Introduction In this case analysis, we will be reviewing AirTex Aviation, which was an operation out of San Miguel Airport in dire need of restructuring. We will briefly discuss the strategic issues the new acquirers of AirTex, Ted and Frank, faced in the early stages. Following this, we will explore the need for a new control system at AirTex and evaluate the system that was implemented. We will also dissect the cash management system, as well as provide a more in-depth explanation of the types of control systems the acquirers put in place. Lastly, we will address the issue of Sarah Arthurs, the company’s accountant, and the issue of how flight school should be handled. Strategic Issues Prior to New Management • Centralization and retention of information and power (Sarah Arthur). • Lack of accounting system, lack of accountant. Unclear financials. • Departments were given no information about their departments and performance. • Lack of staff motivation since they were not involved in anything. • The overall lack of control systems in place. The Need for a New Control System When AirTex was purchased by Ted and Frank it was in need of a new control system. There were several issues with the control system that was in place that was causing the business to run inefficiently. One the biggest problems was the centralization of all information and power to Sarah Arthur. Sarah was the only person able to make decisions and handle all information, even though she was actually
Business Strategy – BAD 4013 – SUMMER 1999 Case Study Southwest Airlines I. Strategic Profile and Case Analysis Purpose The mission of Southwest Airlines is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit. Twenty-seven years ago, Rolling King, owner of floundering commuter airline, and Herb Kelleher, King’s lawyer, got together and decided to start a different kind of airline that would provide a short-haul, low-fair, high-frequency, point-to-point service in the United States. The company began service on June 18, 1971 with flights between Dallas, Houston, and San Antonio (“The Golden Triangle” as Herb called it). Southwest Airlines is the fourth
S&S Air manufactures light aircraft. The owners of S & S Air, Mark Sexton and Todd Story, were impressed by the work Chris had done on financial planning. By using Chris’s analysis and looking at the demand for light aircraft, they decided that their existing fabrication equipment was sufficient, but that it was time to acquire a bigger manufacturing facility (Ross, Westerfield, & Jordan, 2011, p. 161). Rather than building a new facility they have found a suitable building for renovation at an estimated expense of $22 million dollars. Mark and Todd
Before David Neeleman’s non-compete agreement with Southwest Airlines expired, he envisioned the concept of starting a low-fare airline that would combine common sense, innovation, and technology and bring the humanity back into air travel (Gittel & O’Reilly, 2001). In 1998, JetBlue was born. In order for David to fulfill his goal of a “do-it-right” kind of airline, he needed to recruit superior industry veterans who were willing to start from scratch and place an emphasis on employees and customers. Each of these individuals, from the President, General Counsel, CFO, and the HR director, wanted to create an airline that was fun, had
The deciding factor determining Pan Am’s failure was its bankruptcy. As there is not sufficient information regarding the company’s stock prices, one must examine the other factors indicating the company’s failure. After only a few weeks on the job at Pan Am, Russel Ray, elected president and CEO in September 1991, found that “revenues were less than expected” and there was no hope “becoming financially
The express companies delivered tremendous amount of packages. The big three players, Federal Express, UPS, and Airborne Express, collectively delivered more than five million
Southwest Airlines is a passenger airline company that arranges and provides scheduled flights for passenger and transportation freight services. The company mainly provides, low-fare, point-to-point services all over the US and near-international markets. The headquarters is located in Dallas, Texas and as of December 2014, the company employed over 46,278 people. The company was founded by Rollin King and Herb Kelleher in 1971. Southwest was the first airline to introduce the frequent mile program. This took place in the mid 1980’s. This type of program allowed passengers to add up traveled miles to use later as credit on a future airline ticket. The traveled miles would add up and would also reduce the price of a ticket. Southwest created the idea of senior discount, fun fares and the fun packs. These were perks that attracted people from different age groups. When Southwest originally was incorporated, the idea was to operate in three cities in Texas, but after taking over Morris Air and TranStar in 1987, this gave them a cutting advantage in the airline industry.
In 2008, the senior management team at Continental Airlines, commanded by Lawrence Kellner, the Chairman and Chief Executive Officer, convened a special meeting to discuss the firm’s latest quarterly financial results. A bleak situation lay before them. Continental had incurred an operating loss of $71 million dollars—its second consecutive quarterly earnings decline that year. Likewise, passenger volume was significantly down, dropping by nearly 5 percent from the prior year’s quarter. Continental’s senior management needed to act swiftly to reverse this trend and return to profitability.
Flight Centre describes itself as a global discount flight specialist. Taking into consideration the relative size of the Australian and international operations as well as the availability of information on global environment and competitive factors, for this analysis, it is more appropriate to consider the Flight Centre’s industry environment as “The Australian international and domestic airline
- Lack of implementing the strategy to provide positive influence in the firm regarding the structure.
This report provides an examinaion of the current structure, performance, stragergy and management of Delta Airlines, along with an industry analysis of the airline industry. The report uses current and past financial and statistical data for the company along with other up to date material to determine Delta's current market position and future potential.
The IT folks couldn’t communicate properly with the business about their ideas and strategy that confused the business and made them reject the ideas that were actually worth trying.
This short paper is an overview of Southwest Airlines, its strategy, and what role Human
From the humble financial portfolio as a crop dusting outfit in the mid twentieth century, to the multi-billion dollar portfolio of a major airline in the twenty first century, Delta Air Lines has risen as a successful business. The airline industry is directly affected by outside economic conditions and is also cyclical in nature. These factors make it very difficult for airlines to make predictions to stay financially afloat. Delta has ridden the bumpy path of the last twenty years and managed to survive. In the past twenty years there has been many events that
There have been few inventions to change how people live and experience the world considerably as the creation of the airplane. Today, traveling by air has become the norm and it would be difficult to imagine life without it. Air travel has improved the way people are able to conduct business by shortening travel time and changing their thought of distance. The companies within the airline industry exist in a very competitive market. One of those companies, Southwest Airlines, features low-fare, no-frills air service with frequent flights of mostly short routes. Costs are kept down by the exclusive use of Boeing 737 aircraft, which allows for low maintenance costs and quicker turnaround times for flights, and by an emphasis on ticketless travel (Encyclopedia Britannica). This paper will address two segments of the general environment and how they affect Southwest and the airline industry; evaluate how Southwest has addressed two forces of competition; predict what Southwest might do to improve its ability to addresses these forces; assess the external threats affecting Southwest; discuss Southwest’s greatest strengths and most significant weaknesses; determine Southwest’s resources, capabilities, and core competencies; and analyze their value chain.
For many years up to 1990, the financial performance of the company which was negative, dramatically changed with the appointing of the new Chief Executive Officer Michael O’Leary. The new management vision was to restructure the company based on the Southwest Airlines prototype business model with a culture of low-cost / low fare. Thanks to the European Union deregulation air transport in …, the company opened new routes and bases, increase its market share and became the first airline in Europe to carry over 100 Million international customers in a calendar year (Ryanair,2016) due to its low cost competitive advantage.