“AVIATION SPARE PART SUPPLY CHAIN MANAGEMENT OPTIMISATION AT CATHAY PASIFIC AIRWAYS LIMITED” CASE STUDY
GLOBAL LOGISTIC COURSE ASSIGNMENT Prof. Hiroshi Hoshino
Umurbek Osorkhan 2EC12056R QBS 10th 5 November 2012
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Company Overview Cathay Pacific Airways is an airline company founded on September 24th, 1946 by Roy Farrell and Sydney de Kantzow. Starting with a very limited schedule service, the company grew larger through multiple product innovations, technological investments such as the computerized reservation system and successful acquisitions. In 1986, Cathay Pacific went public and further expanded in Europe, North America, and China. The company employed over 25000 people worldwide, serviced over 43 destinations throughout
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It`s true that strict rules and tight regulations are necessary-they protect consumers, customer safety, environment and other things. However sometimes it causes some burdens on businesses. It always increases the cost of operations. Also turnaround time for repairs was highly critical and cost for flight delay was extremely huge. Customers might be upset or even shift to other airlines if delays caused them lose the connecting flights. Thus, the cost of aircraft delays was crucial element in engineering. Bargaining power of supplier, difficulty to forecast demand and harsh competitions were other important issues in aviation industry. As a result of tight aviation regulations airline companies, as a customer, were constrained in supplier selection. Spare parts solely supplied by only single dominated supplier as called OEM (original equipment supplier). The limited choice and high concentration of OEM`s limited airline operators` negotiation power. According to the M. Porter`s five force analysis aviation industry has low entrance barrier and it cause very intensive competition between airlines operators. A few decades ago flying with airline was very expensive for ordinary people but today everyone can benefit from this because airline ticket prices have constantly and significantly fallen. Finally, demand forecasting was very difficult. The forecast for spare parts is made based on maintenance information, scheduled maintenance plans and past usage patterns. Even so,
1. (TCO B) Identify four categories of measures that might constitute a Balanced Scorecard of performance measures and provide an example of each. Also explain how a Balanced Scorecard could assist your organization. This answer must be in your own words—significant cut and paste from the text or other sources is not acceptable. (Points : 30)
1. In President Obama’s speech at West Point, he announced that 30,000 additional troops would be sent to Afghanistan. He made this decision because he said it was vital to the United States’ national interest. The vital national interest at risk in President Obama’s address is the security and safety of the American people as well as the “security of our allies and the common security of the world.” By involving the military and increasing the troop strength, President Obama can achieve the objectives of his strategy. His objectives are to keep the Taliban from becoming powerful, prevent them from government rule, improve Afghanistan security forces and government so they can manage their own country and prevent Al Qaeda from
The first poster shows a mother and a child who are embracing with a photo of an Australian soldier in the background- the father of the child. The text says “God bless daddy” (as if the child were saying it). It then reads “45,000 Australian fathers are fighting!” and finishing off with a rhetorical question to involve the viewer: “Will you help?”
In any murder the main question asked is,“what was the motive”. The enticement to kill is a key to truly understanding a murder. Similarly, in fine arts understanding a character motivation or reason to do something is an essential part of comprehending a character's fowl actions in full. In the book the Odyssey and the movie O Brother, Where Art Thou? the characters motivations reveal the reasoning behind their actions.
Suppliers generally have a moderate to high bargaining power within the industry due to the limited number of suppliers which forces aviation companies to choose from the number available and accordingly to accept their prices. In fact, fuel is the second highest cost for aviation companies. There are highly depended on supplier’s prices and the availability which indicates on a relatively high bargaining power of suppliers. In addition, there are high switching costs which are strongly in favor of the suppliers and means that the company experiences an increase in operating costs when switching to another supplier as flying another type of aircraft leads to additional costs (maintenance, training etc.).Aircrafts are vulnerable to delays due to the location of gate locations which leads to a decrease in utilization and therefore to an increase in costs.
The main barrier to entry in the aircraft manufacturing market is the sheer size of the industry and the amount of capital investment required to make the aircraft. Moreover, the concerns of the aviation industry are not similar
3,4- The Airline industry and the market The airline industry is large, specially in the United States, mainly due to the “ Deregulation” of the industry. In 1938, the Civil Aeronautics Board was created to control the growth of the air transportation industry. This board had the authority to control entry, exit, prices and methods of competition. In the late 1970 this structure was found inefficient and in 1978 deregulation took place. Due to the deregulation of the industry competition intensified, prices dropped, and the number of people travelling increased. Many new companies emerged and regional airlines saw deregulation as an opportunity to expand. Due to the rise in competition, by 1986 mergers started to take place and in 1987 64.8% of the market was controlled by the four largest airlines. The demand for air travel is determined mainly by price, studies revealed that half of the leisure travellers and on quarter of business travellers did not have a preference for a particular airline, which means that prices determined the
Airline industry is the major engine powering the globalization of businesses and services. Prior to 1970’s, the airline industry was mainly owned and controlled by the governments in different countries. There was no free market competition as travelers have to make do with the services and prices available to them from the few airlines. But with the deregulation of the airline industry that swept across the world after 1970, entry barriers were lowered allowing new start-up of many airline companies, thus engendering competition in the airlines industry. This has led to competitions in various fronts, especially in prices and services provided onboard the flight. This competition has led to formulation of various business modules and the re-strategizing of the already existing and new start-up companies, in order for them to survive the new business environment. The operating environment of the airline industry continues to evolve, thereby presenting a significant challenge for the survival of the industry. Different models and frameworks have been formulated for analyzing the operating environment of various industries. In analyzing the operating environment, it is vital to indentify the different factors that might affect the organization cost, supply and demand. PEST (Political, Economical, Social and Technological) is one of the framework used for analyzing the macro-environment affecting organizations in a
The supplier power in airlines is dominated by the world’s two largest aircraft manufacturers are Airbus and Boeing. The competition between the two manufacturers is neck to neck but that would prove to be a boon for Emirates as the prices would not rocket through the ceiling. A study shows that Emirates holds 93 Boeing aircrafts and 83 Airbus units (Planespotters, 2009). In 2007, Emirates purchased 81 Airbus flights, to extend it services- however, they chose Airbus over Boeing as the latter failed to deliver its latest aircrafts on time and moreover, Airbus had quoted a good price (Barryl, 2007). The changing oil prices also have an adverse effect on the aviation industry. In a nutshell, the bargaining power of suppliers is high.
The following analysis discusses the suppliers, buyers, industry competition, threats to entry, and substitutes that exist within the large commercial aircraft industry. Additionally, the analysis identifies the pressure that each of these groups applies on the industry and estimates the impact this pressure has on potential industry profits. Each group is identified using a high, medium, or low-pressure classification. A high-pressure classification indicates the group reduces industry profit potential and vice versa.
Airbus’s main competitor, Boeing Company was founded in 1916, it has been the world 's leading manufacturer of large commercial aircrafts for several decades (Tong & Tong, 2003). However, in 2005 Airbus delivered more planes than Boeing, due to the 911 terrorist attack in 2001, and suffered a strike by workers in the manufacturing site last autumn. Between 2005 and 2004, Airbus deliveries increased by 18% to 378 aircraft, said Chief Executive Gustav Humbert. It was a new record for Airbus, it was a better outcome than the European aircraft maker 's perdition (370 deliveries). On the other hand, Boeing, which has lagged behind Airbus in orders since 2001 and deliveries since 2003, only delivered 290 planes in 2005 (Michaels, 2006).
The airline is state owned enterprise so they need to adhere to the supply chain prescripts when procuring services as legislated by the Public Finance Management Act. The supply chain procedures needs to be fast paced and respond to the needs of the changing environment that the airline operates under. Inappropriate conduct should be dealt with in accordance with the
Cathay Pacific Airways Limited, which is managed by the Swire Group, is the largest airline and flag carrier of Hong Kong. The company with over 14,000 staff worldwide now, was founded by 1946. It based at Hong Kong International Airport, and its operations include scheduled passenger and cargo services to over 120 places around the world.
Aviation has an impact on everybody and everything. Not only does it have an impact on a worldwide base, but it also has as big an impact on local business. Aviation in regulated in many different ways nationwide. There are many regulations that are federal, such as airspace, and must be obeyed by everyone and there are regulations that are local, such as traffic pattern altitude, and must be obeyed as if they were federal regs. As in any other field of work there are laws and regulations people must obey by. If people were allowed to do what ever they want, then we would live in a world of chaos. There are many different levels of regulation in the aviation industry.
"Death solves all problems -- No man, no problem." This was an actually saying by Joseph Stalin. He believed that if a man had died then all problems would be solved, and that is the idea implemented into the characters in the novel. In the Allegorical Novel, Animal Farm by George Orwell, there were many perpetrators such as Napoleon, Benjamin, and Old Major that led to the overall fall of the Farm.