...REPORT It is Turkish Airlines’ responsibility to act and promote sustainability as a commitment to the environment. A. Fuel Efficiency Program In the beginning of 2008, Turkish Airlines started a collaborative study with IATA Green Team and has begun implementing a Fuel Efficiency Program aimed at increasing fuel efficiency and reducing the carbon emissions. The program involves measuring and monitoring of fuel efficiency initiatives and reporting to the Fuel Steering Committee which consists of competent and dedicated personnel from key departments such as Flight Operations, Flight Planning and Dispatch, Engineering and Maintenance, Finance, Marketing and Sales. The initiatives undertaken within the program to increase fuel efficiency and to reduce carbon footprint could be gathered under the umbrella of below topics: 1. Optimizing the operations: Since 2008, more than 70 projects to optimize operations in order to reduce carbon footprint have been introduced and implemented. Some of these operational optimization projects include: Pilot technique, optimizing the use of APU (auxiliary power unit) while the aircraft is on ground, introducing a new optimized flight planning system, optimization of the routes and aircraft speed, aircraft weight reduction (fly away kits, magazines, containers, potable water, catering equipment), aircraft modifications (winglet and sharklet), engine wash. 2. Investing in new technologies: Turkish Airlines takes the environment...
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...Michael Porter (Harvard Business School) originally discussed the problem of “stuck in the middle.” He said that the profitability of firms depends on the firm’s position and competitive advantage in that industry. He argued that competitive advantage derives from one of two strategies: cost leadership or differentiation of products or services. The problem, Porter said, was in trying to do both and thus doing neither very well. He seemed to be saying, “find what you are good at and stick to it.” Some examples: Industry | Differentiators | Stuck in the middle | Cost Leaders | Cellphones | Apple, Google | Nokia | Commodity Manufacturers | Retailing | Nordstrom, Banana Republic | K-Mart, JC Penny | Walmart, Target | Airlines | Cathay, Emirates | American Airlines | Jet Blue, Spirit Airlines | I think that being stuck in the middle could be seen as: 1. “Oh no, we are heading in the wrong direction because we have no direction of what do we do, who is our customer and what is our vision”. In this case, you need to decide: a. What your business is and isn’t. b. Who your business will sell to and who it won’t. c. What your business will sell and what it won’t. If you don’t do anything, prepare to have your business suffer and possibly face extinction. OR 2. We are in the middle to discover possible new segments of demand. After all, demand can be defined on numerous dimensions, well beyond cost and difference, such as convenience, style, and...
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...Classic Airlines and Marketing Paper University of Phoenix MKT/571 Classic Airlines is a company that services air travels to its customers along with good customer service throughout the entire experience from the time the customer orders a flight till the time they reach their destination. Rising costs has been one of the main challenges to Classic Airlines. Recently with a 19% decrease in Rewards members and 20% decrease in flights, the firm is losing theirs not only new customers but existing ones as well. Other than budgeting for an expected decrease in business, the firm is also due for a significant change in its marketing strategies to ensure future revenue and avoid the possibilities of bankruptcy. New priorities need to be developed such as highlighting important consumer needs, establishing realistic criteria for finding the appropriate market segments, and developing a relevant feedback system would help the company find problems where the most revenue is generated and enable Classic Airline executives to attack those areas. Based on the current scenario, the firm seems to be suffering from a lack of proper customer relationship management and self identity. CRM is a company-wide business strategy designed to optimize profitability, revenue, and custom satisfaction by focusing on highly defined and precise customer groups (Lamb, Jr., Hair, Jr., & McDaniel, 2006). For example, if Classic Airlines wanted to sustain revenues among its business customers, it...
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...Dreamliner (Boeing 787) and hoped to regain its leadership role in the commercial airline industry. I will apply the theories of competitive forces model and the macro-environment to analyze the Boeing case in the following exploration, and then give my suggestions. According to the competitive force model, the first point of the risk of entry by potential competitors is neither high nor low because a new company produces on a small scale even can’t cover the multiple-billions R&D, and Boeing already have accumulated experience, patents, or trade secrets that they are more effective than new companies (Hill & Jones, 2012); while the new“global systems integrator” strategy tends to create potential competitors such as China and Japan. Secondly, the commercial airline industry is a consolidated industry that the launch of A380 from Airbus directly affect the market share of Boeing in 2003, and the fixed costs in this industry is very high; thus, the rivalry among established companies is intensive. Thirdly, A380, A350 etc. are the substitutes with similar basic needs, which are threats to Boeing 787 and leads to the operation risk. On the macro-environment, the economy of developing countries grows very fast that both Boeing and Airbus believed “the passenger traffic in China would surge over 8.0% annually” (Nolan & Kotha, 2005), which tends to ease competitive pressures within an industry; it also viewed as an opportunity. On the global market, Boeing is facing opportunities...
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...! ! ! Table of Content! ! ! ! 1.0 Executive Summary! ! 2.0 Business Description!! 2.1 Industry Background! ! 2.2 New Proposed Venture! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 1! 2! 2! 3! 3! 4! 4! 5! 6! 6! 7! 7! 10! 10! 11! 11! 12! 13 2.3 Advantages of New Venture! 3.0 Operations!! ! ! ! 3.1 Identification of location: advantages ! 3.2 Specific Operational Procedures! 3.3 Personnel needs and uses! 3.4 Proximity to supplies! ! 4.0 Management! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 5.0 Financial Forecast! 6.0 Critical Risks! ! ! ! ! ! ! ! ! ! ! 6.1 Potential Problems! ! 6.2 Obstacles and Risks! ! 6.3 Alternative Courses of Action! 7.0 Evaluation! ! 8.0 References ! ! ! ! ! ! ! ! 1.0 Executive Summary ! Qantas is Australia’s largest domestic and international airline. It provides more than 750 international services a week to Asia, the Pacific, North and South America, Europe and South Africa. In 2008 Qantas recorded a net profit of $970 million. Its unit costs are down 2.3% mainly as a result of increased use of technology, outsourcing, relocation staff overseas, casualisation of the workforce and taking advantage of new flexibilities (AWA’s) in certain parts of the workforce. Experiences in international markets demonstrates the intricacies for Qantas operating as a global business, however Qantas has managed to deal with these complexities particularly well. Nevertheless, despite its well sustained management and business profitability, Qantas is...
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...companies on the internet and I ran across the merger between United and Continental airlines. The reason that I choose to do the merger is because I knew that they were going to go through many changes within this merger. Both airline companies have a lot to offer to each other with this merger that they can compete with Delta airlines one of the largest airline in the world. This merger will bring about several changes within both companies. In this paper I will be providing the different changes between both companies with the merger including the culture, systems and unions. Since they were two different companies this will bring on big changes when they finally merger together. History In In the year of 2008 United Airlines CEO Glenn F. Tilton and Continental Airlines, CEO Jeffrey A. Smisek began to talk about merging both company together in order to become the largest merger ever to take place between two airlines. However, once Continental found out about United Airlines declining financial statues they declined their offer. The talk of United negotiating a merger with US Airways stunned the CEO and board members of Continental Airlines. Predictor stated that United Airlines used this tactic to allure Continent Airline to renegotiate the merger that was discussed in 2008. In 2010 a big announcement was presented stating that United and Continental airlines were merging together as one Airline Company. Major of the management team will consist of Continental executives...
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...discount airline to land on our doorstep and they did just that with the merger and acquisition of Airtran Airways. Southwest by way of the merger is now in Atlanta which is the nation’s busiest airport (McCartney, 2013). Southwest bought AirTran way back in 2011 for $1.4 billion with the intention of combining fleets and operating the newly merged airline under the Southwest brand. Another specific reason for Southwest opting to obtain AirTran was – in part – to extend its reach to AirTran's international destinations in Mexico and the Caribbean. Southwest was also able to expand its presence in the Northeast to cities not previously serviced by Southwest i.e. New York and Boston. Southwest by way of the merger is now in Atlanta which is the nation’s busiest airport (McCartney, 2013). Examine the culture of the selected organization. Southwest Airlines is probably one of the better examples of a company that outlined a very clear and simple key business principle, chose the right business model to support that principle, and consistently demonstrates the core values and behaviors derived from their key business principles. The brand promise 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, 2014). Every single employee of the company is aligned with this brand promise, and in spite of the current economic turmoil in the airline industry Southwest's...
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...Southwest Airlines Case Study After the acquisition of AirTran, Southwest Airlines (SWA), a company with years of profitability in airline industry is now facing challenges in both external and internal environment. The strength of success in marketing strategy and organizational management and the threats from uncertainty environment exist at the same time. This paper is a brief analysis of the company’s strategy and estimated future performance. External Environment Airlines in United States present a wide variety of services based on their strategies to satisfy different needs of the leisure travelers group and business travelers group. There are three main groups of airlines, which are national airlines, regional airlines and commuter or feeder carriers. Based on the territories they serve, airlines differ in routes. The two major types are point-to-point and hub-and-spoke. Both strategies have their own inherent costs and organizational implications. An airline can provide plenty of services: while most airlines have two classes of service, there are also airlines providing services in different selected classes. After the complete removal of government controls, airlines industry is going on a shakeout under the severe competition which is expected to last a long period. The industry is so difficult that its suppliers have high bargaining power; business requires large expenditures; and the price wars are extreme intensive. To survive and compete in this environment...
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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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...Tony Fernandes, founder and CEO of Asia's first low-budget carrier Air Asia, talks with Andrew Stevens. Tony Fernandes, founder and CEO of Air Asia BLOCK A A: Tony Fernandes, welcome to Talk Asia. T: Thanks for having me. A: We talk about you, a lot of people talk about you and describe you as the Richard Branson of Asia. Do you like that comparison? T: Well, I mean Richard Branson has done a lot of great things, so it's a bad comparison, but we're very, very different people, from a business philosophy. We're also very similar in some areas, but we are different business-wise. But there could be worse people that we're compared to. A: Mr. Branson, Richard Branson, has actually just bought into your long haul operation, which is gonna be starting shortly, taking 20 percent for not a huge amount -- under 10 million, we believe. What are you gonna get out of that? How do you get the Branson name or magic involved in that? T: Well, I think what a lot of people have missed out, is we started this idea about two years ago. I mean we're obviously friends, we've known each other for a long time, I worked for him initially, 20 odd years ago. So we talked about doing something together. We talked about Virgin Blue first, but that didn't work out 'cause he had a funny kind of partner back then. Through a conversation we said, hey, why don't we try this out. And, so he's really a founder as much as I am, and I think if this model works, there's no reason why it can't go into...
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...companies on the internet and I ran across the merger between United and Continental airlines. The reason that I choose to do the merger is because I knew that they were going to go through many changes within this merger. Both airline companies have a lot to offer to each other with this merger that they can compete with Delta airlines one of the largest airline in the world. This merger will bring about several changes within both companies. In this paper I will be providing the different changes between both companies with the merger including the culture, systems and unions. Since they were two different companies this will bring on big changes when they finally merger together. History In In the year of 2008 United Airlines CEO Glenn F. Tilton and Continental Airlines, CEO Jeffrey A. Smisek began to talk about merging both company together in order to become the largest merger ever to take place between two airlines. However, once Continental found out about United Airlines declining financial statues they declined their offer. The talk of United negotiating a merger with US Airways stunned the CEO and board members of Continental Airlines. Predictor stated that United Airlines used this tactic to allure Continent Airline to renegotiate the merger that was discussed in 2008. In 2010 a big announcement was presented stating that United and Continental airlines were merging together as one Airline Company. Major of the management team will consist of Continental executives...
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...ASSIGNMENT 4: MERGER, ACQUISITION, AND INTERNATIONAL STRATEGIES BY TANYA BROWN STRAYER UNIVERSITY PROFESSOR KRISTINA BARNES BUSINESS ADMIN CAPSTONE March 3, 2014 For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion. Since the 1900, Kellogg Company has always been passionately committed to serve people all over the world nutritional cereal brands to help meet their dietary needs. The company's major main aspect is the manufacturing and marketing of on-the-go cereal and conveninence foods that include crackers, toaster pastries, cookies, cereal bars, fruity gummy snacks, and frozen waffles and vegetables. They are known for their diversified product lines under the brand names such as Famous Amos, Rice Krispsies, Corn Pops, Pop-tarts, Fruit Loops, Eggo, Frosted Flakes and much more. Their products are manufactured throughtout 17 countries and then marketed in more than 180 countries. The Kellogg Company bought over Priangles for an estimated amount of $2.7 billion from Procter and Gamble. Kellogg had announced that their agreement for acuiring Procter and Gamble's Pringles food label for $2.7 billion US dollars like sale of brand towards Diamond Foods was terminated because of ongoing accounting scandals as well as the change...
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...Management Planning Paper Introduction This paper will discuss management planning at Boeing. The planning function is critical for a company as enormous as Boeing. Boeing is one of the world’s largest aerospace companies producing jetliners, defense, and space and security systems. The company is a premier exporter that offers its products to airlines, U.S. and allied governments in over 90 countries across the globe. Their product and customized services “include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training.” (Boeing Brief, Boeing.com). Planning Functions of Management Management planning involves the conscious and systematic process of making decisions about goals and activities individuals and work units will follow to provide value to the shareholders. The planning process involves a six-step process. The first step is to conduct a situational analysis that examines past events, current conditions, and attempts to forecast future needs. The second step is to establish alternative goals and plans. The process should generate alternative goals and alternative plans that can be followed in the future to achieve those goals. Goals are the target for each manager to strive for, need to be specific, measurable, attainable, relevant, and time-bound. Plans are the actions the manager will take to achieve goals. Plans...
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...customers via Facebook, Twitter and blog accounts. AirAsia's quirky means of promotion has certainly helped make the airline a household name. Yet, barely eight years ago when it began operations, AirAsia had just two planes and a host of obstacles - Sars and the Sept 11 terrorist attacks included - preventing it from taking off. Today, the Malaysia-based budget airline boasts a fleet of 80 aircraft that ply over 122 routes, with 480 flights to more than 65 destinations daily. Group CEO Tony Fernandes has been instrumental in building the AirAsia brand. Known for its strong marketing and branding culture, AirAsia was recognised as one of Malaysia's 30 Most Valuable Brands in 2008, and also made it to US-based business magazine Fast Company's top 50 list of most innovative companies in the world last year. THE BOLD AND THE CREATIVE Explaining the reason behind AirAsia's strong marketing culture, Kathleen Tan, its regional head of commercial, said: "Marketing reflects brand attitude and personality. We're bold, inspired and we encourage out-of-the-box thinking. We do things differently and do not submit to mediocrity." She revealed that AirAsia's creative marketing input comes not only from its marketing team, but from staff, including pilots, engineers and ground crew. She said: "When somebody comes up with a pioneering idea, we don't shoot it down and say: 'Oh, that's unconventional.' Instead, we play with the idea and find the best way to employ it to advance our brand or...
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...A Dynamic Oligopoly Game of the US Airline Industry: Estimation and Policy Experiments Victor Aguirregabiria∗ University of Toronto Chun-Yu Ho∗ Boston University This version: November 19, 2007 PRELIMINARY AND INCOMPLETE VERSION Abstract This paper estimates the contribution of demand, cost and strategic factors to explain why most companies in the US airline industry operate using a hub-spoke network. We postulate and estimate a dynamic oligopoly model where airline companies decide, every quarter, which routes (directional city-pairs) to operate, the type of product (direct flight vs. stop-flight), and the fare of each route-product. The model incorporates three factors which may contribute to the profitability of hub-spoke networks. First, consumers may value the scale of operation of an airline in the origin and destination airports (e.g., more convenient checking-in and landing facilities). Second, operating costs and entry costs may depend on the airline’s network because economies of density and scale. And third, a hub-spoke network may be an strategy to deter the entry of non hub-spoke carriers in some routes. We estimate our dynamic oligopoly model using panel data from the Airline Origin and Destination Survey with information on quantities, prices, and entry and exit decisions for every airline company over more than two thousand city-pair markets and several years. Demand and variable cost parameters are estimated using demand equations and Nash-Bertrand equilibrium...
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