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Strategy

Strategy

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Published by Jeegar
Guys I did not score very well on this assignment but it is a good source of concentrated information of facts and figures for reference purposes only.
Guys I did not score very well on this assignment but it is a good source of concentrated information of facts and figures for reference purposes only.

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Published by: Jeegar on Jan 20, 2009
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12/03/2012

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Thames Valley UniversityModule:
Strategy for Organisations
Assessment:
Assignment 1 – Airport Industry Environment
Student:
Jeegar Merchant
Student No:
20446183
1
 
Contents
Introduction1Key drivers of change5Porters Five Forces8Conclusion9Bibliography10Appendix 112Appendix 212Appendix 312Appendix 413Appendix 513Appendix 6 14Appendix 714Appendix 815Appendix 915
2
 
Introduction:
Management of an airport business has been argued to be equivalent of themanagement of a city. Airport like any city has many functions, facilities, systems,users, customers, employees, suppliers, rules and regulations, etc. Alike cities, airportsthrive and prosper by the being in a strategic location and being a hub for manypassengers and cargo. Airports necessarily do not benefit from acting on their ownaccord but as a part of the network systems of airports, depending on the size of acountry (A.T. Wells, S.B. Young, 2004). Big countries like USA have a large number of airports in its network of airports thus providing vital transport links for the wholecountry, while smaller countries like the small Caribbean Islands are likely to have oneairport due to the geographical size of the island.
1.1 Airport functions and activities:
Commercial revenue and aviation revenue are two primary sources of income for airports. Commercial revenue constitutes of car parking, catering, propertydevelopment, catering, transport operations and retail operations. Aviation revenueconsists of aircraft runway movement charges and parking charges for aircrafts, whichis regulated by the government regulations (See appendix 2).Daily operations of a complex business like an airport would also involve:
Security
Retail facilities
Cargo
Property management
Fire services(BAA CR Report 2008; Keynote, 2008)Airport companies have to work in close coordination and conjunction with many other organisations to ensure smooth and safe operations of the airports. These organisationscould be listed as follows;
Airline companies – These are responsible for delivering luggage and cargo,checking in passengers and providing on board catering services.
Civil Aviation Authority (CAA) – In charge of controlling all air traffic throughoutUK and regulating National Air Traffic Services (NATS)
Commercial services - These are individual businesses which provide facilitiesand services like car parking, catering, shopping, banking, etc. at the airports.
Her Majesty Revenue & Customs (HMRC) It is an UK governmentalorganisation which controls the import and export of goods and is responsible for prevention of illegal activities.
UK Immigration Services (UKIS) It is in charge of passport control andmanaging the entry in the country for foreign nationals.
National Air Traffic Services (NATS) – Responsible for UK airspace air trafficcontrol and management.
Public Transport Operators – These include many private companies providingtransport facilities to and from the airport.
Police – This is the local law enforcement authority securing the airports.
3

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