An Analysis of People Express Airlines: Rise and Decline

4652 Words Aug 8th, 2009 19 Pages
An Analysis of People Express Airlines: Rise and Decline

Group Project

Strategy is defined as the process of positioning the organization in the competitive environment and implementing actions to compete successfully. The premise behind the strategy of People Express was to focus on the people, both the customers as well as the employees. Employees were referred to as “People”, and the passengers were referred to as “Customers”. Examples of strategies implemented by People Express early in the process include:

• Create an exciting and rewarding place to work. Donald C. Burr, founder and CEO, believed that this strategy would produce high quality employees who would perform at a level above their competitors. For example, the
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For example, the case states that: o “Burr set up and chaired a “Structure Group”, comprised of six top managers, to decide major policies, including how to reestablish communications in a company outgrowing its original structure.” (p.12) o “The 15-member officer group can no longer satisfy these needs for continually increasing number of managers.” (p.13) This lead to the addition of a team manger. o “Deciding issues through management teams had led people to identify too much with their staff roles, instead of with the company’s operations.” (p. 13) To solve this problem, “ops” groups were implemented in order to break the staff down into smaller groups. o “Burr decided to strengthen and enhance the leadership development training program.” (p.13) The idea was to train the top level managers, and then let them train the next level.

• Expand their service area in order to satisfy demand. People Express originally only had one small terminal for their use, in order to keep costs down. Now, the airline was growing and would have to make accommodations to serve a much larger population and provide a larger selection of routes. For example, the case states that: o “In March 1984, … they finally agreed tentatively to lease and remodel Newark Airport’s Terminal C.” (p. 14) o PE bought out Frontier airlines.

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