How organization restructuring and effective management can support OmanAir to secured profitability.

How organization restructuring and effective management can support OmanAir to secured profitability.

 

Background:

 

Oman Air founded by the sultanate of Oman’s civil aviation begins its function in 1993 is Muscat based national airline of Oman, it offers both domestic and international services and is a member of Arab air carrier organization.OmanAir is notable for its hospitality and high market presence, Oman was the first airline to offer internet connection and telecom services which are widely appreciated, however, and company always want to invest in green technology which supported the company to improve their brand (Yousif, Alattar & Fekihal, 2017).  In 2011, according to a survey Oman air was recognized as best airline globally, however, recently there was the news that politics has influenced the management of the company.

 

Problem statement:

 

The internal structure of Oman air is their weakness, due to poor performance organization’s profitability is affected, as the company has a large structure and workforce, lack of strong management and leadership is the key reason for the problem(Jalagat, Dalluay, Al-Zadjali & Al-Abdullah, 2017).  The company loss 447 million in 2017 which is 39% more loss compared to 2016 (Khazaaleh, 2017). Though the company has significant growth in present faces challenges in trading environment, for example, competition from the regional aviation Etihad, Qatar, etc.

Tool/methodology best suited for the problem

 

Considering the Oman air problem we can say that using the financial statement such as liabilities, assets, equity, profit and loss company need strong financial management. It is been recognized that the company has secured sales and profitability when there is less or no competition, Oman Air has no apprehension on airfare prices.  These indicate that the company needs a more effective plan to ensure better functioning and profitability.

 

Effective leadership & management: the organization needs to alter/modify the working structure by implementing more effective leadership and management. Effective management will ensure that all employees are aware of their responsibility, organization goals, and policies to work in an obligation to attain those goals. Effective management will ensure effective documentation of financial statement such as company balance sheet, comparative income statement, cash flow analysis, trend analysis, etc. considering competitive market company needs to restructure the organization, improve fleet harmonization, ensure digital transformation, the corporate client needs to ensure quality service, improve catering and company cargos, holiday and engineering subsidiaries can be reshuffled, following steps can help the company to increase their profitability. Also, it is vital to comprise customer and workforce feedback, and analyze market trends when restructuring the organization as it will help the organization to recognize the area of improvement, helps in identifying risks so that a better plan can be made to avoid those risks. Thus, the following alterations can support OmarAir to ensure better operation and profitability

Reference:

Jalagat, R., Dalluay, V., Al-Zadjali, A. K., & Al-Abdullah, A. (2017). The impacts of job satisfaction on employee turnover: A case study of Oman Air in Sultanate of Oman. European Academic Research, 5, 331-374.

KHAZAALEH, F. M. K. (2017). Capital structure in the Airline Industry–An Empirical study of    determinants of capital structure (Doctoral dissertation, The British University in Dubai (BUiD)).

O'brien, J. (2019). Category management in purchasing: a strategic approach to maximize business profitability. Kogan Page Publishers.

Yousif, J., Alattar, N., & Fekihal, M. (2017). Forecasting Models Based CO2 Emission for Sultanate of Oman. International Journal of Applied Engineering Research ISSN, 0973-4562.

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