Is Outsourcing Beneficial or Not? Tanya Billings BUS 644 Operations Management Dr. Gail Hoskyns-Long May 28, 2013 Abstract Outsourcing refers to utilizing outside suppliers to obtain goods as opposed to using internal suppliers. Companies that use outsourcing may benefit from low costing and increased profits. Outsourcing may be beneficial to the company by lowering costs. However, there are negatives associated with outsourcing such as the depletion of American jobs. Within the following
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Title of the case: United Airlines Time Context: 2003 Summary United Airlines is the world’s largest air carrier and the second largest in the U.S. United is owned and controlled by its parent company UAL Corporation. United has hubs in San Francisco, Chicago, Denver, Los Angeles, and Washington D.C. and also has key international gateways in Tokyo, London, Frankfurt, Miami, and Toronto. During 1995, United was experiencing profit and cash flow problems at that point and in order
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Air Canada Evaluation Executive Summary Air Canada is a full service airline company with the largest market share in the Canadian market making it the largest airline in Canada and 15th in the world. I don’t recommend lending Air Canada due to: * Weak industry conditions * Poor historical performance/financial health * Risk factors assessment * Poor credit ratings Summary of Main Points The airline industry is a very volatile industry with a lot of uncertainties. Based
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Southwest Airlines runs a no-nonsense company. They have planned ahead to remove wasteful spending in all that they do. The first example is the fact that they use all Boeing 737 aircraft and only 4 models of that airplane. This gives them the ability to streamline their maintenance. Their mechanics can work on any aircraft with the minimum of necessary training. They can also carry a smaller cash of parts that can be used more broadly. They have a simple structure for selling airfare, discount
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Effects of Quality Management on Domestic and Global Competition Terrence Dickerson Quality Management and Productivity- BSHS/449 June 10, 2012 David Dobson 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
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Antonio, later became known as “The Golden Triangle”. This image is still found today on their website. In November 27, 1967, with $500,000 in the bank account, Kelleher filed the application with the Texas Aeronautics Commission (TAC) with only three Boeing 737 aircraft. The original name of the company was Air Southwest co. (Southwest Airlines, 2012) In March 1971, Lamar Muse joins Air Southwest as president and sold promissory notes raising an excess of $1.25 million to cover aircraft and startup
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of cost in their operations is one of the contributing factors in Southwest Airlines’ financial success. Such low cost model of the corporation is brought about by an effective strategy. Southwest uses only one type of aircraft – the fuel-efficient Boeing 737. This tactic keeps training and maintenance costs down. Moreover, the no-frills approach to customer service contributed to the low cost of operations for Southwest. The airline does not serve meals on board, and there are no luxurious or first
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The Effects of Quality Management on Domestic and Global Competition Paper Andre Griffin MGT/449 April 9, 2011 Frank La Frazia Introduction To begin in this paper the author will compare and contrast quality 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
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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
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Socio-Geographic Factors MMPBL-560 Managing in a Cross Cultural Environment Socio Geographic Factors for Southwest Airlines Businesses are determine to be successful in the future because they know they will be challenged to embrace the changes in a diverse group, which will allow them to be competitive in the global sector. Organizations that will develop a cultural sensitivity will be crucial in order to succeed and within recruiting and retaining the qualified workforce. Defining cultural
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