Based on the book when there are competitive markets such as airlines, a company certainly needs to look at costs and revenue very closely. (Brickley, Smith, & Zimmerman, 2009, p. 180) In this case I believe that the flights from San Francisco t Washington DC should be discontinued. Even though United Airlines is a large company and profitable if they continue these flights in the long run they will lose money. The other option that they would have would be to increase the fares to cover those costs, but since the airline industry is a competitive market people are more likely to go with a lower cost airline. The first thing the airline must do is look at the firm supply.
Before becoming captains, pilots must earn sufficient fly hours. However, flying schools do not have enough instructors to train enough new pilots. In response, the airline industries face increase labor costs as they raise pilot salaries in order to attract pilots. (3) Post 9/11 Aviation Security: after the 9/11 terrorist attacks, Congress passed the Aviation and Transportation Security Act (PDF), which created the Transportation Security Administration (TSA) and mandated that federal employees be in charge of airport security screening Jet Blue was a discount airline carrier. It offered passenger law fares; operated point to point system.
In JetBlue case, the current economy situation creates high market entry barriers, which consists extremely high fixed cost and numerous capital requirement. Moreover, the potential and existing competitors affect the industry has a low profit margin, and it is difficult for new entrances to differentiate their products and services from competitors. The bargaining power of supplier is high. The key inputs for the airline industry are the fuel and aircrafts. Boeing and Airbus dominate the aircraft manufacturing industry.
Case Study 6 Analyzing Managerial Decisions: United Airlines Discontinuing United Airline flights from San Francisco to Washington D.C is not the best option in this case. In this case United Airlines need to view the calculation to make sure they are accurate and are reported accurately by WSJ. I also think the use of marginal analysis would be very beneficial in this case. Companies use marginal analysis as a decision-making tool to help them maximize their profits. Individuals unconsciously use marginal analysis to make a host of everyday decisions.
Exploitable- JetBlue could design the interior of the aircraft to improve passenger comfort and use E190 as an useful tool to expand market and attract new customers. Implication: The E190 provided a unique opportunity for the growth of JetBlue. However, this plane did not completely match the company’s current capabilities and costed a lot. Thus the CEO of Jetblue must change their strategic strategy to either keep E190 as a VRINE resource or sell it. Capability 1: High level of service (Bill of Rights) Valuable-
United Airlines On the surface the Wall Street Journal (WSJ) report sounds very impressive. As if the homework done and the facts and figures provided show they know more about the airline and their business than possibly the airline itself knows. I think the WSJ may have a few good points about the cost of the flights from San Francisco to Washington, D.C. But they can not possibly know everything that goes into how and why and airline provides flights to certain segment of customers. For an airline to simply apply a percentage or portion of the costs of airport fees, baggage handlers, ticket agents and building charges to each flight to cover the costs of sunk or overhead costs would most likely eliminate 60 to 70 percent of the flights they provide.
These intellectual property laws are recognized for major contributions to society and the economy. Recently intellectual properties have been credited with the majority of companies’ success, therefore catapulting intellectual properties to the forefront of our social and economic interest. Southwest Airline owns the rights to certain intellectual properties that allow it to stand out among its competition. If a company, especially one in such a highly competitive industry, does not have exclusive rights to certain aspects of its operation than it is extremely difficult to compete. The airline industry seems to be one those that it is very difficult to obtain intellectual properties, especially when dealing
Once again if the president’s bonus is based off of net income, this situation is the most favorable for a high paying bonus and encourages stockpiling inventory to inflate net income. b. If the sales outlook for the coming three years were to increase to 30,000,000, the newly implemented system would prove valuable to B.E. Company. If production is kept the same, the company is predicted to sell every unit produced which would avoid a stockpile of inventory and also safeguarding an extra 5,000,000 units in ending inventory in case sales go above 30,000,000.
Boeing case study Introduction As highly competitive markets in various business markets have been formulated, it has become the natural phenomenon to see dominating business diminishing through being outweighed by its competitors. Boeing, the leading manufacturer of aircraft in America until late 20th century, is one of cases which lost its dominance by failing to enhancing culture and competitiveness. In this essay, it will discuss the case of Boeing given by Palmer (2008) to analyse the cause of its problematic situation as well as realistic improvements on the organisational culture and stability. The methodology of the document is to select two types of models, Congruence and Star, to demonstrate the current issues and circumstances inside Boeing. Explanation of Models and their Applications The first model selected is called Congruence Model.
Boeing Company Leadership Failure Devore Henry University of Phoenix LDR / 531 April 2, 2013 Joseph Glasgow, Ph.D. Boeing Company Leadership Failure The Boeing Company key to success was being able to adapt the global changing markets. The Boeing Company made significant gain in the stock market with the new release of the Boeing 787 “Dreamliner.” However, many unforeseen events have occurred with Boeing 787 “Dreamliner”. Some changes may need to occur, including replacing leadership or management in the company. The author will describe how specific organizational behavior theories could have predicted or explained the organizations failure. The paper will also compare and contrast how leadership, management, and organizational structure contributed to the company failure.