...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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...THE e-ENABLED AIRLINE, AIRPLANE, FLIGHT DECK, CABIN COMMERCIAL AVIATION Commercial Airplanes Aviation Services P.O. Box 3707, MC 21-85 Seattle, WA 98124-2207 www.boeing.com/commercial/aviationservices SERVICES The e-Enabled Advantage Phone: 206-766-1160 Fax: 206-766-1720 E-mail: e-enabled@boeing.com www.boeing.com/commercial/ams | A V IE N - C N AS ELR V I C E SV A N T A M E D I F I C A T I O N TH Oe IE S B ED AD AND GO Printed in U.S.A. 404854 06/03 COMMERCIAL AVIATION SERVICES | T H E e - E N A B L E D A D VA N TA G E EXPERIENCE THE POWER OF N E T W O R K E D O P E R AT I O N S . e-Enabled Advantage A VISION OF THE FUTURE NETWORKED ENVIRONMENT In the not-too-distant future, airlines will routinely invoke the power of integrated information and communications systems to reach new pinnacles of operational efficiency and market presence. Boeing calls it the e-Enabled Advantage. We’re coordinating the expertise of our entire company to give the airline industry a future in which people, airplanes, assets, information systems, knowledge applications, and decision support tools work together seamlessly. The Jeppesen Electronic Flight Bag, SBS International Crew Scheduling and Management software, Connexion by BoeingSM, and Boeing Airplane Health Management signal the dawn of a new age, when airborne and ground-based operations are linked in real time to enable people to achieve the extraordinary every day. Unprecedented enterprise...
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...companies like UPS tend to use a wide range of materials. This allows for a greater chance that price and service arrangements can be influenced considerably based on the companies purchasing performance. In the past, purchasing was considered a clerical position in smaller companies. Much of its progression today can be attributed to technology. Purchasing accounts for over half of most organizations' total monetary expenditures; it is no wonder that purchasing is marked as an increasingly critical position. The airline industry certainly has progressed over recent years. The airline industry has linked people together in an intensely competitive market. It has changed in so many ways the way people live and do business these days, by making travel times a lot shorter. By changing their thought process about distance when it comes to traveling to a state that may take ten hours to drive to, but only a few hours to fly to. The Airline Industry and Purchasing The Airline Industry, for example, utilizes supply sourcing which involves determining whether to purchase a part from an outside supplier or produce the part internally. If the buyer chooses to purchase the part externally, then he must communicate this to qualified suppliers who are willing to make and sell the part or parts according to the specified drawing...
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...Effects of Quality Management on Domestic and Global Competition Katrice Bottoms MGT/449 June 21,2011 Brain Vanderjack Effects of Quality Management on Domestic and Global Competition The airline industry is a service industry that strives on safety, first line supervisors often encourage personnel to disregard the safety rules to meet on-time departures. First line supervisors are measured on their performance by airline management on getting the planes in and out as quickly as possible. Since the early days of flight damage to aircraft from ramp operations has been a chronic problem for the airline industry. This paper will discuss two airline corporations, United Airlines and Southwest Airlines the procedure of the organizations, core competency for each, how the procedure produces a competitive service domestic or global, and how Total quality Management effects the position of both corporations. The focus on the turnround plan is to reduce the number of incidents and accidents affiliated with the aircraft turnround with little disruption of performance levels. The first step is the pre-planning stage which is also called the pre-arrival stage. The most important part of this plan is to identify the laed ramp agent who will supervise the whole operation, the agent should have sufficient knowledge and authority to control the activities around the aircraft. Upon the arrival to the gate, there should be a least four to five agents. Through the pre-arrival process...
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...BLUE SKY MAN Industry Segmentation In the airline industry, market segmentation can be based on providing flights to domestic or international destinations and product segmentation would include the different types of fares they are offered, such as economy, business and also first class. dustry will be low as there are high barriers to entry. Due to high cost of planes, entering airline industry requires high capital investment to commence operations. The airline industry is extremely capital intensive, due to the cost of buying and leasing aircrafts, safety and security measures, customer service and creating a brand people can trust. In order to achieve economic of scales, many airlines creates alliance with each other therefore creating efficiency in joint purchase of aircraft, cost of maintenance and parts thus save hundreds of millions of dollars such as the Jetstar/AirAsia alliance. This creates further barriers whereby new entrants will not be able to compete in term of cost and price. (1) Power of suppliers to the industry - Medium to High The airline supply business is mainly dominated by Boeing and Airbus therefore they have high supplier power. For this reason, there is not a lot of competition among suppliers. Also, it is also unlikely that of a supplier integrating vertically. Airlines are also unable to materially affect fuel prices from suppliers as the oil market dictates the fuel costs. They also aim to use their combined scale to help...
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...Term Paper: Downtime and Outage Aliaksandr Piatrou Course SEC 6010: Planning for Information Security Instructor: Mr. Dwight Robinson December 10, 2015 Abstract An outage or downtime at the online reservation system Sabre caused difficulties for many airlines, hotels and other hospitality industries all around the world. It affects business credibility, causes loss in revenue and legal procedures. Because of the recent delays Southwest, AirTran, American Airlines, US Airways, and United Airlines, who use Sabre global distribution system, topped the list of worst airlines in the US (Tooley, 2015). Background Sabre is one the leading provider of global distribution system to the travel and tourism industry. The Sabre GDS enables companies such as American Airlines, BCD Travel, Expedia, JetBlue, and Travelocity to search, price, book, and ticket travel services provided by airlines, hotels, car rental companies, rail providers and tour operators worldwide. It headquarters in Texas and employs over 10,000 employees in 60 countries with revenues of approximately $3 billion. Sabre service is using worldwide by 400 airlines in more than 700 airports, by more than 125,000 hotel properties, 27 car rental brands, 50 rail providers, 16 cruise lines and other global travel suppliers around the world generating more than $5.85 billion in revenue each year for its customers. More than 600 million people make purchases through that system annually (Sabre Authors, 2014). Sabre...
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...KINGFISHER AIRLINES: MANAGING MULTIPLE STAKEHOLDERS The entire airline industry in India came under close scrutiny after Kingfisher Airlines, already known to be in deep trouble with a variety of stakeholders, cancelled about 35 flights, one day in November 2011. Many passengers had harrowing experiences of being stranded at odd locations, making alternate arrangements to travel, and rescheduling important engagements owing to the travel disruptions. Most of them, many very loyal customers of Kingfisher, were distressed with the cancellations, and were even more distraught when other airlines raised fares. Many of them contemplated switching their future travel programs to other airlines. Several others not directly affected by the sudden events wondered whether they would ever book flights with Kingfisher Airlines in the future. Owing to the furor these cancellations created, the Directorate General of Civil Aviation (DGCA) sought explanations from the Kingfisher management. To prevent the crisis from affecting the whole airline industry, the Minister of Civil Aviation had to step in to assure everyone that it was a crisis that would blow over, and even the Prime Minister was forced to make a statement that the government would look for ways to help the airline deal with its existing challenges. On November 15, 2011, Vijay Mallya, Chairman and Sanjay Aggarwal, Chief Executive Office of Kingfisher Airlines addressed a press conference at Mumbai’s Hyatt Regency to explain the...
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...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...
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...easyJet Innovation 12 AVOID ash detection project 13 severi satellite and inversion modelling 14 electric green taxiing system (EGTS) project 15 easyJet’s Board & management team 2 About easyJet headline facts > over 55m passengers each year across its network easyJet was founded in 1995 by Sir Stelios Haji-Ioannou with the vision of creating a customer focused brand that would revolutionise the concept of air travel. More than fifteen years on, easyJet is Europe’s leading airline, and the UK’s largest, carrying over 55m passengers a year. > UK’s largest airline carrying more than 29m passengers > leading presence on Europe’s top 100 routes (EZY 49; BA/ Iberia 43; LH-Swiss 41; RYA 32; AF/KLM 22) > operates on over 600 routes across over 30 countries > holds a strong position in key markets: No. 1 in Gatwick, Milan and Geneva > operates a fleet of over 200 aircraft with an average fleet age of around 4 years > employs over 8,000 people including 2,000 pilots and 4,500 cabin crew > flies to 44 out of Europe’s 50 largest airports > 300 million people live within a one hour drive of an easyJet carrier Making travel easy and affordable easyJet offers fantastic value: On average we fly you 1100km for ₤45 /€50. That’s cheaper than any other airline which flies to centrally located airports. 18% of easyJet’s passengers are flying on business. 1m more business passengers flew with easyJet in 2011. 3 easyJet company background ...
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...MDA Airlines MDA Airlines Risk Register A. Risk Register “The candidate provides a risk register with 8 risks currently facing the business, with substantial detail.” Risk 1|Jet Fuel Prices Fluctuates | Description|Fuel is required to fly aircraft and with fuel prices always changing, it can be very difficult to budget for it on a monthly/annual basis. The cost of fuel is based on the price of crude oil per barrel and is set by global entities. | Source|Global jet fuel prices are always fluctuating. If not able to purchase enough fuel at a reasonable price to store for several months, the company could find themselves well over budget potentially grounding aircraft.| Likelihood of Occurrence|High - Crude oil is traded on the stock market daily with prices fluctuating based on supply and demand.| Severity of Impact|High - If MDA is not able to manage the budget, they could find themselves in a financial bind.| Controllability|Med - The hedging program is intended to mitigate risks associated with increasing crude oil prices and is also intended to make it easier to plan for future fuel costs.| Risk Response|Mitigate - The acquisition and purchase of a refinery were researched by logistics managers that monitored and studied the aircraft fuel supply chain, which discovered that over the years refiners have benefited from increased margins on the sale of fuel. This decision will save millions of dollars and insure a reliable fuel supply for the domestic...
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...All living beings possess a built-in, biological alarm clock. This clock is responsible for innumerable bodily functions that are performed during various stages of a day/week/month/year. Examples include bowel movement, digestion, hormone production, menstrual cycle and migration (among birds/animals), to name a few. All these functions follow a particular cyclical pattern. When this process recurs annually, it is known as a circannual rhythm. Similarly, when this process recurs on a daily basis, it is known as a circadian rhythm. The word circadian comes from the Latin words ‘circa diem’, meaning about a day. Circadian rhythms are controlled by a biological clock within our brain. This section of brain is called the 'suprachiasmatic nucleus' (SCN). Signals produced by the SCN travel to different sections of the brain, thus stimulating various functions, such as body temperature, hormone secretion, changes in blood pressure, etc. There are numerous external factors as well, that regulate a circadian rhythm among human beings. These external factors are called zeitgebers (Hawkins & Orlady, 1993). Most common zeitgebers are light and temperature. Others include meal times, various social and physical activities. The most common circadian rhythm known to mankind is the sleep cycle. Sleep is an extremely important physiological phenomenon, during which our body heals and recuperates. Let us begin with understanding what sleep is, and what are the various sleep patterns. Sleep...
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...Question 1 Analyze the current situation facing MAS and AirAsia using the internal and external strategic environment analysis model. Discuss what aspects and why did their collaboration take place. Answer Background to AirAsia A ‘no-frills’ airline is defined as one “That uses charter and/or scheduled flights to offer bargain-basement fares. Budget airlines usually land at and take-off from secondary airports, do not provide in-flight meals or refreshments, and may not even offer numbered seat allocation. Their ticket prices are fixed and non-refundable in case of a cancellation or no-show”. AirAsia is one of the fastest growing airline companies in the world, with a reputation as a low-cost, ‘no frills’ airline. It was originally a government owned business; yet, due to heavy debt, it was bought by former Time Warner executive Tony Fernandes in 2001, and this is where the real story begins. Their vision, under the slogan "Now Everyone Can Fly", is “To be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares”,(ii) and their mission is, under the banner of 'Affordable Airfares', “To attain the lowest cost so that everyone can fly with AirAsia,” without any compromise to Flight Safety Standards, as well as, creating a worldwide recognizable brand with a ‘family’ atmosphere within working conditions for employees. (iii) These statements clearly show AirAsia’s value. Cost advantages...
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...Jet Blue In February 2000, JetBlue started flying daily to Fort Lauderdale, Florida, and Buffalo, New York, promising top-notch customer service at budget prices. The airline featured new Airbus A320 planes with leather seats, each equipped with a personal TV screen, and average one-way fares of only $99 per passenger. JetBlue was able to provide this relatively luxurious flying experience by using information systems to automate key processes such as ticket sales (online sales dominate) and baggage handling (electronic tags help track luggage). Jet Blue prided itseft on its "paperless processes." JetBlue's investment in information technology enabled the airline to turn a profit by running its business at 70 percent of the cost of larger competitors. At the same time, JetBlue filled a higher percentage of its seats, employed non-union workers, and established enough good will to score an impressive customer retention rate of fifty percent. Initially, JetBlue flew only one type of plane from one vendor: the Airbus A320. This approach enabled the airline to standardize flight operations and maintenance procedures to a degree that resulted in considerable savings. Chief information officer Jeff Cohen used the same simple-is-better strategy for JetBlue's information systems. Cohen depended a1most exclusively on Microsoft software products to design JetBlue's extensive network of information systems. (JetBlue's reservation system and systems for managing planes, crews, and scheduling...
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...74 Management Information Systems JetBlue Hits Turbulence CASE STUDY n February 2000 JetBlue started flying daily to Fort Lauderdale, Florida, and Buffalo, New York, promising top-notch customer service at budget prices. The airline featured new Airbus A320 planes with leather seats, each equipped with a personal TV screen, and average one-way fares of only S99 per passenger. JetBlue was able to provide this relatively luxurious flying experience by using information systems to automate key processes such as ticket sales (online sales dominate) and baggage handling (electronic tags help track luggage). Jet Blue prided itself on its "paperless processes." JetBlue's investment in information technology enabled the airline to turn a profit by running its business at 70 percent of the cost of larger competitors. At the same time, JetBlue filled a higher percentage of its seats, employed non-union workers, and established enough good will to score an impressive customer retention rate of fifty percent. Initially, JetBlue flew only one type of plane from one vendor: the Airbus A320. This approach enabled the airline to standardize flight operations and maintenance procedures to a degree that resulted in considerable savings. Chief information officer (CIO) Jeff Cohen used the same simple-is-better strategy for JetBlue's information systems. Cohen depended almost exclusively on Microsoft software products to design JetBlue's extensive network of information systems. (JetBlue's...
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...Southwest is the fourth largest airline in the USA in terms of domestic passenger miles flown. Why is Southwest successful and the other airlines in the USA are not? There are many different reasons but I listed a couple below: • Southwest's unique culture, called "goofiness" by some individuals, keeps the morale of its employees high • Southwest is very serious about keeping its costs down • Southwest's employees have never gone out on strike • Southwest leads the industry in on-time performance • Through 2002, Southwest's stock price increased 29 per cent per annum for the preceding ten-year period. Southwest's business strategy is to be the low cost provider with frequent service and no frills to customers who drive most of the time instead of flying. Southwest's average trip is less than 500 miles and is 50 per cent less in length than its major competitors. Southwest devotes significant monies to training and development. Each major work area has its own training department –mechanics, in-flight activities, customer service, operations and reservations. Even though Southwest is the most unionized airline, their work environment is free of rigid rules. According to Herb Kelleher, the genesis of the Southwest culture was created in 1971 - the first year of operation for Southwest. Southwest was encountering cash flow difficulties in its first year of operation. Mr. Kelleher and his management team faced the dilemma of either selling planes or laying off people to save...
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