Jet Airways is one of the biggest airline companies in India. The company started its
operations in May, 1993 from Mumbai/India. The main products of the company are
passengers air transportation, cargo service and services such as City Check-in or Ramp
handling. Jet Airways operates 340 flights daily and mostly to their 44 domestic
destinations but the company also serves the six following international destinations:
Malaysia, Nepal, Singapore, Thailand and the United Kingdom. Jet Airways’ revenue in
2006 accounted for 1379.9 million USD, which signifies an increase of 38.8%
compared to 2005 (ICFAI, 2005).
The trend of fast global travel goes together with the strong supplier power, as aircraft
manufacturing is dominated by a duopoly. The global airline industry is a deregulated
industry which attracts new entrants (airlines) and the most successful segment is the
domestic one, with a volume of 67.3%. Another indication for more and fast global
travel are growing passenger numbers of 6.5% (2002-2006)(ICFAI, 2005).
Table of Contents
1. Introduction
2. TOWS- Analysis
3. SAF-Analysis
4. Choice of Strategies
5. Risk Assessment
5.1 Short-Term Strategy
5.2 Mid-Term Strategy
5.3 Long-Term Strategy
6. Implementation
6.1 Short-Term Strategy
6.2 Mid-Term Strategy
6.3 Long-Term Strategy
7. Monitoring & Control
8. Conclusion
9. References
Objectives and Topics
This report aims to evaluate strategic development options for Jet Airways within the highly competitive Indian aviation market, specifically focusing on how integrated risk management can support long-term business sustainability.
- Application of strategic analysis tools (TOWS and SAF)
- Development of short-, mid-, and long-term business strategies
- Comprehensive assessment of operational, financial, and reputational risks
- Implementation planning involving organizational structures and stakeholder management
- Strategies for market diversification into the hospitality sector
Excerpt from the Book
5. Risk Assessment
Three strategies are recommended to implement according to the different time frames, which are short-term, mid-term and long-term.
5.1 Short-Term Strategy
Although the stability strategy suits for the current situation of Jet Airways, five risks are needed to be taken into account: financial, human resource, operational, regulatory and competitive risk.
The cash flow problem, currency risks and taxation risks can be treated by establishing swap contracts, forwarding agreements and hedging to other financial companies. The human resource risk which arose from the dissatisfaction of employees can be terminated by effective motivation schemes such as rewards or bonus programmes. To avoid operational risk, Jet Airways has to prepare and formulate alternative strategies in case of the failure of the original one in order to stay competitive in the dynamic business industry.
Goyal’s hands-on style leadership would ban the establishment of a supervisory board which can be transferred by agreements or also be taken. Because of the competitive and dynamic character of the business, stability strategy is probably increasing the risk of losing competitiveness and market share. Therefore, some actions need to be implemented such as regular monitoring of activities of competitors.
Summary of Chapters
1. Introduction: Provides an overview of Jet Airways, its market position in India, and the trends influencing the global airline industry.
2. TOWS- Analysis: Utilizes the TOWS matrix to systemize strategic options derived from internal strengths/weaknesses and external opportunities/threats.
3. SAF-Analysis: Evaluates the developed strategic alternatives based on Suitability, Acceptability, and Feasibility to determine their viability.
4. Choice of Strategies: Details the selection of specific strategies for different time horizons, including internal stability, strategic alliances, and product line extension.
5. Risk Assessment: Analyzes the potential risks associated with the selected strategies and proposes mitigation methods for each time frame.
6. Implementation: Outlines the practical steps required to convert the chosen strategies into an operating plan, focusing on management and organizational changes.
7. Monitoring & Control: Explains the mechanisms for auditing performance and ensuring that risks remain within acceptable tolerances through constant oversight.
8. Conclusion: Summarizes the necessity of effective risk management for Jet Airways' competitiveness and success in the dynamic market.
9. References: Lists the academic and professional sources utilized throughout the report.
Keywords
Jet Airways, Strategic Management, Risk Assessment, TOWS Analysis, SAF Analysis, Airline Industry, Business Strategy, Market Stability, Competitive Advantage, Operational Risk, Corporate Alliances, Product Line Extension, Hospitality Sector, Stakeholder Management, Strategic Implementation.
Frequently Asked Questions
What is the core subject of this report?
The report focuses on Strategic Risk Management for Jet Airways, analyzing how the company can navigate the competitive Indian aviation market through structured strategic planning.
What are the primary thematic areas covered?
The central themes include strategic evaluation (TOWS/SAF), risk assessment across various time frames, and implementation strategies including partnerships and horizontal diversification.
What is the primary objective of this research?
The primary objective is to recommend a roadmap of strategies for Jet Airways to maintain internal stability, leverage alliances, and successfully expand into the hospitality sector while mitigating potential risks.
Which scientific methods are applied in the report?
The report utilizes the TOWS matrix for strategic option generation and the SAF (Suitability, Acceptability, Feasibility) framework for evaluating and ranking these options.
What topics are discussed in the main body?
The main body covers the strategic analysis of the airline industry, specific short-, mid-, and long-term strategy formulations, detailed risk profiling for these strategies, and management techniques for implementation and control.
Which keywords define this work?
Key terms include Strategic Management, Risk Assessment, TOWS Analysis, Airline Industry, and Competitive Advantage.
How does the report suggest handling internal organizational risks?
The report recommends establishing a supervisory board to formalize decision-making processes and implementing regular training and motivation schemes for employees to improve organizational stability.
Why is the hospitality sector suggested for long-term growth?
The hospitality sector is identified as a means for horizontal product line extension, allowing the company to gain revenue in a growing market beyond aviation, provided they comply with legal requirements and adapt their internal staff expertise.
- Citation du texte
- Thomas Punzel (Auteur), Elisabeth Stockmann (Auteur), 2008, Case Study “Risk and Decision Making”, Munich, GRIN Verlag, https://www.grin.com/document/122442
