Group- 03

Case Application- The Sky is the Limit

The answers to the discussion questions from the 'The Sky is the Limit' case scenario are provided below.

3-15.
The management of delivery systems that use drone technology must prepare for long-term issues like
competition, sustainability, global expansion, and workforce transformation in addition to addressing
immediate challenges relevant to regulation, technology, operations, safety and security. Here are some of
the immediate issues that managers could encounter:

Regulatory Compliance : In order to ensure adherence to safety and privacy rules, managers must
understand the complicated aviation regulations and secure the required permits for drone
operations.procurement, and staff training is necessary to integrate drone technology with the current
infrastructure and processes.

Logistic Support: Immediate operational problems include maintaining drone fleets, designing effective
routes, and responding to unexpected events like bad weather or technical malfunctions.

Safety and Security: It's critical to guarantee the security of both consumer packages and drones. Strong
safety procedures, cybersecurity defenses, and risk management techniques must be put in place by
managers.
The following is a list of long-term issues that managers may face.
Competition and Innovation: The key to long-term success in drone technology is to stay one step ahead
of the competition and to consistently innovate new developments that increase drone speed, range, and
cargo capacity.

Sustainability: When drone deliveries grow, it's essential to control the environmental effects they have,
such as energy use and carbon emissions.

Globalization: Reaching out to other markets for drone delivery services requires dealing with a variety of
legislative frameworks, cultural differences, and practical difficulties.

Transformation of the Workforce: Long-term concerns in workforce management include retraining

workers for new responsibilities in drone operations, adjusting to the changing nature of work, and
handling possible loss of employment.

3-16.
Since every country has a different culture and geography, the external forces affecting drone delivery
operations can also differ. These external forces include infrastructure, technology adoption, political and
economic situations in each country, geographical factors, and government rules and regulations. Here's
how they may vary in different countries:

Government Rules and Regulations: Each county has their own set of rules and regulations governing
drone operation however, drone regulations by nation are in a constant state of change. These includes
airspace restrictions, licensing requirements, and safety standards.These regulations can be different
depending on the county’s complications and strictness. Government policies, incentives, and support for
revolution and entrepreneurship can vary between countries, affecting the regulatory environment,
funding opportunities, and industry partnerships available to drone delivery operations.

Infrastructure: The basic physical and organizational structures and facilities needed for the operation of a
society, e.g buildings, roads, power supplies etc. are the infrastructure of a country. Advanced
infrastructure may be smooth for drone operations, while poor infrastructure can be challenging for dron
operations.

Technology Adoption: The level of technology adoption and digital readiness can vary between countries.
High technologically advanced countries may adopt combination of drone delivery technology into
existing systems, while other countries may face barriers for adoption of drone delivery services due to
technological limitations.

Geographical Forces: Geographical features such as landscapes, climate, and population density of a
country. They can impact the operational challenges and logistical considerations of drone delivery
services. Countries with diverse landscapes or extreme weather conditions may face additional obstacles
in deploying and managing drone delivery services however countries with uniform landscape and
balanced weather conditions may be profitable for drone delivery services.

Political Situation: Drones in the hands of terrorist groups may be weaponized and used for terror attacks.
Delivery drones may be mistaken for terrorist drone and attacked by military armed forces causing a
distraction in the air. These may lead to massive political issues in some countries.

3-17.
There are various demographic forces that managers should consider when implementing drone
technology in delivery systems. Demographic forces includes age, gender, income level, geographic
location, family composition, and education level etcetera. Here’s how they may influence the use of
drone technology, considering the difference between baby boomers and millennials:
Age: As baby boomers are older than millennials, they could have different interests and levels of
comfort with technology. If drone technology is adopted for delivery, they might need more help or
education, but millennials might be open to new ideas and technologically advanced solutions.

Gender: Despite the possibility that gender has no direct bearing on drone usage, managers should be
mindful of any potential differences in concerns or preferences between males and females within each
generation.

Income level: Paying for advanced delivery services, such as drone technology, can be dependent upon
one's willingness and financial capacity. Higher earners might be more likely to use these services, whilst
lower earners may prefer more affordable options like traditional delivery system.

Geographic Location: A drone delivery system's feasibility and usefulness greatly depends on its
geographic location. Drone delivery might be more practical in urban regions with high population
densities and advanced infrastructure than in distant or rural locations.

Family Composition: Needs and preferences for delivery might be influenced by family dynamics.
Families with little children might place more emphasis on convenience and speedy delivery, whereas
senior persons living alone might place more importance on reliability and usability.

Education level: In terms of technology and education, millennials might have a higher average level of
education than baby boomers. This may cause millennials to accept and use drone technology more
quickly, even while older boomers may require more help and support to understand and use it.

3-18.
As Amazon ventures into drone delivery, it is essential to analyze the stakeholders involved to achieve the
success and sustainability of this innovative service. In this case study we are identifying and considering
key stakeholders is essential for effective decision-making and strategy implementation. Amazon should
prioritize a few key stakeholders that are essential to this new venture, such as customers, employees,
government, suppliers, partners, local communities and pressure groups.

Customers: For Amazon it is vital to ensure that they are able to secure timely deliveries. With drone
deliveries ensuring customer satisfaction and keeping the stakeholders happy is paramount for them.They
also need to make sure it is completely safe before flying a drone. In recent times people are also able to
travel in a drone its more likely for more companies will opt for drone delivery

Government:: The government plays a huge role in this drone industry. Most countries have banned flying
a drone. You need to have a license to legally fly a drone and on top of that, you cannot fly above 400ft.
Hence Amazon needs to collaborate closely with these stakeholders to navigate regulatory necessities and
obtain required permits only then they are allowed to fly a drone.

Employees: Amazon's workforce needs to be strengthened before starting this new venture. This includes
their drone operators, engineers and managers. At first, the managers need to identify the buyers and
target customers of this drone delivery system. Amazon has to adequately train their employees so that
they are able to function the drones.

Suppliers and Partners: Amazon has to keep its suppliers and partners content. They need to collaborate
with drone manufacturers partners and anyone related to this venture. If they can build a relationship with
these partners they can enjoy favorable negotiations and ensure reliabilty in the supply chain.

Local communities and Pressure Groups: Local communities and environmental stakeholders are
impacted by drone operations in terms of noise pollution, airspace usage, and ecological concerns.
Amazon must engage with these stakeholders transparently, address environmental impacts, and
contribute positively to community development.

To sum up, a wide range of stakeholders are involved in Amazon's drone delivery initiative, each with
specific expectations and objectives. This analysis indicates that the government has the greatest impact
on the drone sector. It is nearly hard to use a drone to deliver something without the assistance and
backing of the government.