TITLE OF ASSIGNMENT CRAFTING AND EXECUTING STRATEGY STUENT MOHAMMAD HOSSAIN INSTRUCTOR DR. RHONDA POLAK COURSE TITLE STRATEGIC MANAGEMENT –BUS 599 DATE: - OCTOBER 16, 2011 Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy. Trends in the US airline industry have an impact the performance and strategies of the airlines. As a result, the Jet Blue has struggled to survive. The trends of U.S. airlines industries are discussed as follows: (1) Increased crude oil pricing: fluctuations crude oil price lead to passenger fees for revenue generation, This dramatic price increase caused airlines to struggle to offset the cost of fuel. Presently, gas prices have dropped.
Revenue fell 4 per cent to $7.9 billion. Qantas' domestic operations reported a 74 per cent fall in pre-tax profit to $57 million, which was blamed on intense competition in the domestic market and growth in capacity. But it was overshadowed again by Qantas' international operations, which slumped to a $262 million loss compared with a $91 million loss previously. This article refers to Qantas cutting down jobs for many workers. This is an internal issue- business management; this affects the business in a negative way.
Going public when the airline industry are still suffering from 9.11 attack is adventurous, especially it is even harder when the competition of the airline industry is severe, given the fact that 87 new-airline failure over the past 20 years. However, JetBlue has good management team with strong capability, and it has considerable competitive advantage compared to comparable companies, hence there are more opportunities and strengths than threats and weaknesses. JetBlue’s executive management team have rich experience in the airline industry. CEO David Neeleman has extensive experience with airline start-ups and worked in various low-fare flights. COO David Barger and CFO John Owen had worked in airline companies before joining JetBlue.
Current Ethical Issue in Business Learning Danielle Christine University of Phoenix Ethics in Management PHL 323 Laila Dabbagh Lambdin February 23, 2009 Current Ethical Issue in Business Learning Identify the ground rules manifested in the situation as well as which ethics theories apply. Circuit City is the nations 2nd largest retailer of consumer electronics, entertainment software and personal computers. On November 3, 2008, Circuit City announced that they would layoff and close 17% of it’s workforce by the end of the year. Due primarily to weakened economic environment and its potential impact on the timing of the overall sales of the companies inventory, cost and expenses. As a result of the companies deteriorating
At the beginning of the war numerous pilots died even during recon. At the beginning of World War I planes were used for recon. But these pilots had to be taught very quickly because the first plane was built only eleven years before. The plane was new and had not been properly equipped with the right machinery. “Life in the air was turbulent, confined and freezing cold.
The cost minimisation strategy employed by British airways during the recession proved to be an influential choice. It forced BA to be sensitive and cautious about cost and the passengers' volume has been cut down in terms of business and tour travellers. The industry competition is getting fiercer as by the joining of the lower cost airliners which indicates BA has to master the value creation process, or the value chain, with business perspective and cautious. In addition, the cares on the stakeholders in each stage of the business should be paid attention to, or it may leads to the negative impact to BA such as the staff strike took place in January 2007, which gives BA's brand image a big shock. These cuts the company has to make resulted in employee dissatisfaction.
I. KEY ISSUE In 2007, the CEO of JetBlue Airways, David Barger, faced an immediate survival issue as the company struggled to overcome a major operational failure during a difficult time in the airline industry when fuel prices were increasing tremendously and the profitability levels were low. Barger knew he should move quickly to maintain the confidence of customers, employees, and shareholders. He considered the option of reducing either E190 or A320 deliveries in order to maintain low costs as the company was not ready to continue growth in the E190 regional market segment. II.
Labor Unions and Companies American Airlines and Allied Pilots Association Week 1 HRM 531 Christina Sergio August 27, 2012 “Those who fail to learn from history are doomed to repeat it.” - Sir Winston Churchill It is said History repeats itself. Furthermore, mistakes are repeated too, if not learned why it was a mistake, or that it was even a mistake at all, Presently, there is talk of concern that history is repeating itself in the airline industry. American Airlines filed for chapter 11 bankruptcy, and are viewing strategic options, including a possible merger deal with US Airways. However, American and its parent AMR Corporation announced they had confidence in the restructure plan’s objective for the airline
The dramatic economic downturn in the world economy that hurt so many workers starting in 2008 only accelerated a decades-long trend toward more precarious jobs and the unstable hours, low wages, minimal benefits and insecurity that this work means for so many, as led decline in union membership and activities. First is the emergence of an increasingly competitive business environment, in which firms have
Most airline customers travel for vacation or holiday, and plane fares are a more important criterion rather than product/service differentiation between the airlines. New entrants may be not be able to provide customers with lower rates. Established airlines are also able to provide better fare discounts for regular passengers (mostly geared towards retaining loyalty from business travellers). The huge capital needed to enter into the airline industry is a high barrier to clear for new entrants. The computerized system for online reservations that are used by travel agents or ticketing offices was developed by the already established airline companies.