Rate IFE and EFE Matrix for below case study

A. Case Abstract Headquartered in Dubai in the United Arab Emirates, the Emirates Group is the parent of Emirates, the largest airline in the Middle East, operating over 2,500 flights per week from its hub at Dubai International Airport. Emirates flies to 120 cities in 70 countries and operates 4 of the world's 10 longest non-stop commercial flights. With 50,000 employees and 50 subsidiaries, the Emirates Group is wholly owned by the government of Dubai and controlled by the Investment Corp. of Dubai. Emirates is very profitable and growing over 20% annually. After beginning flights from Dubai to Warsaw, Algiers, Tokyo Haneda, and Stockholm in mid-2013, the Emirates is preparing to launch flights to Conakry in Guinea, Sialkot in Pakistan, Kabul, Kiev, Taipei, and Boston in the coming months. In October 2013, Emirates began flights from Dubai to Clark in the Philippines, a nonstop flight between Milan and New York, and a brand new A380 service to Brisbane. A clear strategic plan is needed for the firm to know when and where globally to roll out its popular services. B. External Audit Opportunities 1. The Dirham is pegged to the US Dollar so currency fluctuations are not significant. 2. The Government of Dubai treats Emirates as a wholly independent business entity on its own, and attributes this to the firm's success. 3. Dubai International Airport is expected to be the world's busiest by 2016 . 4. For fiscal 2012, Singapore Air profits were down $756 million to $336 million or 69%. 5. In 2013, profits in the airline industry are expected to continue to rise to $8.4 billion. North American carriers are expected to end 2012 with a collective net profit of $2.4 billion, despite GDP growth of only 2.0% and oil at a high price of $109.5/barrel. 6. Backed financially by the Dubai government. 7. British Airways, Delta, US airways and other carriers serving Europe and the USA do not offer near the level of service as Emirates. 8. Growing middle class around the world. 9. Air traffic is forecasted to grow 5.3% annually between 2012 and 2016 . 10. Through 2016 , the USA will remain the single largest market for domestic passengers at 710 million annually. Threats 1. Singapore Air is considered the closest competitor based on an overall business model of top service at a premium price and markets served. 2. Women are traditionally not allowed the same access to upper level jobs in the Middle East as men. 3. Rising fuel prices hurt overall profits, as fuel accounts for over 40% of all costs for Emirates. 4. The Arab Spring and instability in Africa also hurt profits, but the company's net profit for fiscal 2012 was $629 million, down 61% from prior year. 5. Over 100 different airlines provide service to Dubai International Airport. 6. Singapore Air markets they are the only airline to offer a standalone bed, not a converted seat. 7. Delta, British Airways, and other airlines are well entrenched in serving the USA. 8. Three of the largest alliances in the world are SkyTeam, Star Alliance and Oneworld. SkyTeam is based out of Amsterdam and was created in 2000 by founding members: Delta, Air France, Aeromexico, and Korean Air. 9. Volatile price of oil. 10. Ironically for Emirates, the fly Dubai discount airline may pose the largest threat to the firm, as demand for low price flights is growing rapidly globally. C. Internal Audit Strengths 1. The largest airline in the Middle East, Emirates flies to over 120 destinations in 70 countries on 6 continents. 2. Operates a fleet of over 170 aircraft and has another 230 aircraft on order worth about $84 billion. 3. Most of the company's planes include spacious private suites, and some planes provide a spa with showers. 4. Provide excellent service in Business Class, and Economy Class. 5. Emirates reported a profit for the 24th consecutive year in fiscal 2012 with revenues up 18% from the previous year, and the best year ever for Dnata, which had revenues of $1.9 billion. 6. History of acquiring firms such as Travel Republic Ltd. and Alpha Flight Group for fair prices. 7. Cargo revenues account for 15% of all revenue from the Emirates segment. 8. Emirates has aligned itself with high-level soccer teams and the US Open Tennis Tournament, providing excellent marketing on a global scale. 9. In fiscal 2012 alone, Emirates started long haul flights to Seattle, Dallas/Fort Worth, Rio de Janeiro, Buenos Aires, Washington DC, Geneva, Baghdad, and St. Petersburg, Russia, among others. 10. In January 2013, Emirates and Quantas, two rival firms, partnered to allow Quantas passengers to use the nicest terminal in Dubai in exchange for Quantas moving its hub for European flights from Singapore to Dubai. Weaknesses 1. No women are among the company's top management team. 2. The Americas only accounted for 11% of Emirates segment total revenue in 2012 . 3. Not a member of any strategic alliance that pools multiple aircraft companies together. 4. Company's net profit for fiscal 2012 was $629 million, down 6% from prior year. 5. Heavy reliance on domestic revenues (around 50\%) for the Dnata segment. 6. Dnata segment overall only accounts for around 10% of total revenues. 7. Does not offer full size beds in cabins for higher end customers. 8. Slow to enter the USA market. Competitive Profile Matrix Emirates is doing exceptionally well when compared to peers Delta and Singapore Air. A rapidly growing firm, Emirates has one area that needs addressing, expansion in the USA. D. Epilogue On June 18, 2013 in Paris, France, Emirates was awarded the highly coveted 'World's Best Airline' award, presented by Skytrax at the 2013 World Airline Awards. The company also received two other awards including: 'Best Middle East Airline' and for a record ninth year in a row, 'World's Best Inflight Entertainment.' The Skytrax World Airline Awards polled over 18 million business and leisure air travelers from more than 160 countries. On June 5, 2013 in Munich, Germany, Emirates SkyCargo, the freight division of Emirates, was awarded the 'Cargo Airline of the Year 2013' award at the Air Cargo Week World Air Cargo Awards. Emirates SkyCargo earlier in 2013, significantly boosted its cargo capacity with the addition of three new Boeing 777F aircraft, taking its freighter fleet to 10 aircraft and its dedicated freighter network to 13 destinations: Taipei, Chittagong, Eldoret, Lilongwe, Chicago, Almaty, Gothenburg, Zaragoza, Viracopos, Tripoli, Djibouti, Hanoi and Liege. Emirates SkyCargo currently serves a route network of more than 130 destinations in 77 countries, spanning six continents across the globe. On May 14, 2013, JetBlue Airways and Emirates announced expansion of their current partnership to include bilateral code sharing, pending FAA and DOT regulatory approval, whereby JetBlue will place its "B6" airline code on all flights currently operated by Emirates between the USA and Dubai International Airport, as well as between New York's John F. Kennedy International Airport (JFK) and Milan, Italy. The agreement deepens a three-year partnership between JetBlue and Emirates. Emirates started placing its code on select JetBlue-operated flights in April 2012, expanding an interline agreement that dates back to 2010. Current codeshare routes offered by Emirates on JetBlue-operated flights cover 28 destinations. Not a publically traded company. A. Case Abstract Headquartered in Dubai in the United Arab Emirates, the Emirates Group is the parent of Emirates, the largest airline in the Middle East, operating over 2,500 flights per week from its hub at Dubai International Airport. Emirates flies to 120 cities in 70 countries and operates 4 of the world's 10 longest non-stop commercial flights. With 50,000 employees and 50 subsidiaries, the Emirates Group is wholly owned by the government of Dubai and controlled by the Investment Corp. of Dubai. Emirates is very profitable and growing over 20% annually. After beginning flights from Dubai to Warsaw, Algiers, Tokyo Haneda, and Stockholm in mid-2013, the Emirates is preparing to launch flights to Conakry in Guinea, Sialkot in Pakistan, Kabul, Kiev, Taipei, and Boston in the coming months. In October 2013, Emirates began flights from Dubai to Clark in the Philippines, a nonstop flight between Milan and New York, and a brand new A380 service to Brisbane. A clear strategic plan is needed for the firm to know when and where globally to roll out its popular services. B. External Audit Opportunities 1. The Dirham is pegged to the US Dollar so currency fluctuations are not significant. 2. The Government of Dubai treats Emirates as a wholly independent business entity on its own, and attributes this to the firm's success. 3. Dubai International Airport is expected to be the world's busiest by 2016 . 4. For fiscal 2012, Singapore Air profits were down $756 million to $336 million or 69%. 5. In 2013, profits in the airline industry are expected to continue to rise to $8.4 billion. North American carriers are expected to end 2012 with a collective net profit of $2.4 billion, despite GDP growth of only 2.0% and oil at a high price of $109.5/barrel. 6. Backed financially by the Dubai government. 7. British Airways, Delta, US airways and other carriers serving Europe and the USA do not offer near the level of service as Emirates. 8. Growing middle class around the world. 9. Air traffic is forecasted to grow 5.3% annually between 2012 and 2016 . 10. Through 2016 , the USA will remain the single largest market for domestic passengers at 710 million annually. Threats 1. Singapore Air is considered the closest competitor based on an overall business model of top service at a premium price and markets served. 2. Women are traditionally not allowed the same access to upper level jobs in the Middle East as men. 3. Rising fuel prices hurt overall profits, as fuel accounts for over 40% of all costs for Emirates. 4. The Arab Spring and instability in Africa also hurt profits, but the company's net profit for fiscal 2012 was $629 million, down 61% from prior year. 5. Over 100 different airlines provide service to Dubai International Airport. 6. Singapore Air markets they are the only airline to offer a standalone bed, not a converted seat. 7. Delta, British Airways, and other airlines are well entrenched in serving the USA. 8. Three of the largest alliances in the world are SkyTeam, Star Alliance and Oneworld. SkyTeam is based out of Amsterdam and was created in 2000 by founding members: Delta, Air France, Aeromexico, and Korean Air. 9. Volatile price of oil. 10. Ironically for Emirates, the fly Dubai discount airline may pose the largest threat to the firm, as demand for low price flights is growing rapidly globally. C. Internal Audit Strengths 1. The largest airline in the Middle East, Emirates flies to over 120 destinations in 70 countries on 6 continents. 2. Operates a fleet of over 170 aircraft and has another 230 aircraft on order worth about $84 billion. 3. Most of the company's planes include spacious private suites, and some planes provide a spa with showers. 4. Provide excellent service in Business Class, and Economy Class. 5. Emirates reported a profit for the 24th consecutive year in fiscal 2012 with revenues up 18% from the previous year, and the best year ever for Dnata, which had revenues of $1.9 billion. 6. History of acquiring firms such as Travel Republic Ltd. and Alpha Flight Group for fair prices. 7. Cargo revenues account for 15% of all revenue from the Emirates segment. 8. Emirates has aligned itself with high-level soccer teams and the US Open Tennis Tournament, providing excellent marketing on a global scale. 9. In fiscal 2012 alone, Emirates started long haul flights to Seattle, Dallas/Fort Worth, Rio de Janeiro, Buenos Aires, Washington DC, Geneva, Baghdad, and St. Petersburg, Russia, among others. 10. In January 2013, Emirates and Quantas, two rival firms, partnered to allow Quantas passengers to use the nicest terminal in Dubai in exchange for Quantas moving its hub for European flights from Singapore to Dubai. Weaknesses 1. No women are among the company's top management team. 2. The Americas only accounted for 11% of Emirates segment total revenue in 2012 . 3. Not a member of any strategic alliance that pools multiple aircraft companies together. 4. Company's net profit for fiscal 2012 was $629 million, down 6% from prior year. 5. Heavy reliance on domestic revenues (around 50\%) for the Dnata segment. 6. Dnata segment overall only accounts for around 10% of total revenues. 7. Does not offer full size beds in cabins for higher end customers. 8. Slow to enter the USA market. Competitive Profile Matrix Emirates is doing exceptionally well when compared to peers Delta and Singapore Air. A rapidly growing firm, Emirates has one area that needs addressing, expansion in the USA. D. Epilogue On June 18, 2013 in Paris, France, Emirates was awarded the highly coveted 'World's Best Airline' award, presented by Skytrax at the 2013 World Airline Awards. The company also received two other awards including: 'Best Middle East Airline' and for a record ninth year in a row, 'World's Best Inflight Entertainment.' The Skytrax World Airline Awards polled over 18 million business and leisure air travelers from more than 160 countries. On June 5, 2013 in Munich, Germany, Emirates SkyCargo, the freight division of Emirates, was awarded the 'Cargo Airline of the Year 2013' award at the Air Cargo Week World Air Cargo Awards. Emirates SkyCargo earlier in 2013, significantly boosted its cargo capacity with the addition of three new Boeing 777F aircraft, taking its freighter fleet to 10 aircraft and its dedicated freighter network to 13 destinations: Taipei, Chittagong, Eldoret, Lilongwe, Chicago, Almaty, Gothenburg, Zaragoza, Viracopos, Tripoli, Djibouti, Hanoi and Liege. Emirates SkyCargo currently serves a route network of more than 130 destinations in 77 countries, spanning six continents across the globe. On May 14, 2013, JetBlue Airways and Emirates announced expansion of their current partnership to include bilateral code sharing, pending FAA and DOT regulatory approval, whereby JetBlue will place its "B6" airline code on all flights currently operated by Emirates between the USA and Dubai International Airport, as well as between New York's John F. Kennedy International Airport (JFK) and Milan, Italy. The agreement deepens a three-year partnership between JetBlue and Emirates. Emirates started placing its code on select JetBlue-operated flights in April 2012, expanding an interline agreement that dates back to 2010. Current codeshare routes offered by Emirates on JetBlue-operated flights cover 28 destinations. Not a publically traded company