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Business Report on Manchester Airport PLC Essay

Manchester Airport is managed by Manchester airport (PLC) and owned by 10 Metropolitan Boroughs, it was in 1934 that the Manchester city airport approve the building of approved the building of Ringway Airport (original), which was opened in 1938 with the completion of the original terminal. This means they have control over the company, as it is publicly owned it is in the public not the private sector, until recently it could not borrow money without government consent, and can’t even take out a bank overdraft, Manchester airport is independent and controls its own destiny.

It can invest and buy anything it likes but at its own risk. The councils have there own board and chief executive, and each company has its own board and Managing directors. This Company represents the historic and continuing heart of the Group’s business – the successful operation and development of Manchester Airport. Manchester Airport Aviation Services This Company brings together all the major services that are essential to Manchester Airport’s operation.

It is charged with running ground and baggage handling, passenger transfer services, aviation security, the fire service, engineering and car parks business. Manchester Airport Ventures This Company combines the former commercial ventures arm of Manchester

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Airport which operated on-site advertising space activities, airport petrol stations, photography, design and print business, and the training and motor transport activities that were previously part of the Manchester Airport structure.

Manchester Airport Developments Maximising the immense potential for development opportunities generated directly and indirectly by the Group, the core activity of this company will relate to Manchester, where the opportunities include on-site developments such as remote car parks, remote check in facilities etc. It is also responsible for the cost effective management of the capital programme for all four airports in the Group. Regional Airports

This covers the other airports in the group – Bournemouth, Nottingham East Midlands, and Humberside; as with the other companies in the Group, the Regional Airports business is dedicated to providing and developing high quality airport facilities to the benefit of airlines and their passengers in each of the regionsManchester Airport doesn’t rely on its own profits, it provides facilities and services such as terminals, runways and security and works closely with service partners (private sector) they bring there own investments and management expertise and provide all additional services that the Airport needs.

This is what makes Manchester airport successful all the risks and rewards are shared between the public and private sectors. The vision / mission statement is down to a primary objective “maximising profitable growth”, whilst “minimising its negative impact on the environment” and then to all the secondary or supporting objectives, which if achieved, will help the company achieve its primary objectives.

There mission is to be the best airport in the world and their vision for the future is of an airport that is part of the region’s sustainable transport network, providing high standards of service for all their customers, whether they are travelling for pleasure or business. They will do this by working with service partners to offer a combination of choice, value for money, efficiency, and quality to all their passengers.

The fundamental business purpose of Manchester Airport Group PLC is to maximise the profitable growth of its airport-related and other businesses in a +manner that brings sustainable economic, financial and social benefits to the North West region and to minimise its negative impact on the environment. The airport’s first aim then is to survive and make a profit, profits are needed to pay interest, service loans and run the airport on a day-to-day basis; finance future growth; and pay dividends. Manchester Airport wants to increase the number of passengers who use the airport.

It has the basic infrastructure and potential to support growth in passenger numbers to 40 million by 2015. It can manage this growth broadly within the boundaries of its current site by prioritising the use of land for essential activities and moving non-essential activities away from the site. It will make the most of new technology and speed up passenger processing both on site and away from the site. It is already developing a ground transport interchange on site to improve access to Manchester Airport, and will consider ways of integrating transport connections to the Airport alongside passenger processing facilities.

Its strategy is also aimed at major growth in our network of scheduled international destinations. This will include new destinations and added frequencies to provide the region with the best possible quality of service at competitive fares. The airport places great emphasis on the development of ground and air feeder services, and on the provision of first class transfer facilities, so that it maximises its hubbing capability. The airport also pursues new business opportunities, where it has particular skills and a competitive advantage, and where it can make these profitable.

Its vision includes working with others. This means its customers, service partners and employees. It also means the local community, as well as regional bodies and national bodies that have an interest in what it does. It will also work in partnership with other companies and organisations, where appropriate, and where there is added value to be gained. Its overriding concern will be the safe and sustainable operation and development of Manchester Airport. Manchester Airport objectives include:

Delivering consistent, high quality facilities and services to all its customers to ensure that they stay loyal, keep coming back for more, and act as ambassadors for the airport, telling others about their good experiences and recommending the airport to their friends and acquaintances. Customers are after a positive experience, free from hassle and delay. Operating a safe and healthy environment for its employees and customers Attracting more airlines and expanding the network i. e. flying more routes to more destinations. Expanding the infrastructure and capacity of the airport i.

e. more runways and terminals Expanding the ground transport interchange Expanding the cargo centre – a major source of profits. Developing and retaining a skilled and motivated workforce. Serving the community and caring for the environment (has charitable, non-profit objectives) By being the centre of an expanding and highly successful intermodal transport hub, the airport has become the largest single generator of economic activity in the North West, generating inward investment from business, tourism etc. 4. 3 Organisational Functions

This section deals with The Value Chain, where I will explain Porters concept of the value chain and added value, Functions at Manchester Airport, where I will be identifying and summarising the role of the key functions performed at Manchester airport, Combining the functions, where I will explain how it is important for a business like Manchester Airport to co-ordinate the work of the different functions so that it runs effectively, integrating the functions where I will explain how in a modern organisation there is far more integration of functions than ever before, how effective the functions are, where I will explain that the functions of a business will only operate as well as the management of the business will allow them to. 4. 31 The value chain

This diagram explains Porters concept of the value chain and added value. The aim of this process is to add value, creating value for its customers by meeting their needs, and creating value for the company by generating sales and profits. The idea of the value chain is based on the process view of organisations idea of seeing a manufacturing organisation as a system, made up of subsystems each with inputs, transformation processes and outputs. Inputs, transformation processes, and outputs involve the gaining and use of resources – money, labour, materials, equipment, buildings, land, administration and management. How value chain activities are carried out determines costs and affects profits.

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