HR Assignment help Online study review: Organization behavior essay on Auckland airport
Question??
Develop and communicate organizational purpose, direction and values for Auckland Airport
Solution the question frames is::
1. Introduce the Organization
Auckland Airport is supposed to be the vital contributor to the regional economy of Auckland. The Auckland Airport is very imperative for the economy of New Zealand because it connects New Zealand to the whole world along with that it also facilitates tourism, trade and travelling in and around the country. The major airline hub that is the Auckland Airport is being owned by the Auckland Airport International Limited which also operates the airport. Auckland Airport International Limited also holds the tag of being the largest listed company of New Zealand
In the Skytrax World Airport Awards 2009, Auckland Airport was recently being ranked amongst the top 10 airports across the globe and also held the title of being the best airport in the Asia/ Pacific region.
More than 70% visitors leave or enter New Zealand through the Auckland Airport, thus it handles more than 13 million passengers every year. The Auckland Airport is being serviced by more than 20 international airlines. After Sydney it is the second busiest airport of international repute in Australasia.
Being the major transportation hub of New Zealand, The Auckland Airport invests in the traveller’s experience as well as in an airport which can make all the New Zealanders very proud. It is developing its capacity in continuous manner along with the services so that it can sustainably cope with the anticipated passengers of 24 million by the year 2025 which also reflects the growing popularity of New Zealand as the world’s leading tourism attraction.
Some facts about Auckland Airport are:
- It facilitates more than 13 million travellers which include around 7.5 million international travellers every year.
- It is the gateway for arrival of more than 73% of international visitors along with 91% of the non-Australian arrivals.
- It handles more than 200,000 tonnes of airfreight every year which is worth $12.5 billion which makes it the second-largest cargo port of New Zealand by value.
- It makes a major contribution of approximately $ 19 billion to the national economy annually which is 13.7% of GDP and approximately $ 10.7 billion to the economy of Auckland.
- It processes more than 300 domestic flights and 100 international flights everyday.
- On its land it accommodates around 900 varied kinds of businesses, which helps in providing around 12000 jobs which makes it the major business providing district of Auckland region.
To ensure that it meets the forecasted growth in the demand, the organization has gone on board the extensive investment programme to cater to the 25 million travellers per year over the coming 10 to 15 years. The airport infrastructure and the facilities have been upgraded and expanded through the investment of approximately $500 million over the past five years.
On the Auckland Airport’s 1500 hectares of land except for aeronautical activities there are large number of retail shopping along with other services are also available. Recently a 4star plus hotel with 260 rooms has started the construction in joint venture with Tainui Group Holdings, Auckland airport and Accor Hospitality.
2.0Contributing Factors
2.1 General Concepts
(i)Organisational identity
The concept of organizational identity was being introduced by Albert and Whetten (Albert & Whetten, 1985) who defined it as the set of attributes which its members use for defining and explaining what makes the organization enduring, central and distinct. Positive identities of the organizations mainly rely on three assumptions which are:
- Identity is very central for the organizational studies
- Social context does influence the identity
- Individuals, organizations and groups always strive to develop and construct positive identities (Roberts & Dutton, 2009)
Thus Organizational Identity is the most holistic construct which envelops the very salient features any organization possesses (Melawar & Vella, 2008). Many authors and researchers have transposed the concept of human identity on the organization too (Simoes & Dibb, 2001). That is why the organizations have distinct character as well as personalities (Simoes & Dibb, 2001) along with meaning, individuality and distinctiveness and essence and behaviour (Albert & Whetten, 1985). Therefore organizational identity can be defined as the complete set of meanings which permits the company to be known and through which people can remember it, describe it and also relate to it (Melawar & Vella, 2008). Organizational identity is way any organization can be presented to the stakeholders , it is something which makes an organization unique and it incorporates in itself the characteristics or features like organization’s design, behaviour, communication, industry identity, culture and strategy .
Benefits of Corporate Identity
The set of resources which are helpful in providing superior business performance for long-term helps in accruing competitive advantage for the organization (Hatch & Schultz, 2002). It has also been witnessed that there exists a positive correlation between positive organizational identity and superior organizational performance as suggested in many researches (Simoes & Dibb, 2001).
Culture acts as a symbolic context which helps in developing organizational identity and maintaining it also ( Hatch and Schultz).
- Corporate culture is the basic element which helps in development of strategy and behaviour.
- People working in same firm carry similar views about the central characteristics which combine to form the organizational identity.
- Employees play pivotal role in transferring and communicating these centralised characteristics to the company’s stakeholders. This clearly implies that the higher the reflection of these characteristics is done via the employees, the better and positive corporate image will be developed amongst the external stakeholders (Melewar & Walker, 2003).
- Corporate Identity as well as corporate culture both is influenced by the country of origin, corporate history, divisional and regional subcultures and the founder of the organization (Melewar & Walker, 2003).
The treatment of organizational culture is found to be very simplistic and most of the models of organizational identity do not give much attention to this concept of culture .Therefore if any company ignores the views related to organizational culture it will definitely result in failure of organizational identity transmission efforts. Therefore Hatchs cultural dynamics model can be used for showing relationship between culture and identity.
Figure 1: Hatch’s Cultural Dynamics Model
Source: (Hatch, Dynamics in Organizational Culture, 2004)
(ii)Organisational purpose
Defining the organisational purpose and the mission is somewhat a difficult task for the organization however some authors use the terms Purpose, Objectives and Mission in interchangeable manner like Steiner. Thus organizational purpose can be defined as the fundamental ends along with the various business lines which any organizations wants to pursue . The basic mission statement of firm can be easily found in the Corporate Charter or the organization as suggested by Steiner the organizational purpose should cover the large amount of societal obligations. The aim of organizational purpose is to:
- Help organization in legitimising the aims
- Help the firm in identification of inter-organizational relationships
- Help in attracting support and aids from various agencies
- Attracting right and effective people towards the organization
- Makes the coordination of various tasks much easier
- Helps in building positive public relations and societal value.
- Helps in facilitating image building as there are many players in the market like supplier, policy makers, government and customers.
- Helps in resolving the conflicts too (Srinivasan, 2008).
2.2 Identity and Purpose of Auckland Airport
Auckland Airport gets its new visual identity from the stylish ‘A’ logo which features on the cover of its annual report. This also indicates the first step taken by firm towards enhancing its corporate image and Auckland Airport’s brand as well as customer experience which it strives to make ‘A’ – Class. The new corporate identity has been developed according to which the New Zealand icon is placed in the centre in the form of ‘koru’ and abstraction of a native fern frond.
The visions of Auckland Airport is to build a great New Zealand business and being recognised as the world leader which effectively creates value from the most modernised airports.
Goals
Goal 1: Create healthier commercial environment
Goal 2: Development of more customer centric approach which enhances the alignment between airlines and business operations.
Goal 3: Ensuring that the regulators and the stakeholders properly recognize the value provided by Auckland Airport
Goal 4: Facilitation of well- balanced as well as sustainable gamut of airlines
Goal 5: Supporting fully the alignment of strategy with the ownership.
Strategy for Core Business
Goal 6: Enhance and improve the operations that they can fight fit with the downturn
Goal 7: Facilitation of continuously improving and developing culture in organization.
Goal 8: Increased focus on capital productivity along with cost efficiency and bringing discipline too.
Goal 9: Optimisation of customer experience so that the pricing for the services can be driven.
Goal 10: Persuasion of new airline/ route/ tourism development
Goal 11: Reinvigorate as well as enhanced development of property
Goal 12: Facilitation of airport services differentiation by posing challenges to commercial models .
Goal 13: Adoption of proactive “ landlord approach” for the retail sector.
Goal 14: Enhance the cargo business performance-wise.
Strategy for beyond the core-business
Goal 15: Pursuing fresh and better opportunities for cargo business
Goal 16: Property development opportunities to be pursued buying the aeronautical-related property.
Goal 17: Establishment of a funding envelope for investment activity and stepping-out.
Goal 18: Investment beyond the airline business
2.3 Influences
2.3.1 External Influences
There are varied factors which influence the Organizational identity and the purpose of Auckland Airport. Among them the external influences which have been identified are:
(i) Global economy
Huge market pressures are being exerted through the global economic conditions which subsequently impact the flow-on of the demand generated for air travel
(ii)Volcanic Ash Cloud
The volcanic ash cloud from Chile impacted the aircraft weight trends during June 2010.
(iii) Booming Asian Markets
Focus on the booming and potential Asian market has paid off really well in the air-services as well as the growth in the number of passengers.
(iv) Exchange Rates
The kiwi dollars have found to be strong in the financial markets and this has resulted in higher exchange rates as compared to the other foreign currencies.
(v) Government Policy
The Government Policy Published in the form of The Government Policy Statement on Land Transport Funding 2009/10- 2018/19 gives strong focus on the transport planning as well as funding which will help in economic growth and productivity and enhance the transport services which will encourage effectual movement of people as well as freight in New Zealand.
(vi) Competitors Like Pacific Blue
Pacific Blue the huge competition withdrew from New Zealand’s domestic armlet in October 2010 , which resulted in response from market in positive manner from Jetstar/Air NZ.
Exceptional resilience of all the Auckland airports depicted solid growth despite of all the negative influencing external factors.
2.3.2 Internal Influences
There are several internal influences affecting Auckland Airport’s identity and purpose and some of them are listed below:
(i) Online Car Parking Tool
This effectual tool has been operational for almost a year and delivers extensive improvement in propensity, yield, utilisation and share.
(ii) New International Pier
This international pier which has the capacity to even accommodate the next generation large and huge aircrafts.
(iii) Continuous Surface –Access Improvements
It makes easier for the travellers to get to and from the Auckland Airport like the new bus service from Manukau and the increased Airbus express services from the city offer the customers cost-effective options to reach airport.
(iv) Park & Ride Service
It offers long –term as well as low-cost parking options to both international as well as domestic travellers.
(v) New Website launch
It has enhanced the communication after the website www.aucklandairport.co.nz was launched in December 2008 which is one of the most popular website amongst the travellers in New Zealand.
2.4 The Organizational Strategies of Auckland Airport
2.4.1 Current Organizational Strategies
The main organizational Strategies which have been currently adopted by Auckland Airport are:
- Industry Leadership
Being ambitious about continuous growth they have implemented the excellent organizational strategies which have placed them as global leadership position.
- Highly-Targeted Premium Programme
Programme called Ambition 2020 which focuses mainly on attracting the Chinese travellers and visitors along with travellers from Asia, Australia and America (New Zealand urges to attract affluent Chinese tourists, 2012).
- Leadership in Customer value and Market penetration
The plan is to grow the international visitor volumes as well as values through promotion of new Zealand across the globe as travel trade and tourism destination (Auckland Airport announces financia lresults for year ending 30 June 2012, 2012).
- Degree of innovation in Business Products , Processes and Technologies
They have chalked out strategic plan of building hotels and various other amenities for attracting the customers so that airport does not just becomes a travelling destination (Auckland Airport announces financia lresults for year ending 30 June 2012, 2012).
2.4.2 Current Strategic plan
The current strategic plan is build to bring about growth and not retrenchment in Auckland Airport Ltd.
Growth Strategy for Stakeholders
Goal 1: Create healthier commercial environment
Goal 2: Development of more customer centric approach which enhances the alignment between airlines and business operations.
Goal 3: Ensuring that the regulators and the stakeholders properly recognize the value provided by Auckland Airport
Goal 4: Facilitation of well- balanced as well as sustainable gamut of airlines
Goal 5: Supporting fully the alignment of strategy with the ownership.
Strategy for Core Business
Goal 6: Enhance and improve the operations that they can fight fit with the downturn
Goal 7: Facilitation of continuously improving and developing culture in organization.
Goal 8: Increased focus on capital productivity along with cost efficiency and bringing discipline too.
Goal 9: Optimisation of customer experience so that the pricing for the services can be driven.
Goal 10: Pursuing new airline/ route/ tourism development
Goal 11: Reinvigorate as well as enhanced development of property
Goal 12: Facilitation of airport services differentiation by posing challenges to commercial models .
Goal 13: Adoption of proactive “ landlord approach” for the retail sector.
Goal 14: Enhance the cargo business performance-wise.
Strategy for Beyond the core-business
Goal 15: Pursuing fresh and better opportunities for cargo business
Goal 16: Property development opportunities to be pursued beyond the aeronautical-related property.
Goal 17: Establishment of a funding envelope for investment activity and stepping-out.
Goal 18: Investment beyond the airline business
2.5 Philosophy, Beliefs and Values
2.5.1 Philosophy, Beliefs and Value
There are four components which frame the recent philosophy, belief and values of Auckland Airport Ltd. And they are :
- Industry Leadership
New Leadership Team has been appointed and new business strategies have been developed in order to achieve the desired leadership in the business.
- Highly targeted Premium Programme
The Ambition 2020 programme of the company which sets a challenge for growing the ambitions of increasing the visitor’s arrivals and the traveller’s expenditure too in New Zealand.
- Leadership In Customer Value and Market Penetration
Customers have been targeted to provide them a lifetime airline experience and they get all the amenities from car travelling at the airport doorstep to stay in luxurious manner at the airport thus delivering them value.
- Degree of Innovation
The innovation has reached new heights through the diversification in various sectors like retail; products have been diversified through Park & Ride services so that the new products and services cater to the demands of the customers.
2.5.2Link
The table below depicts the comparison between the organizational identity and purpose and the philosophy, beliefs and values of Auckland Airport.
| Identity & Purpose | Philosophy, Beliefs & Values | Statement at brochure in website |
| Goal1 | Highly-targeted Premium programme | |
| Goal2 | Leadership in Customer Value and market penetration | |
| Goal3 | Leadership in Customer Value and market penetration | |
| Goal4 | Industry Leadership | |
| Goal5 | Industry leadership | |
| Goal6 | Industry Leadership | |
| Goal7 | No match | |
| Goal8 | No Match | |
| Goal9 | Leadership in Customer Value and Market penetration | |
| Goal10 | Degree of Innovation | |
| Goal11 | Leadership in market penetration | |
| Goal12 | Industry Leadership | |
| Goal13 | Industry leadership | |
| Goal14 | No Match | |
| Goal15 | Degree of innovation | |
| Goal16 | No Match | |
| Goal17 | No Match | |
| Goal18 | Industry leadership |
2.6 Thematic Analysis
2.6.1 Environmental Analysis
Issue 1: Global Economy
- Growth oriented airline
- Expanding tourism markets of Asia
- Global economic conditions
- Improve global aviation markets
- EarthCheck, global sustainable tourism certificate
Issue 2: Volcanic Ash Cloud
- Develop policies related to volcanic clouds
- Improve the procedures
- Improving the website regarding updating current information about volcanic ashes
- Give discounts to the air travellers.
- Take pictures of the staff working during the volcanic ash clouds ( to educate passengers about safety norms)
Issue 3: Booming Asian markets
- New Zealand returns out to be more expensive
- Tough to find a job
- General recession in the economy of new Zealand
- Cost of living in New Zealand increased by 3-04%
Issue 4: Exchange Rates
- Establishing the exchange counters for the travellers within the airport campus
- Updating about latest exchange rates through constant updates on website.
Issue 5: Governmental Policy
- Enhance tourism to New Zealand
- Portrays it as hub for travel and tourism
- Best entertainment that too in economical budget
Issue 6: Competitors
- Pacific Blue leaving created more opportunity for firm
2.6.2 Website (grouped to philosophy, beliefs and Values)
| Founding principals | Examples | |
| 1. | Industry leadership | World (5)
Global (6)
International (8)
Overseas (1)
|
| 2. | Highly targeted Premium Programme | Programme (3)
Plan (7)
Target (2)
Asia & China
|
| 3. | Leadership in Customer Value and Market Penetration | Customer (5)
Market (4)
Value (5)
Leadership (2)
|
| 4. | Degree of innovation | Products/ Services (6)
|
2.7 Force Field Analysis
The following Table depicts the forces which will act against and for the change at Auckland Airport:
| Forces for Change | Forces Against Change |
| Technology:
After reviewing we need to find out the best technology which can be applied to improve the services |
Staff:
The cooperation of staff is vital if they resist change it’s difficult to implement it. |
| Management:
The management has to be efficient and if it is not then it needs to be replaced by the right people. |
Management:
If the managers and the senior management resist the change the style of management it’s difficult to implement change. |
| Travellers:
They are the backbone of Auckland Airport, which relies on both domestic as well as international travellers, so we need to know their needs and chalk proper plans to fulfil them. |
Travellers:
International travellers associate well with their indigenous airlines like people from India would like to travel by Kingfisher airlines as they feel comfortable. |
| Nature:
The natural disasters bring lot of damage and pose a threat for airports like Volcanic ash, so the firm should be well prepared with contingency plans for handling such problems. |
Stakeholders:
They are only concerned with making profits, so some of them might resist the change as it will demand investment and initially less profit. |
| Economy:
The economy of New Zealand will definitely support travel and tourism which gets promotion through Auckland Airport. |
Senior Management:
For any kind of possible change the permission has to be taken from senior management and if they resist then the plan cannot be implemented. |
| Competitors:
Healthy competition is good for it brings positive changes in the company and Auckland Airports also makes strategies to bring positive changes to get competitive advantage |
Economy:
The growing and persistent inflation in economy might pose a threat to change. To handle it Auckland airport should make necessary plans and changes. |
| Culture:
Since the travellers are from different walks of world so airline should respect their culture and changes should be made in case of any conflict. |
Culture:
The culture at Airport is being developed by founder and the stakeholders so all the staff and organizational members should respect it and any change in culture needs permission from senior management , stakeholders etc. and if they resist change then it’s difficult to implement |
2.8 Strategic Direction
The following directions can be applied to Auckland Airport in some or the other manner possibly:
| Direction | Examples for Auckland Airport |
|
|
|
|
|
|
|
|
2.9 Ranking
| Direction | Examples | Ranking | ||
| Horizontal Integration | Merging with small airlines in other countries for operations | 1 | ||
| Horizontal Integration | Joint air travelling on very long routes | 2 | ||
| Expansion | Offer fresh and better services
|
3 | ||
| Diversification | Develop land holding for making hotel
|
4 | ||
| Diversification | Retailing
|
5 | ||
| Expansion | Buy other land holdings in town for renting or building
|
6 | ||
| Vertical Integration | Consortium of airlines
|
7 | ||
| Vertical Integration | Buying another airport like the Queensland airport deal | 8 | ||
| Horizontal Integration | Cooperation agreements with other airlines | 9 | ||
| Diversification | Diversify into Asian markets | 10 | ||
| Horizontal Integration | Apply for top-class integrated services
|
11 | ||
| Diversification | Construct offices in the land owned | 12 | ||
| Vertical Integration | Buying large hospitality services to cater to the visitors
|
13 | ||
| Diversification | Provide airport services like car parking | 14 | ||
| Expansion | Provide latest updates regarding flights through website | 15 | ||
| Expansion | Hold varied programmes like frequent fliers etc | 16 | ||
| Vertical Integration | Buy an airplane manufacturing company | 17 | ||
The ranking was mainly based upon following criterion:
- Cost/ Budget
- Possibilities
- Risk
- Human Resource
- Travellers needs
- Time
- Organizational Capacity
- Reversibility
- Investing Returns
- Environmental concerns
2.10 Behavioural Norms
The following table depicts the behavioural norms of Auckland Airport:
| NORMS | PLACE | DESCRIPTION |
| 1.Ethical Norms | Website: Ethics policy on company’s website
Source: (Corporate governance, 2012) Annual Report
|
Corporate Governance
|
| 2.Customer Service | Interim Report 2009: Auckland Airport | It strives to deliver an excellent airport experience for the travellers as well as great place being created for the airline customers and the business partners too (Interim Report 2009, 2009).That is why we are able to deliver better and improvised services to the airline customers and passengers. |
| 3.Quality Standards | Interim Report 2009: Auckland Airport | The increased expenses reflect directly the spending done on enhancing the quality of airports. |
| 4.Social Responsibility | Company website:
aucklandairport.co.nz |
The aircraft noise has been managed because it is located in area with harbours and population around. The airport operations may cause environmental risks and that is why it is EarthCheck certified and which is a global sustainable tourism certification programme (Auckland Airport and social responsibility, 2012). |
| 5.Cultural | Website: www.airportmarae.co.nz | Auckland Airports is committed towards promotion of kiwi culture and the visitors to New Zealand get greater experience of the culture and heritage through partnership with the Museum of New Zealand and it also encourages interest in local history amongst visitors (Culture and heritage, 2012). |
| 6.Environmental Protection | Website: http://www
.aucklandairport.co.nz |
Being located by the shores of Manukau harbour it has the responsibility of Environment Management through aircraft noise reduction, water conservation, and waste minimization through recycling and recovery.
Storm water management is being done through catchment management and pollution is prevented through prevention of contaminants from entering the stormwater system. Strong spill planning is done through protection of stormwater and groundwater management (Environmental Management, 2012) |
| 7.Community Expectations | Company website
.aucklandairport.co.nz |
Created Auckland Airport Community Trust which was established in 2003 as result of court ruling and it gets a grant of $2, 50,000 every year from Auckland Airports, which is distributed amongst the community projects which fall within the aircraft noise contours.
PC’s have been distributed at Rongomai School by the Trust. Great Potential Otara HIPPY Programme is a local organization which also receives grants from trust (Auckland Airport Community Trust, 2012) |
| 8. Stakeholders Value | Website:
.aucklandairport.co.nz Interim Report 2009: Auckland Airport |
It constantly strives to meet the needs of all its stakeholders. Auckland Airport ‘s board and management is totally committed towards sustainable development and management of Auckland airport so as to create value for all its stakeholders (Interim Report 2009, 2009) |
3.0 Process and Formulation of purpose, Direction and Values
3.1 Consultation Methods
The stakeholders were engaged in the Consultation Plan through various methods which are listed below:
- Leaflets were distributed by the Airport times
- Then Hard copy documents were distributed
- Through Company’s website
- Certain key stakeholders like airlines, significant shareholders, tourism bodies and local government were contacted or approached directly.
- Feedback was reviewed through the sustainability forum and the final plan is produced and finally launched (AA2030: A Consultation DOcument, 2012).
- Reviews are done annually against the plan for the performance of the organization.
- Key performance indicators and achievements are being reported through the interim or annular reports of company.
Mechanisms used for consultation are:
- Advertisements in local newspapers and advertorials
- Direct communication with the airline, airport community/ suppliers
- Internal Staff workshops
- Company website, Airport Times and Intranet
- Face-to Face meetings
- Social as well as professional networks in the sustainability field. (AA2030: A Consultation DOcument, 2012)
3.2 Stakeholders
| STAKEHOLDERS | INTEREST |
| Owners of airline | The owners of airline are bothered about profits and they will stay informed through the interim report, annual report and they are sole decisions makers so the more knowledge they have the chances of making wrong decisions also decrease. |
| Employees | They play the vital role in Auckland Airport and the good Corporate identity of Auckland Airport can only be maintained through good performance of employees and staff. |
| Customers/ Visitors | They are main profit suppliers and if they will not best services they will never return to the airline and for ours services. |
| Investors | They need to get better profit returns and value because if they will not get it they will not invest in further expansion and development of Auckland Airport. |
| Bank | The interest of bank is whether the firm would be able to pay back loan on time or not, so it needs to maintain good relationship with bank by sending the financial reports regularly. |
| Local Government | The tourism and trade will get a boost of New Zealand through well developed Auckland Airport and services which will help local government to earn more foreign exchange. |
| Tourism bodies | The better developed airport of Auckland will create great impression of tourism bodies and international as well as domestic travellers will get attracted towards New Zealand and this will make globally famous tourist destination. |
3.3 Communication Methods
The best ways to communicate in timely manner with its stakeholders for Auckland Airport is though:
– Websites : they will give international platform for interaction for the firm
– Social Networking: various social networking sites like Facebook page or Twitter account will give instant response and communication platform
– Internet and Newspaper: the online news forums and newspapers are the best and fastest way to communicate with stakeholders.
– Regular staff meetings: the best way for communicating with the staff for senior management
3.4 Current Situation in Auckland Airport
The “Flight Path for Growth: strategy adopted by Auckland Airport in 2009 made the strong foundation for building the business. During this time although the global financial crisis was in full swing there were hardly any choices for the company and so it had to either go for growth or to hunker down. SO in order to succeed in these tough times the firm decided to go for growth and it did not solely focus on protection against downside risk. Thus they shifted their focus from being merely infrastructure builders to a sales driven growth pumping company which catered to travel, tourism and trade Thus it emerged as significant market developmental organization (Robertson, 2012).
3.5 Revision of Strategic Direction
3.5.1 Strategic Consultation
AS per the law and regulations in New Zealand every restructuring of the organization requires proper consultation with all the people related to it. The whole process takes around two weeks:
– Staff: It needs to be informed first because they are the first ones to face change, so the organization needs their cooperation and readiness to adapt to change.
– Owners: They can be informed through a perfect reporting system which should be sent regularly through emails. Every quarterly report should be updated and sent to the senior management and owners.
– Travellers/ Visitors: They are source of money for organization so they should also be informed about the changes though postings in the news papers or through notice boards or through the best social media.
– Investors: They should know that the company will run profitable and smoothly so that they do not have to suffer any loss through term reports and sending email communications
– Banks/ Local Government/ Tourism Bodies: They should also be informed regularly about the changes through sending newsletters or emails to get their cooperation and understanding.
3.5.2 Strategic Planning
Planning for the two weeks would be as per the timeline depicted below:
| DAYS | KEY ACTIONS |
| Day1 | – Announcement of changes done by the senior management
– The commencement of two weeks consultation |
| Day 2 | – General meeting with staff
– General Meeting with the investors/ suppliers etc. |
| Day 3 | – Individual meeting with staff
– Individual meeting with major shareholders/ suppliers/ investors |
| Day4 | – Inform Local Government/ Tourism Bodies
– Send emails to the banks – Send email to the stakeholders |
| Day 5 | – Staff consultation is over |
| Day 6 | – The Consultation is implemented by the senior management |
| Day 7 | – Major changes in website
– Inform about the expansion of services into trade, tourism and travel and not juts infrastructure. |
| Day 8 | – Informing the staff about additional responsibility
– Informing the investors and suppliers about the decision taken |
| Day 9 | – Legal implementation of the decision through lawyers
– Arranging money for further investment |
| Day 10 | Announcement of the final decision by the owners |
3.6 Revision of the Purpose, directional and the values
3.6.1 Six Principles
Global Leadership: The staff and the economy wants to gain leadership globally through expanding across the border and the staff is being hired and trained multicultural and they know how to pay proper respect to their fellow staff and the travellers of varied caste, community and country too.
Leadership in Customer value and Market Penetration: The Customer gets value and effectual customer service if the staffs are friendly and customer oriented along with the services provided. Thus the staffs are trained to be at the customer’s side whenever the customer needs.
Degree of Innovation in business processes, products and technologies: New businesses processes are being targeted like investment in land holdings, retail and hospitality are new ventures. Latest technology carrying airplanes and systems for weather forecasting have been introduced for enhancing customer and stakeholder value.
3.6.2 Fourteen Goals Revised
| GOALS | PREVIOUS | REVISED |
| Goal1 | Create healthier commercial environment | To become a global leader with financial growth as well. |
| Goal2 | Development of more customer centric approach which enhances the alignment between airlines and business operations | No Change |
| Goal3 | Ensuring that the regulators and the stakeholders properly recognize the value provided by Auckland Airport | Providing value to the stakeholders, regulators and customer so that they recognize the proper value provided by Auckland Airport. |
| Goal4 | Facilitation of well- balanced as well as sustainable gamut of airlines | Facilitate a gamut of not juts airlines but create a high class experience through airline. |
| Goal5 | Supporting fully the alignment of strategy with the ownership | No Change |
| Goal6 | Enhance and improve the operations that they can fight fit with the downturn | Be prepared in advance to handle the financial or environmental or economical downturns and achieve desired growth. |
| Goal7 | Facilitation of continuously improving and developing culture in organization | Training modules to be developed for continuous improvement and development of organization culture. |
| Goal8 | Increased focus on capital productivity along with cost efficiency and bringing discipline too | Focus on cost efficiency and capital productivity and bring in discipline along with it through a customer centric approach. |
| Goal9 | Optimisation of customer experience so that the pricing for the services can be driven | Best class customer experience so that the customer can see value in our services. |
| Goal10 | Pursuing new airline/ route/ tourism development | No Change |
| Goal11 | Reinvigorate as well as enhanced development of property | No Change |
| Goal12 | Facilitation of airport services differentiation by posing challenges to commercial models | Doing high level of diversification and expansion of the airport services so as to gain competitive edge. |
| Goal13 | Adoption of proactive “ landlord approach” for the retail sector | No Change |
| Goal14 | Enhance the cargo business performance-wise | Cargo business should also be treated as main business and enhanced its performance too. |
| Goal15 | Pursuing fresh and better opportunities for cargo business | Focussing on development of cargo business to bring it into main streamline. |
| Goal16 | Property development opportunities to be pursued beyond the aeronautical-related property | Venturing in to different property development opportunities like building a 5 star hotel on the land available around airport etc. |
| Goal17 | Establishment of a funding envelope for investment activity and stepping-out | No Change |
| Goal18 | Investment beyond the airline business | No Change |
3.7Outline of Consultation
On the basis of my stint with Auckland Airport and the observations through varied information available the following consultation and processes have been suggested:
(i)SWOT analysis, VRIO, Porter’s Five Forces Analysis had been conducted and information was collected from various Interim reports, Annual reports, Websites of company and Statistics of New Zealand.
(ii) Website Analysis
The website needs some updates regarding the changes which might arise due to current situation because now Auckland Airport is venturing into many other ar5enas except for infrastructure and the customers should know about it. The links to their hospitality development retail section and information about park& Ride services should be highlighted too.
(iii) A new Strategic Plan needs to be developed which should now carry or follow the changed or revised strategic goals as depicted in section 3.6.2 of the table called revised goals of Auckland Airport.
(iv) Conducting interview with the senior management
This would help in convincing the staff because the staff listens to the senior members of organization and through this interview the staff can be easily prepared psychologically as well as mentally to accept the change during the period of consultation.
(v)Presenting the staff with the summary of issues being faced by Auckland Airport
The issues are listed under section 2.6.1 Environmental Analysis and a brief report can be given to the staff members to educate them about the issues.
(vi)Presentation of the new goals, mission and vision to the Auckland Airport staff
The staffs need to know about the changed or revised goals so that they can accept the changes during the period of consultation. All the 11 goals except for 7 have been revised and changed as depicted in the section 3.6.2 of this report.
3.8Stakeholder Commitment
The company is very well focussed and wants to bring total alignment with the industry stakeholders so that it can grow its markets and open more channels for growth.
- Staff
The staffs are always bothered about their job security. So they need to be assured through various means that there is job security as well as growth for them with the company. The staff’s cooperation is very vital for the functioning of any organization. This can be done through informing them about the new contracts signed, training them on regular basis, discussing the issues and problems through proper staffing and listening to their concerns too.
- Owners
The owners are also having prime motive of earning money so they should be kept well informed about the changes going around and the inflow and outflow of money through regular reporting.
- Visitors/ Travellers
The travellers or visitors are concerned about value for money they pay and they should get best services at the airport and this can be done through informing them regularly about the changes through website or sending mailers.
- Investors
They want their invested money to be safe and to earn returns as desired. They should also be kept informed on regular basis about new developments and the financial status through regular reporting.
- Bank
They are just interested to know the Profit/Loss statement and balance sheet to know that the company is operation under profit and if at any time Auckland Airport needs bank loan they can get it easily.
- Local Government/Tourism Bodies
They have the interest as the tourism and travelling will get boost through the strategic commitment of Auckland airport more travellers will get attracted to New Zealand and thus the government will earn foreign exchange and get various opportunities to earn money.
3.9Stakeholder Conflicts
The most often seen conflict existing in the organization is the staff and the owner conflict, however there can be other conflicts like conflict with suppliers etc. Or other stakeholders. These can be handled through various means like:
- Enhanced Communication: Good communication means keeping them informed about the current situation make them part of decision making process and the ways that can be used for communicating in effective and regular manner with staff by senior management is through regular meetings, suggestion box, emails and face-to-face interviews. Etc.
- Changing the salary System
The staff should get incentive based pay also along with regular pay so that they work in efficient manner to earn them.
- Social Activities
There should be social activities like Christmas gatherings for the staff and family for a get together should be organized for better interaction or Painting competition for the staff kids can be arranged.
- Training
The staff should be trained regarding conflict management and a compromised state should be achieved.
Other methods for resolving stakeholder conflicts which can be used effectively are external mediation, delegation of authority, giving more authority to the people and conflict resolution through union-middle person will also be of help.
3.10Suggested Strategic Direction Change
Some of the structural changes which have been suggested for Auckland Airport as part of structural changes in the company are:
- Auckland Airport should keep in running as infrastructure company but should expand and diversify.
- It should venture in to more of alliances with the airlines of repute in other countries and in New Zealand too like Emirates will be able to provide strong backing too to the company.
- It should develop specific promotional programmes for the countries like China from where people like to travel a lot.
- It should venture into services like car parking and giving park and Ride services to the visitors.
- Develop Hospitality infrastructure too so that the visitors can enjoy luxurious stay too after visiting New Zealand and can enjoy their tour.
- Retailing should be more focussed as visitors would love to have all the services at the doorstep of airport only.
- Cargo section should also be promoted through joint ventures or developing new strategies.
- Policies which are attractive for the staff including incentives and bonuses should be introduced to retain and make the staff happy.
- To develop the customer’s confidence their policies for fighting against natural calamities should be displayed.
3.11Revised Strategic Documents
| GOALS | PREVIOUS | REVISED |
| Goal1 | Create healthier commercial environment | To become a global leader with financial growth as well. |
| Goal2 | Development of more customer centric approach which enhances the alignment between airlines and business operations | No Change |
| Goal3 | Ensuring that the regulators and the stakeholders properly recognize the value provided by Auckland Airport | Providing value to the stakeholders, regulators and customer so that they recognize the proper value provided by Auckland Airport. |
| Goal4 | Facilitation of well- balanced as well as sustainable gamut of airlines | Facilitate a gamut of not juts airlines but create a high class experience through airline. |
| Goal5 | Supporting fully the alignment of strategy with the ownership | No Change |
| Goal6 | Enhance and improve the operations that they can fight fit with the downturn | Be prepared in advance to handle the financial or environmental or economical downturns and achieve desired growth. |
| Goal7 | Facilitation of continuously improving and developing culture in organization | Training modules to be developed for continuous improvement and development of organization culture. |
| Goal8 | Increased focus on capital productivity along with cost efficiency and bringing discipline too | Focus on cost efficiency and capital productivity and bring in discipline along with it through a customer centric approach. |
| Goal9 | Optimisation of customer experience so that the pricing for the services can be driven | Best class customer experience so that the customer can see value in our services. |
| Goal10 | Pursuing new airline/ route/ tourism development | No Change |
| Goal11 | Reinvigorate as well as enhanced development of property | No Change |
| Goal12 | Facilitation of airport services differentiation by posing challenges to commercial models | Doing high level of diversification and expansion of the airport services so as to gain competitive edge. |
| Goal13 | Adoption of proactive “ landlord approach” for the retail sector | No Change |
| Goal14 | Enhance the cargo business performance-wise | Cargo business should also be treated as main business and enhanced its performance too. |
| Goal15 | Pursuing fresh and better opportunities for cargo business | Focussing on development of cargo business to bring it into main streamline. |
| Goal16 | Property development opportunities to be pursued beyond the aeronautical-related property | Venturing in to different property development opportunities like building a 5 star hotel on the land available around airport etc. |
| Goal17 | Establishment of a funding envelope for investment activity and stepping-out | No Change |
| Goal18 | Investment beyond the airline business | No Change |
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