ST.

MARY’S UNIVERSITY SCHOOL OF GRADUATE STUDIES

MA IN PROJECT MANAGEMENT

STRATEGIC MANAGEMENT
(MAPMC-631)
GROUP PROJECT

Assessment of Strategic Plan of Ethiopian Airlines

Prepared by
1) Sitota Kebede SGS/ 0475 / 2013A/
2) Yonatan Daniel SGS/ 0503 / 2013A/

Instructor
Ephrem Assefa, PhD

September 2021
Addis Ababa, Ethiopia
Table of Contents
INTRODUCTION.....................................................................................................................................3
STRATEGIC MANAGEMENT....................................................................................................................3
BENEFIT OF STRATEGIC MANAGEMENT................................................................................................3
FIVE STAGES OF STRATEGIC MANAGEMENT PROCESS..........................................................................3
BACKGROUND OF THE COMPANY.........................................................................................................4
CULTURE OF THE ORGANIZATION ASSESSMENT...................................................................................6
CORPORATE STRATEGIC PLAN...............................................................................................................8
STRATEGIC PLANS..............................................................................................................................8
 Vision.....................................................................................................................................8
 Mission Statement.................................................................................................................8
 Value Statement....................................................................................................................8
ASSESSMENT OF ETHIOPIAN AIRLINES CURRENT VISION, MISSION AND VALUE FORMAT....................9
OVERVIEW...........................................................................................................................................10
 Strategic Intent........................................................................................................................10
 Strategic Assessment...............................................................................................................10
 Strategic Choice.......................................................................................................................11
ALIGNMENT STRATEGIC DEVELOPMENT.............................................................................................11
 Alignment With The Leadership Team.....................................................................................11
 Alignment With The Vision & The Strategy..............................................................................11
 Alignment With The Whole Organization................................................................................11
ENVIRONMENTAL ANALYSIS................................................................................................................12
 External....................................................................................................................................12
SWOT ANALYSIS...........................................................................................................................12
 Internal....................................................................................................................................13
HOW THEY BUILT & IMPLEMENTED THE STRATEGY/ strategy behind Ethiopian success....................13
RISKS TO GOOD IMPLEMENTATION....................................................................................................13
 Leadership...............................................................................................................................13
 Communication.......................................................................................................................13
 Resources................................................................................................................................14
 Buy-In.......................................................................................................................................14
IMPLEMENTATION CONSTRAINTS.......................................................................................................14
 Time.........................................................................................................................................14
 Budgets....................................................................................................................................14
 Human Resources....................................................................................................................14
 Technology..............................................................................................................................15

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RISK......................................................................................................................................................15
BIG PICTURE VS PRACTICAL APPLICATION...........................................................................................15
 People......................................................................................................................................15
 Communication the plan.........................................................................................................16
ALIGNMENT DISCUSSION BETWEEN THE CORPORATE & THE SUBSIDIES............................................16
SKYLINE HOTEL....................................................................................................................................17
CONCLUSION.......................................................................................................................................19
RECOMMENDATION............................................................................................................................20
REFERENCE..........................................................................................................................................21

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INTRODUCTION
The purpose of this paper is mainly to assess the Ethiopian Airlines strategic plan and to
discuss the different practices in theoretical perspective and applied techniques/practices that
are used by Ethiopian airlines company.
The assessment will be conducted based on three stages of strategic planning processes which
are formulation, implementation, and evaluation.
STRATEGIC MANAGEMENT
Strategic management is the ongoing planning, monitoring, analysis, and assessment of all
necessities an organization needs to meet its goals and objectives. Changes in business
environments will require organizations to constantly assess their strategies for success.
The strategic management process helps organizations take stock of their present situation,
chalk out strategies, deploy them and analyze the effectiveness of the implemented
management strategies. Strategic management strategies consist of five basic strategies and
can differ in implementation depending on the surrounding environment. Strategic
management applies both to on-premise and mobile platforms.
BENEFIT OF STRATEGIC MANAGEMENT
Strategic management is generally thought to have financial and non-financial benefits. A
strategic management process helps an organization and its leadership to think about and plan
for its future existence, fulfilling a chief responsibility of a board of directors. Strategic
management sets a direction for the organization and its employees. Unlike once-and-done
strategic plans, effective strategic management continuously plans, monitors, and tests an
organization's activities, resulting in greater operational efficiency, market share, and
profitability.

FIVE STAGES OF STRATEGIC MANAGEMENT PROCESS

There are many schools of thought on how to do strategic management, and academics and
managers have developed numerous frameworks to guide the strategic management process.
In general, the process typically includes five phases:
 assessing the organization's current strategic direction;
 identifying and analyzing internal and external strengths and weaknesses;
 formulating action plans;
 executing action plans; and
 evaluating to what degree action plans have been successful and making changes
when desired results are not being produced.

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Effective communication, data collection, and organizational culture also play an important
part in the strategic management process -- especially at large, complex companies. Lack of
communication and a negative corporate culture can result in a misalignment of the
organization's strategic management plan and the activities undertaken by its various business
units and departments. Thus, strategy management includes analyzing cross-
functional business decisions before implementing them to ensure they are aligned with
strategic plans.

BACKGROUND OF THE COMPANY

Ethiopian Airlines has risen from humble beginnings to become a leading African aviation
group for more than 70 years. Of course, Ethiopian ages gracefully.
Over the last seven decades, the airline has established itself as an expert in all aspects of the
aviation sector, including technology leadership, network expansion, and aviation mentoring.
On December 30, 1945, Emperor Haile Selassie, with the help of TWA, formed Ethiopian
Airlines with the help of TWA. Weekly service between Addis Ababa and Cairo was
launched on April 8, 1946, with five Douglas DC-3 propeller-driven aircraft. As early as
1958, Ethiopian Airlines began long-haul flights to Frankfurt, and in January 1963, the airline
launched its first jet service from Addis Ababa to Nairobi. To begin with, it offered some
initial aircraft support to the Ethiopia-United States Mapping Mission during its mission to
generate topographic maps of Ethiopia in the 1960s.
Although it relied on American pilots and technicians at the beginning, by its 25th
anniversary in 1971 Ethiopian Airlines was managed and staffed by Ethiopian personnel. In
1998, it started transatlantic services. In 2007, Ethiopia Airlines provided basic pilot and
aviation maintenance training to trainees from African countries including Rwanda,
Tanzania, Chad, Djibouti, Madagascar, and Sudan. Another training was given to employees
of Kenya Airways, Air Zimbabwe, Bellview Airlines, Cape Verde Airlines, and Air
Madagascar. Ethiopian Airlines (Ethiopian) is the leading and most profitable airline in
Africa. In 2014 IATA ranked
Ethiopian renewed and revitalized its strategies during 2008 to improve the route network to
meet the needs of its customers. Kuwait and Zanzibar were among those routes included to
strengthen and reinvigorate the route network. The company also concluded new codeshare
agreements with Lufthansa, Brussels Airlines, Gulf Air, and Air One respectively. The
agreement with Lufthansa permitted the establishment of a codeshare partnership between
Addis Ababa and Frankfurt and allowed both Ethiopian and Lufthansa to expand and

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streamline their services. In a similar venture, the partnership between Ethiopian and Brussels
Airlines, Gulf Air, and Air One opened greater access to each other’s markets to provide
relative ease and flexibility in customer service. These codeshare arrangements have created
a better and wider range of choices for the customers of the carriers involved. In addition to
improving passenger convenience, such business relationships facilitate the operational and
handling services offered by the partners.
Maintaining its African leadership position in aviation technology, Ethiopian purchased and
installed a new B737-700/800NG simulator at its headquarter to train not only its pilots but
also pilots from various customers. For its fleet expansion program, Ethiopia signed a
contract with the Boeing Capital Corporation for the purchase of one MD-11 freighter
aircraft. It also leased two GE-powered Boeing 747-200 freighters with a capacity of 100 tons
each to satisfy the growing demands of the flower exporting business in Ethiopia. On the
other hand, the year saw the leasing of two additional B767-300ER passenger aircraft to
accommodate the ever-growing increase in passenger traffic.
Pursing its decisive strategy of growth, ET has been busy developing and executing a
network of destinations and frequencies having the following salient features in the year
2007/08: Non-stop services to major markets such as BOMBAY, DUBAI, ROME,
FRANKFURT, JEDDAH, JOHANNESBURG, Luanda, LAGOS; a significant frequency
increase to major markets; and operating to new destinations with market potential-
BAHRAIN, ZANZIBAR and SANAA.
In line with the vision 2010 strategy on Maintenance Repair & Overhaul (MRO) business,
intensive marketing activities took place during the year; and, various new and existing
customers were awarded to ET/MRO center, engine, airframe, and component maintenance
contracts. In addition, Simulator and basic training (both in-house and at the customer’s
location), and secondment of skilled personnel were also provided to customers.
ICT at Ethiopian has to be strategic and turn itself into a World Class Airline ICT
competence because of the level of progress Ethiopian has been able to attain and its growth
goal. To achieve its goal and growth strategy, Ethiopian has made a significant investment in
its ICT to enable and drive the business. Capabilities in information and communications
technology (ICT) are one of the things that set airlines apart. The best-run airlines use
cutting-edge information and communication technologies, as well as best practices and
standards that bring value to the operation. It is for this reason that the Ethiopian Airlines ICT
Business Transformation program is so important to make a quantum leap in its business. The
implementation of the ICT Business Transformation program is projected to take two years
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and cost US$30 million. Since the project was so important and so expensive, Ethiopian
opted to work with a Systems Integration & Implementation Partner (SIIP). Since April 11,
2008, Satyam Computer Services and Ernst & Young have been selected as System
Implementation and Integration Partners (SIIP). To achieve greater business efficiency and
scalability, Ethiopian is implementing a new generation of ICT solutions and upgrading its
processes.
As part of the ongoing implementation of vision 2010, Human Resource Management
Division had undertaken the following major activities during the budget year: a total of 395
employees system-wide were hired for training by the various schools; a total of 148
employees were trained under the leadership development program. 1034 employees attended
the career development course; through the Company Educational Assistance Program, 895
employees were sponsored to pursue their education in the evenings and through
correspondence programs in various fields; and short-term scholarships were given to 21
employees and they took their training abroad.”
With seven core business segments, Ethiopian is now pursuing a 15-year strategic plan called
Vision 2025, which will see it become Africa's top airline group. As of December 2011,
Ethiopian Airlines has joined Star Alliance, the world's largest airline alliance. Ethiopian has
won numerous awards, including SKYTRAX Best Airline Staff Service in 2013 & 2016,
'Best African Airline' in 2017-, and Four-Star Airline Certification in 2017.
During the previous seven years, Ethiopian has seen an average annual growth rate of 25
percent.

CULTURE OF THE ORGANIZATION ASSESSMENT

Strong organizational cultures are characterized by a group's homogeneity and stability and
by the length of time and intensity with which they have shared experiences. Furthermore, a
study
by Nongo and Ikyanyon (2012) proved that corporate culture is important in improving the
level of employee commitment to the organization
but not all corporate cultural measures affect employee commitment.
Culture is also essential in determining how well an employee fits into the
organizational context. Deal and Kennedy (1982) argue that corporate culture affects the
commitment of employees within the organization and the strength of organizational

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commitment is correlated with the strength of corporate culture. To grasp the organization's
objectives, employees must have a strong corporate culture. As employees strive towards the
organization's objectives, their dedication increases.
Employee commitment and mission were positively correlated in the evaluation interview,
with the mission having a statistically significant favorable The remaining three
characteristics of organizational culture, flexibility, consistency, and engagement, were
ranked from most correlated to least associated based on their correlation levels As a result,
employee involvement had a lower correlation with employee commitment than it did Apart
from that, the highest aggregated average mean score of mission suggested that employees
highly agreed with the measure of mission as well.
The more employees understand the company's mission, the more dedicated they become to
it. Involvement increases when employees internalize and understand the company's long-
term purpose, goals, and ambitions.
As a predictor of employee commitment, adaptability is second only to the company's
mission and has a substantial impact As a result, it may be inferred that the more a business
adapts to changing conditions, the more devoted its people are to Personnel are thereby
persuaded to feel that an organization's capability of responding to internal consumers has It
is also important for organizations to be capable of restructuring certain habits, and to be
aware of the external environment to adapt appropriately.
Even while the organization strives to maintain a strong culture by being very consistent, this
does not have a substantial impact on the degree of employee dedication. This led to the
conclusion that employees prefer to be allowed the freedom to accomplish their jobs rather
than being forced to do them in a regimented manner. As a result, while firms must have a
strong organizational culture, they must also be adaptable. Similarly, the results of the
regression analysis show that involvement had a positive but statistically negligible impact on
employee commitment. This also implies that employee engagement in decision-making and
ongoing investment in skill development does not have a substantial impact on employee
commitment.
As a result, the study recommended that the organization maintain the major cultural
characteristics, namely mission, and adaptability, which have a largely positive influence on
employee commitment. To elaborate further, the group mean of the mission is the greatest,
implying that employees have already recognized the company's long-term objective. As a
result, the company must continue to communicate its mission and vision to newly hired
employees constantly, ensuring that employees understand, internalize, and work towards the
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attainment of the organization's goals. Considering adaptability, the organization should
reward innovation to encourage employees to be more creative.
New employees must understand and internalize the firm's mission and vision, thus the
company needs to keep articulating it to new hires. Organizations need to foster employees'
creativity by rewarding innovation. They should keep responding to internal customers and
the changing external environment.

CORPORATE STRATEGIC PLAN

STRATEGIC PLANS

 Vision
To become the most competitive and leading aviation group in Africa by providing
 safe,
 market-driven,
 customer-focused passenger,
 cargo transport,
 aviation training,
 flight catering,
 MRO, and
 ground services by 2025

 Mission Statement
 To become the leading Aviation Group in Africa by providing safe and reliable passenger
and cargo air transport, Aviation Training, Flight Catering, MRO, and Ground Services
whose quality and price “value proposition” is always better than its competitors.
 To ensure being an airline of choice to its customers, employer of choice to its
employees, and an investment of choice to its Owner.
 To contribute positively to the socio-economic development of Ethiopia in particular and
the countries to which it operates in general by undertaking its corporate social
responsibilities and providing vital global air connectivity.

 Value Statement
As an airline, safety is our priority, Ethiopian is a high-performance and learning
organization with continuous improvements, innovation, and knowledge-sharing. We accept
change for the growth opportunity it brings and always seek for and apply the best ideas
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regardless of their source, We recognize and reward employees for their performance and
demonstrate integrity, respect to others, candor, and teamwork, Act openly and be result-
oriented, creative and innovative, Adopt Zero tolerance to indifference, inefficiency, and
bureaucracy, Encourage 360° free flow and sharing of information, Treat our customers the
same way we would like to be treated and always look for ways to make it easier for
customers to do business with us, We are an equal opportunity employer.

ASSESSMENT OF ETHIOPIAN AIRLINES CURRENT VISION, MISSION AND

VALUE FORMAT

 Appropriateness of the vision, mission, and value statement with respect to the
company type of business.
 Clarity of objective/purpose
Since the vision, mission, and values statements serve as the framework for all actions of
Ethiopian airlines company.
The vision statement
Describes the organization's future direction after 15 years. It is a wide and inspiring
statement designed to elicit support from participants;
The vision statement has a clear plan about the future in which sector want to work and make
a difference even though the future is uncertain;
The vision states not only based on the service that is giving but also on the clients' side how
to make a comfortable;
The vision is simply clear and easy to understand;

The mission statement

Describes how the organization distinguishes itself from others in its airline industry by
providing safe and reliable passenger and cargo transport, aviation training, flight catering,
MRO, and ground services whose quality and price “value proposition” is always better than
its competitors. It is more precise than the vision statement and is meant to demonstrate how
the objective of the airlines will be met.
 Clearly state why the organization exist, what's the aim of the organization;
 What are the services that are giving;
 There are no buzzy words;
 The mission statement is simple to understand;

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The values statement Ethiopian outlines how employees should conduct themselves within
the organization. It serves as a framework for making decisions.
 The values explain how is the culture of the organization;
 States What value or what the DNA of the organization;
 Describes the organization as a person or in the employees' side;

OVERVIEW
Ethiopian Airlines (Ethiopian) is the leading and most profitable airline in Africa. In 2014
IATA ranked Ethiopia as the largest airline in Africa in revenue and profit. Over the past
seven decades, Ethiopian has been a pioneer of African aviation as an aircraft technology
leader. Ethiopian provided the first jet service in the continent in 1962, the first African B787
Dreamliner in 2012, and is leading the way again by providing the first African A350 XWB.
Ethiopian joined Star Alliance, the world’s largest Airline network, in December 2011.
Ethiopian is currently implementing a 15-year strategic plan called Vision 2025 that will see
it become the leading airline group in Africa with seven strategic business units. Ethiopian is
a multi-award-winning airline, including SKYTRAX and Passenger Choice Awards in 2015,
and has been registering an average growth of 25% per annum for the past ten years.

 Strategic Intent
Strategic intent assures consistency in resource allocation over the long term. Articulated
corporate challenges focus the efforts of individuals in the medium term. Finally, competitive
innovation helps reduce competitive risk in the short term.
To become the most competitive and leading aviation group in Africa by providing;
In the coming 15 years to be one of the best-chosen Airline;

 Strategic Assessment
 Construction of Maintenance Hangar (Already done)
 Expansion & upgrading of Ethiopian Aviation Academy (Already done)
 Construction of Simulator building for different fleet types (Already done)
 Construction of a 5-star hotel (Complished the first phase)
 Expansion of Cargo Terminal (Already done)
 Construction of new Catering facility (Already done)
 Construction of parking building (Not yet)
 Construction of new Headquarters (Not yet)
 Construction of a new terminal Mojo Terminal ( Ongoing Construction)

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  Strategic Choice
 Save time;
 Save money;
 Save resource
 The employees they gonna be happy and you get more done
 You gonna have a big impact on the organization

ALIGNMENT STRATEGIC DEVELOPMENT

 Alignment With The Leadership Team

 Making sure those who are in the leadership that is on the same page;
 Ethiopian Airlines Leaders or managers align a clear and simple communication for
the employee that are under his/her control;
 They give time for the employee to understand the process of the strategic planning
process;
 The leadership team has the responsibility to motivate the employees to match the
goal of the organization;
 Being sure that the employees have the sufficient tools they need to succeed it’s the
other part of the leadership;

 Alignment With The Vision & The Strategy

The alignment of the vision & the strategy of how these two are going simultaneously
together to achieve the plan of the organization based on the budget, time resources, and
human resources, these alignment helps Ethiopian Airlines to be successful, winning prices
and working ahead of the plan.

 Alignment With The Whole Organization

At a corporate level the alignment of the subsidies it’s the success for the corporate one, the
whole organization achieve its goal when a single individual accomplish their task or duty;
As we know Ethiopian Airlines has around 7 subsidies that are related one to the other, these
help the whole organization or the corporate to work on the bigger vision strategy of the
company.

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ENVIRONMENTAL ANALYSIS

 External

SWOT ANALYSIS
Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis is a strategic internal
factor such as Hub Ethiopian's strengths and weaknesses, as well as external factors such as
Hub Ethiopian's opportunities and threats, determine Hub Ethiopian's strengths.

Strengths
 Leadership team with extensive experience and success – The Hub as a result of their
ability to accurately predict industry trends, the Ethiopian management team has
enjoyed great success over
 Stable Financial Statements – Hub Ethiopian's financial statements appear to be in
good shape, which bodes
 Air travelers were carried at a much higher rate, while freight was transported three
times as much due to increased traffic to Europe, North America
 Leadership team with extensive experience and success – The Hub as a result of their
ability to accurately predict industry trends, the Ethiopian management team has
enjoyed great success over

Weaknesses
 Low revenue from home market
 Lack of financial support from Government

Opportunities
 Expanding reach to Latin America, Asia
 Additional Revenue Possibilities from Training and Maintenance Facilities
 Leverage mentorship of Lufthansa

Threats
 Increasing Aviation fuel cost
 It is possible that improvements in road and rail infrastructure could reduce the
demand for air travel.
 Global players are increasingly interested in Africa's lucrative aviation industry,
which is putting pressure on South Africa'

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  Internal
The Enterprise is wholly owned by the Federal Government of Ethiopia;
Ethiopian Airlines is government-owned and the Foreign Minister is the Chairman of
Ethiopian. It is the major single source of hard currency income for the country.

HOW THEY BUILT & IMPLEMENTED THE STRATEGY/ strategy behind Ethiopian
success
 Coordinated Succession Plan;
 A 2025 Vision was Adopted in 2010
 Maintained Its Structure;
 Investment in Cargo Terminal;
 Investment in Training;
 Investment in a new destination;
 Upgrade Its services;
 Commitment to Its employees' development;
 Investment in Technical Capabilities;
 Committed to Its employees future; (housing project for the employees)
 Invested in Tourism & Hospitality Development;

RISKS TO GOOD IMPLEMENTATION

 Leadership
If we don’t have the whole management team on board is going to pull back the strategy
because they are on giving the marching for the staff or employees;

 Communication
Having clear communication with the leaders helps to see the gap in the working unit;
In some cases, the employees wouldn’t understand the vision, mission & goal of the company
they only take the others from their leaders they wouldn’t understand how it’s important for
the organization their task so making a clear understanding about their task it’s important for
the employee to get motivated.
If the employees hold important information may take a big risk for the organization that is
very crucial to the plan.

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  Resources
Knowing what we have in terms of material resources, the human resource helps the
organization to save time, money to go with the plan.

 Buy-In
Creating the plan and push on the people helps to allow them to work to their maximum
effort by allowing their new ideas and creativity.

IMPLEMENTATION CONSTRAINTS
During the implementation, there are several constraints to achieve the vision, mission &
value of the organization. An organization can be determined based on time, budget, human
resources, and technology during the implementation strategy.

 Time
Strategy planning is based on a time limit to achieve its goal, every strategic plan is bounded
by a time frame to implement ;
Ethiopian airlines have developed different projects for the comming15 years that must be
implemented, all these projects are bounded with a time frame;

 Budgets
When an organization formulate a strategic plan considering the budget of the project it’s one
of the important aspects for the success of the organization;
Setting the budget it’s very difficult because there is always inflation of budget in the market,
to stick to the plan it’s always important to have a contingency plan.

 Human Resources

Setting the right human resource for the right place help to achieve the plan effectively;
Selecting the right person for the right place is important for a project;
In Ethiopian Airlines there is an assessment of the employee based on their performance
these helps to distinguish whether the employee is in the right place and is working
effectively;

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  Technology
Technological advancement has been the driving factor for improving airlines’ operational
efficiency. Airlines have been able to reduce costs and improve operations by using advanced
aircraft engine technology, IT solutions, and mobile technology. The technology has created
better connectivity and enhanced passengers’ travel experience.

Fuel is an airline’s largest cost component. Currently, it accounts for more than 30% of total
operating expenses. According to Boeing, one of the largest aircraft manufacturers, advanced
aircraft technology provides the following benefits:
 New aircraft—like the Q-400 Aircraft, AirBus 350, Boeing-787, 737 MAX—reduce
fuel consumption by double-digit percentages compared to older ones. Aircraft performance
also improves by using advanced technology winglets.

RISK
Critical Risks Facing the Aviation Industry
 System Failure and Aging Technology Infrastructure;
 Climate Change;
 Oil Price Volatility;
 Air Craft Reputation Damage;
 Economic Recession;
 Government Shutdown due to war, political problem, natural disaster;
 Decreasing Insurance Capacity;
 Pendemic deases (Covid-19);

BIG PICTURE VS PRACTICAL APPLICATION

 People
Identifying the key people in the organization that are responsible for the functional area to
manage helps to minimize the time & budget.

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  Communication the plan
Knowing the way how to share the strategic plan with n the organization helps the employees
to understand what they are doing;
There are different types of people within the organization the communication method must
be easy in their level like explaining in:- Words
Audio or verbal
Picture,
Company Email,
Company portal page,
This method helps to identify the gap and come up with a solution.

ALIGNMENT DISCUSSION BETWEEN THE CORPORATE & THE SUBSIDIES

Ethiopian Airlines has 7 subsidies under the corporate company every subsidy are related to
each other, it’s a serving type of organization in hospitality and for the success of the
organization every subsidy is important to have the bigger picture of the organization.
In the area of participation, all hotel and tourism services will take action to achieve their
specific goals. As mentioned earlier, Ethiopian Airlines has entered into a hotel service, using
its extensive network for operations. In the case of the EAA, the hotel service movement is a
milestone in new business strategies and will work with Ethiopian to provide standardized
service to its customers and support the airline industry. Hotel and Tourism are operated by
Ethiopian Airlines and employ specialized training and capacity-building professionals such
as professional chefs. Also, when a flight is canceled, staying at your hotel instead of staying
at another hotel will reduce costs. This approach is one way to reduce potential security risks
and harassment for customers and shows that the organization is one of the strategies used to
address those potential risks.

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SKYLINE HOTEL

Ethiopian Skylight Hotel, owned by Ethiopian Airlines, is the most luxurious and the largest
hotel in Ethiopia located at the heart of Africa’s diplomatic hub Addis Ababa, just five
minutes away from Bole International Airport. With outstanding, international-standard
service, the luxurious hotel awaits you for your leisure and business needs. 

A total of 373 stunning rooms with relaxing and superb designs are suitable for both
corporate and leisure travelers. Enjoy spectacular city and/or airport view in all of our rooms.

Comprising 3 luxurious restaurants – Ethiopian Ta’em Cultural Restaurant, TaiChi the

biggest Chinese Restaurant in East Africa and All-Day Dining Restaurant heighten your hotel
experience. The Lobby Lounge and the Front Lobby are spacious enough for social and
business meetings.

The Grand Ballroom which can accommodate 2000 for sitting setup and 4000 for the cocktail
set up at a time, can also be divided into 5 individual halls along with a spacious foyer area
(can accommodate 500-800 guests). is Ideal for big conferences, big corporate events, and
lavish weddings, our venues provide impeccable and world-class service.  3 Daylight meeting
rooms and 2 VIP private holding rooms are fit for your corporate meeting demands.

The outstanding facilities of Green Apple Health Club include Fitness Center, outdoor heated
swimming pool, Thai spa and massage, pool bar, mini-golf courses, and beauty salon.

Since Skylight hotel is a new business strategy for Ethiopian Airlines Based on the interview
findings on the issue of promotion most of the respondents said that the Ethiopian
government was following the backward system to promote the Ethiopian tourism industry
and expecting a lot from the government and still Ethiopia poor in promoting Ethiopian
tourism when it compares the other African countries.
On the issue of physical infrastructure, the phase II infrastructures are not completed.
There is good availability of good hotel accommodation in Addis Ababa, however, there is a
lack of good hotel accommodation outside of Addis Ababa, particularly in tourist
destinations.
On the issue of security, most of the respondents confirmed that there is no security problem
inside and outside Addis Ababa.

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On the issue of image perception, most of the foreign tourists were feeling that Ethiopia is the
place of indications of war, insured and not this much have a tourist attraction.
On the issue of the availability of enough tourist attractions area, most of the respondents said
that Ethiopia has enough tourist destiny.
In the past years when flights are canceled the passengers stay at Hilton hotel because of
these, they spend a lot of money on accommodation, but now they save a lot of money at the
same time its another income for the company not using not only for the international users
but also for the local accommodation especially during the pandemic time.
Ethiopian MRO Services Strategy

Vision
Ethiopian MRO Services shall be the most competitive and leading provider of commercial
aircraft Maintenance, Repair, and Overhaul (MRO) services in Africa by 2025.

Mission

To become the leading MRO organization in Africa by providing airframe, engine and
component maintenance, repair and overhaul and procurement and material services whose
quality and price “value proposition” is always better than its competitors 9 As a profit center
of the Ethiopian Aviation Group, we ensure to be MRO organization of choice to our
customers, employer of choice to our employees and an investment of choice for the group. 9
To support the fast growth strategy of the passenger and cargo profit centers of our group and
to contribute our share to the development of MRO services in Africa.

Strategic Objectives - Provide full airframe MRO services to all aircraft models operated by
ETHIOPIAN on terms (price, TAT, and quality) each better than the competition - Provide
MRO services to the majority of engines and components installed on ETHIOPIAN fleet at
the lowest cost compared to alternate service providers. - Generate an annual revenue of
USD 520 Million (and a profit of 100 Million) from third-party MRO work by 2025.

 USD 87 Million from maintenance of 79 Airframes Per annum. USD 414 Million
from maintenance of 153 Engines per annum. USD 19 Million from Component
Maintenance per annum

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Fast and Profitable Growth Strategy

Ethiopian MRO Services shall pursue a fast and profitable growth strategy.

Cost Leadership Strategy

In line with the corporate business strategy, MRO Services shall pursue a cost-leadership
strategy and shall derive a competitive advantage by delivering standard MRO services at the
lowest cost.

Organization

Line Maintenance shall be established as a Department separate from Base Maintenance to

bring focus and efficiency to the former.

The MRO function shall be established as an autonomous Business Unit by 2015. This must
be done based on a detailed study and adequate preparations in advance.

Development of Maintenance Capabilities

Airframe maintenance capabilities shall be developed for aircraft models operated by
ETHIOPIAN. Based on the current fleet plan, capability shall be developed for B787, B777,
and A350. - Existing Airframe Maintenance Capabilities on B737 Classic B737 NG, B757,
B767, MD-11, and Q400 will be maintained and further developed.

Engine Overhaul Capabilities shall be developed and/or maintained for PW 4000, GENX,
CFM56-3, CFM56-7, PW100 Series Engines, and GE90 (subject to a feasibility study) -
Overhaul Capabilities shall be developed and retained on APU - GTCP 331, GTCP 85, and
GTCP 131. - Subject to feasibility studies, additional capabilities shall be developed on
more:

a. Landing Gears, and

b. Propellers for aircraft like the Q400

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In-house maintenance capabilities shall be developed for more components of current-
generation aircraft models (both ET & Customers). Particular attention shall be given to:
A. Pneumatic Components
B. Hydraulic Components
C. Avionics Components requiring Automatic Test Equipment (ATE)

These will require major investments.

Capabilities shall be developed both in Engineering and Maintenance that enable M & E to
undertake major aircraft modifications and conversions.

Facilities

Additional wide-body hangar by 2012 and one more every five years.
A paint hangar with proper facilities, Aircraft Interior Refurbishment Hangar, Composite
Repair Facility, Engine Overhaul Facility Upgrade will be done.
State of the art MRO IT system shall be implemented.

Regulatory Approvals

Ethiopian MRO Services shall obtain and maintain EASA Part 145 approval in addition to its
FAA repair facility approval.

Partnership

Ethiopian MRO Services shall forge partnerships with selected OEMs and reputable MRO
organizations both on sales and marketing and capability development. This includes the
Wire Harness production project being started with Boeing.

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CONCLUSION

In conclusion, Ethiopian Airlines is one of the old corporate organizations under the
Ethiopian government that has more employees. We try to see the strategic plan of the
corporate plan how the work, how is the alignment with the leadership, how they
communicate, how they use their resource, what are the constraints.
Ethiopian airlines based on the strategic plan is ahead of the schedule that gives him to win
many prices for several years.
Ethiopian Airlines is Certified as a 4-Star Airline for the quality of its airport and onboard
product and staff service. Product rating includes seats, amenities, food & beverages, IFE,
cleanliness, etc, and service rating is for both cabin staff and ground staff.
Ethiopian Airlines, the largest Aviation Group in Africa and SKYTRAX certified Four Star
Global Airline, is pleased to announce that in addition to being honored as the ‘Best Airline
in Africa’, it has won the Best Business class in Africa 2018’, ‘Best Economy Class in Africa
2018’ and topped among Skytrax’s World’s Top 100 Airlines 2018 list, moving up from
number 48 last year to 40, as voted for by airline customers around the world.
Finally, when it comes to the conclusions section of Ethiopian Airlines' hotel and tourism
department, Ethiopia is the capital city of Africa because the African Union was founded and
is headquartered in Ethiopia. Aside from this Ethiopian carrier, practically all of the top
African airlines are members of the Star Alliance and have many direct flights throughout the
world

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RECOMMENDATION

During the assessment we try to see some of the gaps in communication with the employees,
we observe that not all of the employees have enough knowledge about the general strategic
plan of the organization.
There are some of the constraints of human resources in some cases because the employees
work in the shift so we recommend having a flexible schedule because an organization exists
when there is human power.

On the issue of human resources in the Ethiopian hotel industry, there is a shortage of human
trained power in the hotel & tourism sector and even the existing professionals are not well
experienced.

On the other hand, Ethiopia is now constructing the Grand Renaissance Dam, Africa's first
man-made dam, to generate electricity. After the dam is completed, it will be a popular tourist
destination in Ethiopia and beyond the world. Finally, Ethiopia is a renowned African
country that has been designated as a UNESCO World Heritage Site. In general, they are
good opportunities to grow Ethiopia's tourism economy.

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REFERENCE
 Ethiopian Airline official website
 Questionary
 Nongo, E.S. and Ikyanyon, D.N. (2012). The Influence of Corporate Culture on
Employee Commitment to the organization. International Journal of Business and
Management.7(22);1-8.
 The deal, T.E., and Kennedy, A.A. (1982). Corporate Cultures. Addison-Wesley,
Reading, MA.

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