...Quality Management at United Airlines Brandon L. Smith Keller Graduate School of Management GM 588 6/20/2012 Dr. Kim Hunley INTRODUCTION United Airlines is a major airline based in the United States and one of the world’s largest airlines. It was formed in 1934. It is a subsidiary of United Continental Holdings Inc. Its headquarters are located in Chicago, IL. United is a founding member of the Star Alliance, the largest alliance in the world. On October 1, 2010 United and Continental airlines merged together forming the world’s largest airline in revenue passenger miles and second largest in fleet size and destinations. “The new United will offer customers an enhanced travel experience, combining the best products and services each carrier has to offer,” (The World's Leading Airline, 2012). The airline is supposed to be the airline that customers want to fly, the airline employees want to work for and the airline shareholders want to invest in. The key highlights of the merger are the following: * World’s most comprehensive global network, including world class international gateways to Asia, Europe, Latin America, Africa and Middle East with non-stop or one stop service from virtually anywhere in the United States * Most modern and fuel-efficient fleet and the best new aircraft order book, among U.S. network carriers * Industry-leading frequent flyer program that will provide more opportunities to earn and redeem miles worldwide *...
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...Case Study One- Real-Time Business Intelligence at Continental Airlines Real- time data warehousing works with Continental's strategies and plans through providing the best service possible to its customers. Continental had the goal of getting people to their destinations on time and with everything that they were traveling with. Real-time data warehousing helps to track the flight information, connection information, and passenger information in order for the company to be effective and for the passenger to have an enjoyable flight. With the fast paced environment of society and businesses today, the real-time data warehouse is the most efficient method of information travel for the company to use. At the click of a few keys, anyone with access is able to find information about connecting flights, passenger information and also problems that the passenger might run into with their flights. The real-time data warehousing was able to address the problems with airline reservations and connection people to other airlines for flight transfers, this makes things easier so the airline is able to see where each customer is going and the service that they need to provide to that customer to get them to their location on time with the least amount of glitches as possible. This feature also tracks passenger information such as all of their demographics and also tracks any disturbances that they might have had on a flight before so that the airline can work to avoid anything...
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...|Pre-war event |Description |Contribution to the Revolutionary War | |French and Indian War|Also known as the 7 Years War, a conflict mostly between native Indian tribes, |Led to the British and French for the Posession of the continent. The French wanted to | | |the British and the French. |reclaim the Americas after severeal defeats. The French returned to join the American | | | |Colonists to defeat the Brtitish which led to American independence. | |Sugar Act |On April 5, 1764, the parliament passed a modified version of the Sugar and |The Sugar Act had disrupted the colonial economy by reducing the markets to which the | | |Molasses Act of 1733, and this act was about to expire. Under the Molasses or |colonies could sell, and the amount of currency available to them for the purchase of | | |Sugar Act colonial merchants were required to pay a tax of six pence per gallon |British manufactured goods. This act, in addition to the Currency Act, set the stage for | | |on the importation of foreign molasses. |the revolt at the imposition...
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...Oligopoly Behavior in the Airline Industry. Case Analysis This case illustrates the pricing behavior of firms that are oligopoly whose market is characterized by the relative few participating firms offering differentiated or standardized products or services. Such firms in an oligopoly have market power derived from barriers of entry that wards off potential participants. As seen in the case, it is clear that because there are a small number of US Airlines firms competing with each other, their behavior is mutually interdependent – thus, the strategies and decisions by one airline management affect managements of the other airlines whose subsequent decisions then affect the first airline. In the airline industry, such oligopolistic interdependence gives rise to a strategic behavior akin to chess moves- where, for example, what is best for American Airlines depends on what Northwest Airlines does, and what is best for Northwest Airlines depends on what American Airline does. The small number of firms competing with each other in the airline industry means that one airline’s changes in price immediately affects the demand for its competitors. The case suggests that behavior of firms in an oligopoly can be one of cooperation when they all sync their strategies to the obvious disadvantage of the consumer who has few alternatives e.g. inability to substitute other forms of travel for air travel usually because of time and distance constraints. As shown by data in the case, oligopolistic...
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...Marketing Plan United Continental Airline Marketing Plan Rhunda Mitchell BUS620 Instructor Nichols August 1, 2011 The airline industry has continuously been and is steadily the most intensely competitive business segment in all components of its operations (Morrison, 2000). In commission on real narrow margins the decline in passenger traffic which was embraced by airlines due to the events of September 11th, 2001 has had a direct effect on the many domestic and global airline carriers across The United States (Taylor, 2003). The events that occurred that day created governmental intercession by means of loan assurances, recompense for terrorist attack fatalities, and insurance associated with war hazards (Taylor, 2003). The Associate deputy secretary of Transportation stated that the industry is in its worst financial crisis” (Taylor, 2003), since the industry was deregulated in 1978 (Taylor, 2003). It is imperative to recognize the two conflicting forms of airline carriers within existence in the United States (Taylor, 2003). The major airlines are in reference to those with surplus gross revenues of $1 billion dollars yearly. In general these airlines also provide international services, accommodate the business class customers and passengers who anticipate or covet full in flight services like meals and other related amenities (Morrison, 2000). This includes; American Airlines, Delta Air Lines, United Air Lines, U.S. Airways, Continental Airlines and Northwest...
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...UVA-OB-0705 MAKING THE TOUGH TEAM CALL (A) Gudrun Dammermann-Priess was stunned after this latest round of project presentations. In the nine years since the international management program (IMP) began, she never had a project so bad that she considered not allowing it to go forward. With only six weeks until the final project deliverable in mid-May 2000—a 15-minute presentation in front of 100 top executives at Continental A.G., including the chief executive officer (CEO) and at least four other members of the Vorstand—the software team project was a potential embarrassment in a very high-stakes environment. The CEO’s concluding remarks from the previous year’s IMP–1999 echoed in her ears. “I would like all my top managers to take notice. If only your presentations were as good as those we have seen this afternoon.” The IMP program had risen substantially in stature and useful strategic output over the last several years, and the risks of presenting a poor project were, for Dammermann, acutely felt. Literally from the very first module of IMP–2000 in November 1999, when teams were put together and matched to mentors and projects, the three members of this project were in complete disagreement about almost every aspect of the project and its development. They disagreed on what the mentor wanted them to accomplish and how they might begin to approach answering the key questions. Furthermore, even though there were some personal interest overlaps, the styles of two team members...
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...Alternative Course s of Actions (ACAs) ACA1. Texas Air Inc. will now be increasing its price by 30%. Expect high quality service would be given to its consumers. ACA2. Set aside pricing philosophy Peanut and MaxSaver fares. V. Recommendation We decided to adapt ACA1 because this can be better strategic move for the Texas Air Inc. In this strategy, they can avoid passenger’s complaints such as late departures, canceled flights and dirty planes. We believe that they can give their passengers a high quality services. VI. Marketing Strategy Executive Summary: Early in 1987, Texas Air bought Eastern Airlines and the financially troubled People Express. Texas merged Continental, New York Air, and People Express into one full-service, low-fare airline under Continental banner, making the continental the third largest airline in the United States. They believe in giving its customers what they want; that is, the best possible service at the best possible price. The airline is committed to this low-price, high-value service, and follows a cost-conscious, consumer-oriented...
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...[Type the company name] | GM588 Course Project | [Type the document subtitle] | | 6/15/2011 | INTRODUCTION United Airlines is a major airline based in the United States and one of the world’s largest airlines. It was formed in 1934. It is a subsidiary of United Continental Holdings Inc. Its headquarters are located in Chicago, IL. United is a founding member of the Star Alliance, the largest alliance in the world. On October 1, 2010 United and Continental airlines merged together forming the world’s largest airline in revenue passenger miles and second largest in fleet size and destinations. “The new United will offer customers an enhanced travel experience, combining the best products and services each carrier has to offer,” (The World's Leading Airline, 2011). The airline is suppose to be the airline that customers want to fly, the airline employees want to work for and the airline shareholders want to invest in. The key highlights of the merger are the following: * World’s most comprehensive global network, including world class international gateways to Asia, Europe, Latin America, Africa and Middle East with non-stop or one stop service from virtually anywhere in the United States * Most modern and fuel-efficient fleet and the best new aircraft order book, among U.S. network carriers * Industry-leading frequent flyer program that will provide more opportunities to earn and redeem miles worldwide * Optimal hub locations in 10 cities...
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...WHY CONTINENTAL: A $385 million loss for the final months of fiscal year 1994 signalled Continental might go bankrupt. Continental was in dire straits because the deregulation of the commercial airline industry in 1978 ushered in a new era focused on mergers and acquisitions and bitter employee-management relations. Venerable airline brands with a commitment to quality, like Continental, were prime takeover targets. After Texas Air Chairman Frank Lorenzo (HBS 1963) secured Continental in his hostile takeover bid, tensions escalated between Lorenzo and the old guard--especially when Lorenzo declared Continental bankrupt in the fall of 1983. In October 1994, five months after Continental exited its second bankruptcy, Bethune was elevated to CEO and created a Go Forward Plan to return Continental to profitability. Two years after unveiling the Go Forward Plan, Continental was at the top of the industry in a number of important performance metrics. KEY ISSUES: Continental ranked tenth out of the ten largest U.S. airlines in all key customer service areas as measured by the Department of Transportation: on-time arrivals, baggage handling, customer complaints, and involuntary denied boardings. The airline had already been in bankruptcy twice, and was headed for a third round as its cash dried up. STRATEGIES FOLLOWED FOR TURN AROUND: The turn-around plan — the Go Forward Plan 'A' — had four different elements each of which were given an inspirational title : ...
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...Company 20 70 80 Sony Canon Sega 20 80 Hirotaka Takeuchi Mariko Sakakibara 4 15 25 5 737 6 8 Ikea 5 Jiffy Lube International variety-based positioning mutual fund CarMax Circuit City Stores CarMax 6 Vanguard Group index fund Citibank 25 lender Bessemer Trust needs-based positioning Company 500 1:125 14 7 Carmike Cinemas 20 access-based positioning 2% 5% 1985 Strategy gies Competitive generic strate- Continental Lite 8 Delta Air Lines Continental Airlines Continental Lite JC J.C.Penney 17 NC- 17 Sears straddling trade-offs 9 Neutrogena Corporation PH Ivory Soap 10 Continental Lite CEO Continental Lite 1,000 Lite Continental 11 Corolla Corolla 10 Honda Motor Company Toyota Motor Corporation 737 10 1995 Civic fit 12 13 optimization of effort Bic Corporation product availability Gap simple consistency Gap Gap 3 Gap 3 7.5 4 Gap Gap 6 8 entire system 14 1 0.9 0 . 81 0.9 0.9 0.9 0.9 0.9 0 . 66 15 winner-take-all Toys R Us Child World Lionel Leisure 16 10 17 M a y t a g Corporation 18 Jenn-Air Hardwick Stove Hoover Magic Chef Admiral 10 6 . 84 1985 1994 1989 1995 20 12% 70 1% 80 34 8% 20 90 Wal-Mart 19 critical mass 20...
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...What is a company’s best asset? Their product? Their CEO? Their sales assistants? No their best asset is their marketers. If a marketer is the company’s best asset then what is it they do exactly? A marketer’s job doesn’t have a set criteria list that states whether to making them a good marketer or not. What makes a good marketer is their skills in analysing, eye for details, research abilities & many more attributes. Marketers spend a lot of time analysing not only their own brand but the competition. This allows them to compare brands to see who is leading the product race and the differences others have that are giving them a leading edge. Once data is collected it is the marketers’ job to analyse the results, from the results the marketer will come up with a sales campaign that will would either form a way to further promote or re-invent the product. Within Byron Sharp’s publication Marketing: Theory, Evidence & Practice he states “While success or failure depends a great deal on luck, marketing strategy has a huge influence on a brand’s success or decline. There is much marketing knowledge that (if used wisely) can help grow brands.” An example of this is the Apple product the iPod. The iPod was hugely successful due not only to Apple’s marketing campaign but the way they saw the future within computer storing software of music formally known as iTunes. The iPod wasn’t the first portable music player but outsold the original Sony Walkman 5 to 1 in the first...
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...in the U.K. says a lot about its reputation. This company has faced many challenges between the time periods of 1980-2000. Matt Barrett has several great ideas to turn this company around, and the factors that should be considered are essential to the success of his strategy. Social/Demographic The Company initiates good customer relationship skills. They have built personal relationships with one out of five personal customers, and have direct relationships with 25% of the businesses in the U.K. On the downside, the company's cost base is much higher than its competitors. The plan is to change the core infrastructure of the company in order to build a stronger customer base. Becoming more competitive and offering value to its core products will give Barclays the competitive edge it needs to help increase profit and attract new clients. Technological Barrett and his Executive Committee (ExCo) team have plans to restructure the company by shifting its culture. In order to shift the culture, the mind-set of the employees has to change. Barrett promoted younger talent to join his ExCo team to give the company fresh innovative ideas. These new ideas will give solutions to replace the incompetence of traditional strategies that are no longer useful. The company also did an analysis on the industry and company data to figure out which segments were making money, and which ones weren't. A value-based management approach gives the ExCo team an opportunity to take on challenges...
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...Emergence of Trust Start with Why – Simon Sinek If a company mistreats their people, just watch how the employees treat their customers. Mud rolls down a hill, and if you’re the one standing at the bottom, you get hit with the full brunt. In a company, that’s usually the customer. EX: Continental Airlines -crummy place to work in 1994. “surly to costumers, surly to each other, and ashamed of their company. And you can’t have a good product without people who like coming to work. It just can’t be done,” he recounts. Continental going through hard time: Chapter 11 bankruptcy protection 2x in eight years. 1983 and 1991. 10 different CEOs. Lost 600 million and ranked last in every performance category. Bethune arrives and makes $250 million and was ranked as one of the best companies to work for in America. Made changes to improve operations, but biggest gain was impossible to measure: TRUST!!! Trust emerges because executive promises change. Trust is not a checklist. Fulfilling all your responsibilities does not create trust. Trust is a feeling, not a rational experience. Trust begins to emerge when we have a sense that another person or organization is driven by things other than their own self-gain. Trust - sense of value, real value Value is the transference of trust - Can’t convince someone you have value, just as you can’t convince someone to trust. - Have to earn trust by communicating and demonstrating that you share same values and beliefs. - WHY is just...
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...Journal of Industrial Organization Education Volume 5, Issue 1 2010 Article 1 United-Continental Merger Robert J. Carbaugh, Central Washington University Koushik Ghosh, Central Washington University Recommended Citation: Carbaugh, Robert J. and Ghosh, Koushik (2010) "United-Continental Merger," Journal of Industrial Organization Education: Vol. 5: Iss. 1, Article 1. DOI: 10.2202/1935-5041.1034 Unauthenticated | 62.189.189.132 Download Date | 6/6/13 12:08 PM United-Continental Merger Robert J. Carbaugh and Koushik Ghosh Abstract This case study discusses the nature and likely effects of the proposed merger between United and Continental. It is intended as a lecture for instructors teaching undergraduate courses in Industrial Organization or Antitrust Economics KEYWORDS: United, Continental, Merger, Antitrust Unauthenticated | 62.189.189.132 Download Date | 6/6/13 12:08 PM Carbaugh and Ghosh: United-Continental Merger United-Continental Merger On May 2, 2010, the Boards of Directors at United Airlines and Continental Airlines approved a stock-swap deal that will combine them into the world’s largest airline. The combined carrier will have 21 percent of domestic flying capacity, taking the lead from Delta Air Lines, which will lose what had been its leading 20 percent share of the domestic market. The deal still needs final approval from the U.S. Department of Justice and shareholders before being allowed to go forward. The firms hope to complete...
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...Introduction Marks & Spencer Plc (from now on M&S) is an international retailer with 718 locations across 34 countries. The group sells clothing, footwear, gifts, home furnishings and foods under the St. Michael trademark in its chain of 294 stores in the United Kingdom. Approximately half of the group's overseas stores are franchised to local partners. The group also owns the clothing retailer Brooks Brothers and the Kings Super Markets chain in the United States of America. Direct mail helps M&S meet the core objective of providing customers with wider, easier access to their products such as home furnishings, flowers, hampers and wine. The financial services comprise of operations of the groups financial services companies providing account cards, personal loans, unit trust management, life assurance and pensions. Retailing accounted for 96% of fiscal 2000 revenues and financial services, 4%. The company was always considered to have a great management support that helped in its growth. But the last years, M&S’s managers seem to fail on their strategic decisions, leading the group to lower and lower sales and profits. The share price is also dropping and shareholders feel insecure for the future (figure 2). Group structure and financial performance The group’s performance measures for the year ended at 31 March were disappointing (figure-5). The return on equity ratio and the earnings per share were zero as the company had only £1.3m profit this year. For the...
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