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Employee retention and managing employee turnover
Employee retention and managing employee turnover
Organization Development principles
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Merger of US Airways and American Airlines
American Airlines Group Inc. (AA) is the largest airline in the world. They seek to be an effective organization that has better customer service, effective staff, and a successful vision. The five stages of the Organization Development process will be used to implement the development changes needed for the new “American Airlines Group Inc.”
1. Anticipate a need for change: American Airlines needs new communication channels to follow up with all departments, create a new mission and policy to have a clear future for the organization, and make travel deals to attract customers. Also, there is a need for training all managers, having talented management to adapt the changes, and accept the new challenges
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Airway and American Airline need to find ways to work together as a corporate culture. The systems approach explains how the organization works, so (AA) must work as an open system. The open system is how the organization interacts with the environment, such as people, information, money, and facilities. The process of the open system has three main parts, such as the input, the process, and the output. First, (AA) has the money, people, and information of the airlines as an inputs. For example, they have to hire effective employees who have the knowledge and experience in the department to perform better and accomplish the objectives of the organization. Secondly, they work on the processes in the organization. For instance, they coordinate the flights, book flights for passengers, and aircraft maintenance. Finally, they will have the output of their performance. There will be customer service, safer airplanes, offers for customers, and less traffic on routs with other competitors. After all, they will receive feedback for the environments, which is going to improve and develop the organization’s performance and help the system …show more content…
The organization has many weaknesses, such as they had to a divestiture of 138 slots in different airports, both American Airlines and U.S Airway faced financial problems and losses, and they had poor marketing programs.
As an opportunity, (AA) has a chance to build great marketing and attract customers by offers and using new technology to make the process easier. The threat that (AA) might face decreases in costs due to competition with others and increase in the fuel prices in the market. Now they have a clear plan to evaluate both the process and the outcomes. Process evaluation helps the organization make sure that the process working toward the objectives. They have to look if interventions work or not, and how and why. Also, see if there are enough supports to implement the process or not. Outcomes evaluation provides the organization if the changes reach the goals and work effectively. It focuses on the benefits of the changes and what makes it
The objective of this research report is to provide a thorough analysis of Alaska Airlines. In order to do this we chose to compare a similar company against them. The company in comparison is Spirit Airlines. Both companies compete in the same type of business through airline transportation. Many of their services include; security, safety, transportation of passengers as well as luggage, ensuring vehicle safety while in transit, concierge services, providing entertainment aboard plane, checking weather conditions prior to flight, and much more. All of the data gathered for this report was obtained from the company’s 10-k filings with the SEC.
It has stayed relevant to the market through its propelled philosophy of relationships to generate profits in the business. Since its establishment in Monroe, Louisiana the once tiny airline has stretched to greater heights serving in 6 continents. It has also established a distinguishable name among its competitors with a reputation of leading customer services. However, even as an established venture, the company needs to maximize its profits in order to stay in business and expand in to new territories beyond its conquered boundaries. A strategic analysis was carried out by our team to establish the company’s current situation. A SWOT analysis was performed to come up with three referenced, strategic alternatives. This alternatives are meant to act as a strategic guidance to the company in order to enhance growth. The strategic recommendation provided will improve and enable the business to cope with the competitors while the implementation of the strategy section will outline the way to go about achieving these alternatives in the business setting. Lastly, we put up a discussion on the evaluation procedures and necessary controls for the
Since its first grand opening in 1971, Southwest Airlines has shown steady growth, and now carries more passengers than any other low-cost carrier in the world (Wharton, 2010). To expand the business operations, Southwest Airlines took over AirTran in 2010 as a strategy to gain more market share for the Southeast region and international flights. However, the acquisition of AirTran brought upcoming challenges both internally and externally for Southwest Airlines. In this case analysis, the objectives are to focus on the change process post the merger with AirTran, and to evaluate alternatives to address the impacts of the merger. II.
The Airline Industry is a fascinating market. It has been one of the few industries to reach astounding milestones. For example, over 200 airlines have gone out of business since deregulation occurred in 1978. Currently, more than 50% of the airlines in the industry are operating under Chapter 11 regulations. Since 9/11, four of the six large carriers have filed for and are currently under bankruptcy court protection. Since 9/11 the industry has lost over $30 billion dollars, and this loss continues to increase. Despite the fact that the airline industry is in a state of despair, JetBlue has become the golden example, a glimpse of what the industry could be.
At the end of the World War II series of new aircrafts filled the expand need of air transportation, these new acquisitions made AA the only airline in the US with a completely post war fleet of pressurized passenger airplanes. Eight years later AA pioneered non-stop transcontinental service in both directions across the US. Due to American Airlines incredible growth, they teamed up with I...
When a business aims to be as successful as possible in selling its products and services, it must examine in detail whether or not the products will be attractive and necessary; if the price is optimal; if the product is being distributed in the best locations; and finally, how interest and awareness can be created for the products. In order for a business to target all of these elements to the right people at the right time, it must employ the right type of marketing mix: Product, Price, Place and Promotion. In a dysfunctional time for the airline industry, most airlines, especially major carriers, are adapting the concept of "doing less with more." One low-cost carrier, JetBlue, is changing the domestic aviation landscape in this regard and is defying the odds. Here is a company that has examined each marketing mix elements carefully, has adapted them to its customer’s needs, and is succeeding because of this approach.
Northwest Airlines is one of the pioneers in the airline transportation industry and is ranked at the fourth largest air carrier in the United States today. The success of the carrier depends on the quality and reliability of the service at a reasonable price. Close competitors force Northwest to innovate their services by increasing efficiency. This essay will try to examine different perspectives in the services needed to successfully complete the company’s objectives. The analysis will explain historical and financial perspectives that may give a better understanding of the current market trend of the organization.
Process evaluations focus on what a policy is actually doing and are oriented toward issues such as compliance (assessing whether a policy or program meet the laws and regulations that authorize and govern its operation) and auditing (assessing whether a target population is receiving the resources or services mandated by the policy or program). (Smith and Larimer:2009) In contrast to a process evaluation, outcome evaluation seeks to measure and assess what a policy has actually achieved. (Smith and Larimer:2009)
Overall, if the simulation were to continue on with future quarter, we feel that our company would continue to see tremendous growth and continue to operate as fully functional airline even if we handed over our airline to someone else. Some of the advice we would recommend to the new management would be to continually invest within the company. From putting more money in operations, employee wages, maintenance, and promoting employees in the company; because when we did this in past quarter our airline received high praise, recognition, and positive profits which is something any business wants to see each quarter. Next, we would recommend to primarily focus on the airlines individual decisions, rather than trying to work with other airlines.
Before to select the proper alternative, three alternatives were analysed and evaluated under four decisions criteria: customer experience, cost, growth rate / market penetration and ease to implementation (See Exhibit 2: Factor Analysis). Between all the alternatives, it was suggested that Southwest Airlines enters to New York City by bidding the slots and gates at the LGA (See Exhibit 3: Alternatives Analysis). This alternative sustains the challenge of changing the customer experience which means adding more flights from and to the East; furthermore, entering to new markets will reinforce “the power of the network” through LGA. At the same time, this decision will allow signing more code-sharing agreements with other airlines flying to international destinations and offer new products and services to LUV customers as loyalty rewards, in-flight internet, onboard duty-free purchases, etc.; as a result of this, it will increase passenger’s insights and experiences by flying with Southwest Airlines. Nevertheless, there is potential risk by selecting this alternative, in the recent years the energy prices has had a huge increase affecting costs, fares and even capacity needed, however Southwest Airlines has been able to hedge fuel for decad...
Airline and travel industry profitability has been strapped by a series of events starting with a recession in business travel after the dotcom bust, followed by 9/11, the SARS epidemic, the Iraq wars, rising aviation turbine fuel prices, and the challenge from low-cost carriers. (Narayan Pandit, 2005) The fallout from rising fuel prices has been so extreme that any efficiency gains that airlines attempted to make could not make up for structural problems where labor costs remained high and low cost competition had continued to drive down yields or average fares at leading hub airports. In the last decade, US airlines alone had a yearly average of net losses of $9.1 billion (Coombs, 2011).
Gittell, J. H. (2003). The Southwest Airlines Way: Using the Power of Relationships to Achieve High Performance. New York: McGraw-Hill.
C. Task Environment The US Airline industry is one of the most dynamic and varied in the world. It is noted to be very rapidly growing and exceptionally competitive too. The following is based on Porter’s Five Force Model: • Threat of New Entrants – entry of new players is consider low, as the entry obstructions are high and needs high capitals to enter the business. (O) • Bargaining powers of buyers – Bargaining powers of buyers is considered to be greater, as most passengers would consider price over experience, thus might lead to shift to other carriers.
US Airways Express via code sharing agreements (Wikipedia, 2016). As predicted for a couple of years now when American Airlines emerged from bankruptcy that they will merge with US Airways. They recently made the announcement for the intent for the two carriers to merge into one mega-airline that would someday become the world’s largest airlines under any circumstances. It is a delicate process when pulling together two brands, but the challenge intensifies when it involves two large brands
Over the next 20 years, Alaska Airlines enjoyed the golden era of air travel, introducing the fleet’s signature jet aircraft, the Boeing 727 in the mid-sixties. Progressively, the company experienced both great success and significant financial and organizational instability, to the point of near ruin when Ron Cosgrave took the helm in 1972. Extraordinarily, after years of loss, the company saw profits again in 1973 under his customer service driven leadership and would continue profitability for 19 straight years. Unfortunately, eager to grow, but bound by regulation, Alaska Airlines lobbied for deregulation and were rewarded with its approval in 1978.