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Aspects of crisis management
Aspects of crisis management
Aspects of crisis management
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On April 9, 2017, United Airlines faced an incident that quickly escalated into a public relations crisis. This was furthered intensified by a clumsy response to the incident that resulted in damage to credibility and reputation of the airline. Throughout the incident, there were several opportunities missed and mistakes made that contributed to the negative impact and reaction from the public. According to “Business Insider” (April 10, 2017), and “The New York Times” (April 10, 2017), United Express Flight 3411 had boarded all its passengers when gate agents were approached by a flight crew requiring transport. As the flight was fully booked, the gate agents attempted to solicit four volunteers to leave the plane in return for re-booking …show more content…
Gate agents never explained how and why Dr. Dao was selected, never acknowledged his reason for not leaving the plane, and did not appear to have any alternate passengers identified to approach. The response by the CEO was not issued until the following day, after it became “viral” on social media and his initial response did not address the incident and lay blame on the passenger, did not explain United’s “over-booking” policy, and was not apologetic in any manner. Throughout the response, United never communicated how and why Dr. Dao was selected, although some generalities were stated in an interview (New York Times, April 10, …show more content…
When considering tactics, it is important to consider the variety of publics who may read or listen to the statement and subsequent releases. We would have recommended that while listening to the company’s lawyers is important to reduce legal ramifications, it is equally important to consider business ethics and to try to do the right thing in this situation, especially in the eyes of the public. We would have explained to the leadership team that if the public begins to view United Airlines as unjust and unethical, a company who treats their customers unfairly, that it may have negative results on company reputation and cost money in the long run (Anthonissen,
Delta Airlines: Past Present and Future Delta Airlines have transformed over the decades. They started out as a crop dusting company, blossomed into an airline company, fought litigations, went bankrupt, then resurrected it and merged with Northwest Airlines to become one of the biggest airline companies in the world. Their aircraft, operations, and cities and countries that they service have transformed and blossomed as well.
American, Delta, Southwest, and United Airlines are the four major companies that own 70% of the airline industry (Young, “United Airlines: The Face of Monopoly Capitalism”). This monopolization of the airline industry reduces competition and allows the companies to treat their passengers however they see fit, due to the limited choice set and because the companies have been left largely unregulated. This sort of behavior is clearly conveyed in the United Airlines incident when Dr. David Dao was forcibly removed from his flight after a random selection to make room for crew members ("United Airlines: Eyewitness on how passenger was dragged off plane"). When Dr. Dao refused to give up his seat and get off of the plane he was forcibly removed
It is obvious that executives and managers at both British Petroleum and Transocean have changed the civil right statement “by any means necessary” to reflect their desire to make profits. The unethical behavior that has been engrained within both business cultures calls in the question the ethics of all powerful oil based companies. Leaders must be attentive and adhere to all safety and maintenance concerns. The damage and loss that was incurred could have been avoided if executives would have made more logical and ethically based decisions. Leaders should be able to recognize their psychological tendencies and correct them when making ethical decisions for their businesses. Through striving to make ethical decisions, organizations can set the tone for company morale and success.
When the attacks of September 11th occurred, the federal government had to completely close down some airports in the US. This created a negative effect on the industry as it was a shock to their entire organization. Planes in the US and around the world were canceled due to this attack as well. Planes were not flying anywhere, as the plan was to prevent any other attack. Each plane that was cancelled had to be paid by the airline company directly. According to the International Air Transport Association there was a drastic change in the amount of flights between the date before and after the event. Around 37,600 less flights flew the day after the attack had occurred. The number of flights dramatically decreased in those three days; in addition every...
As one of the world’s largest airline, United Airlines employs over 80,000 people and transports over 143 million people a year ("United Airlines newsroom," 2017). These staggering numbers equate to billions of interactions between the public and United Airlines employees and subsidiaries. It is understandable that a company with such a large public audience and employee base would have a code of ethics statement to help its employees so that they can make decisions that are in line with company expectations.
In today's competitive marketplace, all firms are seeking ways to improve their overall performance. One such method of improvement, recently adopted by many firms, is benchmarking. Benchmarking is a technique used to evaluate internal business processes. "In this analysis, managers determine the firm's critical processes and outputs, baseline those processes, then compare the performance of each process against a standard outside the industry" (Bounds, Yorks, Adams, & Ranney 1994). To effectively improve a business process to world-class quality, managers must find a firm that is recognized as a global leader, not just the industry standard. Successful benchmarking requires tailor-made solutions, not just blind copying of another organization. Measurement and interpretation of data collected is the key to creating business process solutions.
Southwest Airlines: A Case Analysis. ORGANIZATIONAL ANALYSIS It is evident that the greatest strength Southwest Airlines has is its financial stability. As known in the US airline industry, Southwest is one of those airlines who are consistently earning profits despite the problems the industry is facing. With such stability, the corporation is able to make decisions and adjust policies, which other heavily burdened airlines may not be able to imitate.
On October 24, 1978, President Carter signed into law the Airline Deregulation Act. The purpose of the law was to effectively get the federal government out of the airline business. By allowing the airlines to compete for their customers' travel dollars, was the thinking, that fares would drop and an increased number of routes would spring up.
More than 37 years ago, Rollin King and Herb Kelleher got together and decided to start a different kind of airline. They began with one simple notion: If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline. And you know what? They were right. What began as a small Texas airline has grown to become one of the largest airlines in America. Today, Southwest Airlines flies over 104 million passengers a year to 64 great cities all across the country, and we do it more than 3,400 times a day.
Theorist still have their heads spinning around on how Trans World Airlines Flight 800 crashes. The two major theories that most theorist are arguing is that it was a missile that took down the plane or an explosion in the center fuel tank. TWA Flight 800’s catastrophic crash is still a mystery to this day. There many theories however, the one that sticks out the most with the majority of the evidence is an explosion in the center fuel tank. Can this beat the theory that two hundred fifty witnesses say had spot a missile heading toward the Boeing 747. Missiles and a center fuel tank explosion are two theories surrounding the mystery behind TWA Flight 800.
June 1st, 1999, captain Richard Buschmann and first officer Michael Origel were about to embark on their third and final leg of the day, after already working for ten hours on two other trip legs. They had arrived at Dallas/Fort Worth Texas around 20:10 CST and were eager to proceed on their final trip of the day to Little Rock, Arkansas. Poor weather in the region prevented their assigned aircraft from arriving on time, closely pushing them ever closer to their fourteen hour duty limits for the day. The first officer realizing their situation contacted the dispatchers to notify them they would need to find a substitute aircraft or the flight would need to be cancelled. Both pilots were well aware of the impending storms in the area, including around the destination airport, but they decided that they should be able to beat the storms there. This was one of the first signs of suffering from get-there-itis, along side of several hazardous attitudes. Once an aircraft was substituted, a McDonnell Douglas DC-9-82, the pilots were able to depart at 22:40, 2 hours and 12 minutes after their scheduled departure time, 12 hours into their 14 hour duty day.
The Southwest Airlines company and its culture is one that is often cited in today 's business classes. The airline is widely known to be “different” compared to many of its competitors, a result of its founding values and strong corporate culture. This culture developed early in Southwest’s history and was deeply entrenched due to the competitiveness of the airline industry, as well as due to some of the pressures experienced as a result regulatory issues and stiff competition.
Deregulation for 16 years (1978) has resulted in an icnrease of domestic carriers from 36 in 1978 to 100 in 1985.
There are few things that are impressive about Southwest Airlines first one is how they treat the employees. For Southwest Airlines employees are first and customers are second. If the employees are treated well that will bring in happy customers. Next is that Southwest is not only with their low prices but is able to create a competitive advantage by offering a fun and humorous experience when flying. Finally another impressive fact is when Herb Kelleher’s retire from CEO position yet remained a Southwest employee till July 2014. Even after the retirement he was still active with the Southwest Airlines that reflected his enthusiasm and dedication for the
JetBlue Airways, the latest entrant in the airlines industry has gone through the initial stages (entrepreneurial and collectivity) of the organizational life cycle rapidly under the successful leadership of David Neelman. JetBlue Airways is currently in the formalization stage of the life cycle where in it needs to create procedures and control systems to effectively manage its growth. Also as it proceeds to grow further to reach the elaboration stage, JetBlue needs to continue to align itself with the environment in order to maintain its sustained growth.