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.
This global supply chain network can help Boeing achieve its goals. But it also brings a lot of risks to Boeing. The processes of supply chains need large amount resources to manage well. Boeing adopts the radical change for the new project. Facing the external competition, Boeing didn’t have enough time to establish the project and communicate with each other among a lot of different suppliers.
What advantages would such an approach give Boeing? a. Value Propositions Due to the mature market, operational excellences have been one of the choices for airline business to compete in the low-cost airline trend of the business. With IT system linked the significant information Boeing improve operational efficiency both itself and its customers, all of which want to pursue in aviation supply chain. b. Differentiation Boeing create total solution
Aircraft Solutions employs a range of highly qualified professionals for the production plant, with an overall goal of providing high-quality solutions while reducing cost to accommodate customer demands. The primary objective in this assessment is to identify the security vulnerabilities within the AS operations. The consequences might result in potential threats if the AS does not fix
Based on the summary table provided in the text book – the first thing that jumps out is how disproportionate the labor volume/number of employees is to the number of aircraft that the company has. The company has to make some tough decisions in streamlining the labor force to reduce the cost of labor and make itself more competitive with its peers in an industry where competition is stiff at the least. In addition to this the idea that they will be using more regional jets e.g. Mesa Air in medium markets may help alleviate operating costs that are also currently very high. US Airways may also want to look into the option of merging/working with one of the more successful low cost carriers as a strategic partnership 2.
Although these sound like far-fetched goals, the company goes to great lengths try to make them a reality. One of the principal weapons that FedEx uses in pursuit of its goals is its total commitment to quality management. Quality management at FedEx encompasses all of its operations. Although the company is the acknowledged leader in the air freight industry a formal quality improvement process (QIP) plays an integral role in all of the company’s activities. At the heart of the QIP program is the philosophy that quality must be a part of the way that FedEx does business, not part of the time, but all of the time As a result, themes such as “Do it right the first time,” ”Make the first time you do it the only time anyone has to,” and “Q=P” (quality = productivity”) are important parts of the FedEx culture.
Having a base company in the United States and expanding global, Riordan must be knowledgeable of those differences and a master at intertwining them. Achieving this is a delicate balance that must be adhered too. Staying true to the moral compass of the company will provide reassurance to the stakeholders that the company is on solid ground and a wise investment. Having yearly reviews of governmentally laws and society changes will allow Riordan to stay current with the ongoing challenges of change. Letting the company’s intentions known to people will allow open discussions amongst the shareholders of how to handle a situation appropriately.
Such circumstances clearly clarify the high concentration in the aircraft industry. Boeing and Airbus are now both viable competitors in the aircraft market with some very distinguished differences as well as similarities. A
Highly competitive industry 2. Unsuccessful implantation of growth strategy 3. The hiring of competent staff who maintain the culture of JetBlue JetBlue’s strategy of maintain customer excellence and providing needed low cost service is a definite way to stay up above the competition, customers want a low cost airline that gives them what they need in terms of pricing as well as destination. JetBlue, will be in a position of failure if a growth strategy is not in place to increase capital and foresee methods in which to cover debt and make a profit “ Achieving our growth strategy is critical in order for our business to achieve economies of scale and to sustain or increase our profitability” (JetBlue,2004) Gating is an important issue that must be looked at, due to the fact it could limit their sales “We will also need to obtain additional gates at some of our existing destinations. Any condition that would deny, limit or delay our access to airports we seek to serve in the future will constrain our ability to grow” (JetBlue, 2004).
Thus, partners including companies in Japan, Russia, and Italy are there to design concepts to production level, bearing in mind that concept parts are assembled in a computer model maintained by Boeing outside its corporate firewall. This takes a slight burden off Boeing by maintaining role in integrator and interface to the airlines, while the partners take responsibility for the major pieces, including their design. If in case of any plane failure or deliveries being late Boeing does takes the hit, but here the beauty of collaboration comes into play by conveying actual cost of development and manufacturing to its network of collaboration. Generally the term collaboration means a generic, more cooperative interaction between firms to achieve some agreed upon objective bearing concepts according to Hansen’s definition of disciplined collaboration: leadership, motivation and ability (Hansen, p. 15). If we take Boeing for instance as to why company wants to have collaboration, it seems that Boeing looks forward to building global relationships that’ll eventually help the company sell its plane overseas by act of sharing and transferring knowledge, pooling of both tangible and information based resources.