...management at two organizations in same industry. However one organization must compete in the domestic market and one in the global market. The organization that the author will use is Southwest Airlines and Lufthansa to compare and contrast. The author will also describe or diagram a process or procedure that is similar between the organizations, and explain the process from beginning to end. The author will also explain why the process or procedure produces a competitive product or service in the domestic and global markets. In conclusion the author will explain how quality management affects the position of the companies in the domestic and global market. Effects of Quality Management The two organizations that are being compare and contrast are similar to each other are Southwest Airlines and Lufthansa. Southwest Airlines competes in the domestic market which is the U.S nation leading low fare carrier which continues to stand above other airlines offering reliable product and services with exemplary customer service. Southwest Airlines is the most productive airline in sky and offers customers a comfortable traveling experience with premium leather seats and plenty of leg room. Southwest Airlines recently updated its gate areas and improved its boarding procedure to make Southwest Airlines to be more convenient and simple. Southwest Airlines currently serves 68 cities in 34 states and soon to add two more cities. Southwest Airlines currently operates more than 300 flights...
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...competitive industry of manufacturing commercial aircraft. Over the years they have each controlled the market at differing times due to competitive advantages – an ability to create value through a company’s strategies and operations that its competitors cannot (ref – Strategic Management textbook , pg 22) Boeing, formed in 1916 by William Boeing and George Westervelt, dominated the industry until the 1970’s, when Airbus was organized through a collaboration between Britain, France and West Germany. Airbus began manufacturing the A-300 series which enabled them to capture 10% of the market share by 1975 (ref article), no small feat considering they were competing against the giant Boeing. Airbus’s ability to compete with Boeing and gain market share will be analyzed using the following business models: PESTEL Analysis, SWOT Analysis, Porter’s Five Forces, VRINE Analysis and Porter’s Model of Competitive Advantage. PESTEL ANALYSIS Political – Airbus was a product of a merger between three European countries; Britain, France and West Germany. In the 1970’s the political climates of all three were relatively stable. The three countries worked together in order to compete with the US. They did have to adhere to international trading policies and agreements (NAFTA, GATT). Economic – As they were competing largely in the US market, Airbus needed to constantly keep an eye on interest rates; their aircraft were manufactured in Europe but sold primarily to US airline companies....
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...Enterprise 4.3 Blair Water Purifiers to India 4.4 A Tale of Two Tipples 4.5 Kellogg’s Indian Experience 4.6 Strategic Alliances in the Global Airline Industry: from Bilateral Agreements to Integrated Networks 4.7 GN Netcom in China 4.8 IKEA: Entering Russia 4.9 The ‘David Beckham’ Brand 563 571 574 583 586 590 594 599 604 case 4.1 Wal-Mart’s German Misadventure I don’t think that Wal-Mart did their homework as well as they should have. Germany is Europe’s most pricesensitive market. Wal-Mart underestimated the competition, the culture, the legislative environment. — Steve Gotham, retail analyst, Verdict Retail Consulting, October 20021 We screwed up in Germany. Our biggest mistake was putting our name up before we had the service and low prices. People were disappointed. — John Menzer, head of Wal-Mart International December 20012 ‘Don’t look now:’ low prices all year round! With thanks to Walmart 563 IntMk-CStud-4.qxd 26/05/2005 14:06 Page 564 section 6 case studies section 4 German blues For the world’s largest retailing company, Wal-Mart, Inc., the German market was proving difficult to crack. By 2003, even after five years of having entered Germany, Wal-Mart was making losses. Though Wal-Mart did not reveal these figures, analysts estimated losses of around $200–300 million per annum in Germany over the five-year period. According to analysts, the main reason for Wal-Mart’s losses was its failure to understand German culture and the shopping...
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...| |Curtin Business School | | |School of Management | [pic] CONVENER : Professor SAMIR CHATTERJEE STUDENT NAME : PHAN CAM TU ID NUMBER : 13785882 UNIT TITLE : DYNAMICS OF INTERNATIONAL STRATEGY 601 DUE DATE : July 23 2007 TABLE OF CONTENTS INTRODUCTION OF BOEING AND AIRBUS 4 THE SIMILARIES BETWEEN AIRBUS AND BOEING 4 THE DRIVERS OF GLOBAL STRATEGY 4 COST DRIVERS 4 MARKET DRIVER 5 ALLIANCE STRATEGY 5 Exhibit 1. The Global Product Division Structure at European Aeronautic Defense & Space Company (EADS) 7 Exhibit 2. The 7E7 Structures Work Shares 8 Exhibit 3. The partners in producing the components of A380 project 8 Exhibit 4. The Partners in Producing The Components of Boeing 787 Project 9 TURN THE PROBLEMS OF AIRBUS INTO THE ADVANTAGES OF BOEING 11 Exhibit 5. The orders and delivery of Airbus and Boeing for five years 11 Exhibit 6. The Value Chain 12 STRATEGIC CHOICE IN A GLOBAL MARKET 13 ADAPTATION AND DIFFERENTIATION TO BE SUCCESSFUL 13 DEMAND CONDITION 13 Exhibit 7. Compare between Boeing 787 Dreamliner families and Airbus 14 CONCLUSION 16 APPENDICES 17 Appendix 1. The Airbus A380...
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...Competition Lufthansa is originally from Germany, and is one of the world's largest airlines and an aviation group with a network of more than 400 subsidiaries around the globe, operating in six business areas: passenger business, logistics, maintenance, repair and overhaul, catering, leisure travel and international technology services. Southwest Airlines Company (SA) is an America low-cost airline based in Dallas Texas. Southwest Airline is the largest airline in the United States based upon domestic passengers carried with over 550 of these aircraft in service, each operating an average of six flights per day. Southwest and Air Tran merged with 37,000 employees as of December 2011 and operates more than 3,300 flights a day, and operates scheduled service to 97 destinations in 42 states. Today the concept of quality management has come out as an important business practice that companies want to take on. Companies strive for effective and customer oriented by implementing quality management, enterprises has become able to ensure quality in their products and services. Organizational goals are to generate a high quality, high-executing product or service that conforms to and passes the customers' expectations. This paper will discuss similar processes, the procedure that produces a competitive product or service, and how quality management affects the position of the companies. Southwest Airlines is the domestic company and Lufthansa Airlines operates as a global organization. ...
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...on Airline Industry Introduction In this research paper, methodological approaches of 3 different peer reviewed tourism journal articles from the journal “Tourism Management” have been compared. The first article is on the topic of changing gender representation in airline/aviation industry. This research study has identified the trends related to gender representation in airline industry have been discussed. In this article, the influence of different media such as contemporary electronic, celluloid and print has been discussed and the role of media in affecting life as well as career choices especially from the perspective of gender is conferred. According to the article, e-media imagery holds more power than ever before to influence life, especially career choices of a person. New generation especially now take their input from the imagery shown on the media in making their career decision and media has played an important role in helping women to gain more representation in careers that were previously dominant by the their male counterparts. According to the article, e-media imagery holds more power than ever before to influence life, especially career choices of a person. New generation especially now take their input from the imagery shown on the media in making their career decision and media has played an important role in helping women to gain more representation in careers that were previously dominant by the their male counterparts. Airline industry has...
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...VMOST Vision Mission Southwest Airlines' mission statement reads: "The mission of Southwest Airlines is dedicated to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit." All these traits are what have made Southwest # 1 in fewest customer complaints for several years running. Southwest continues to thrive on its reputation from this # 1 ranking as well as reap monetary rewards that come with this distinction. Southwest’s commitment to their employees reads: “We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer” Objectives Strategy The strategy that Southwest Airlines should use in order to continue its success is also based on the “Short-Haul” strategy. The difference is that the strategy must be inter-converted. Southwest can try its best to duplicate its “Short-Haul” strategy globally. For instance, it can do exactly the same business with the same strategy once again. But this time, Southwest has to do it in every part of the world. For instance, Southwest can expand its business in France, Germany, Australia, Russia, China, Japan, Poland, Greece,...
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... WANDEE BT JAMIL 2010558697 GROUP : AC220 8B PREPARED FOR : ASSOCIATE PROFESSOR DR. ASMAH ABDUL AZIZ PERSONAL BIOGRAPHY NUR IZZAH IWANI BT IBRAHIM @ ABD. RAHMAN 2010554663 NURUL HARYANIE BT MISRAN 2010572197 WANDEE BT JAMIL 2010558697 Contents ABSTRACT 3 KEYWORDS 3 INTRODUCTION 4 OVERVIEW OF AVIATION PRIVATIZATION IN EUROPE, AFRICAN AND ASIAN COUNTRIES 5 Argentina – Its pitfall and the problems behind it 5 Turkey – A Privatization through BOT 7 Kenya Airways – A Successful Story 9 Malaysian Airlines Considering Privatization 10 Germany-Fully privatized and partially privatized 12 Privatization in United Kingdom 14 IMPLICATION OF PRIVATIZATION 16 RECOMMENDATIONS 17 REFERENCES 18 ABSTRACT This paper focuses on the privatization of airports in six different countries which are Argentina, Turkey, Germany, United Kingdom, Malaysia and Kenya. The analysis aims to highlight the objectives, implementation and the government rules towards privatization of airports. This paper also aims to identify to what degree privatization contributes to or enhances the performance of the airports. The study measures the change in any given indicator of performance whether the privatization on the airports are successful or not. For each country, privatization occurred by fully privatized or partially privatized with residual public ownership. Moreover, the study also stress on the implication of...
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...“For the past 15 years, the consumer’s story has been a remarkably happy one in most markets, a tale of low inflation, high employment levels, rising income and, importantly, the unflagging desire of consumers to consume” (Accenture, 2009: 3). But since approximately 18 months the world economy is really struggling and resides in a severe recession which means according to the NBER (National Bureau of Economic Research) a “significant decline in economic activity lasting more than a few months” (recession.org-homepage, 2009). But how has this global economic crisis actually happened, how has it affected particularly people’s consumer behaviour of products and services and what will be going on in the future? The worldwide financial fiasco has occurred in a kind of domino effect and has its origin the US mortgage market. The turning point was, as the so called sub-prime loans lenders default their mortgages, banks could not sell the over taken houses anymore because none wants them and the real estate supply became much higher than the actual demand. As a result housing prices have tumbled down dramatically. Finally the financial bubble burst as banks, investors and lenders stopped buying their collateralized debt obligations from one another and the whole financial system was frozen. Since that time a lot of banks, companies and private households have gone bankrupt. To tackle the crisis financial institutions like the central bank have tried to boost the economy in...
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...the Gulf War, followed by a recession, put a burden on the airline industry and on Lufthansa as a company. These events caused a major decrease in the amount of seats filled in the airline industry. In 1991 the Seat Factor decreased to about 57 percent in Europe, compared to 65 percent worldwide. Socio-Cultural/ Demographic: You can infer from the case that the growing alliances in the airline industry have been increasing due to globalization. In 1991, Lufthansa had an increase of passenger numbers by 11% due to German re-unification. Legal/Political: The airline industry was strongly regulated by the government in the US and most of the airline industry was owned by the government in Europe. This changed in the US when deregulation of the industry began in 1978 as airlines gained more lenience in operating their business. Before becoming privately owned and profitable in 1997, Lufthansa was a state-owned, national airline carrier of Federal Republic of Germany and the government had strict control over both routes and landing slots. Regulations for the rest of Europe were not as strict. Economic: In the past, an economic recession contributed to the major problem of a reduced seat load factor. Another economic recession in any of the countries in which Lufthansa Group does business could have the same affect. The price of oil is a major economic factor that affects Lufthansa and the rest of the Airline Industry. In particular, passenger and freight transport. Flight and...
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...AIRBUS CASE ANALYSIS The possibility of an investor surviving a competition depends on the ability to overcome internal and external threats, while at the same time developing a strategy that creates aspects of differentiation, driven by economic logic. The airline industry has been a competitive industry, especially over the last half century. The two main competitors: - the Airbus and Boeing have exhibited a long-term rivalry for the market share. While the two have had a different staging of their businesses, the businesses have faced great challenges, both from within and external threats. Boeing had been the market leader until the later years of the century, when airbus, driven by the zeal and zest of becoming the market leader, experienced an accelerated growth and expansion to dominate the industry. Airbus manufacturing was a response to the increasing U.S dominance in the aircraft production industry. The initiative was launched in 1960s by three European nations, mainly Britain, France and West Germany in order to counter the increasing influence of the United States manufactures in the air transport industry. The investment was a joint product of the three nations in terms of financial input and human resources. Soon after the launch, British pulled off due to self-interests, but joined later by injecting a 20% stake in the manufacturing process. The plant was first based in Paris, France and governed under French law, which did not allow making public the financial...
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... The focus of this paper will compare and contrast the quality management of Southwest Airlines which competes in the domestic market and Lufthansa competes in the global market. I will describe procedures of similarity between both organizations. This paper will also explain how the process produces a competitive service in both the global and domestic market. Finally, I will explain how quality management affects both companies in the domestic and global market. Southwest Airlines was incorporated in 1967 and Lufthansa; which initially was Deutsche Luft Hansa AG developed in 1926. Today, both are extremely popular among the airline industry. Southwest Airline and Luftanasa are great examples of companies which have grown over many years of service. Procedures of Similarity between Southwest Airlines and Lufthansa Both Southwest Airlines and Lufthansa use the same format for booking their online flights, hotels, and rental cars. Their flight procedures consist of first determining whether the trip will be one way or round trip, next the departure city and arrival cities must be entered in, followed by dates and times of departure and arrival, next the number of passengers must be determined and finally both will search for flights to determine their availability regarding your information given. Southwest Airlines and Lufthansa offers booking of hotel as well. They both offer status checks on flights. Although, both offer hotel and...
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...report was not completed to assess the performance of the selected companies. Instead the research objective of this paper is to analyze the annual reports of the four top tier companies in the global airline industry and observe which airlines disclose the most useful information, within their annual reports, for me as a user. How you read an annual report depends upon your purpose. As an investor, your purpose may be to assess: profitability, survivability, growth, stability, dividends, risks and other factors which may affect your investment in that company. This paper focuses upon five aspects of reporting within the companies’ annual reports that were the most relevant to me as a user: geographic segmentation, the auditor’s report, presentation, fuel risk, and the letter to the shareholders. Delta Airlines was chosen as the base airline to compare the other three airlines to; China Southern Air, Emirates Air, and Lufthansa Air. The analysis resulted in a very distinct successor. Emirates Air lead all subcategories with nearly a perfect total score and ultimately provided a very user-friendly document based on the criteria assessed. Lufthansa Air and Delta Airlines rounded out the middle with average scores. Slumps in presentation were mostly responsible for Delta Airlines average score. A slouch in the ease of access to information within the Lufthansa Air’s letter to...
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...STRATEGIC ALLIANCES IN THE GLOBAL AIRLINE INDUSTRY Abhishek Goel1 Abstract Strategic alliances are common to any industry. Their presence is felt quite significantly in the airline industry. Starting in the US in 1978 deregulation of airline industry has since brought about sea changes in functioning of the industry. This paper attempts to understand the developments and strategic alliances that have occurred in the airline industry since deregulation. These strategic alliances exist in various forms and differ widely in scope and no consensus on classification was found. The advantages and disadvantages of strategic alliances with respect to the airline industry have been discussed. It is felt that the industry is getting increasingly concentrated. However, no conclusive remarks can be made about consumer welfare. “Airline Business Alliance Survey of 2000 reports that there are 579 alliance agreements in place, up from 280 agreements (more than double) in 1994 when the survey was first conducted. Five major alliances (Star, Oneworld, Qualiflyer, Sky Team, and Wings) account for some 60 percent of all air travel.” (Mason, 2002) The lines above make the issue important enough to understand the phenomenon that is guiding the industry. Almost a decade back Oum, Taylor and Zhang (1993) argued that the airline industry will be marked by strategic alliances and these alliances will be global in nature. The guiding factors will be several that include formation of blocs, resource...
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...There were 10,994 orders for this plane and only 6,285 of them are delivered for the moment. The last plane Airbus launched is the A350 XWB. There are already 750 orders from 39 customers worldwide Airbus usually sales its planes to normal flight companies like Air Austral, Air France, Amedeo, Asiana, Emirates; but also Jetliners and private owner (Arabic prince …) and the industry. II. Boeing The first plane of Boeing was a Seaplane, the Boeing Model I, on June 15th, 1916. The New-Zeland Flying School was the first company to pilot the plane with two crews at a maximum speed of 121 km/h. 2 The most famous plane of Boeing is the B-737. The first flight was in 1968 with Lufthansa Company. Nowadays, 8237 plane were sell and this plane is used by Southwest Airlines, Ryanair, United Airlines... Their last plane is the B747-8. The newest and most modern plane. The first flight of Boeing was on 2010 and the first company who used this plane was Cargolux in 2011. Some companies and luxurious companies fly with Cathay Pacific Cargo, Lufthansa, Atlas Air or Cargolux Airlines... The clients of Boeing are so various. The first client was the US Navy. Nowadays,...
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