reports that, in addition to the financial impact of rising fuel costs on European airlines (which include some profitable ones such as Ryanair and British Airways), carriers in other parts of the world, such as Qantas, which in June 2007 forecasted a $1.3 billion profit for 2008, in June 2008 forecasted a $1 billion loss, have also been hit hard by rising fuel costs, including airlines in the United States.
Lean Model
Airline companies have dealt with them in a number of ways over the course of history, with the overarching objective of attaining some kind of temporary monopoly control whenever and wherever the opportunity presented itself to do so. Except for a few initiatives, all of the attempts were extensions or adaptations of known strategies that had been used during previous market downturns but had failed to prevent airlines from facing long-term financial issues in future. Following are some examples of policies that have been adopted that have had an influence on the international air transportation industry (Räisänen,2018):
Several airlines have worked extremely hard to reduce expenditures in order to gain a competitive edge over their competitors, and several have been successful in doing so. Other carriers are unable to compete on price, and as a result, either the low-cost carrier’s prices remain competitive with the higher-cost carriers, allowing the low-cost carrier to generate a profit to cover fixed expenses, or the higher-cost carriers withdraw from the market altogether, depending on the circumstances Low-cost international airlines, such as Ryanair, have implemented this strategy to their advantage all around Europe, and the results have been favourable for the Flysafe (Brenkert,2019).
Cost barrier model
It is the ability of an airline to undercut its competitors and, as a result, establish market dominance that forms the foundation of the low-cost carrier business model, which may take on a variety of forms depending on the market (Brenner,2018). This generally entails standardisation in its operations (such as the use of a common family of aircraft and a homogeneous network of services), maximisation of the use of its labour force, serving less congested airports, providing a “no-frills” service on the plane and at the airport, restricting booking methods to the Internet, charging for non-core services (such as refreshments), and offering only one class of service (Goyal,2019). When compared to the expenses of common carriers, the pricing of such measures is competitive, allowing for savings of up to 30 percent on the total cost of travel. According to Morrison (2001), low-cost carriers have achieved significant cost reductions, which has prompted traditional carriers to follow suit, resulting in the bankruptcy of a substantial number of these carriers. This has been accomplished through labour contract renegotiations, the replacement of older aircraft with newer and more fuel-efficient aircraft, the rise of automation, and the unbundling of some services. Aeronautical technical restrictions set a limit on the number of sustainable and safe services that may be performed, and aircraft are regularly on the verge of breaching these limits in a variety of situations (Hacioglu,2019).
ICT applications tosupport and enhance Collaborative, Planning, and Forecasting Replenishing
Along with these factors, there are a few of other important considerations to keep in mind. Low-cost carriers have long benefited from “first mover advantage,” which has allowed them to develop and profitably enter new markets early. This has helped them to grow and profitably expand their operations. It is still easy to locate an exhaustive list of low-cost airlines that have failed across the world, including in Europe, by doing a simple search on the internet (see Table 3). In order to compete, low-cost carriers have been compelled to operate in markets that are becoming increasingly limited and incompatible with their business model as the number of low-cost carriers has increased. This is a really important topic. Increased competition among low-cost carriers has resulted as a result of the proliferation of low-cost carriers, with the result that their bottom lines have suffered as a result of the increased rivalry (Button and Vega, 2007). As a result of this evolution, incumbent airlines have become leaner and better prepared to deal with the challenges given by low-cost carriers attempting to enter their respective markets. Despite the fact that winners from the low-cost model may emerge in the future, the problem of market stability, which persists, is not alleviated by this development. Regardless of whether all airlines are low-cost, the competition among them will lead their cash flows to deteriorate over time, regardless of whether all airlines are low-cost.
relationship between CPFR models and ArtificialIntelligence (AI) strategies
The employment of subsidies to recuperate capital expenditures has been in use for a very long time in order to recover such costs. Consumers who make investments may find that extending the period over which they use their investments becomes economically advantageous if they are willing to pay for any additional expenditures that may arise as a result of using their investments after they have been made. As a result of the current trend toward unbundling the various attributes of an airline service – such as the charging of some airlines for food and second checked bags, for example – and activities in which incremental costs are explicitly charged, airline companies are attempting to distinguish between activities in which fixed costs are concentrated and activities in which incremental costs are explicitly charged. The ability to draw a more exact difference between fixed expenditures and additional qualities like as food and bag service, which can then be supplied on the open market at a competitive price, is enabled by this method. As a result, direct subsidies are used to offset fixed expenditures that cannot be recovered from consumers in any other way, such as rent, that cannot be recovered through other means.
relevance of commercial and operational financial statements and agreements forovercoming the current supply chain challenges at Flysafe
While it is usual for select eccentric people to make correct predictions (albeit ones that are seldom repeated), the historical track record of earlier seers has been mostly unfavourable, and it is unclear if this will continue. The task of attempting to predict the future of international air transport is difficult because, as is true for many other elements of human existence, it will be influenced not only by present trends, but also by trend breaks and new trends in the near future. In contrast, economists and others have constantly failed when it comes to anticipating trend breakdowns or the repercussions of new trends, even if existing trends can be extended in most cases. This is especially true in the financial markets, where economists and others have routinely and spectacularly failed to predict market movements. For the sake of safety, we will pay particular attention to new developments and how they are affecting the manner of international air travel as globalisation takes root and is projected to continue in its current course. In order to get started, we’ll just restate some of the estimates that have previously been made and are readily available in the public domain. It has the unfortunate effect of leaving out one very important issue, which is public policy in general and its relevance to the environment specifically. This is something that should not be overlooked. In spite of the fact that air transportation contributes just around 2% of global CO2 emissions, it has rapidly emerged as an important worldwide concern, particularly in the context of global warming gases. No matter that these environmental challenges present themselves on a more local level, the provision of infrastructure, particularly in the field of aviation, is extremely vital and is inextricably tied to them on a worldwide scale. Capacity expansion will be required in order to meet the growing demand for international air transportation services; however, this will almost always be greeted with considerable opposition from the local population. Parties other than government agencies are responsible for engaging in conversation about environmental concerns.
Develop a total cost strategy forthe acquisition of capital equipment for Flysafe.
It is projected that this trend of internationalisation and globalisation of the world economy would continue throughout the twenty-first century. A growing body of research indicates that globalisation is occurring at a more fundamental level in terms of cultures and political systems than had previously been assumed. It is true that air transportation has played a role in these improvements, but this does not take away from the fact that airlines, and to a greater degree the air transportation infrastructure, have had to adapt to changing consumer requirements in order to continue in business. There is a consequent increase in the need for high-quality, timely, and dependable international transportation services, resulting in an increase in the demand for air transportation services as a result of this increase in demand. Increasing mobility and access are practically synonymous with globalisation; yet, these criteria apply to a greater spectrum of people and things that must be transferred to or from other areas and over longer distances than were previously the norm, as opposed to what was formerly the case. However, globalisation is a beneficial trend that should be supported and fostered.
Impact of digitalpayment methods on supply chain and logistics,
Though it has only been around for a little more than a century, international air transport has already made significant contributions to globalisation, and it is constantly developing to meet the needs of the economic and social integration that globalisation brings about.. From an digital economic viewpoint, a more extensive division of labour and the potential for nations including digital payment to make more use of their comparative advantages are two reasons why globalisation occurs, and in static words, globalisation occurs.
Conclusion
Long-term, globalisation stimulates the transfer of technology and labour, as well as the dynamism that results from entrepreneurial activity. All of these elements lead to the development of new technologies and processes that benefit the whole world community as a whole. Aeronautics has played a vital part in the transportation of ideas, products, and people on a worldwide scale throughout history, and it will continue to do so in the future. The employment of aeroplanes has allowed for the achievement of both static and dynamic efficiency, enabling for the movement of commodities and people on a worldwide scale to be accomplished.
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