Strategic Management Assignment: Case Analysis Of Regional Express Airlines

Question

Task:
You are supposed to prepare a strategic management assignment analyzing and evaluating the company’s strategy and its execution? What specific recommendations would you make to the company executives? To answer these broad questions, perform a comprehensive written analysis, for which the expectation is that you: (1) identify important strategic issues that the company needs to address, (2) perform a detailed analysis and evaluation of the context (external and internal), and (3) propose an overall action plan and set of specific recommendations addressing the issues you have identified.

Answer

Executive Summary
The strategic management assignment has examined supportability as one of the essential administrations gives that the vast majority of the hospitality and the travel industry faces. The report has intended to examine the essential strategic issue that Regional Express Airlines have looked at lately with poor management and unreliable mentalities. The organization has been claimed to have been abandoned in the assembling interaction that can cost the existence of the travelers. This has driven the organization to confront reactions and go through examinations—Rex Airlines, which is a regional airline presently going to branch into domestic flights. The report has abused how the airline company can carry out the methodology for fanning Airlines and powerful approaches. Air lines make use of several apparatuses and projects to participate in their route considerations. They consider the request data of travelers, network centers, accessibility of airplanes and various contenders. This report will present the essential measures that an airline should take while arranging new routes and tweaking the existing routes.

Introduction
The report has picked Regional Express Airlines as one of the case situations that has been battling with reasonable tasks issues, for tweaking its existing routes and planning new routes. Rex Airlines is a regional airline that is currently going to branch into domestic flights (Rex Airlines, 2020). From the report, the distinctive strategic management issues that the airline

maintainable measures in activities with the fuse of strategic management (Strata, 2018). The report has focused on one strategic management issue that most organizations are battling with and massively affects the clients.

Strategic Analysis
Overview of Australian Airlines Industry
In the previous few years, a downturn was seen in the economy of Australia that massively influenced the airline business in the country. With a boost in the avionics fuel costs, the domestic airlines industry of Australia has endured a great deal because of a pattern of value rivalry in the aircraft business and presently due to Covid 19. Furthermore, because of recessionary patterns in Australia's economy and in general decrease in worldwide airfares, this empowers the voyagers to book global itinerary items as opposed to flights domestically. This prompted immense unsettling influence occupied with domestic aircrafts. Domestic Airline organizations like Virgin and Qantas had reduced the costs to draw in the flyers which brought about value rivalry in the business. Domestic Airlines ventures are for the most part associated with the transportation of travelers between the principal urban communities or to local objections and furthermore produce little bit of income through freight transport (Annual Report, 2015).

Henceforth this report is basically intends to depict the different ways for airline branching to foster new rotes arranging activity by dissecting the airline industry in Australia.

Findings
The airline business is among the most affected by the COVID-19 emergency, and worldwide air-traveler volume in August 2020 was still down around 64% compared to a similar period in 2019. However, the effect of the emergency has varied by kind of movement. Domestic travel, for instance, was down 51% year over year in August, while global travel was down 81% (Bielecki et al., 2020).

SWOT Analysis
Strengths and competitive advantages:
These are methods of working together that one organization does outstandingly above and beyond its rivals. The term advantage infers that those "methods of working together" are alluring for organizations in the business (Clift and Bruun, 2018). As referenced toward the start of this segment, qualities are inside the organization. The following rundown specifies Rex's qualities.

• Stable financial design.
• Reliability and experience are key achievement factors in the business.
• Concentrated wide-based logical skill, information base, and quality faculty.
• The broad scope of administrations offers comfort.
• Personalized client support.
• Huge client base and set up customers.

Opportunities
Opportunities are conditions over which the firm has no control. Whenever exploited, the outcome might be lessening the impact of cutthroat powers over the firm and expanding its benefit. One way an organization can acquire more significant yields than its comparable rivals is by perceiving and taking advantage of new worthwhile lucky breaks right on time before passage into the business achieves its benefit evening out work. He calls this action a business venture. Making the most of chances implies.

1. Recognizing them by understanding the business climate encompassing the firm and
2. Creating capacities and qualities inside the firm that coordinate with such freedoms.(Fern Fort University, 2019). Opportunities were recognized by our examination with the assistance of Rex's workers and supervisory crew:
   • Growing business sector
   • Advances in information technology – (like advancement in web communications)
   • Alternative Airlines to work with.
   • Alternative enterprises to work in

Disadvantages (Weaknesses)
Competitive weaknesses are things an organization does more terrible or ineffectively in examination with its rivals (Fern Fort University, 2019).

Rex Airlines could acquire profitability by improving its advantages and impetuses program. Reactions to the meetings completed at Rex Airlines Research Corporations recommend that there is some space to improve in the space of the representative's spirit. Rex Airlines is now a worthwhile business; improving faculty's assurance can additionally improve its exhibition.

• Concentrated leadership.
• Weak internal communication and authoritative framework.
• Improvable Internet presence and non-forceful are showcasing.
• Lack of check claim and actual space to extend in the current area.
• Absence of task administrators.
• Price competition limitation against a couple of enormous organizations.

Threats
Threats are conditions outside the control of the firm that expands how much the firm is influenced by serious powers and may bring about diminishing benefits (Maher and Andersson, 2015). A firm ought to foster capacities and set up its system to limit the effect of threats to its business.

PESTLE Analysis
This analysis potentially enables an organization to identify the probable issues that exist within the macro-environment (Story, 2019).The Rex Airlines utilize the aftereffects of this investigation to control vital dynamics. The Opportunities referenced above and dangers of the PESTLE examination recommend it is a pragmatic key arranging device in checking the external environment.

Each of the external factors:
Political Factors: These are approximately how and what kind of an organization intervenes with inside the economy. This can fuse – authorities’ methodology, political protection or lack of confidence in overseas enterprise areas, new alternate techniques, rate procedures, organic laws, alternate restrictions, and so on.

Economic Factors: Economic elements in a well-known experience affect how an association cooperates and, moreover, how precious they are. Components fuse – money associated flip of events, financing costs, exchange rates, development, additional money of clients and institutions, and so forth.

Social Factors: In any case referred to as socio-social additives are the areas that contain the normal conviction and factors of view of the overall population. These additives consolidate – individuals advancement, age dissemination, prosperity mindfulness, gifted mindsets, and so on

Technological Factors: We as whole mastery rapid the innovative scene modifications and the way this affects how we marketplace our things.

Legal Factors: Legal elements contain wellness and protection, equal freedoms, advancing standards, consumer rights and laws, aspect stamping, and aspect prosperity. Associations need to acknowledge what is and what isn't legitimate to trade viably.

Environmental Factors: These variables have pretty these days long gone to the leading edge over the present-day fifteen years or some place around there. They are becoming big because of the developing deficiency of unrefined materials, tainting goals, cooperating as a very good and practical association, carbon influence goals set by way of means of government.

Competitive/strategic group mapping
It is a procedure for showing the diverse serious places that adversary firms possess in the business (Hunt, 2016). It is a huge region with the assistance of which firms can just examine where they need advancements and with the assistance of these organizations progress nicely and acquire well.

Below mentioned is a portion of the primary issues identified with strategic group mapping:

• Helps in distinguishing barriers to entry and exit,
• Helps in recognizing strategic zones with the assistance of which advantages can be effectively acquired,
• Helps in distinguishing the best firms in the business,
• Helps in amending major rivals.

Five Forces Analysis of Airline Industry
The allure of any business is determined by selected powers and apart from a rapidly increasing global economy, there are specific powers that influence the development. The airline industry is extremely rewarding but due to Covid-19 airline industry is impacting. Be that as it may, selected powers choose the rivalry’s degree and the business’ intensity. Porter’s five powers model is an interesting instrument that clarifies the degree of rivalry in the business and how appealing is a market and industry. These are as per the following:

• Dangers of new contestants
• Bargaining force of purchasers
• Dealing power of providers
• Danger of substitutes
• Level of serious competition

VRIO
The VRIO framework is an important examination proposed to aid associations with recognizing and securing the sources and capacities that provides an advantage.

VRIO stands for an abbreviation of four-question structure of considerable value, rarity, imitability, and organizations. It is used to uncover "supported competitive advantage." VRIO examination’s four segments are commonly pinched closer to a choice tree’s style.

The Regional Express additionally utilizes the VRIO investigation habitually for creating strategic techniques that depend on the organization's center qualities and sources to help it acquire a competitive advantage over different parts on the lookout.

Figure 1: VRIO framework
Source: (B2U, 2018)

Value Chain Analysis
The value chain eludes every one of the exercises associated with changing the contributions to products. The item is the mode for moving the worth between the firm and its clients. Masterminding the exercises of significant worth creation in an all out delivered esteem in the item, where the worth surpasses the complete expense of creation clients actually need to purchase that product, is a part of vital arranging in the organization. Besides, Porter (1985) makes reference to the fact that an organization can make a value of an item through the conventional methodology which is an expense benefit or item separation.

As per Porter (1985), esteem exercises can be classified into two fundamental sources which are primary exercises and support exercises. Primary exercises are those that make an incentive for clients. The target of essential exercises is to create esteem that surpasses the expense of creation and acquires the benefit for the organization. In primary exercises, there are five nonexclusive classes, which are inbound strategic, activities, outbound calculated, promoting and deals, and administration after deal, engaged with contending in any industry. Supporting exercises alludes to acquisition, mechanical turn of events, human asset the executives, and firm foundation. In the worth chain, every one of these exercises are not autonomous. Indeed, one movement's interaction may influence the expense and execution of the other. In this way, competition advantage can likewise be gotten from the linkages between exercises.

Strategic Analysis
Strategic analysis is a precise and restrained exercise to figure business techniques and identifies with the venture overall or to specific specialty units which are recognized as essential specialty units of a divisionalised association.

In associations of medium to enormous size, the accompanying instruments might be utilized for distinguishing vital other options:

• Meetings to generate new ideas
• Unique gatherings
• Outside advisors
• Advertising
• Joint gatherings

Recommendations
Recommendations for Rex Airlines The following suggestions are given based on the work and data got and introduced in our examination up until now. Every proposal presents a potential course of action to be tended to by Rex Airlines later on. Rex Airlines can characterize a strategy that could enormously profit by putting time and exertion in characterizing itself and its serious procedure in a definite way. Rex Airlines works effectively in holding clients because of its customized administration yet appears to struggle to spread into domestic flights due to the situation of a pandemic. This declaration was separated from the information accumulated in the meetings.

Carrying out another route, as a rule, requires extra consideration and backing to ensure that the new route is meeting the arranging assumptions. In the beginning stages of the route execution, it gets significant for Rex Aircrafts to notice the route execution including admissions, pattern of appointments by time and retail location, clients input on assistance, media inclusion, reaction of contending airlines, and criticism from deals specialists.

On a case by case basis, change in help evaluating may be needed to pull in an invigorate request depending on the situation. Aircrafts ought to be prepared to react to any competitive activities from contending airlines, for example, sales campaigns or capacity increments.

Conclusion
All in all, these included perceptions for the effect of COVID-19; the market has altogether moved. Global and domestic travel restrictions forced in the course of the most recent couple of months have brought about a huge decrease in the airline industry in Australia, industries need to work as beneficially and move as fast in the cycle as they. So there's a motivation for Airlines to apportion the limit. It's smarter to bring flights back more gradually with 90% burden factors than all the more rapidly at 70% burden factors, which is the ordinary level. Rex Airlines are fanning domestic flights, so it is important to pick the ideal procedure fitting under it. It's significant for Rex Airlines to know where their association fits inside this structure. When they have a reasonable image of which of these ways in the wake of dissecting they will use to contend on the lookout, they would then be able to structure the plan of their tasks such that it will suit their technique they have taken.

References
Annual Report (2015). REGIONAL EXPRESS HOLDINGS LIMITED - ANNUAL REPORT 2015. [online] rex.com.au. Available at: https://www.rex.com.au/AboutRex/InvestorRelations/_lib/pdf/FY/AR_FY1415.pdf [Accessed 18 May 2021].

B2U (2018). VRIO Framework EXPLAINED with EXAMPLES | B2U. [online] B2U - Business-to-you.com. Available at: https://www.business-to-you.com/vrio-from-firm-resources-to-competitive-advantage/ [Accessed 18 May 2021].

Bielecki, M., Patel, D., Hinkelbein, J., Komorowski, M., Kester, J., Ebrahim, S., Rodriguez-Morales, A.J., Memish, Z.A. and Schlagenhauf, P. (2020). Air travel and COVID-19 prevention in the pandemic and peri-pandemic period: a narrative review. Travel Medicine and Infectious Disease, [online] 1(2), p.101915. Available at: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7655026/ [Accessed 17 May 2021].

Clift, S. and Bruun, B. (2018).The Health Promoting School: International Advances in Theory, Evaluation, and Practice. [online] euro.who. Available at: https://www.euro.who.int/__data/assets/pdf_file/0012/111117/E90358.pdf [Accessed 17 May 2021].

Fern Fort University (2019).Regional Express Holdings Limited [SWOT Analysis] Weighted SWOT Matrix. [online] Fern Fort University. Available at: http://fernfortuniversity.com/term-papers/swot/nyse/6369-regional-express-holdings-limited.php [Accessed 17 May 2021].

Gooptu, N. (2017). Rights to Stop the Wrong”: Cultural Change and Collective Mobilization—The Case of Kolkata Sex Workers. [online] tandfonline.com. Available at: https://www.tandfonline.com/doi/abs/10.1080/13600810701514811?scroll=top&needAccess=true&journalCode=cods20 [Accessed 17 May 2021].

Hunt, M. (2016). 3.5 Mapping Strategic Groups. [online] open.lib.umn.edu. Available at: https://open.lib.umn.edu/strategicmanagement/chapter/3-5-mapping-strategic-groups/ [Accessed 17 May 2021].

Maher, M.E. and Andersson, T. (2015). Corporate Governance: Effects on Firm Performance and Economic Growth. SSRN Electronic Journal, [online] 2(1). Available at: http://www.oecd.org/sti/ind/2090569.pdf [Accessed 17 May 2021].

O'Reilley (2019).1. Reliable, Scalable, and Maintainable Applications - Designing Data-Intensive Applications [Book]. [online] www.oreilly.com. Available at: https://www.oreilly.com/library/view/designing-data-intensive-applications/9781491903063/ch01.html [Accessed 17 May 2021].

Rex Airlines (2020). Regional Express :: Home. [online] www.rex.com.au. Available at: https://www.rex.com.au/ [Accessed 17 May 2021].

Story, J. (2019). Using the PESTLE analysis model. [online] Smart Insights. Available at: https://www.smartinsights.com/marketing-planning/marketing-models/pestle-analysis-model/ [Accessed 17 May 2021].

Strata (2018).Strategic Management Process: What is it? | Strata Decision. [online] Strata Decision Technology. Available at: https://www.stratadecision.com/blog/strategic-management-process-what-is-it/ [Accessed 17 May 2021].

Waldron, G. (2021). Rex chairman ups the ante in tough Australian market. [online]Flight Global. Available at: https://www.flightglobal.com/strategy/rex-chairman-ups-the-ante-in-tough-australian-market/142321.article [Accessed 17 May 2021].