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Industry analysis is a crucial activity for any organisation in order to make a business plan as it enable an organisation to get an overview of the industry dynamics and to understand the trend of the industry which helps a firm to proceed logically and benefit in understanding the target market and market strategies. In terms of industry analysis, the first and foremost task of an organisation is to get an understanding of different types businesses existing in the market. There are three different types of organisation that exist in a market includes public, private and voluntary organisation.
Private organisations are generally owned by individuals and the main aim of these businesses is to make a profit. These companies are generally aiming to make money and employ more workers within the organisation than in the public sector. These organisations are mainly created by developing new enterprises or privatizing a public sector institution. Private organisations are basically owned by individuals or by a group of entities. Furthermore, they are subjected to address legal and financial frameworks stated by state authorities. The revenue generated by these organisations is reinvested and shared among the investors of the organisation based on the legal structure of an organisation.
The voluntary organisation is set up with the purpose of fulfilling various needs of societies. Most of the voluntary organisations are set up for gaining no profit but there are some organisations that operate to generate profit. These types of organisations work for a social cause and promote the wellbeing of society. Most voluntary organisation employs an unincorporated association, a company, or a trust as a guarantee. The third types of business organizations are the public organisations which include municipal government, a state agency, and public authority and government units. Generally, public sectors are the organisations that include government ownership and public policy. This particular report is aimed at establishing strategic choices and approaches for extending the company Procter & Gamble in Qatar. It will analyse various impacting external and internal factors and also discuss various related aspects which can impact the organisation while extending in Qatar.
Looking at the broader prospect, every type of organisation has significance to a nation. In this regard, the discussion has been drawn out to acquire a better perspective regarding the three most significant types of organisations. For business expansion, it is essential to understand the different types of organisations and their interrelationship which give a better overview of the operational processes. Qatar Airways is a public organisation of Qatar that demand special attention as it has extensive contribution in the global tourism market as well as in Qatar tourism. In this regard, the discussion has been centralized upon discussing external and internal impacts in order to mitigate the challenges faced by the organisation.
As a result, the application of both SWOT, PESTLE models has enabled to the identification of challenges and delivers a recommendation in order to improve the framework of the organisation. Hence, in a nutshell, the discussion is of utmost importance as it delivers a sound understanding of the different Organisational information and their operation and it also delivers an external and internal analysis which is significant to note before a business expansion. And lastly, a recommendation and strategic initiates have been drawn which will help Procter & Gamble to successfully expand in the Qatar market.
The current section will critically analyse the complexities associated with three organizations from Qatar, belonging to three different sectors namely: Public, Private and Voluntary.
The national airline of Qatar, Qatar Airways, is a state-owned enterprise. Qatar Airways has a hub-and-spoke network from its base at “Hamad Foreign Airport” in Doha that flies to over 150 international countries spanning Africa and Asia as well as Europe and the Americas and Oceania. More than 43,000 individuals work for the “Qatar Airways Group” (Chiambaretto and Wassmer, 2019). Since October 2013, the airline has been a member of the “Oneworld alliance”, making it the first “Persian Gulf” carrier to join one of the three main airline alliances.
Products and Services
Even though “Qatar Airways” was just founded in 1997, it has created a wide flight network that now includes 83 countries (Airways, 2018). With a 5-star rating from “Skytrax”, “Qatar Airways” has been rated the greatest airline in the world year after year (Sulistya and Ginaya, 2020).
Size and Scope
In the “State of Qatar”, Qatar Airways serves as the national airline. Qatar Airways is one of the world’s fastest-growing airlines, with a fleet that is among the youngest in the industry. With more than 200 aircraft traveling to more than 150 destinations spanning Europe, the “Middle East”, “Africa”, “Asia”, “North America”, and “South America”, “Qatar Airways” is now commemorating its 20th year of “Going Places Together”. The organization has 50,110 employees (Kucsera, 2021).
Mission and Business Objectives
It is “Qatar Airways’“primary mission and business objective that they want to become a world-class carrier and cargo service provider with a global reach.
Organizational and legal structure
The hierarchical structure of Qatar Airways may be seen across the company. This is a hierarchical structure in which all but one of the organization’s units reports directly to the other unit. The power structure in an organisation typically consists of a single or group of individuals at the top, with several tiers of authority descending from there. As of May 2014, the Qatari government owns 100% of the firm, making it a state-owned enterprise. Since a former foreign minister and other owners bought a 50% interest in Qatar Airways in July 2013, the government has had complete authority over the airline (Kucsera, 2021).
All of the people that work at its airport, as well as the people who travel via the airline regularly, are considered stakeholders of Qatar Airways.
The “International Bank of Qatar (ibq)” was founded in 1956 as the “Ottoman Bank” and is one of Qatar’s oldest and most well-known commercial institutions. The Bank provides a wide range of financial services, including corporate, private, and retail. ibq’s “branches”, “service centres”, and “ATMs” are positioned around the nation in key locations (Alenazi and Barbour, 2019).
Ibq’s retail banking division is well-known for its creative approach to product creation, especially when it comes to mortgages and other types of personal loans available at any time of year (Ali, 2020).
Size and Scope
“International Bank of Qatar (ibq)” was renamed in August 2004, after the bank was taken over by the “National Bank of Kuwait (NBK)”. After increasing its stake in the bank to 30 per cent in July 2007 and selling it back to Qatari investors in 2014, “NBK”returned to Qatar. iqb has about 500 employees (Ali, 2020).
Mission and Business Objective
To make banking more personal for everyone, IBQ is working hard to realise its fundamental purpose every day.
Organizational and legal structure
IBQ has a top executive who is assisted by several other high-ranking staff members. In a retail bank, the different tasks, such as “electronic banking”, “customer service”, and “management” of certain divisions, are often divided (Al-Muharrami and Murthy, 2017). Hence, it resembles the “hierarchical structure” that has been detailed in the previous section.
It is a “limited liability corporation”, which means that its owners are protected from personal culpability for the firm’s debts and liabilities (Setiawan, 2018).
IBQ’s shareholders, board of “directors”, “workers”, “consumers”, “financial markets”, and the “government” are all stakeholders in the company (Ahmed, 2017).
Once known as “Qatar Charitable Society”, “Qatar Charity” is a non-governmental organisation that focuses on humanitarian and development efforts. With more than 150,000 sponsored orphans, it was founded in 1992 in response to the thousands of children who were orphaned by the Afghanistan war, but it has since expanded its scope to include six “humanitarian” fields (“shelter”, “emergency medical response”, “food aid” and “WASH” etc.) and seven “development” fields (“health”, “education”, “WASH”, “food security”, “financial empowerment”, “housing” and “social care”) (Sulistya and Ginaya, 2020.
The Qatar Charity has been a leading humanitarian and development organisation for more than two decades, providing lifesaving assistance to those affected by war, persecution, or natural disasters while also working to eradicate poverty through long-term development programmes in social welfare, water and sanitation, and education (Siswantoro, 2021).
Size and Scope
Through its network of field offices in 30 countries and implementation partners in an additional 20 countries, the organizationis at the forefront of global efforts to assist disaster-affected communities to become more resilient so they can eventually survive and grow (Lowi, 2019).
More than 29 million people have been served by Qatar Charity’s large-scale humanitarian and development programmes over the previous five years at a total cost of 1.2 billion dollars.
Mission and Objectives
QC aims to give people hope and assist vulnerable communities in dignity by addressing their humanitarian and development needs (Lowi, 2017). At the core of its work, it aims to create a society where people are free from poverty and live in dignity, and to be the preferred aid provider wherever our assistance is needed.
Organizational and legal structure
The “Board of Directors”, the “General Assembly”, and the “Executive Director” are the three pillars of QC’s leadership structure. The NGO’s Board of Directors sits atop the organisation. All non-profit organisations must have a board of directors to be registered with the local government. As previously mentioned, QC operates on a “non-profit” basis (Rickenbacher, n.d.). Because it does not make money for its owners, this implies it is a business. The organization’s profits and donations are reinvested in the organization’s operations.
Members of the QC’s“board of directors”, people it serves, “donors” or foundations that offer QC grants are examples of stakeholders.
The different organizational functions of Qatar Airways have been able to acquire organizational success. The context will discuss the different organizational functions of this airline company.
HR strategies of Qatar Airways
Qatar airlines which grade surrounded by one of the preeminent airlines in the Gulf States missing behind Emirates airways has been recognized to engage second fiddle. In the previous year, the airway has supplementary 14 new aircraft to our impressive fleet – which comprises 205 passenger aircraft, 26 cargo aircraft, and 19 Qatar Executive jets (Imbuga, 2018).
The advertising and promotional strategies of Qatar airways have been competent for attracting major customers through promoting on the major entertainment events. This process has been proven to be extremely accommodating in increasing the revenue margin of the airways. The ultimate purpose of the airline organization is to think only about the comfort of the customers. This advertising strategy has been able to permit Qatar airways to congregate a great audience & pull towards more consumers. As a result, it directly impacts the profitability of the organizations. Qatar Airways is well-knownin terms of its top rating extravagance class travel. The business basically and first-class travelers have the right of entry through relaxed seating fresh flowers, top-grade wines, world cuisines, and chandeliers. The experience of a five-star accommodating service has been available in the airways and that has been proved to be exceedingly beneficial in drawing attention towards passengers and enhancing business revenue.
Figure 1: Organisational chart of Qatar Airways
(Source: Given In the Assignment)
Figure 2: Visual map of Qatar Airways
(Source: LoyaltyLobby, 2012)
COVID-19 has resulted in a wide range of restrictions on travel between countries, as well as a need for airlines to adhere to a variety of safety standards. This has had a significant impact on the company’s revenue. After some time, a group of countries made a decision that had an enormous impact on the industry.
When it comes to the airline business, Qatar Airways holds a very strong position.
It’s also worth noting that the airline spent a lot of money on new planes last year. Airline profits are expected to decrease sharply this year as a result of the COVID-19 travel restrictions imposed by numerous nations, which has had a detrimental effect on airline operations. So, before making any strategic decision, the corporation must take these considerations into account.
The business of Qatar Airways is influenced by a wide range of social issues. It takes into account elements such as population growth, gender ratio, cultural variety, and more. Qatar’s population may be small, but the country’s high per capita GDP means that residents have a lot of money to spend on vacations and other recreational activities. signal for the organisation, as they will establish a large consumer base for both business and pleasure travel alike. People are now afraid to travel because of the threat of infection from COVID-19. This has had a devastating effect on the airline sector as a whole. As a result of these issues, several airline firms are experiencing significant losses.
Qatar has always provided innovative services to its clients, such as cost reduction, increased customer experience, comfort, etc., through the application of new technological advancements. It’s easy to book tickets on Qatar Airways’ website and mobile app at any hour of the day or night. The government also offers a variety of incentives to help the aviation industry upgrade its technology because it entails enormous costs.
To reduce carbon emissions, Qatar Airways utilises new and efficient planes. As a result, the airline firm has done a great job of reducing its carbon footprint and thereby satisfying a wide range of stakeholders. Airline companies can’t ignore environmental considerations if they want to become industry leaders in their field of work.
Qatar Airways has always placed a high value on legal considerations, which is why the airline is often regarded as one of the best in the world. Various new travel restrictions have been implemented as a result of COVID-19 to protect travelers and prevent the transmission of disease. The airline complied with all safety regulations to ensure that all stakeholders were satisfied with the company’s operations.
(Sources:Kucsera, 2021; Emil, n.d.; Wang, 2021; Maharani, 2020)
SWOT Analysis has been considered as a strategic tool that might facilitate in investigating the core insights of the organization, and to develop a triumphant approach for the upcoming future. SWOT analysis of Qatar Airways analyses the organization through its strengths, weaknesses, opportunities & threats.
The interrelation of the macro and micro analysis has been evaluated here in a descriptive manner:
As per the entire evaluation of the report, it has been observed that the political and social impact has been responsible for creating major changes in the business. Therefore, the key findings illustrated that the various policies and regulations have been responsible for Qatar airways to succeed in the international marketplace. Additionally, it has been considered as the ultimate strength of the airline organization. The social and environmental factors are considered major factors for the economic downfall of Qatar airways. In terms of social factors, the impact of the COVID-19 pandemic has been considered responsible for creating obstacles in the path of decreasing the rate of travel due to the fear of infection. On the other hand, the extreme rate of carbon emission contributes to changing of climate. As a result, the airline industries have to face numerous restrictions for these major issues. It is indeed considered as the major weakness for Qatar airways.
Qatar Airways has a very elevated position in terms of the economy which is the biggest opportunity for the organization, and the legal factors do not have any significant negative impact upon the company’s performance. However, due to the COVID-19-related protocols and legal mandates which have greatly restricted travel, the performance of the organization has been impacted to a large extent, and it may become even more challenging for it in the future in case the pandemic does not get contained (Dudley, 2021) .
From the entire evaluation of the entire report, it has been observed in an extensive manner that the macro-environmental factor and micro environmental factor have an immense impact on the profitability and efficiency of the organizations. Therefore, investigation of the legal structures, scope, vision, mission objectives, and various services has been competent to evaluate major success factors of the organizations. The context proves to be extremely accommodating in depicting the interrelationship between macro and microelements in a deliberate manner. It has been observed that through analyzing this impact of the factors Qatar airways have full-grown from a diminutive company to a most important player in the airline industry of Qatar. Thus, it has been concluded that the entire study has been succeeded in evaluating the overall facts illustrated in the report.
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