...Management on Domestic and Global Competition Quality management is an essential factor in any commercial industry, regardless of the targeted customer segment. The effects of proper management and the measurement tools used are evident in successful airlines servicing both U.S. and international passengers. For U.S. domestic carrier, Southwest Airlines their focus on quality has provided three consecutive years of profitability. While international German airline, Lufthansa has attained longevity of ~90 years because of their ability to adapt to political and economical challenges. This paper will address various topics concerning the effects of quality management on domestic and global competition. First it will provide a definition of an airline and highlight company information for service providers Southwest Airline and Lufthansa. Second, it will provide a description of the processes similar between Southwest Airlines and Lufthansa and explain the processes from beginning to end. In addition, an explanation of the process and how it produces a competitive service in the domestic and global markets will be presented. Last, this paper will explain how quality management affects the position of the companies in the domestic and global market. Airline Industry and Overview of Southwest Airlines and Lufthansa The Merriam-Webster online dictionary defines an airline as, “An air transportation system including its equipment, routes, operating personnel, and management”...
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...position of Singapore Airlines Module No : EG3080 Module Title : Business Application in Engineering Submitted by : Chia Kok Kwang Alvin (K1068496) Table of Contents Page 1. Abstract 3 2. Introduction 4 3. Background 5 4. Singapore Airline’s Macro Environment (PESTEL Analysis) 6 5.1 Political Factors 6 5.2 Economic Factors 7 5.3 Socio-cultural Factors 7 5.4 Technological Factors 8 5.5 Environmental Factors 8 5.6 Legal Factors 9 5. Competitive forces and firm strategy (Porter’s 5 Forces Analysis) 10 6.7 Threat of new entrants 10 6.8 Threat of substitutes 10 6.9 Power of buyer 11 6.10 Power of supplier 11 6.11 Competitive rivalry 12 6. Strategic Capabilities (SWOT Analysis) 13 7. Strategic Choices (Porter’s Strategies) 14 8.12.1 Cost leadership 14 8.12.2 Focus 14 8.12.3 Differentiation 14 8.12 Strategic choice of Singapore Airlines 15 8. Challenges ahead of Singapore Airlines 16 9. Conclusion 17 10. References 18 & 19 1. Abstract Singapore Airlines leaves a deeply positive impression in many people’s heart as a leading airline that is dedicated to bring the highest level of products and services. We will look into how Singapore Airlines achieve its excellent...
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...UB School of management | Singapore Airlines | Audit of Corporate Social Responsibility | | Team Greatbatch | 12/6/2012 | Maria Kristic Chaitanya Pavuluri Srutakirti Das Anthony Ilaqcua Mark Rutecki Contents Introduction 2 Environment 3 Engine Efficiency and Alternative Fuels 3 Operations and Infrastructure 5 Evaluating Environmental Initiatives 6 Harapan Rainforest Initiative 7 Social Activities: Philanthropic 8 Social Activities: Strategic……………………………………………………………………………………………………………………9 Evaluation…………………………………………………………………………………………………………………………………………..9 Economic Sustainability 10 Conclusion 11 Works Cited 12 Appendix 12 Introduction Over its 100 year history, the airline industry has been one of the most dynamic and fastest growing industries in the world. More people than ever are flying as air travel has become more accessible and is one of the safest ways to travel. Since 2002 there has been a 61% increase in safety with just 1 accident for every 2.7 million flights. In 2011 alone, 2.8 billion people flew 3.1 trillion miles on routes out of 3,800 commercial airports. 48 million tons of cargo, worth 5.3 trillion was shipped by air, accounting for approximately one-third of world trade. The industry supports 57 million jobs and 2.2 trillion in economic activity (SIA Safety, Security & Environment Dept., 2012). However, the industry is also one of the most regulated, with many governments being owner/operators...
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...Southwest Airlines Prepared for: Mr. Balasubramanian Shankar Due date: Monday, 5th October 2015 Submitted by: Jiyeon | CT00000000 | TABLE OF CONTENTS 1. INTRODUCTION 2 2. COMPANY BACKGROUND 3 3. PESTEL ANALYSIS 4 3.1 Political 4 3.2 Economic 4 3.3 Social 5 3.4 Technological 5 3.5 Environment 5 3.6 Legal 6 4. PORTER’S FIVE FORCES ANALYSIS 7 4.1 Threat of New Entry 7 4.2 Threat of Substitution 7 4.3 Buyer Power 7 4.4 Supplier Power 8 4.5 Competitive Rivalry 9 5. STRATEGIC RECOMMENDATIONS 10 5.1 Managing Technology Advancements 10 5.2 Maintain Cost Advantage 10 5.3 Geographical Expansion 10 5.4 Product Diversification 11 6. CONCLUSION 12 7. REFERENCES 14 1. INTRODUCTION The focus company in this report is Southwest Airlines (SA), a major low cost carrier in the United States (US). The aim of this report is to examine the current market environment and competitive power of Southwest Airlines. In order to have a substantial overview of its environment, two analyses, the PESTEL analysis and Porter’s Five Forces analysis, will be used to evaluate SA. With the findings, strategic recommendations will be made for the problems that the airline is facing or may encounter in the near future. 2. COMPANY BACKGROUND Southwest Airlines is a budget airline established in 1967 by Rollin King and Herb Kelleher and had its first flight in 1971. Headquartered in Dallas, Texas, SA is an important airline in the...
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...Strategic Plan of Delta Airlines Abstract Delta Air Lines, Inc. (Delta) is an air carrier based in Atlanta, Georgia that provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company offered customers service to destinations with Delta and Delta Connection carrier service to 321 destinations in 58 countries in January 2008. To Latin America and the Caribbean, Delta offered more than 500 weekly flights to 63 destinations in January 2008. It is a founding member of SkyTeam, a global airline alliance that provides customers with worldwide destinations, flights and services. Through the late 1970’s and 1980’s, Delta Air Lines worked to establish its name as the premier U.S. airline for customer service. The foundation of Delta’s customer service was based on a company with a culture of “southern hospitality” and employees who went above and beyond the call of duty. The company’s human resource strategy helped build the skills, motivation and opportunities for employees to deliver great customer service, and that allowed Delta to attract business travelers who paid premium prices for travel (Wright, 2008). Delta’s success shows just how important HR strategy can be, especially in its impact on company performance (Wright, 2008). The information published on Delta’s offers a great deal of information about the company, culture, and the benefits to jobseekers. Furthermore, the website provides an abundance...
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...4/12/2015 4/12/2015 Executive Summary The purpose of this report is to analyse and evaluate the business strategy of Singapore Airlines. The report provides an informed review of Singapore Airlines’ executive management or organisational strategic analysis, decision making, implementation and evaluation of performance outcomes. Therefore, the report will cover many aspects such as strategic analysis, strategic directions and strategic objectives key-board business-level and international strategic, strategic implementation, as well as key strategic implementation issues and strategic evaluation. The strategic analysis takes place whereby analysing two general environments of Singapore Airlines. The first environment is the external environment which consists of PESTLE model, Porter’s Five Forces plus the government model, and the competitors of Singapore Airlines. The following is the internal environment which consists of Strategy Resources and Core Competency of Singapore Airlines. According to the results received from these two environmental analysis, Singapore Airlines has adopted an unusual dual-strategy. Vision, Mission, and stakeholder theory will be covered in the strategic direction setting. This part of the report will explain all sort of stakeholders and the importance of them to Singapore Airlines. Singapore Airlines adopted dual-strategy by competency of cost-effective service excellence, enshrined in a unique, self-reinforcing system of organizational...
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...The Airline Industry: A Strategic Overview of Southwest Airlines Terra Thompson Ohio Dominican University Running head: SOUTHWEST AIRLINES 1 The Airline Industry: A Strategic Overview of Southwest Airlines Terra Thompson Ohio Dominican University SOUTHWEST AIRLINES The Airline Industry: A Strategic Overview of Southwest Airlines Table of Contents 2 The History of Southwest Airlines ................................................................................................. 3 Target Market and Business Model ................................................................................................ 3 Current Product............................................................................................................................... 4 Southwest’s Culture ........................................................................................................................ 5 Mission Statement .......................................................................................................................... 5 Mission and Corporate Culture....................................................................................................... 6 Employees and the Mission ............................................................................................................ 7 The Importance of the Mission Statement and Corporate Vision................................................... 7 Strategic Analysis .................
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...Airline Lufthansa Companies Strategic Change and Strategic Challenge for Lufthansa Introduction The biggest airline in Germany- Lufthansa is one of the leading airline companies in the world, but it suffered from the danger of bankruptcy in 1991. However, the flexible strategic change programs made it survive. Thus, the implementation and effects of those programs are obviously attractive and deserve further study. Moreover, current business environment is full of opportunities and challenges, which poses Lufthansa to identify relative challenges and adopt some reaction to respond. Therefore, this report will discuss two parts: one is strategic change programs and the other is current strategic challenges for Lufthansa. In the first part, it will evaluate the strategic change programs which Lufthansa applied and also cover the effects of leadership and politics. The second part of this report will analyse the strategic challenges for Lufthansa based on current and future business environment. I. Strategic changes for Lufthansa Strategy is argued to be a useful tool for an organization to achieve its target in the long term, and its contribution to development of the organization is evident. However, it is impossible to use one strategy to respond the changeable demand due to the dynamic external environment, so the organization should change their strategies to adapt the market. 1. Strategic change program According to Balogun and Hailey (1999)...
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...shared vision and individual commitment through an integrated network that includes its five business segments, alliances, and partnerships. Lufthansa uses this strategy to continue with their strategic goals regarding its core business activity passenger transportation’s vision to be a top leader at home and across-borders. These networks allow Lufthansa to manage its connections with its customers, suppliers, partners, and alliances at home and globally more efficiently. In addition, it helps to implement value-based and cost saving strategies options in regards to the products and services offered to different markets. Lufthansa’s aim in 2009 was to maintain and expand their position as the leading European quality carrier. In order to succeed the firm has focused on long term growth prospects of securing and building their market position at home then following international expansion. The firm’s position has allowed Lufthansa’s group to choose an international strategy that allows them to act with farsightedness in how to differentiate and customize their services and products to local and global markets by coordinating with their network and ensuring that all members are producing equally high performance within their market place. Although this strategy requires global coordination and flexibility, in regards to the networks, all segments are decentralized and operated in an autonomous form with the commitment to support Lufthansa’s strategic development goals. 2...
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...Vol.5, No.30, 2013 www.iiste.org Key Success Factors in Airlines: Overcoming the Challenges Marcella Riwo-Abudho1, Lily W. Njanja1 & Isaac Ochieng2 1 2 School of Business, Kabarak University Department of Mathematics and Business Studies, Laikipia University College *Corresponding author address: P.O. Box 20157 Kabarak University Nakuru, Kenya. e-mail: mabudho@gmail.com, Tel: 0724690140 Abstract The increased interconnectivity within the global airline markets has marked the airline with dynamism from both its external environment and internal operations. This paper reviews how the highly sensitive industry is faced by the challenge of product innovation by suppliers, fragile reputation powerful customers, intense competition from strategic alliances & bankruptcy protection and increased costs of labour, fuel and security measures. The review further identifies the Key Success Factors (KSFs) in the global airline industry in relation to the challenges that carriers face. These strategic factors include structure, culture, strategic alliances, planning and forecasting, technology, marketing and branding and outsourcing. 1. Introduction The global airline industry operates in service industry complexities within a highly turbulent environment. Keynes (2009) states how the sector has gone through a drastic change on both the supply and the demand side. Unlike other industry airlines are subject to rapid change from customer expectations, competitor...
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...Southwest Airlines Co. | Organizational Commitment and Communication | | | | Southwest Airlines, Co is according to Fortune magazine one of the best places to work for. The Company’s mission statement is "The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit." (Southwest.com) Southwest believes that their mission statement has led the way to the best cumulative consumer satisfaction record, according to statistics published by the U.S. Department of Transportation. They have the fewest customer complaints, and they have the most satisfied employees, their turnover ratio is less than 10% (D’Aurizio, 2008). Communication and Leadership play a critical role in any organization and Southwest Airline is not the exception. These two factors are crucial to their success. In this paper, I will discuss the role of organizational commitment and communication within Southwest Airlines. Specifically, I will discuss how the various sources of power and leadership styles impact the organization as a whole. Also, I will discuss the motivational theory that I believe fits best with Southwest’s current culture and how the organization communicates the motivational theory to its employees. Finally, I will take a look at the commitment of the employee and how they respond to the organizations attempt to motive them. Organizational Commitment and Communication ...
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...JetBlue Airlines mission and vision, while striving towards sustainable strategic success. JetBlue is invested in executing and aligning resources and processes to providing every patron the ultimate flying experience. As a result of this commitment, JetBlue has achieved the acme of being ranked highest among low cost carriers for eight consecutive years by patrons within the airline industry for customer satisfaction dating back since 2005 (Mutzabaugh, 2012). JetBlue has strategic alignments in place that can replicate South West Airlines success when it comes to managing and sustaining congruent and horizontal fit human capital architecture. The portability of executive employees from South West Airlines to JetBlue has created an organizational advantage by incorporating successful components of HCA, while avoiding disadvantageous philosophy of closed culture to innovation using their retrospective experiences to make prospective decisions. This was the first step in securing valuable company specific pivotal human capital which translates into achieving a commitment to attaining and sustaining a competitive advantage. Resource support through innovative approach financial investment and industry experience has been integral for JetBlue’s successful start. JetBlue was started up with cushion of the initial capital 130 million dollars. Together with acquisition of a talented team, JetBlue is gaining a wealth of knowledge within the airline industry from strategic recruiting...
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...INFORMATION SYSTEMS Case Analysis – Tale of Two Airlines PROBLEM STATEMENT Neglect and inconsistency in applying standard operational strategies and procedures can make a significant difference in meeting the expectations of passengers, affects passenger loyalty and have potential consequences on the ability of an airline to retain existing customers and attract new ones. In the information technology age “technology is only a small enabling piece of a total service concept.” How can an airline cause information technology, operations strategy, management control, empowered/unempowered work force, and service management to come together to produce customer satisfaction and long term customer loyalty?. In analysing the case, let’s examine some of the issues that were encountered during his travel, the reasons for these issues and what could have been done differently to provide a hassle free travel experience. It is a fair expectation and assumption that when a comparison is made with quality services and the impact of the use of information technology in 1985 versus 1995 there should be a distinct difference due to the era and the stages of advancement in information technology. It is therefore assumed that whatever service was provided in the 1980’s would have been improved ten years later. This leads us to examine: * Was the assumption made by Professor McPherson to think that it was possible for the network between airlines to make it feasible for him to connect to...
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...the U.S airline industry and how these trends might impact a company’s strategy. Despite the unpredictable and rising costs of aircraft fuel, oil and maintenance, threats of terrorism, and fear of decreases in business and leisure travelers, the airline industry has remained resilient in recent years. According to Air Transport Association of America (ATA), (2006), the airline industry lost about 13 billion dollars during the early 1990s, and earned about 23 billion dollars from 1995 until 2000. The industry suffered additional loss of 35 billion dollars from 2001 until 2005 yet, has recently begun to show another wave of growth. Additionally, the September 11 attacks, energy conservation, and the recent economic crisis greatly influenced the airline industry’s ability to affect the long term growth. Increased competition from new low-cost airlines and lack of trained pilots added to the bleak outlook. Charging for baggage, mergers, and elimination of meals are cost-cutting initiatives which drive trends at it relates to airline passengers. The airline industry, among other commerce industries has shown pockets of recovery after some painful years. According to ATA, the industry trade organization for major U.S airlines, this year there were eight months on consecutive revenue growth. Passenger travel skyrocketing to 17 percent in comparison to last year. (Thompson, Strickland, & Gamble, 2010, p. 62). These trends severely impact a company’s strategic vision and...
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...1. David Neeleman's original strategic mission and vision is just simple, to bring humanity back to air travel. The reason why the company offers strategic and innovative services to its customers like offering wholesome entertainment, food and drinks on flight is to attract more travellers through its affordable airline passes. The company is simply customer-centric such that its first priority is the comfort and fun for its clients. Aside from that, Jet Blue Airways Corporation also reaches out to the public by being active into community service. Essentially, Jet Blue is committed to enriching the lives of children and supporting the communities they serve through their core values of caring, fun and passion. In connection, one of the best community services offered by the company is giving books to children of not wealthy parents in one of the cities in the United States. The unwritten mission statement of Jet Blue Airways Corporation is reflected in its core values and principles created and set by the company. In lieu of mission statement, Jet Blue Airways Corporation is presenting a strategic set of core values. These core values include safety, caring attitude, integrity, fun and passion. The company commits to safety as the first priority in all business operations. In order to do so, the company adheres to rules and regulations implemented by regulatory agencies whenever is needed. Maintaining high standards in a consistent manner is the primary goal of the company...
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