Technological: -
Technologically Information Technology is vital to the smooth running and communications of the Airport at all levels. The system needs to function well, be reliable and staff need to be fully trained in this, which brings more cost.
Fig 2, Micro- and Macro-environmental forces diagram, Essentials of Marketing, Third Edition by Jim Blythe.
The macro-environment issues can have a huge impact on the company and its micro-environment and it tends to be difficult to influence. This is why the Airports policy should be seen as operating within a rapidly changing environment and must monitor and react to any changes to ensure goals are met.
Marketing managers should be reactive to macro-environment factors. To do this effectively they need to analyse where they are by using a SLEPT situational analysis to examine the strengths and weaknesses of the Airport and opportunities and threats from the external environment. Once this has been established they need to analyse the firm’s position within the environment and itself with a SWOT situational analysis.
Social: -
Demography - lifestyle analysis affects the way customers are targeted, so being aware of current patterns helps the Airport to target the right people. For example, shifts in the birth rate cause distortions in the market thus allowing opportunities to target sales to a specific age group.
Seasons affect when people whish to holiday and therefore create peak and off peak periods. This allows marketing to adjust fares etc accordingly and market more effectively.
Being environmentally active and aware brings good publicity as a caring company, which is what Manchester Airport wants. The Company value as stated in the internet site is “Social Commitment – we are a responsible neighbour and invest in our community.”
The Airports Environment Plan states that “it is important that this growth takes place
In tandem with a stringent framework dealing with controls on environmental
impacts”.
Technological: -
The internet is an opportunity for advertising and direct marketing. Manchester Airport’s internet site uses this advantage to its full potential by including all relevant information for passengers to view.
The main computer system used by the Airport for security checking of staff and passengers and all communications is working well, reliable and staff are fully trained internally by Manchester Airport Ventures, who run the training centre. Ventures now also train outside bodies which generate more capital for the Airport. The Company value, from the internet site, states that “Integrity - we strive to be better every day and take steps to make it happen. Costs – we spend money on the things that really matter.”
Legal: -
The Airport is required by law to protect its customers, the airlines. It chooses to protect the passengers for the airlines. This ensures the safety of everyone on site and thus a good working relationship between all parties.
Environment laws bring cost. But this is required by the Government and also brings good publicity, as the Airport is seen to be actively caring for the environment and local area.
Economic: -
The boom/bust cycle occurs approximately every 8 years, in which national economies have a recession. This brings production numbers to recede, loss of jobs and purchases are then reduced.
Increased expenditure, or reduced taxation would mean more money in the economy and people will want and need travel and holidays.
Taxation increase or expenditure cuts would bring less money and a loss in demand.
It is essential to anticipate this management of demand in the economy.
Political: -
Government policies cause shifts in emphasis and can disrupt the Airport operations. Being aware how to adapt the Airport policies to include these is essential to ensure continued running of all areas within the Airport.
Government legislations can be influenced by lobbying.
EU laws are difficult to control and influence.
All of the above external factors will also impact on the operations of the Airport. The political and social environment has effect on operations through standards of welfare, health and safety at work.
Operations Managers will need to ensure changes required are planned and controlled so the output conforms to requirements. A strategic plan for structural decisions, long, medium and short, can then be devised. The dynamic state of operations and the environment make it essential that there is feedback on progress. This enables changes to be made so the operation can work appropriately. This is control.
The process of operations strategy looks at how operations policies, plans and principles are decided and developed.
The overall objective for this will be: -
- Quality. This is key to improving performance against objectives. Manchester Airport achieves this through having a skilled workforce, technology and excellent communications.
-
Speed. The Airport has to ensure time is taken into account, as there are many people travelling through areas at one time. There are fire regulations on the number of people allowed in one area to consider. And, as stated in the DVD, Flying to the Future, if an area is overcrowded, passengers will become uncomfortable and stop spending in the retail outlets.
- Dependability. This is how the Airport keeps its promises to its customers. So ensuring all systems are functioning well to keep all operations running on time is essential to enable passengers to move through the building.
- Flexibility. Being flexible to seasons in the year enables the Airport to change the balance of the range of services to meet the needs of the Airport on a whole. This then ensure a cost effective operation is running smoothly.
- Cost. This ensures finances are being used within budgets and appropriately. This can be achieved by reduced overheads, multi purpose equipment and facilities.
Four variables are important to ensure the way the Airport operates. These key environmental factors are volume, variation, variety and customer contact. The operations should be designed so that it matches these features of its environment closely.
Volume: -
The Airport has a high volume in the way that it has to repeatedly deliver its service. The use of technology by the Airport results in high output from an efficient process.
Variation: -
Manchester Airport provides the correct level of capacity to meet the pattern of volume demands.
Variety: -
The ability to be flexible is essential. The Airport has proved this since changing the way security is organised within the Airport Terminals. This high variety does need a lot of planning and control, which bring more overhead costs.
Customer contact: -
The Airport has taken the service option of Front Office and Back Office. This ensures effective and efficient gains of planning and control.
The above four factors will enable effective and efficient running of operations by determining how complex the task of managing the operation is.
Once the above has been undertaken, the Systems Approach should be used to analyse operations. This will enable the Operations Manager to envisage the impact any operational changes will have on other areas linked.
Three key ideas are involved in the systems approach, which are: -
- Environmental influences; it is important to identify the processes of the operation and design these in the most effective manner.
- Control; information is gathered and compared with the Airport standard. This enables Management to proactively manage operations ensuring all predetermined standards are met.
- Structure decisions; the hard system method should be followed here, as most problems surrounding operations within the Airport will have agreement from all, as there are guidelines to follow in this business.
Fig , Operations Management in Context, by Galloway, Rowbotham and Azhashemi.
All the above information on the effects of environmental issues in the Marketing and Operations areas and how to address them, have been detailed. Management should now be able to effectively incorporate the above into day to day work and filter it through to team members.
Bibliography.
J Blythe, 2005, Essentials of Marketing, Third Edition, Essex, Pearsons Education Limited.
L Galloway, F Rowbotham, M Azhashemi, 2005, Reprint, Burlington, Elsevier Butterworth-Heinemann.
M Hinton, J Holloway, Other Members of OU Course Team, Block 1 Introduction: Business Functions in Context, 2006, Milton Keynes, The Open University.
Manchester Airport website, http://www.manchesterairport.co.uk/manweb.nsf accessed from November 28th until December 10th 2007.
Flying to the Future, DVD, Milton Keynes, The Open University.
Reference list
Manchester Airport web site, Our Company Values, ttp://www.manchesterairport.co.uk/manweb.nsf/Content/OurCompanyValues.
Manchester Airport website, Environmental Plan, http://www.manchesterairport.co.uk/manweb.nsf/Content/Environment
