...order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Copyright © 2015, Richard Ivey School of Business Foundation Version: 2015-05-22 In early 2014, Ferio Pugliese looked back on his turbulent first nine months as president of WestJet Airlines Ltd.’s (WestJet) new regional air service Encore. Officially launched in Western Canada in June 2013, this venture represented the company’s most significant organizational change in its 18 years of dramatic growth and was billed as WestJet’s “second coming” — hence, the chosen name Encore. The process of expanding the airline’s fleet to include smaller, short-haul aircraft servicing smaller destinations throughout Western Canada had not been without growing pains. The on-time performance for Encore got off to a rocky start, with no gentle breaking-in period for ramping up the new service. Integrating the smaller Encore fleet into the fully functioning and mature WestJet network presented challenges to maintaining efficiencies. The integration had also necessitated organizational changes for some...
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...WestJet Airlines WestJet Airlines is a Canadian low-cost carrier that was founded in 1996 by an entrepreneur Clive Beddoe. With an idea to start up a low-fare airline company, Beddoe quickly found a team of like-minded partners and WestJet Airlines was born. The role model for WestJet was Southwest Airlines and Morris Air, both operating in the United States. The main goal of the newfound company was to offer “affordable air travel coupled with good service” (WestJet handout, pg 52). Besides being a very successful low-fare carrier, WestJet has a unique corporate culture that has been built around caring for its passengers. Even though, the image of WestJet Airlines seems perfect for today’s economy, this company faces some issues that will be discussed throughout the paper. The main problem WestJet faces is how to maintain the corporate culture with rapid company growth. The “fun” culture is what WestJet is very proud of and “believed that the culture was the key to their airline’s continued success and they could not afford to mismanage it” (WestJet handout pg 52). In tough economy and market competition, WestJet top management needs to make very important decisions to compete with its competitors while keeping the unique corporate culture. First, the company’s challenges need to be analyzed to decide what the best alternatives are for WestJet future. To begin with the analysis, very important characteristic of the WestJetters is they are so customer oriented and...
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...MNGT 370 Michael Pienkowski WestJet Case Analysis 6/9/2015 WestJet Case Analysis WestJet Airlines is a fairly new airline based out of Canada that started out small, but soon distinguished itself from other airlines by the way that they operated. Starting in 1994, they quickly found their niche market as a discount airliner by only flying to certain areas of Canada. Clive Beddoe, a founder of WestJet, discovered a demand for short distance flights to certain parts of Canada that many larger airlines were not willing to offer since short distance flights were not cost effective for them. WestJet grew slowly and developed their own style of operation that included a lack of a union as well as a “Fun” corporate structure. Their employees were also some of the highest paid workers in their fields. These are the just some of the reasons why WestJet believes that they are so successful. The problem in the WestJet case is that the reasons that allowed them to thrive and become so successful in the past, might be the same reason that their growth will slow down in the future. Their culture of being “fun” and success in their niche market has allowed them to grow into a larger airline that is very effective...
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... S w 909C12 WESTJET: BUILDING A HIGH-ENGAGEMENT CULTURE Ken Mark wrote this case under the supervision of Professor Gerard Seijts solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2009, Ivey Management Services Version: (A) 2009-08-11 INTRODUCTION In late April, 2009, a senior manager at WestJet Airlines (WestJet) came across two news articles — one in Maclean’s, a Canadian news magazine, and the other in the Globe and Mail, Canada’s national newspaper — that hinted at a dilemma faced by WestJet: How to continue to build its high-engagement culture as it experienced high rates of growth?1 WestJet stood out from other Canadian airlines in many ways. For example, despite a difficult year in 2008, WestJet was one of only a few...
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...company started in 1996 by a small group of entrepreneurs. According to the References for Business website for WestJet the WestJet founder Clive Beddoe was born in England and came to Canada and made a “fortune in developing commercial real estate in the Calgary area (References for Business website 2010)”. Clive Beddoe teamed up with Tim Morgan, Don Bell and Mark Hill to start a now frills airline according to the References of Business website. The WestJet Annual Information Report 2009 says WestJet started with three planes flying to five Canadian cities; Vancouver, Kelowna, Calgary, Winnipeg, and Edmonton. WestJet’s IPO was in 1999 on the Toronto stock exchange as WJA with Steven Smith as CEO (References for Business website 2010). WestJet Airlines Limited is made up of four subsidiaries; WestJet Aircraft Acquisition Corporation, WestJet Investment Corporation, WestJet Operations Corporation, WestJet Vacations Incorporated(WestJet Annual Information Report 2009 p.9) . The WestJet mission statement is “to enrich the lives of everyone in WestJet’s world by providing safe, friendly and affordable air travel (WestJet Annual Information Report 2009 p. 18)”. Organizational Strengths and Weaknesses Organizational Strengths First Organizational Strength A major strength of WestJet is the corporate culture. Corporate culture affects performance. WestJet was named Canada’s 10 Most Admired Corporate Cultures for four years in a row by Waterstone Human Capital and recently...
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...to become a major competitor among international carriers. The low cost “no-frills” service and corporate culture have been the praise of West Jet success. To use market share as a measure, West Jet began with none and now has approximately 33% Canadian market share with plans for this to increase. Nonmarket Environment West Jet has developed a very strong market position in a short period of time. They certainly have a strong marketing strategy and low-cost structure that promotes strong margins. The non-market environment can nullify any market advantages such as price and product attributes, so it is crucial to the long term success of an organization to identify and act on issues. Here I have identified some non-market issues that WestJet either currently faces or has faced in the past, I will briefly analyze each to determine WestJet’s non-market...
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...WestJet Ltd. Business History West Jet Airlines is the second largest airline in Canada, the first being Air Canada. The Airline has its headquarters in Calgary, Alberta, Canada. It is run by Gregg Sarektsky, who is the CEO and President of the airline and Clive Beddoe, who is both the Chairman of the board of directors and a co-founder of the Airline. West Jet Airlines employs roughly 10,000 employees as of August 2014. The Airline was founded by Clive Beddoe, David Neelman, Mark Hill, Tim Morgan and Donald Bell. WestJet Airlines is a non-unionized company and is not part of any other airline alliance. It however has a subsidiary- WestJet Encore. The Airline’s first flight was on February 29, 1996. (Arnusch, 2013) The Airline in its early starting years had all its routes in Western Canada, and this is where its name is derived from. Between 1996 and 2001, the airline experienced changes in leadership and shareholding. The Companies changed its CEOs From Clive Beddoe, to Steve Smith in 1999. As of 1999, the company made its first Initial Public offering. Steve Smith was replaced by Clive Beddoe again in 2000 until 2007. Later the company rose, expanding its destination flights to include more international flight. In terms of domestic shares, the airline rose from 7% in the year 2000 when, Air Canada was at 77% to 38% in the year 2009 when Air Canada was at 55%. The airline is clearly rising against its main competitor. (The Globe and Mail). The Airlines main goals as of...
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...weStJet mini case a great guest experience As the filled-to-capacity Boeing 737 taxis to the ramp at Maui’s Kahului Airport, 200 weary travellers are brought back to life by the a capella stylings of the lead flight attendant’s playful rendition of “Over the Rainbow.” Customers, or “guests” as WestJet prefers to call them, quickly realize that they are now part of another unique WestJet moment. They chuckle as the WestJetter cleverly integrates local time, temperature, and gate information into the lyrics, but he earns genuine LOLs when he works in the verse, “flying to Hawaii is free when you’re a WestJet employee.” Thus, despite being awake since 4:30 a.m., boarding a plane in Calgary in the dead of a prairie winter, and enduring a seven-hour flight with two young children who refused to sleep, these “guests” are ready to embrace the magic of Maui. The travellers may never know the reason for the improv performance, but maybe it was just another example of what the advertisements have been telling us for the better part of a decade: “Owners care,” a slogan communicating how the airline’s employee stock option package motivates participating WestJetters to go just a little bit further to please. WestJet’s philosophy of creating customer value is not based in its industry-leading turnaround times, modern fleet of planes, or even its competitively priced fares. Customer value stems from the core of a corporate culture, something only achievable when your people are engaged...
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...certainly not immune from the many problems in the economy. In an attempt to assist a friend in deciding whether it is worthwhile to invest in WestJet, a Canadian airline company, a thorough analysis of WestJet was undertaken to assist her in making her decision. Requirement # 1 WestJet, ‘Canada’s leading high-value low-fare airline’, was founded in January 1996 by four Calgary entrepreneurs: Clive Beddoe, Mark Hill, Tim Morgan and Donald Bell. One month later in February, WestJet started operations with 220 employees, three aircrafts and flying only to five cities within Canada. Over the subsequent months, the WestJet team was successful in attaining the sufficient funds to expand their business which allowed them to purchase additional aircrafts as well as the building of a new Head Office in Calgary among other things. Today, after thirteen years of operation, WestJet now offers service to 66 destinations across Canada, the United States, Mexico and the Caribbean. It has also earned the reputation as ‘Canada’s leading high-value low-fare airline’ at the same time competing with its number one competitor Air Canada. “But as WestJet inevitably usurps Air Canada to become the country’s largest domestic airline, the older carrier might pause to take some lessons from its conqueror”2 says one report in comparing WestJet with Air Canada. WestJet is currently one of the...
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...WestJet Airlines – IT Governance & Corporate Strategy 1. Assessment of the IT situation at WestJet - Cheryl Smith focused on performance measures to carry out a study to compare companies within the transportation industry. The objective of the study was to compare WestJet’s IT cost, its resources and its budget to the overall industry standards. With the results, Cheryl was able to conclude that the IT department of the company was competent and worked according to the “WestJet IT Way”. She acknowledged that the IT organization at WestJet was structured according to the IT group’s conventional internal functions of planning, building, organizing, maintaining and governing. To top it off Cheryl found that IT department at WestJet had relatively different skill set compared to the IT sector at other companies1. Further she stated that more than half the systems, procedures and systems were industry-standard. WestJet’s IT department had invented its own operations structured around the company’s needs which were not compliant with other related industries. The study concluded that there was a mismatch in the number of employers as compared to the industry benchmark numbers. 2. WestJet’s assessment and Issues faced - Cheryl Smith was informed that WestJet had undergone an analysis with IBM and they had recommended a solution to its IT concerns. However, Cheryl requested to stop and place a hold on the PMO deal that was suggested by IBM. Instead, the first task...
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...Project Proposal: WestJet Airlines Group 6: Chris Emmons, Colin Sinclair, Mitali Julka, Navkiran Hundal. The company in which Group 6 has chosen to pursue for the term project is WestJet Transportations. WestJet is also a low-cost Canadian air carrier that provides air transportation to over 80 destinations including Canada, the United States, Europe, Mexico, the Caribbean and more. WestJet is the second largest air carrier service in Canada. Another reason we chose WestJet as our business for the term project is because they just united with our own local airport for international flights. WestJet was founded as a Canadian company in 1966, and has remained Canadian throughout the years. We, as a team, decided that WestJet would be a strong company to use because of its Canadian background, the large measure of international and domestic flights, and because our team felt like it was a more interesting option to discuss. The information sources that Group 6 will be using consists of factual documents provided by the WestJet Airlines ltd report, World Market Intelligence, Flight International, and Airline Passenger, which are all found in the library of Okanagan College. The internet will also be another reliable source of information. If Group 6 finds any other unlisted resources we will be sure to list them in our references. The names of the team members in Group 6 are Chris Emmons, who will be taking on managerial role of “leading”. Colin Sinclair is the teams “Organizer”...
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...Welcom e - Already a m em ber? [ Sign In ] My Itineraries My Account Customer Support Online Check-in Feedback Français Cancel My Hotel Booking Home Flights Vacation packages Hotels LAS VEGAS DEALS DISNEY Car rental Cruises Things to do Insurance Mobile Like 243k Your Trip to Oranjestad, Aruba Sat 5/Oct/2013 - Thu 10/Oct/2013 | Total price: C$2,309.27 Trip Summary Halifax to Oranjestad Your flight and hotel were added to your trip. Sat 5/Oct/2013 - Thu 10/Oct/2013 Return: Arrives on 11/Oct/2013. 1 Ticket: 1 Adult Change Flights Show Details The Westin Resort & Casino, Aruba Sat 5/Oct/2013 - Thu 10/Oct/2013 1 Room: 5 nights Flights October 5, 2013 - Departure Halifax 1 stop Toronto Total travel time : 9h 45m Flight + Hotel C$2,636.24 -C$326.97 Total: C$2,309.27 All prices include taxes & fees and are quoted in Canadian dollars YHZ 8:00am Air Canada 607 Economy/Coach (M) YYZ 9:27am 2h 27m Your Savings Layover: 2h 13m Toronto Oranjestad 5h 5m Best Price Guarantee Congratulations! You're getting the lowest possible rate. We guarantee it. YYZ 11:40am Air Canada 1294 Economy/Coach (M) October 10, 2013 - Return Oranjestad AUA 4:45pm 2 stops Newark Total travel time : 17h 33m 4h 52m AUA 2:59pm UNITED 1039 Economy/Coach (L) EWR 7:51pm Important Trip Information We want you to know this trip has the following restrictions regarding your flight and hotel. Layover:...
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...WESTJET A. CURRENT MARKETING SITUATION STRENGTHS * Low fare * WestJet strives to be one of the five most successful international airlines in the world (Anonymous, 2010) * Canada's second-largest airline (Monchuk, 2007) * Profitable Organisation * High efficiency * Outstanding customer service * Customer service relationship. * No frill strategy. * WestJet was also the first Canadian airline to offer live seatback television (CCNMattews, 2005) * 33% of domestic market * Top 100 employees * Friendly workplace * Treat passengers as “guests” * Customer friendly culture * High aircraft utilization. * Holiday package (Jang, 2006) * Employees are owners * Workplace environment is "fun, friendly and caring" (Gerstel, 2011). * Low maintains and training cost. * Increase its share of the Canadian air-travel market. (Gignac, 2006) * More use of man power resources * Focus on cost leadership and bench marketing. * Environment friendly. * Have Boeing 737 jet aircraft continue its growth from 1996 to till today. * MasterCard, joining the AIR MILES Reward Program. (PR Newswire Association LLC Apr 23, 2004)1 WEAKNESS * Intense competition from air Canada * Seasonality * Geographic dispersion * Increased dependence on passenger revenues * Too much dependence on business ravel market segment. * High commission to traveller...
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...Case 3 Southwest Airlines business-level strategy was cost leadership. They have employed numerous ways to reduce cost while still providing great service for their loyal customers. The best evidence of this strategy was the decision to use one type of aircraft which cut out expenses such as maintenance, tools, and parts to name a few. The implementation of blended winglets and the use of EcoPower engine wash, which saved the company millions, were also good indicators of a cost leadership strategy. Southwest Airlines has the capability to operate at a high profit margin. The company’s high profit margin of 4% is a direct result of the business-level strategy. Southwest Airlines was able to successfully lower costs in all the right places, and as a result, had the highest profit margin of all the airlines. Not only did they have the highest profit margin, but they also had the highest ROA of 1.2%, nearly double the closest competitor. Southwest Airlines competitive advantage is their ability to make a profit and successfully lower costs which is directly related to their cost leadership strategy. Southwest’s net income has increased each year from $484 million in 2005 to $499 million in 2006 and $645 million in 2007, they are also the only company besides JetBlue with a positive profit margin in 2008. Southwest is able to provide a low price flights, while maintaining low costs, and exceptional customer service in a presence of strong competitive forces. These...
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...2.1 COMPETITION Competitors: the major competitors are DIGI and Maxis respectively according to their level of threat. 2..1 OBJECTIVES AND STRATEGY OF DIGI The main objectives of Digi are to become the main market leader in Malaysian market. This they have done by implementing many marketing strategies to persuade customers. This strategy includes the Digi family and friends, 18 cent per any local call, reward on reload according to the amount reloaded within a month and mass advertisement. 2..2 STRENGTHS OF DIGI The main strength of Digi is the market size they occupy through their extensive marketing strategy and promotions. This has made them one of the market leaders and their service are largely demanded across the Malaysian market. 2..3 WEAKNESS OF DIGI Their main weakness is limited coverage across Malaysia and the world. For example, sometimes when you send message to African continent with Digi, the message will not be delivered to the recipient. 2.4 SIZE AND TREND OF DIGI IN THE MARKET SHARES Digi currently holds the second largest trend in the Malaysian market shares. 2.5 OBJECTIVES AND STRATEGY OF MAXIS Maxis are one of the new entries into the telecommunication service providers market, and their main objective is to get as much customers as they could. This they have down through mass advertisement, sponsoring sports programmes, rewards to their customers and organizing shows for students and the public at large. 2.6 STRENGTH OF MAXIS Their sponsorships...
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