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Structure and Governance.
Performance and Competition.
Lufthansa is one of the oldest and most successful commercial airlines in the world, and is the fourth-largest in terms of passengers. However, the company has not always been so successful, and in fact was teetering on the brink of bankruptcy just a short while ago. y examining Lufthansa's history, structure, governance, and contemporary strategies and goals, one is able to see how the company has weathered the ups and downs of political and economic history while increasing its market share to become a dominant force in the air transport market. Furthermore, by applying a SWOT and TOWS analysis to the company, one is able to effectively determine the best course going forward so that the company may retain its historical dominance while preparing itself for the unprecedented technological and social growth expected over the next decade.
The German airline…… [Read More]
There is no evidence to support the notion that Lufthansa requires an entrepreneurial mindset. There is no discernable purpose that an entrepreneurial culture would serve that is sorely needed by Lufthansa and an entrepreneurial culture would not address the company's most pressing strategic needs. The company has been able to demonstrate entrepreneurial skill in the past with the Star Alliance, but it is in a mature industry that is characterized by a slow pace of change. Lufthansa's business model works well, and aside from 2009 when most airlines lost money Lufthansa has largely been profitable since its troubles in the early 1990s. The company's path to ongoing success is more likely to be incremental improvements to its operations punctuated by the occasional strategy tweak, rather than the introduction of an entrepreneurial culture.
10. Describe what strategic leadership actions should be recommended for reducing complexity at Lufthansa.
Lufthansa is not an…… [Read More]
Out of company total fixed assets estimated at €10,002 billion, €3,273 billion is in aircraft and €63 mln.
A more in other tangible assets. he company has extensive fleet and is currently devoted to improving it in all the business segments, including passenger and freight services.
5. Apply the value chain model to Lufthansa. Based on this model, in which activities does Lufthansa have its main competencies?
In 2005, the biggest company generated Value Added was within the logistics and MRO (Maintenance, Repairment and Overhaul) business segments. Also, it services attributed a considerable share to the total company generated and added income.
6. Does Lufthansa have a sustainable competitive advantage in the global airline industry?
Lufthansa currently does not have a very sustainable competitive position within the global airline industry, but the current strategy plan of the company is very competitive and wise and accounts for all the company strengths…… [Read More]
Air Cargo Management
Lufthansa Cargo is a cargo airline company that is based in Germany. The company provides airline cargo, air freight, and logistic services. Lufthansa transports cargo and mail from airport-airport. Lufthansa is the largest airline in Germany and is amongst the leading airlines in the world. The company is headquartered at the Frankfurt Airport in building 451. Lufthansa Cargo has access to other cargo capacities in their Lufthansa passenger aircrafts. This is in addition to its own cargo freighters. Organizing its cargo business in a different airline entity has allowed the company (Lufthansa) to differentiate itself from other major competitors like Air France and British Airways. Lufthansa Cargo was the leading cargo in the recent past in terms of their international freight tonne-kilometers, but the company has been overtaken by Korean Air Cargo and Cathay Pacific Zhang & Zhang, 2002()
Cargo management is different from passenger…… [Read More]
Southwest vs. Lufthansa
Creating value through quality management
Southwest Airlines is famed for having one of the most unique business models and philosophies of any airline. It began as a ground-breaking organization that offered bare-bones, low-cost services to passengers. Flight crews were entertaining and responsive to passenger needs, and even though no in-flight meals were served, customers flocked to Southwest. The company openly advertises that it selects its employees because they have a certain 'attitude' and are willing to joke, be silly, break into song, and have 'fun' with their jobs. Although a larger percentage of its employees belong to unions than any other major carrier, it has never had a strike. Employees are the best-paid workers in the industry, but costs are kept low: "Since Southwest has about 30% fewer employees per aircraft than its network competitors, it has the lowest non-fuel C.A.S.M. (cost per available seat…… [Read More]
7. Overall Performance
Lufthansa is one of the strongest corporations of the globe and a major player on the European airline market. Its success is obvious in the satisfaction of their customers or the fact that their employees love working for the company, and it often materializes in opportunities for growth and development. Throughout the past recent years, the German airline organization has managed to increase its customer base, its fleet as well as its product offering. But these are not the sole indicators of prosperity. The financial analysis of Lufthansa revealed a strong economic agent. Despite the existence of some few issues which…… [Read More]
The results retrieved by Victor, Boynton and Stephens-Jang point out to a necessity to find a balance between standardized work and continuous learning process. They also indicate that employees who have managed to find this balance reveal higher levels of on-the-job satisfaction, as well as lower levels of stress.
A crucial approach to total quality management is taken by Mohamed Zairi (2002), who looks at quality management in the context of the current threats. He argues for instance the growing threats of competition, as promoted by the intensifying forces of globalization, or the necessity for any organization to operate in accordance with the growing concerns for environmental well-being. In this context, Zairi points out not only to the necessity of TQM for organizational survival, but even more so for the importance of sustainable models of TQM that maintain organizational competitiveness. The basic idea is that of the ongoing necessity for…… [Read More]
Arumemi-Ikhide believes that Arik can succeed due to a combination of the opportunity -- helped by economic and air transport reforms in Nigeria -- and the capability to deliver a high quality product." (Dunn, 2009) Also stated by Arumemi-Ikhide is that this "will be a key in differentiating it in the international market and providing feeder traffic. That will be the lifeline for the international network. That's what sets up apart from our rivals." (Dunn, 2009)
Martin Russell states in the report entitled: "Arik Air: The Future of African Aviation" that both the "internal opinion of African air travel and that of onlookers overseas was bleak before the arrival of Nigeria's newest treasure, Arik Air." (2008) Russell states that the aviation industry is African is "hampered by somewhat less predictable weather and frequent storms" resulting in aviation in African being "far from predictable with temperamental skies that readily…… [Read More]
These strategies can also be used to reduce the risk of a drop in the stock price without regard to tax issues. In deciding whether to employ these strategies, it is necessary to consider the cost of the option and any related transaction costs.
A swap is an agreement in which counterparties (generally two) agree to exchange future cash flows arising from financial instruments. For example, in the case of a generic fixed-to-floating interest rate swap, company a agrees to pay company . periodic fixed interest payments on some "notional" principal amount (say $100 million) in exchange for variable rate payments on that notional. The floating "leg" is typically periodically reset based on some reference rate such as LIOR. Usually, one leg involves quantities that are known in advance (e.g. The "fixed leg" in an interest rate swap) the other involves quantities that are uncertain or variable (e.g. The "floating…… [Read More]
Strategic Analysis of Qantas Group
Qantas Group Overview
Key Problems and Strategic Issues
Diagnosis: Analysis and Evaluation
Porter 5 Analysis
Power of Suppliers: Low-to-Medium
Industry ivalry: High
Power of Buyer: Medium
Barrier of Entry: High
Availability of Substitutes: Low
The study carries out the strategic analysis of Qantas Group to identify the problems that the company is facing in the contemporary business environments and provide the recommendations that will assist Qantas overcoming its problems and record high profitability. The Porter 5 analysis reveals Qantas is facing the intense competitions at domestic and international routes leading to a decline in the profit margins. Moreover, Qantas has not been able to overcome the problems associated with the high costs of operations from the constant increase in the fuel costs. The paper suggests that Qantas should consider both vertical and horizontal mergers to enjoy economies of scales, which will assist in enjoying a…… [Read More]
g. Lufthansa); partners with Blackberry and Yahoo for in flight conveniences.
Early aggressive additions to fleet and service did, as analysts predicted, negatively impact the company.
Company will need to carefully evaluate routes, new service, new equipment, and new technology in order to maintain growth potential.
Fairly stable and industry respected; replaced CEO in May 2007.
Needed a new managerial focus after 2004.
Optimistic, keep tight rein on overly aggressive expansion.
Jet Blue University, compensates better than most airlines, rewards loyalty for service
Unsuccessful attempt at unionizing
Ensure mission is translated to consumers; empower local employees to make better decisions so clients are not left sitting on tarmac.
Huge and rapid growth spurt in early 21st century
Became a model for other carriers; major carriers copied model and took away share
Continued energy and fiscal focus on consumers and next generation of airline ideas.
Marketing…… [Read More]
ir Cargo, Inc. only flew cargo from December, 1941 (when Pearl Harbor was attacked) through November, 1944. t that time, Siddiqi explains that individual airline companies authored their own freight services, and on page 2 the author of this article notes that in time the major passenger airlines began offering freight forwarding service and that pretty well eliminated the need for a whole fleet of airline companies that just forwarded freight (Siddiqi). Only Flying Tiger stayed aloft as a strictly air freight company until the 1980s when Federal Express entered the picture. More on FedEx later in this paper.
The Literature -- the History of ir Freight Transportation -- Berlin ir Lift
When the long, bloody war was over it was time for the winning llies to divide up the territory that once was Nazi Germany, the negotiated, agreed-upon divisions gave the llies (U.S., Britain, and France) the Western…… [Read More]
Description of high/low marketing strategy
The marketing strategy of choice, however, is simply to accentuate low costs by cutting frills and eliminating hub-based systems in favor of short nonstop hops for even the largest national carriers. This is the model followed by such successful low-cost carriers as Jet lue and Southwest Airlines.
These airlines are able to go up against giants like United and American by slashing fares, marketing their no-frills image and flying short distances and choosing cheaper, slightly out of the way airports.
For instance, Jet lue flies not to Miami but to Ft. Lauderdale and even though Delta might fly to Miami, Jet lue will still get the fare because of its lower price and no-frills marketing strategy.
Airlines have to realize that this is a price-sensitive market and only spend marketing dollars on advertising low-cost fares and the fact that fliers are not being charged for…… [Read More]
Munich Massacre of 1972 was an organized terrorist attack on 11 Israeli Olympic athletes at the 1972 Olympic Games in Munich. By the end of day-long the conflict, 11 Israelis, five Arab terrorists, and a German policeman were dead.
On September 5, 1972 at 4:30 AM, Arab terrorists wearing tracksuits and carrying weapons in athletic bags scaled the fence of the Olympic Village in Munich. Security was lax or non-existent, enabling a quick and efficient entry. Upon breaching the Village, the terrorists rendezvoused with an under-cover terrorist, who had been working for the Village, and thus knew exactly where the future hostages were sleeping. At 5AM, the terrorists knocked on the door of Israeli wrestling coach Moshe Weinberg, who immediately recognized that something was awry. He shouted a warning to his players and, with wrestler Joseph omano, tried to keep the terrorists out while some of the players escaped out…… [Read More]
In terms of environment, British Airways has a rather opaque policy and they have yet to implement measures which safeguard the well-being of the environment. elative to the competition, the British operator strives to regain its strength through a merger with Iberia.
3. ecommendations for Improvement
Before presenting the recommendations for improving the operations management at British Airways, it is necessary to reveal some of the challenges presented by the modern day environment. This endeavor is necessary as the recommendations for improvement will be tailored to the need to satisfy the identified challenges. In this order of ideas, the difficulties raised by the current context include the following:
safety and security issues changing role of employees pollution, global warming and the general impact on the environment intensifying competition
Safety and Security
This threat has always been present within the airline industry, but never at levels as high as today. Flying…… [Read More]
Columbus (3) found that within the customer service arena, one CRM capability in particular demonstrated the greatest impact on profit improvement -- customer service execution.
Integration into Overall Marketing Strategy
SAP seeks to improve global campaigns' effectiveness at generating qualified sales leads, and to do so at lower cost per lead and greater speed over the Internet. To accomplish this SAP conducts an internal evaluation of its Marketing practices and uncovers the following problems during one of its marketing audits:
Regions often choose irrelevant communication tactics for the campaign goal or target customer and these tactics often end up on specific countries' websites.
Regions may sequence communications and target interactions ineffectively.
Regions often fail to share best practices across borders, leading to repetition of common mistakes.
Regions may experience difficulty translating campaign themes into local marketing messages, leading to globally inconsistent messages.
Moreover, Central Internet Marketing finds that regional groups…… [Read More]
BA - Iberia
After nearly two years of negotiating, British Airways (BA) and Iberia completed their merger in the spring of 2010 (Arnott, S., 2010). By 2011, the combined entity earned an operating profit of €190 million. The profit was attributed to improved U.S. business due to a partnership with American Airlines, and strong group buying power that helped control jet fuel expense (othwell, S., 2011, 1). The combined entity is known as International Airlines Group (IAG) and has pledged to grow further, something that combined with the operating benefits has added to its share value (othwell, S., 2011, 2). When the merger was first proposed, the two airlines noted that there were synergies to be won, and that the combined entity would be better able to thrive in the current difficult market conditions (Werdigier, J., 2009). The success of the merger can be attributed in part to a good…… [Read More]
Assess Supply Base
The supply base is a function of the airport capacity, specifically the terminal and lanes leased specifically for the use of Aer Lingus jet and air plane usage in addition to the actual supply of jets/planes and the parts used to effectively repair and operate each unit. The supply base is assessed by assessing the supply chain for the airline. The supply chain is a function of all vendors that provide supply to Aer Lingus to maintain operational performance.
Functional capacity is the ability of the supply base to utilize full operating capacity to maximize profit through the efficient use of supply to drive performance. However, the supply base assessment can also be a method to pass-through costs. According to Chandler (2009), "enaud recognizes that it's sometimes a matter of "sanding our folks out to suppliers to help them [avoid] costs." Mike Madsen couldn't agree…… [Read More]
It's oeing. Starting from their first aircraft models oeing &W and Douglas DT/C-1 and up to the modern airfreight oeing 747-400, company oeing and oeing-related enterprises had been always on the frontier of air cargo industry, and nowadays oeing airfreights stand for 90% of commercial air cargo companies.
Everything started with mail delivery. Today lots of us associate aircrafts with people transportation, but primary oeing was responsible only for cargo.
The company was started in 1916, when ill oeing and his partner George Westervelt made a first model of future civil aviation's world leader- jet &W. &W had later become the first plane that was delivering cargo and mail to New Zealand. Three years later ill oeing and Eddie Hubbard delivered 60 letters from Vancouver, Canada to Seattle, which became the first event in the history of international air shipping.
Nearly at the same time, company Douglas Aircraft had signed…… [Read More]
Low Cost Airline in Thailand
The Study on Improvement of Low Cost Airline in Thailand
Geography of Thailand
Nature of Airlines
Variables under Study
The Profitability of Low Cost Airlines in Thailand
Operating esults, Selected Airlines, Financial Year 1999
The Economies of Scale Attained By Airline Industry
Human esource Practices
The future of low cost Thailand Airlines
Contrasting Qualities of State Owned and Non-State Owned Airlines
The Study on Improvement of Low Cost Airline in Thailand
Thailand is a global source for customers seeking cheap labor or material inputs. The country is rich in natural resources -- tin, rubber, natural gas, tungsten, and timber being a few examples. The country is a major source for agricultural products1a.
Thailand also has an abundant supply of low-skilled labor with high participation rates in the workforce 86% for males and 67% for females in 1995. At the same time, the country…… [Read More]
Strategic Planning in IT
IT Impact on Service Industry Performance
Implementation of IT Innovations
1992 U.S. VALUE-ADDED AND EMPLOYMENT BY INDUSTRY
AVERAGE ANNUAL GROTH IN GDP PER HOUR,
MAJOR SECTORS OF THE U.S. ECONOMY
Management TASKS IN BUREAUCRACY VS ADHOCRACY ORGANIZATIONS
This paper addresses the following problem statement: "ithout information technology (IT), a business will not be able to compete globally in any industry, nor in any market it wants to enter. It will not be able to effectively and efficiently optimize its success."
In order to evaluate this statement, a number of issues were examined. The rapid pace of technological change and the effects of technology revolution have launched the world into an era of organizations that are experiencing extraordinary growth in both the development and the dissemination of information and communications technologies. This paper reviews the current literature on the subject of the integration…… [Read More]
Managing All Stakeholders in the Context of a Merger Process
Review of the Relevant Literature
Types of Mergers
Identifying All Stakeholders in a Given usiness
Strategic Market Factors Driving Merger Activity
Selection Process for Merger Candidates
Summary, Conclusion, and Recommendations
The Challenge of Managing All Stakeholders in the Context of a Merger Process
Mergers and acquisitions became central features of organizational life in the last part of the 20th century, particularly as organizations seek to establish and maintain competitiveness in an increasingly globalized economy (Nevaer & Deck, 1996). Mergers are generally described as being the formal joining or combining of two corporations or business (Prichett, 1987), although both the framework and the method of merger vary greatly. The reasons for mergers are different based on what a company is trying to accomplish. The acquiring firm may seek to eliminate a competitor; to increase its efficiency; to diversify its products, services,…… [Read More]
China on Hong Kong after 1997
The purpose of this work is to examine and explore the impact that China has had upon Hong Kong since 1997.
Hong Kong has a population of 7,116,302 of which 96% are Chinese. Due to the political shifts on the Mainland a rapid change in population has taken place. Although many nationalities visit and live in Hong Kong the Chinese culture is the one that dominates in Hong Kong. Religions in Hong Kong can be identified as those of Chinese religions, of which 66% of the population adheres to, Non-religious other, 15% of the population, Christian religions 14% of Hong Kong's population, New religions, 4% and Muslim, 1% of the population.
Those of the 66 percentile in adherence to the Chinese folk religion hold beliefs that are a combination of uddhism, Animism, Confucianism, Taoism, and other beliefs. The main language is Cantonese with English…… [Read More]
Boeing had with their 737, aiming to better understand how
Boeing 737 is regarded as the most commercially successful airplane in the world. Commercial figures back these assertions, while the company strategy, relying on innovation and on building competitive advantages based on technological advances, has been the main argument in constructing this commercial success.
This paper aims to look at things from two main perspectives, First, it investigates the technological advances that Boeing has proposed with its 737 model. It looks at different improvements to the fuselage, the engines, the design etc. all of which contributed to making the 737 more attractive for potential buyers.
Second, it looks at the commercial aspect and analyzes how the number of delivered orders varied over time. The aim of this analysis is to better understand fluctuations in sale, but also to correlate these trends with the technological advances that would have been discussed…… [Read More]
Strategic Information Technology
The three options for organizational strategies that will be discussed are the global strategy, the cooperative strategy and the E-business strategy. A global strategy implies an international presence for an organization. This international presence may translate into production outlets in foreign countries or presence on foreign markets or a combination of the two.
Porter (1986) was one of the first who conducted studies on global strategy. As more and more companies operated in similar economic systems and implemented technological change that made them more efficient and productive, the incentive was to expand on an international level, in order to benefit from emerging markets, from new resources (often at lower costs) and from economies of scale that could thus be generated.
Many of the large multinationals are employ a global strategy. Some of the most eloquent examples include Coca-Cola, Apple Computers and many of the car producers such…… [Read More]
Emirate Airline Analysis
What follows in this report is a review and summary of the customer services aspect of Emirates Airline. The firm in question has most certainly established a name for themselves and there is the common refrain about how adept they are. Even so, there are opportunities for them to get better and all firms should commit to a culture and mindset of continuous improvement, fettering out what problems what do exist and finding common sense solutions for dealing with the same. Regardless of what problems are found, there need to be evidence-based and realistic solutions put forth, and that shall be the goal of this report. While Emirates Airlines does a lot of things well when it comes to their customer services, they could do even better and strive to do so whenever possible.
Before getting into the minutia of what should change and why,…… [Read More]
drivers of using biofuel in the airlines industry are closely linked to the evolution of oil prices in the last decade, as well as to the risks associated with the use of petroleum fuel. First of all, the oil prices have continuously increased over the last decades and the evaluations that this would happen date back to after 2003.
As early as 2009, the predictions for the period 2009-2016 reflected oil was expected to increase by 50% (as a trend) from an average at that time of around $50 (Kitov, 2009). This was based on existing statistical facts and evaluations and past data, thus carrying a high level of abstract objectivity. These evaluations were translated in practice, with oil prices currently at $92. All this would translate into an increased cost for the airline carriers.
Even more worrying when it comes to oil is that much of the price is…… [Read More]
"In India, there are no Big Macs because the Hindu people don't eat beef. However, they have the Maharaja Mac, which a Big Mac is made of lamb or chicken meat. There is also a vegetarian burger, the McAloo Tikki" (Adams 2007). However, despite the fact that McDonald's must face what may seem like insurmountable challenges, like selling its 'burgers' in a nation like India where a high percentage of the population is vegetarian or does not eat beef for religious reasons, it still holds to the same quality standards of standardized operating and assembly procedures. This enables the McDonald's style to be exported across borders, even when accommodations must be made.
Meyer similarly keeps a tight reign upon quality control at his organization. But it is quality that his obsession, not that "French fries had to be exactly 0.28 inches thick" (Schlosser 2005). While, "the McDonald's operations manual today…… [Read More]
airlines operating in and out of the UK. It has 12 sources in Harvard Style.
British Airways (BA) has come a long way by expansion of their services and fleet. Currently the airline is operating from Harmondsworth in the United Kingdom. British Airways is the biggest airline providing airline facilities all over Europe. The airline has strength of more than 365 planes. British Airways offers its clients access to more than 270 destinations all over the globe. These destinations span in more than 97 countries. The major activity zone for the airline is London, more specifically the Heathrow and Gatwick airports [Hoover's, 2003].
Business Environment Evolution
The roots of British Airways can be traced back to around the time of the orld ar I. The formal introduction of the airline took place with the decision of the United Kingdom government to combine two British airlines operating at that…… [Read More]