Premium Essay

Airline

In: Business and Management

Submitted By miltonpaddlety
Words 3568
Pages 15
The main cause that makes a company have to make changes is the external environment. It usually forces organizations to make changes to its mission, culture, leadership, and operating strategies. Changes in the 12 drivers bring a series of change to the overall structure. Changing anyone of the 12 “pillars” will influence the adjoining ones. But, changing the entire structure may or may not affect the entire system. These changes are influenced by the motivation of the individuals. They will impact the change to the entire organization. They all interact with each driver on the model. The Burke-Litwin Model has these basic parts that make up an overall change for a company. Change effect one part and then affect the overall performance of the model. 1. External environment: The key external cause on the organization must be identified and clearly established. 2. Mission and Strategy: The overall “vision” should be seen through the eyes of the employee. 3. Leadership: Leadership should be understood. 4. Organizational Culture: This should understand implied rules, regulations, customs, principles, and values. 5. Structure: The function based structure should be understood, such as responsibility, authority, communication, decision, making, and control structure. 6. Systems: This includes all the policies and procedures. 7. Management Practices: How the management accepts and conforms to the overall concept of the organizations strategy. 8. Work Unit Climate: The work environment of the employees. 9. Tasks and skills: This is the skills and knowledge the employee has to have to fulfill their position. 10. Individual Values and Needs: The employee opinion of their position to enhance overall job performance. 11. Motivation Level: This identifies the motivation level of each employee to give an effort for the overall…...

Similar Documents

Premium Essay

Airline

...The Airline Industry In this brief report I will be analyzing the airline industry up to date and I will also look at various aspects including Porters five Forces diagram, key customers and products of the airline industry. The reason for analyzing this brief report is to give the reader with a wider knowledge of the topic. The porter five forces model can be used to assess the competitiveness of the Airline industry. It can also review the competitive within the industry, it also checks for the threat from outside. Key points of Porters five forces model: • Supplier Power: The power of suppliers to drive up the prices of your inputs. Supplier power is reasonably high in airline industries because of the specialist nature of the goods required • Buyer Power: The power of your customers to drive down your prices. The bargaining power of buyers in the airline industry is quite low due to the high cost of switching planes. • Competitive Rivalry: The strength of competition in the industry. Highly competitive industries generally earn low returns because the cost of competition is high. • The Threat of Substitution: The extent to which different products and services can be used in place of your own. Substitutes to the airline industry only carry a small level of risk to existing companies within the sector. • The Threat of New Entry: The force of new entrants is relatively low in the industry. The ease with which new competitors can enter the market if......

Words: 738 - Pages: 3

Premium Essay

Singapore Airline & Delta Airline

...Singapore Airline & Delta Airline Introduction Property, Plant, and Equipment (PP&E) is a significant asset category of most airline companies. PP&E usually contains more than 50% of the total assets of an airline. The depreciation of these assets is a major operating expense. The proper depreciation of PP&E in companies, such as airline with PP&E being a significant part of their assets, plays an important role in their accounting strategies. The large variation in the way of determining the depreciation expenses affects a company’s financial results and tax consequence largely. Applying reasonable yet favorable depreciation methods and assumptions is essential to a sound accounting practice. In the below comparison of the depreciation methods and assumptions used by Delta Airline and Singapore Airline, one can see the means of making different assumptions for the best interest of each business. Annual depreciation expense (1) The two airlines Delta and Singapore use significantly different methods when accounting for the depreciation of their aircraft. Delta Airlines now uses a 20 year straight line depreciation method down to a 5% salvage value. This will spread out the expense of plane ownership over a longer time, lessening pressures on the balance sheet. The 5% salvage value represents what the airline can reasonably expect to liquidate the planes for. Singapore Airlines, on the other hand, uses a 10 year straight line depreciating method to account...

Words: 1477 - Pages: 6

Premium Essay

Airline

...SWOT analysis for Air China The airline industry has undergone significant restructuring in recent years.Airlines, formerly rivals in a highly regulated industry, have become opportunisticseekers of co-operation. In today's world, mega-carriers and small airlines areworking together rather than competing with one another. Forms of co-operation include sub-contracting, code sharing, franchising and theformation of global marketing networks. Such alliances allow firms to focus on their respective core competencies, while drawing the benefits of scale economies. In essence,co-operation among rivals has led to increased competitiveness. This has accelerated thetrend of joint marketing, and the airline industry has become characterized by the desireto belong to a global network. The tendency has been to strive for a global presence. The case of Air China Air China was founded on the 1st of July 1955. Its headquarters is based in Beijing. Itengages in international and domestic passenger and cargo flight services. To unify itsfacility image and simplify its repairs and maintenances, its fleet of 118 aircraftexclusively consists of Boeing models. It has established hub-spoke style passenger andcargo transport network. The hub of this network is Beijing International Airport.The company is operating 339 routes, which consists of 53 international and 286domestic, operating more than 1,000 scheduled flights on weekly basis, serving 29 citiesin 19 countries. About 66 per cent of its...

Words: 1739 - Pages: 7

Premium Essay

Airline

...Southwest Airlines provides short haul, high frequency, point-to-point, low-fare services to and from 58 cities across the United States. The company is known for its low-cost fares and superior customer service in the airline industry. The company was started in 1971 with a motto still lived by today, "If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline." This motto has been effective for the company because they recently reported their 58th straight quarterly profit. SWOT Analysis The SWOT analysis describes the internal strengths and weaknesses, opportunities and threats of a company. The strengths of Southwest include its market leadership, its low-cost business model, and its strong financial performance. Weaknesses are the poor short-term liquidity situation, having only one established alliance, and the declining passenger revenue yields. Opportunities for the company include its new services, the new code-sharing agreement with ATA Airlines, and the overall positive outlook for the airline industry. Threats to Southwest include the increasing jet fuel costs, uncertainty in demand, and an increase in competition. Corporate and Business-level Strategies Southwest's corporate level is to focus on obtaining more of the low-fare market of the airline industry rather than to enter into other aspects of the airline......

Words: 289 - Pages: 2

Premium Essay

Airline Industry, Budget Airlines

...Australian incorporated company, is a subsidiary of QANTAS currently managed by CEO Bruce Buchanan Industry Both companies operate mainly in Asia Pacific region’s budget passenger airline industry. However, both are not fully integrated as they do not build their own aircraft. Both companies only offer economy class for its flights, which travels within Asia Pacific region and to selected international destinations. Core activities include ? Activity Analysis: First, you identify the activities you undertake to deliver your product or service; Value Analysis: Second, for each activity, you think through what you would do to add the greatest value for your customer; and Evaluation and Planning: Thirdly, you evaluate whether it is worth making changes, and then plan for action. Access the industry’s future growth Current- life-cycle position of the industry Generally, based on the information given, it seems that the airline industry in overall is on a decline. This is supported by the fall in premium air passengers by 25% and the declaration of bankruptcy by Japan Airline However, due to these factors, the initial public offering of Tiger Airways, another budger airline and the prediction of increase in revenue in Jetstar’s operation by Bruce Buchanan, it is likely that the budget airline industry is growing at a rate more than 10%. Key issues affecting future growth |  |Description ......

Words: 2329 - Pages: 10

Premium Essay

Airline

...Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy Airline industry is a clearly structured industry. Trends in the U.S airline industry have an impact the strategies of the airlines especially the Jet Blue airline. U.S airline industry trends including increased crude oil prices, new technology advancement and the impact on post 911 aviation securities. Technologies place an important role in the airline industry today. Technology helps to develop great convenience offer to the customers. Internet as a way to book flights, check in, and check flight status. After the terrorist attack of the 911-airline industry have security systems protecting for the passengers. There are some main changes in the airline industry after attack of 911 such as baggage screening and passenger screening. After 911 federal government increased the air passenger safety. Screening procedures for passengers and their baggage including requiring passengers to remove their shoes and limiting carrying fluids on to the plane. Finally crude oil prices impact a company strategies in the airline industry. Crude oil prices increased dramatically and caused airlines to struggle. When the crude oil price increase they began to increase passenger fees for heavy bags, snacks and even blankets and pillows. Discuss Jet Blue’s strategic intent Discuss Jet Blue’s financial objectives and whether or not the company has been successful in......

Words: 454 - Pages: 2

Premium Essay

Airline

...299 – Competitive Strategy Southwest Airlines Introduction The domestic US airline industry has been intensely competitive since it was deregulated in 1978. In a regulated environment, most of the cost increases were passed along to consumers under a fixed rate-of-return based pricing scheme. This allowed labor unions to acquire a lot of power and workers at the major incumbent carriers were overpaid. After deregulation, the incumbent carriers felt the most pain, and the floodgates had opened for newer more nimble carriers with lower cost structures to compete head-on with the established airlines. There were several bankruptcies followed by a wave of consolidation with the fittest carriers surviving and the rest being acquired or going out of business. Analysis of the airline industry To determine the profitability of the airline industry, we will do an industry analysis using Porter’s five-forces framework. This industry analysis will help us in understanding the size of the Potential Industry Earnings (PIE), and how much of this the different participants can extract. Rivalry among competitors There is intense rivalry among different airlines. In the pre-deregulation days, airlines competed mostly on things like service, meals and in-flight movies etc., since prices were mandated by the Civil Aeronautics Board. In the post-de-regulation era, this rivalry has taken on the form of severe price competition, with airlines ruthlessly undercutting each other with......

Words: 2475 - Pages: 10

Premium Essay

Airlines

...our living atmosphere. Currently, the airlines in European Union are belt-tightening in order to reduce emissions, however, the outcome is not satisfactory at present, for instance, there is problem on the emission trading scheme. Thus, creating more environmental regulations for airlines in the European Union is necessary as to tackle the emission problem more effectively. Data from the Guardian UK shows that the plane industry occupied the second place in the National Carbon Calculators which takes 4,375 per person per year in average. Despite there are environmental policies regulating the carbon emissions by the airbus within the European Union, such as setting levels of carbon emissions for airlines, it is not well-performed. Under the regulations, those airlines could reduce their emissions could sell their surplus permits to the other airlines that unable to lower their emissions. They are more likely to buy extra permits from other airlines across the industry in order to increase their emissions. Roger Harrabin, the Environment Analyst of BBC, states that under this Carbon Trading Scheme proposed by the European Union, the airlines could evade the commandment by buying more permits from others. Some of the airlines institutions such as British Airways and Air France hold a view that they are encouraged to buy extra permits instead of reducing their carbon emissions. This case revealed that the carbon emissions by the airlines are not being reduced under the......

Words: 1727 - Pages: 7

Premium Essay

Airlines

...1: Case Study European Airline Industry Strategic Management Contents |Main Body |4-10 | |1 Introduction |4-5 | |2 Summary of macro-environment analysis |5-7 | |3 Summary of industry environment analysis |7-8 | |4 Other critical factors for the airline industry |8-9 | |5 Future directions/recommendations |9-10 | | | | |Appendices |11-26 | |1 Macro-environment analysis |11-16 | |2 Industry environment analysis |17-26 | Reference List 27 Main Body 1. Introduction The European airline industry is a vigorous industry with changing trends that relate to the overall European economy. Traditionally, the European airline industry was mainly comprised of full-service carriers, such as Lufthansa and British Airways. Nevertheless, this situation changed quite swiftly (Datta & Chakravarty n.d.). Government deregulations freed European airline markets from......

Words: 7962 - Pages: 32

Free Essay

Airline

...“Los Tres” Análisis Caso N°14: Airline Industry Alliances in 2004 Concepción, 3 de junio de 2014 Asignatura: | Estrategia I | Profesor: | Federico Valdés L. | Alumnos: | Álvaro Alarcón. | | Sebastián Faúndez. | | Pedro Ramírez. | 1. ¿Qué razones tienen las líneas aéreas para pertenecer a una Alianza? Las alianzas que se generan entre empresas siempre son con la finalidad de obtener un beneficio mutuo entre las partes participantes. Estos beneficios pueden ser de diversas índoles. En el caso de las aerolíneas estos beneficios se verían principalmente un incremento en el alcance geográfico, acceso a nuevos mercados y aumento de la participación de mercado lo que se traduce en ventajas competitivas adquiridas por medio de la cooperación. Por medio de las alianzas las aerolíneas igual podrían disminuir costos en oficina utilizando instalaciones de distintas líneas aéreas sin la necesidad de invertir grandes sumas de dinero para operar, pueden disminuir costos en mantenimientos, de pooling de partes y repuestos aeronáuticos, fomentar programas de viajes coordinando horarios y frecuencias de vuelo. En definitiva mejorar el servicio al cliente, y enfrentar en conjunto cualquier dificultad que se presente en el mercado. En el caso de Star Alliances ser una alianza le permite gestionar la compra de combustibles, publicidad y aviones, para Oneworld, mejores practicas le han permitido construir una gran marca, creando valor a través del aumento......

Words: 863 - Pages: 4

Premium Essay

Airline

...encouragement. (Sandeep Singh) (Amit Chopra) Certificate To whom it may concern This is to certify that “Airlines Reservation System” submitted by Mr. Sandeep Singh and Mr. Amit Chopra to Lyallpur Khalsa College, Jalandhar is a student of B.Sc (IT) and collect the information under my supervision and guidance. This project is built in Visual Basic 6.0 and Oracle 8i. This project is for the management of the reservation system of British Airways. This project has reduced all the manual work and it also is very useful for keeping the records for lifetime. The project ported by them is good. They have done a lot to make the project user friendly and up to our expectations. I wish their success in his life. Project Guide (Sandeep Bassi) Lecturer in Department of Computer Science INTRODUCTION • PURPOSE:- The following is a software system that helps processing airline tickets reservation. The application system lets customers buy airline tickets. A customer can give the preferences and the details of journey, depending on the status of available flights; tickets are allotted accordingly through the system. • DESIGN CONSTRAINTS:- A computerized, automated solution strategy for online airlines reservation system will helpful in the current situation and provides better organization, by utilizing a database. The project has been developed using......

Words: 9647 - Pages: 39

Free Essay

Airlines

...“We at FUNLINERS give a high value flying experience with extraordinary convenience and low cost.” In a pretty unattractive airline industry with a low return on investment, FUNLINERS can successfully do better than industry average by maximizing the RPM and minimizing the cost per RPM through economies of scope, flexibility in selecting markets and increasing the market share through increased capacity. This can be done by analyzing the factors that enable JetBlue to do well. JetBlue identifies markets that are overpriced and underserved to increase its market share. It then uses an operational model that occupies the sweet spot between the traditional model and low cost model to provide high value of products at a comparatively lower cost than traditional model. In top markets where there is over capacity due to high competition, JetBlue finds a way to be different to attract customer loyalty. Unlike traditional companies, JetBlue has selected a supplier other than Boeing and Airbus to have 3 different fleet types giving it a greater degree of flexibility in targeting markets. Once it successfully enters the market it adopts a two-fold strategy of low cost operation and high customer focus to retain and increase its customer base. The key factors of keeping operational cost low are newer efficient planes, a team devoted to manage fuel and outsourcing maintenance. It also retains talent by encouraging direct interaction of labor with leadership through Value committees......

Words: 493 - Pages: 2

Premium Essay

Airlines

...Strategic Report for Southwest Airlines Tycen Bundgaard John Bejjani Edmund Helmer April 12, 2006 Table of Contents EXECUTIVE SUMMARY............................................................................................... 3 COMPANY BACKGROUND ....................................................................................... 6 PORTER’S FIVE FORCES............................................................................................ 10 MARKET DEFINITION .............................................................................................................. 10 INTERNAL RIVALRY ................................................................................................................. 11 ENTRY ....................................................................................................................................... 12 SUBSTITUTES AND COMPLEMENTS ........................................................................................ 14 SUPPLIER POWER ..................................................................................................................... 15 BUYER POWER .......................................................................................................................... 18 FINANCIAL ANALYSIS.............................................................................................. 19 OPERATION FINANCIALS .................................................................................

Words: 8674 - Pages: 35

Premium Essay

Airlines

...What are the challenges associated with managing in a business with high fixed costs like airlines? One of the challenges associated with managing in a business with high fixed costs, like airlines, is how to generate enough revenue during the peak season to reduce the effect of losses during off-peak seasons.  Airlines must generate enough seasonal revenue during heavy travel periods, predominantly the summer months, to offset losses experienced during other seasons when profits from travel are low and costs remain the same.  One way that airlines are doing this is through an additional fee structure for extra baggage or flight changes.  Another challenge that airlines face is the threat of employee strikes, such as the Iberian Airlines pilot strike, which often have detrimental effects on the airlines profits by causing changes in flight schedules and increases in employee pay (Chen, Iberian Airlines and the Implications of High Fixed Costs).  As a recent Wall Street Journal article, "Delta Air's Profit Up on Business Travel Gains", reports airlines are increasing their profits this quarter as a result of increased business travel.  The article further points out that while the demand for trans-Atlantic flights by banking sector business travelers is down, the demand for those flights by consulting and business-services travelers is up (Carey, 2011).  The airline industry's largest costs are salaries, fuel and planes.  Using larger airplanes could be a method to......

Words: 440 - Pages: 2

Free Essay

Airline

...most recently,in 2004, ENAER, a Chilean firm that supplies the rear fin and other parts, and Gamesa, aSpanish firm that makes engine parts, have built a plant in Sao Jose dos Campos, whereEmbraer is headquartered.6Subcontractors that receive raw materials and designs from Embraer constitute a thirdlevel of supplier.According to Embraer’s statistics, 93.4 percent of the firm’s employees are employed inBrazil, 25 percent as engineersEmbraer is betting thatregional and low-fare airlines will extend their routes, creating competition with the legacyairlines and a demand for larger regional aircraft. So far, this bet has paid off, Commonality in the 70- to 110-seat market—  An important advantage that Embraer canuse to leverage its first-mover advantage is the commonality design of the new 70- to   110-seat jet family. Commonality is a set of shared parts and interfaces, which allowairlines to scale maintenance and spare parts inventory across several jet types in thesame family. Commonality also allows airlines to avoid retraining pilots for differentcockpit designs. Bombardier estimates that commonality features in its planes can saveairlines 10 to 15 percent on operating costs. This strength will be especially important inthe more dense markets of Europe, Asia and, eventually, the U.S.•  Lower R&D and production costs—  Clearly, Embraer benefited in its early developmentfrom significant government R&D subsidies. Continuing government assistance for military contracts......

Words: 1962 - Pages: 8