Dear Students, During the last week you are required submit for Grading the TWO parts of the Module Assessment. PART A: Management Project. The completed management project report that includes ALL...

PROJECT MANAGEMENT DISSERTATION
DISSERTATION PROJECT: AIRLINE START UP
FOR AIR AUSTRALIA
Executive Summary
The following paper is a report proposal for Air Australia to obtain a scoping analysis on the required criteria for the creation of a cost-effective business plan. The report offers a summary of considerations that need to be addressed before committing resources to the process of business development and even helps the organisation plan to better manage the growth of the productive supply chain and maximise the likelihood of a successful outcome. The bid covers the client's highlighted problems and offers a roadmap to the project's implementation by formulating priorities and objectives aimed at shaping the research. Secondly, the report includes a comprehensive section of the theory, which supports the instruments and techniques used for research. It even focuses on clearly defining and describing the necessary methods used to complete the review. Thirdly, the study used the Gantt map in preparing and deciding where and when an operation needs to be undertaken in an effort to obtain successful and timely results. This approach used to assess and identify the different tasks that need to be undertaken in order to complete the bid promptly and efficiently by adopting the Gantt map in the planning of events. Finally, the contribution of the tools and techniques used to generate the project-relevant analysis and why they adopted in the study is significant.
Table of Contents
PART A: Management Project    4
Chapter 1: Introduction - Background and Objectives    4
1.1 Client Aim and Objectives    4
Chapter 2: Supportive Evidence    9
2.1 Objective 1: Market Analysis    9
2.1.1 Ansoff's Matrix    9
2.1.2 Macroenvironment Analysis (PESTLE)    11
2.2 Objective 2: Stakeholder Analysis    13
2.2.1 6 Principles of Stakeholder Theory and Strategies    13
2.2.2 Stakeholder Model    15
2.3 Objective 3: Feasibility Study    16
2.3.1 Segmentation, Targeting and Positioning (STP)    16
2.3.2 TOWS Analysis    17
Chapter 3: Study of Gantt chart    20
Chapter 4: Contributions    23
4.1 Ansoff’s Matrix    23
4.2 Market Analysis (PESTLE)    23
4.3 6 Principles of Stakeholder Theory and Strategies    24
4.4 Stakeholder Model    24
4.5 STP    25
4.6 TOWS Analysis    26
Chapter 5: Concluding Remarks    27
5.1 Conclusion    27
5.2 Recommendations    27
PART B: Reflective Portfolio    30
Assumptions    30
Ethics and Values    32
Time Management    33
Learning from Experience and Moving Forward    35
References    39
PART A: Management Project
Chapter 1: Introduction - Background and Objectives
1.1 Client Aim and Objectives
Air Australia is a corporation that aims to set up a low-cost airline to appeal to the Australasian market and is conducting a feasibility study to assess the feasibility of setting up a supply chain to benefit the organisation. The company, therefore, seeks to engage a consultant to conduct a scoping report on the criteria of creating a cost effective business plan in order to ensure that the company is:
· Customer visibility at all times
· Provide clients with value
· Establish a channel for direct marketing
· Cultivating brand satisfaction
· Stand out from rivalry
· Create awareness of the brand
As mentioned above the aim of this report is to perform a scoping analysis for air Australia on low cost airlines, using efficient scoping technology and feasible supply chain to produce the study goals as stated below:
The client asked for, consultants to include a report that critically examines how an analysis, which achieves the following, will be produced. A feasibility study that offers a detailed overview of the supply chain needed to sustain the establishment within the Australasian market of a low-cost airline, achieving the stated goals and objectives.
Objective 1: The first objective is to conduct the market analysis of the low cost airlines in line with business objectives of the airline start-up Air Australia by—
· Carrying out industry research
· Using digital study of models
Objective 2: The second objective is to analyse the stakeholders of the airline start-up company so that operations can be determined by—
· Carrying out stakeholder analysis
· Adopting task/technology concepts to match
Objective 3: The third objective is to execute a study to understand the feasibility of the supply chain of the business that is being planned to be set up so that it airlines services can be planned accordingly, in support of this business venture by—
· Examining the mechanisms and potential growth
· Conducting SWOT review
The methodology used in this study is intended to provide highly valued service to the consumer in order to achieve the business goal of creating a business plan that enables business transactions in a timely fashion. The research is also performed using data gathered from industry-based surveys, case studies and previous research. In addition, the organisation-wide evaluation tour will be conducted to collect the required information needed for the production and quality of the strategic plan and even to point the customer to the effectiveness of the study while providing important analysis that justifies the methodology of the study.
Market
Consumer spending and reconstruction requirements, not to mention the eventual entry into the Australia of many countries in the region, are generating a growing demand for air facilities between Western Europe and the countries of South-Eastern Europe and many other parts of the world. As indicated by Wongleedee (2017), the parties to a transaction a number of factors, all of which require higher air quality of service than is often available at present. Business travellers requiring comfort, reliability, speed and timetables built round the business needs.
The Government and international organisation travellers, requiring the same, need the above. As explained by Rajaguru (2016), personal and leisure travellers from the area of Southeast parts of Australia, having the money to fly and those, who are increasingly requesting a higher standard of service and comfort, but at an inexpensive rate. Personal and leisure travellers originating in the Australian region are now living and working in large numbers with the same demands in countries of other parts of the world. Personal and leisure travellers, mostly travelling between Western European points on the airline's routes. Seasonal holiday travellers mainly are bound for Sydney and Melbourne, primarily summer, with some niche markets restricted during the winter period.
Their co-location is expense, reliability, comfort and their desired destination. The new proposed airline would draw all of these distinct groups by providing better quality and in some cases, non-existent service at a higher level of protection, comfort and convenience and at affordable fares than is presently available. As mentioned by Suhardjanto and Ajibroto (2017), the new airline will also concentrate on the market segments listed in this plan's Service Description section, allowing it to serve better and establish itself as the airline of preference for those markets.
Competition
There are four main divisions of the overall airline industry operating between Western Australia and Southeast Australia:
i. Developed main Australian carriers (mainly Australian airlines such as Qantas, Jetstar airways) using their Southeast and helping to feed traffic to their main intra-European and trans-Atlantic routes
ii. Relatively small, but usually excellently regional airlines, mainly from which serve essentially the same purpose as mainline airlines or in the case of carriers, for example, destinations Airways in with their own key destinations.
iii. Home-based carriers, mostly operating in Australia, are older. Generally, they provide a lower level of service (although not necessarily lower fares) and are therefore less highly regarded, even by South-Eastern Australian travellers. These airlines connect points within Southeast Australia, or can connect destinations in the Southeast to major Western destinations.
iv. A fourth segment is also important to note and that is the fairly important charter industry that exists in many small or seasonal markets, including charter flights in this market. Often run by individual travel companies or airlines, these charters are often classified by a low level of operation and use of older, often old-built aircraft.
The new proposed airline is expected to fit most closely into the second grouping above, but will compete effectively with all four main segments by incorporating a high standard of safety and operation, carefully chosen routes, niche-market service, flexible schedules, fair and affordable fares and modern, safe comfortable aircraft. It will also provide services on under-served and unserved routes where there is currently little to no competition.
Management Team
A full management team is being built, including the elements of administration, aviation and finance. This company puts together a wide range of expertise and experiences, from a variety of national origins, covering the main areas required to shape, launch and run the airline.
Gaps in Executive Team
Talking about management team differences before a core management team is appointed is premature. The people who will play leading positions with the new airline will need to have the broadest possible range of skills available. As explained by Elwasly et al. (2019), in order to help develop core management, the new project team assumes that airline investors may want to play a key role. When a primary investment is identified, the move can be taken and the core team is expected to be finalised. As informed by Avram (2017), in areas such as data management, aviation safety, aviation services, aviation maintenance, ground forces, sales and marketing, communications and human resources management, the new airline will require individuals with expertise, experience, power and vision to head up and bring.
Good pilots, founder, cabin members of the crew, ground employees and administrative staff are also good. As indicated by Cote (2018), it anticipated the formation of the absolute best airline leadership team in the industry, one that also embraces the common vision of what this new company can really be and what it can achieve. The systems will be easy and costs will be held to a minimum by concentrating on a single category of aircraft, a single travel category and, initially, a common route. In order to retain this advantage, Air Australia will consistently concentrate on keeping a constant base. Air Australia exists even to provide customers with a valuable service, a rewarding incentive for workers and profitability for clients and shareholders.
They think that success depends on workers in this endeavour. Satisfied workers contribute to satisfied clients, contributing to happy shareholders. They will encourage staff to act with an adventurous mindset in order to do this and respect those prepared to behave appropriately and the consequences that follow. Employees can be viewed as family by Air Australia, which promotes affection, informality, good relationships and caring behaviours, which make work more enjoyable. This offers staff the chance to become shareholders and to take part in the monetary advantages of ownership. People are taking better care of stuff they own. The organisation treats staff with respect, which helps them to treat each other and each client with respect. It wants clients to encounter renowned service that makes for an enduring impression.
Our research and estimates suggest that air travel to and from Air Australia using six aircraft and selected short-haul flights, is adequate to provide such a new carrier with outstanding revenue during its first full year of services. In year one these revenue figures are based on load factors of just 55 per cent. With additional aircraft and extended routes, second year sales are projected to more than double. It will consume cash in the first year of formative operations before sales can begin. This is because of a new air carrier's corporate and regulatory responsibilities. To handle the costs of this stage of the organisation, investment activity is required.
Timely delivery of services, regulated prices, managed marketing budgets. As informed by Christensen and Inthorndharamana (2020), at the cost of profits, there is a tendency to concentrate on growth. In order to keep maintenance requirements both strict and observable, rapid development would also be curbed. With all aircraft built for a seating capacity of 165, operation will be one-class. Traveling is going to be ticketless. Reservations will be managed exclusively by our own reservation system (even though we have budgeted 30 per cent of revenue for travel agent commissions). Lin (2020) has explained that it will be on a pay-on-demand basis for in-flight operation. The charged service would only be for alcoholic drinks. On these small aircraft, no meals will be served. The fare arrangement will include a treat of beverages and peanuts.
Due to the COVID-19 pandemic and mitigation steps, the drastic decrease in demand for passenger air travel (and freight, to a lesser extent) threatens the profitability of many businesses in both the air transport sector in the region of the aviation industry, with several employment at stake. Although the aviation industry has long been a focus of government policies, a new collection of loans, government subsidies, wage subsidies and equity investments have been precipitated by the COVID-19 crisis, raising questions about competitiveness and the effective use of government money.
There are two uncertainties facing airline companies in the medium term:
The cost of interventions linked to health. Owing to additional health and safety standards, for example, disinfection, PPE, temperature controls or virus tests, operational costs are likely to escalate in the short term for both airlines and airports until they can be passed on to customers. In addition, social distancing initiatives could cause a reduction in the passenger load factor that is the number of seats that can be filled during a flight by up to 50 per cent if introduced for air transport.
The shape of commercial airline recovery is the another fall, Constraints on international travel, the deterioration of business growth and adjustments in transport behaviour by wary customers may stop demand levels from returning to pre-crisis levels, even if lockdowns and restrictions on internal flights are loosened in many countries. Commercial air traffic is sluggish to recover: the volume of flights stands more than 40 per cent under the pre-crisis rate globally as of September 2020.
Chapter 2: Supportive Evidence
2.1 Objective 1: Market Analysis
2.1.1 Ansoff's Matrix
The Ansoff matrix details four distinctive perspectives of the market in directing the market provision of a certain company. Market penetration, market development, product development and diversification are four key factors of measurement and market value analysis for Air Australia. Hence, underlying the key factors in the market regarding its start-up, the presentation of its products and ranges has been done with the analysis of the Ansoff matrix.
Figure 1: Ansoff Matrix Analysis
(Source: Dawes, 2018)
Market Penetration Strategy:
Ansoff matrix is considered the best as a growth strategy for the start-up companies, by developing a set standard to its products and beached for an establishment with one of its core products. This considers a wide range of analysis and evaluation prospects to the evaluation of its alternatives in a structured way. Based on the market analysis, the penetration of the market in context to Air Australia, it has been found that the market, at present, is full of exciting products, offers, ranges of innovation and integrating marketing elements.
Hence, enabling strong composition to current market scenarios with more attractive power and product will create a different range and value in the market. The organisation needs to make more focus on its credulousness of services, alignment with relative services such as healthy and quality food serving, specious management and offer to the purchases at certain times. More focus on product development and integration of technological implications will be helpful in this regard. Incorporating and introducing new and innovative means in the prospect of market penetration will help the company largely.
Product Development Strategy:
The strategy of product development is associated with selling new products to the existing market with more attractive and innovative presentation and making magnificent delivery means. Adding more marketing means to the product development process and developing a strategy in the context of market segmentation will help the organisation in this regard. The development strategy as per the Ansoff model relates to close interaction with the existing customers by considering the present status and demands of customers as a priority, attaining interest and observation on customers’ preference, putting priority in the feedback of customers (Dawes, 2018).
The development of innovation lies in adding new features to the existing products. Hence, the company, Air Australia, might develop their products with integrated services and intend to focus on quick delivery of services, keeping balance with the demand of customers and to that of the organisational respective (Bocken and Snihur, 2020). Some joint ventures of partnership business sometimes help in receiving a significant response in the market, therefore the tagline of the business purpose and ultimate way of dealing need to be focused and effective means of advertisement need to be carried out.
Market Development Strategy:
Enabling magnificence in service delivery by the new use or modified use of the products is the core concept of the market development strategy. Creating variation in the product and incorporating a wider range to the product segmentation will be helpful for the company to expand its view and enable market composition for longer. Further, the integration and attainment of sustainability depend on developing innovative ways of dealing and setting efficient Business-to-Business and business customers’ relationships by Air Australia in introducing products to a demographic group (Putra and Dhewanto, 2020). The extension of limit towards entering into a new domestic geographic market and foreign markets as well is contacted with relevant information and it reaches the target customer from the market. A joint venture in this regard will be helpful for the emerging company to share the knowledge on the current scenario and market demonstration.
Diversification Strategy:
Based on the strategy of diversification as per the Ansoff matrix, the value chain of products and its integration is dependent on potential synergies and key considerations of the diversification. This involves the specific preferences of people, their trend, based on the current demand and the undertaken research and development strategy by the emerging company. Hence, the prospect of the market and present scenario will be evaluated to attain efficient response and development in the market by the company.
2.1.2 Macroenvironment Analysis (PESTLE)
The PESTEL analysis for Air Australia will be incorporated with its external factors analysis that will support or contradict the new venture of the company.
Political:
As per the present scenario of Australia and the world, political stability is highly advantageous for the context and expansion of Air Australia. This stable situation will incorporate the organisation with progressive factors to join a venture of partnership in a freeway without any obstruction. This might be a prospect full for the organisation and the global context of the country both. Furthermore, the deregulation effect has provided an incorporating scope for the organisation that has been accelerated with foreign rules regarding ownership and change of policies.
Economic:
For the economic context, there might be severe constraints for the company. Being a start-up company, the company will lack enough financial funds, which might lead the company to difficulty during the present crisis context. Due to Covid-19, the economy of the entire world has destroyed and affected the existence of several companies (Matovic, 2020). The impact might be challenging for the company, but with effective organising policy and strategy development regarding the product price, target set, the company might attain potential response from the market (Ghezzi and Cavallo, 2020). The real disposable income might be a factor for the company presented in Australia and the rate of employment with the rising cost of fuel might be challenging for the emerging company.
Social:
Based on the changes in society and customers' attitudes, different demographics have been developed. The existing industry of Australia in aviation has already a strong potential and thus the changing demographics of the customers might be a constraint towards the invasion of Air Australia. However, the present society is experiencing an upgrading intensity of traveling as an added side of the lifestyle of people (Song, Sun and Jin, 2017). Hence, the domestic, as well as international services by Air Australia might be supported and accepted by enormous people in the country. The preferences of the customers might fluctuate regarding the product price, integration of service efficacy. Hence, in this respect again the company might confront the issue.
Technological:
The technological implication is a broad factor in this sector. In the present scenario of business, technological invention and higher availability, factors are considered to be of utmost importance. Hence, the facilities covered with the basic services such as availability of internet access, video calling will enable a widened scope for the customers. The magnificent in the inbuilt capacity and the costs of the surface transport investment are much higher. Thus, the emerging organisation might be confronted with the risk and challenges of funding.
Environmental:
The user-friendly venture is being prioritised for the business of the present time. Hence, the organisation being environment-friendly and cautious as well as responsive towards the carbon emissions will be prioritised for Air Australia to the broader context by attaining much response from the industry and world market. On the other hand, the inbuilt provisions of noise control levels, saturation measurement regarding tourism might incorporate the venture of the company (Matovic, 2020). However, a shortage of unrestricted capacity being new in the market might obstruct integrity and expansion to some extent.
Legal:
The proper maintenance before urging towards the new venture regarding legislative compliance requirements will incorporate the organisation (Saura, Palos-Sanchez and Grilo, 2019). Any abductive proposition of the advertisement, in contrast, will create allegations regarding the activities of the company and the allegation might subject the company to lose its reputation. Anti-competitive behaviour in the same way might disintegrate the free will of the emerging business.
    Political
    · Deregulation
· Stable political environment
· Foreign ownership rules
· Policies related to climatic change
    Economic
    · Global financial crisis
· Higher unemployment
· Higher fuel cost
    Social
    · Changing demography of customer
· Increasing lifestyle regarding travelling
· Fluctuating preferences of customers
    Technological
    · Internet facility
· Surface transport investments
· Efficient aircrafts
    Environmental
    · Carbon emission effect
· Noise control level
· Tourism saturation
    Legal
    · Allegation regarding misleading advertisements
· Anti-competitive behaviour
Table 1: PESTEL Analysis
(Source: As per Market Situation)
2.2 Objective 2: Stakeholder Analysis
2.2.1 6 Principles of Stakeholder Theory and Strategies
Principle of Contract Cost
Cost gathering to Air Australia ought to either tolerate equivalent sums with regard to cost, or the cost organisation bear should be relative to the preferred position they have in the firm. Not these expenses are budgetary in nature, so cost might be hard to measure. In acknowledgment of contrasting hierarchical attributes, the cost standards and methods in the succeeding subparts are assembled fundamentally by authoritative kind, for exceptional, business concerns and instructive organisations (Amodu, 2018). The general target is to give that, to the degree practicable; all the associations of comparative sorts, accomplishing comparable work, which will follow similar cost standards and systems. To accomplish this consistency, singular deviations concerning cost standards require advance endorsement of the organisation head or designee.
Principle of Agency
This principle states how company’s management is an agent of Air Australia and thus has duties to both the owners and the shareholders (Davis, 2018). The partnership between the principal and the agent is an agreement, in which one person legitimately appoints another to work on his behalf. The investigator acts on request of the manager in a principal-agent arrangement and does not have a potential conflict of interest when carrying out the act. The partnership between the principal and the agent is considered an "agency" and rules for such a partnership are established by the law of the agency.
Principle of Externalities
This involves how, regardless of the activities of the company, a community that does not profit from the activities of the corporation needs to suffer such difficulties. The definition of externalities indicates that someone who needs to pay the expenses of other stakeholders is therefore entitled to become a stakeholder relying on the principle regarding stakeholders. A stakeholder becomes someone who is influenced by a company (Barney, 2018). The expenses as well as benefits may be private to a person or an organisation, or social, which means that society as a whole can be influenced.
Principle of Governance
This principle concerns how it is possible to change the laws regulating the relationship among the stakeholders and the company. Strong governance is vital to the survival of Air Australia and is not something that can be hated. That progress in social entrepreneurship has an effect on the societies, in which it works (Ndaguba and Hanyane, 2019). Governance does not have to be difficult and for organisations across many sizes, it is vitally valuable. Governance is also regarded as a job of enforcement.
Principle of Entry and Exit
This principle clearly states that the organisation rules about hiring and firing should be clearly stated. Organisations should have fixed guidelines that employees and candidates can rely on. This helps to make organisations seem trustworthy and accountable to the stakeholders. The conditions should be transparent, precise, standardised and be informed to the candidate or employee before they are committed to the organisation. This is one of the reasons that CSR may not be beneficial for organisations. As clear-cut rules cannot be made, as every employee has preferences and decisions taken cannot be satisfactory to all involved (Galant, 2017).
Principle of Limited Immortality
This principle clearly states that if an organisation must be seen as beneficial to its stakeholder, it should exist for an extended span of time. This implies that an organisation should do everything in its power to survive. It should be able to outlive the initial founders and stakeholders. Principle of limited immortality propagates a...