Posted on

Management Practice – Report on Simulation – Skiliner airline


Management Practice – Report on Simulation

Word count 4594


Produce a professional report of 3,000 words on the performance of your company in the simulation, showing how theory which you have learnt on the MBA course was demonstrated both in your management of your business and in the way the other companies in your industry competed. Some specific questions regarding your vision, mission, objectives, strategic planning, decision making and key take-aways, will be provided for you to address and you will also have the opportunity to highlight other areas of your own choice. Your report must be fully supported by directly relevant quality academic sources in demonstrating the integration between the theoretical academic frameworks and your strategy, planning, decision making and overall performance of your organisation during the simulation. A key aspect of the assignment is that you evidence a clear link between the strategy you adopt during the simulation and the various academic frameworks you have been studying throughout your MBA units to this point in time.

1. Show adequate independence of thought in evaluating the usefulness of theory in practice applied to a live consultancy project or a simulated task of running a business, monitoring performance and adjusting decisions in the light of the success or failure in a competitive environment

2. Demonstrate adequate appraisal of the complexity of management in the implementation of strategic decisions

3. Research, select and use creatively appropriate business and management theory to manage and complete a project in the context of a new situation

Additional information

Table of Contents

1.0 Introduction
2.0 Company background
2.1 Vision and mission
2.2 Our Values
2.3 Key objectives
3.0 Corporate strategy
4.0 Business strategy
5.0 Marketing strategy
5.1 Market segmentation
5.2 Positioning
5.3 Marketing mix
6.0 Operation strategy
7.0 Financing
8.0 Conclusion
9.0 Recommendations
Annexure 01


1.0 Introduction.

Aviation industry mainly depends on airlines. Decline of the airlines generally affects to whole aviation industry. During the last decade, airlines’ profitability has been grown with the global economy. Further, tourism and international business also help to growth of the airlines. However, airline sector is a highly sensitive industry which depend on many micro and macro environmental factors. Passenger sector has been grown in rate 5.5% during last decade. However, according to International Air Transport Association (IATA) passenger demand has been dropped in 2017 (KPMG, 2019). In 2017, demand measured in revenue per kilometer has been dropped down from 6% compared to previous year (KPMG, 2019).
Skyliner is a regional airline which started to fill the void when a bigger airline abandoned the region. Skiliner airline is handed over to new management for two and a half year to improve the performances. At that time, Airline has made profits and losses in time to time and there was no consistency of making profits. Instead of financial performances, there are many other indicators that can measure the performances of the airline. New management has made decisions throughout the last two and half year to improve the company performances. The objective of this report is to extensively analysis the rationale behind the management of Skyliner airline. This report will analysis the business strategy, cooperate strategy, marketing strategy and operation strategies and how these strategies are affected to the company performances. Further, management strategies such as SWOT analysis, PESTEL, Porter’s five forces and Ansoff matrix are used to analyze the strategies of the company.
Further, vision, mission and values of the company has been defined newly and all decisions related to finance, HR, operation management and cooperate governance has been aligned with the vision, mission and key values of the company. Key objectives have been set by new management and their aim to achieve those objectives at end of the quarter 12. When this report is finalized, Skyliner airliner is in quarter 11 under new management and management can clearly understand whether expected objectives can be achieved or not at end of the quarter 12.

2.0 Company background

Initially, Skyliner airline handled 10,500 passengers and when airline is handed over to new management it handled 37,000 passengers and operated in five regions. Airline had three TP-300 aircrafts which can carry 30 passengers. Average load factor was around 60% and there need to be 60% load factor to achieve breakeven. Gross revenue was $ 2.68 and share price was $ 20.00 at the time of company handed over to new management. Before airline is handed over to new management there were no consistency of making process and main challenge of new management was to convert Skyliner airline long term profitable airline.