Question 2 In 2007 and 2008 Boeing ran into several well publicized issues with regard to its management of a globally dispersed supply chain. What are the causes of these problems? What can a company like Boeing do to make sure such problems do not occur in the future? The root cause of the problem was supply management and Boeings lack of an appropriate inventory management system. A secondary problem with the system was a capacity issue.
The text explains the idea that the aviation industry is not failing because of vulnerability, but that there business models are lacking. Pilarski shows that with the challenges of doing business, “airlines continued their flawed pricing and other policies, which were among the major reasons for the precarious financial situation they were in. In ties of unprecedented trouble continuation of wrong strategies and tactics brought about even more disastrous consequences.” (Pilarski,
Furthermore, there are issues concerning the board of Boeing as they are seeking to occupy its CEO position after the former CEO was asked to step down due to an infraction of company’s ethics code of conduct. Additionally, Boeing was in the midst of a transformation in structure and vision. All these issues challenges the success of Boeing 7E7. The Boeing 7E7 offers superior interior design features and also uses “integrated assemblies” approach, which ensures high quality parts from global partners to be used for the aircraft. This high level engineering and system integration sets them apart from their competitor’s product, Airbus 380.
Because of the strategic alliance with Embraer, JetBlue played a significant role in designing the interior of the aircraft to improve passenger comfort, a key component of their differentiation strategy. This led to the introduction of the Embraer E190. Unfortunately, the reality of the situation turned out to be much different than what JetBlue had anticipated. The process of adding a new fleet of aircraft was wrought with complications, and coupled with the disastrous Valentine’s Day fiasco JetBlue must rethink the new strategy they had undertaken. SOLUTION STATEMENT In order for JetBlue to compete in the point-to-point and regional market segments, it is recommended they develop a new business model which includes maximizing the potential synergies, as well as minimizing the costs associated with the intricacy of the JetBlue organization.
Every aspect of planning has to deal with the issue of scheduling or schedules. Some companies understand tardiness and other organizations are using it to build profits on their investments, which include credit card companies, video rentals along with many others. As for Boeing it will lose revenue and contracts for making late deliveries (The Boeing Company, 1995-2010). The factor that links the other three together is customer satisfaction. No company knows whether they are providing quality goods and services without proper customer feedback.
U.S. Airline Industry Case Study Ronald Loebel Park University INTRODUCTION As technology rapidly develops in the 21st century, so are goods and services in the competitive market. The airline industry in the United States of America is one of those undergoing a tidal wave of changes, causing a drastic alteration in the business landscape. Some of these changes were not heard of before, such as more nonstop air travel with the USA, and even the kinds of entertainment systems provided onboard the plane. Moreover, the grueling battle between prolific companies to compete for customer attraction and in the end, loyalty, resulted to further segmentation of the airline industry.
* Since Boeing made its decision to pursue a product strategy based on the point-to-point airline business model, what new market conditions have developed? What impact are they likely to have on the company’s success? * Evaluate the pros and cons of Boeing's outsourcing strategy. Is there adequate support for the company's decision to "offload" parts production? * Consider the status of commercial aviation globally.
The founder and CEO of Airdevils, Celsey Evans, hired Dream Teamworks to assist in finding why there has been a decline in customer satisfaction. Dream Teamworks is an organizational psychology consulting firm who will analyze all employees, structure, and policies of Airdevils; making recommendations to improve employee and customer satisfaction. I am an organizational psychologist working with Dream Teamworks and will record my findings. Celsey Evans fears the high number of employees hired at once has left the employees unfamiliar with the people they are working with causing intrapersonal conflict among them. To get to the root of the problem Celsey has administered the Job Description Index Survey (JDI) and I have evaluated the findings.
British Airways, in 1996, faced an uncertain future as the competitive airline landscape was in a state of flux with smaller low-cost airlines invading the market and larger airlines setting up prudent alliances to stay profitable (Barsoux). CEO Bob Ayling announced a new program designed to cut operating costs to compete within the new economic arena. Employees naturally expected that part of the “Business Efficiency Program” was a significant reduction in staffing and benefits, which led to a bitter divide between British Airways and its workforce. The resulting strike, however, was not the actual problem that warrants discussion; the problem is how British Airways arrived at a strike and how the opposing sides treated each other throughout the negotiation process. The aspects that fueled the negative negotiation process were numerous, but focusing on two overarching themes helps explain the problem: psychological contracts without mutuality and procedural injustice.
The conventional analysis of this classic case study brings forth a long laundry list of management errors, mistakes and miscalculations. Yet, this seems improbable for such an experienced and competent organization. How could they make so many mistakes in so many different areas? Wickham Skinner first used this example in his 1978 book, "Manufacturing in the Corporate Strategy". He traced B&W's troubles to a single root cause: management had failed to identify the "Key Manufacturing Task".