Air Canada 's Business Strategy Essay

Overall, from this cash flow statement it can be said that WestJet reinvested a lot of money from its earning in 2012 compared to 2011 to make more profit and make more use of that money rather than keeping in hand. Even after reinvesting a lot of money WestJet was able to increase its cash balance from 2011, which indicates that the managers of WestJet who takes strategic decisions are creative, credible and well informed about the

They faced challenges from acquiring many companies because during the acquisitions Bombardier inherited the data, processes and systems of each company which created inefficiencies. Systems didn’t communicate with each other resulting in low inventory turns and price inconsistency. This was not productive for Bombardier and was time consuming for the employees. The biggest problem was the low visibility of inventory and the lack of communication between systems. Bombardier had now a global presence but was not organized to maintain growth without changing the vision and processes. Another challenge is resistance to change, this factor can have a huge impact on the new vision and

Canadian National Railway Corporation through reform, have achieved a series of achievements and various beneficial measures taken by the railway enterprise, CNR accomplished this in three years. CNR combined a perfect global transaction system and an environment strategy to improve their market competitiveness. At the same time, they used sustainable ability to reduce their consumption of their own cost effectively, while also positively working with a clear global development direction. Canadian National Railway displayed both long term and short term strategies which contributed into the growth of the company through its unique competitive landscape. In summary, it is evident that the Canadian National Railway has not only succeeded throughout decades of operations, but has grown to become a multi-billion dollar company by utilizing and executing unique and diverse business strategies in a successful way and taking full advantage of their competitive edge in the market.

WestJet became one of significant air transportation companies since its birth in 1996.After conquering all Canadian destination, WestJet have chance to compete in the international scene. Today it has not that many destinations outside of North America,

This paper seeks to examine how WestJet’s culture contributed to their growth and success through the

The Air Canada case contains a problem in the structure of the company regarding how they are sourcing in their supply chain, managing the risk, and growing the company while maintaining their core competencies. Based off the overall information in the reading, Air Canada seems to be making the correct steps in the success of their business. If you look at page 20 of the reading, Air Canada holds a good majority in the domestic, international, and even transborder market shares.

WestJet airlines was founded in 1996 by Clive Beddoe, a successful Albertan entrepreneur who was desperate to find a solution to the rising costs of business travel expenses (WestJet, n.d.a). Beddoe combined a small group of Canadian business savvy investors with a regional airline President and together they sought the experience of successful industry leader David Neeleman, founder of Morris Air and developer of the One Skies passenger reservation system (Pederson, 2001). Often referred to as the Southwest Plan, WestJet’s original business model was simple; offer passengers a superior experience at a price that was comparable to driving or taking the bus. This was easily accomplished by operating one type of aircraft, removing excess frills, hiring employees whose personality fit a specific type, and by developing a company culture that focused on safety and taking care of the guests (WestJet, n.d.a.).

Truth is, there will never be a perfect company. With great success, there’s always turbulence along the way, WestJet is far from the perfect company. WestJet’s main concern is expanding and if they don’t expand, it will give other airlines a chance to enter the market that could hurt the carrier’s low-cost, low-fare, short-haul, point-to-point services of Western Canada. Additionally, the expansion project will make it difficult to keep WestJet’s famous culture alive as the company grows on a global scale. Remember, WestJet’s strong and outstanding culture was the root of the growing company. WestJet emphasis on the commitment to maintaining the culture, stating “a vibrant corporate culture was so central to WestJet’s success that preserving it was Bell’s and Beddoe’s main obsession”.

WestJet’s strategic plan and the organizational structure, both are driven by technology but like any other organization there are loop holes. The integration with Sabre, a flight reservation

Given these points, Bombardier Canadian transportation company being the leading company has brought down the aviation market along with the labor market affecting other factors. The key economic points proven with this current event are how shifts affect the price and quantity consumers want to purchase and are willing to pay price. Yet, the Bombardier company is struggling to gain back the buyers and their willingness to pay the value for aircrafts in order to increase their demand of aircrafts market and labor

For decades, all Canadian airports were managed directly by the federal aviation regulatory authority Transport Canada. In the early 1990s, the federal government analyzed options to reduce financial subsidies in the management of public airports. In 1994, Transport Canada instituted the National Airports Policy, whereby it privatized airport operations to newly formed airport authorities that are non-profit capital corporations. All four of Air Canada’s hubs were

This article discusses the growth and success of Canadian airline WestJet. The company was established in 1994 by Clive Beddoes who stumbled upon an opportunity to collaborate with fellow businessmen: Tim Morgan, Don Bell, and Mark Hill to create a cost-effective and very profitable airline in western Canada. Together they achieved a concept of an airline that would be low-fare but rich in culture to maintain its integrity. With the help of David Needleman, president of Morris Air, the team developed a business plan and visualized what is now WestJet Airlines. They built an integrative, financial model and business plan which included only three aircraft and features of being: direct, cost-effective, and short-haul. Within 30 days of constructing a business plan the needed capital was raised and the foundation for WestJet airlines kicked off. In 1995 WestJet was established and began rapidly integrating into eastern Canada.

The overall problem in this case is how Air Canada will handle quadrant one risk, and how much of these risks will they hedge. Volatility in this industry, such as changes in fuel prices, have been eating at Air Canada’s profits. They currently purchase fuel futures for thirty four percent of needed fuel. Air Canada is also hedging on interest rates, exchange rates and personal stock price fluctuations. It seems like their business model is not flexible or adequate if they need to insure and hedge almost every single risk they encounter. This decision mainly focuses on how this airline should handle risks and to critique their current strategy in terms of effectiveness.

There is such a large amount of outsourcing that led to a severe lack of communication and disconnect between Air Canada

From 1994 through the end of 1997, Bethune’s “Worst to First” business strategy relied little on technology. Bethune began by reshaping the company with his “Go Forward Plan,” which still guides the business today. The Go Forward Plan has four interrelated parts, dealing with the airline’s product, finances, market and people: > Fly to Win. Understand what products customers want and what they are willing to pay for. > Fund