Strategic management for Manila International Airport Authority

• Main Author: Cortez, Salvador R., Jr.
• Format: text
• Published: Animo Repository 1997
• Subjects: Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2118
• Institution: De La Salle University

Expanding geographical scope, forming strategic alliance with airlines and other airport concessionaries, backward integration and privatization of the company are the most appropriate corporate strategies at this point in time for MIAA. All of these proposed corporate strategies will attain MIAA strategic and financial objectives. They are based on external and internal factors which are objectively and carefully considered based on a framework for analysis. External factors include the industry opportunity and threats and the broader societal expectations while the internal factors include the companys strengths and weaknesses and the personal values of key decision makers. The conclusions made about the external and internal factors are also based on frameworks as explained in the paper. The above set of strategies will enable MIAA to take advantage of industry opportunities which means greater and more sustainable profitability for the company. It will also protect the company from industry threats which means that MIAA will not just survive the competition in the industry butwill continue to as major player. Companys strengths will be used and tapped to exploit the industry opportunities and guard MIAA from industry threats. Weaknesses that prevent MIAA from attaining its objectives will be neutralized if not eliminated and some of them will be converted into strengths which are necessary to attain objectives. In addition, the strategies considered what key decision makers would be willing to implement and how societal expectations would be given importance. MIAA belongs to an industry called Air Transport industry. Firms in the said industry satisfy the same needs and wants of clients for fast, safe, efficient and reliable transport (or movement) of people and cargo by providing airport facilities. Opportunities in the industry include the continued economic growths in Asia-Pacific region which is expected to increase air transport passengers and cargo traffic in the future. However globalization of the economy brought industry threats in the form of liberalization of key industries by many developing countries like the Philippines. Liberalization policies therefore mean more competition. While MIAA has strengths which include it having excess cash for investment, strong financial condition and good access to slow-interest rates, it has weaknesses which are preventing it to attain its objectives. These weaknesses include complacent employees, lack of clearly defined standards of performance, too much control from outside government agencies, large tract of idle land, disability to reinvent or plow back great part of its earnings. The strategy took into consideration the broader societal expectations which include the squatter concerns for their homes who might be seriously affected by the development of MIAA, the government policy for economic development by liberalizing all the major sectors of the economy to reduce unemployment and increase productivity, and the need of present employees for their security of employment. Personal values of key implements that include the MIAA General Manager, the Secretary of DOTC and the President of the Philippines are consistent with the strategies. MIAA also needs to have competitive advantages to survive, to outdo competitors and prevent others from joining in its strategic group within the industry. Competitive advantage means doing an activity that has value to customer better than competitors. These advantages include the following: more reliable scheduling of flights than competitors, fastest response in case of emergency, safest operation of facilities, safest constructed facilities, and best location of terminal facilities. These corporate strategies and competitive advantages were translated into the following functional strategies: marketing, operations, finance, human resource development and accounting or management information system (MIS). Marketing strategies include selling products and services where MIAA earns most, that is, the international flights, charging prices commensurate to value offered to buyers, advertising through print and broadcast media and locating and acquiring wider location that would allow more airport facilities. Operation strategies include building bigger and better terminals in coordination with its buyers and sellers through strategic alliance with them, making way for efficient assignment for different types of aircraft to their respective boarding bridges and relocating the general aviation facilities outside MIAA. HRD strategies involve keeping learning proprietary for competent and creative employees, establishing contacts with reliable schools or establishing a training center, giving the best training for qualified security and medical personnel, and recruiting and hiring outside MIAA other personnel with the right skills to support the other functional strategies. There is also a need to establish measure of performance based on objectives to be able to reward and control performance