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MGMT 121: Principles of Management

   

Added on  2020-05-16

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Running head: AIRLINE ASSESSMENTAirline Assessment Name of the Student:Name of the University:Author Note:
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1AIRLINE ASSESSMENTSynopsis Air Canada, founded in 2001 has its headquarters located in Saint-Laurent. The companyis dominated by its rival and competitor Westjet and it is due to the lack of strategy andimplementation of the same. Their lack of governing policies has also proliferated the number ofemployee confrontation and a decrease in the productivity rate. From the case study, it becomesapparent that Air Canada has done very little to compete in the U.S airline market dispersed bycompetent airline companies. At a glance it becomes evident that Air Canada lacks innovation inthe sector of offering products and services to the passengers. There are many areas where AirCanada has lagged behind like making customer satisfaction upmost priority. Moreover, thecredit account of Air Canada has gone bankrupt due to their high operational costs as a result ofwhich the revenue has declined significantly to $1million from the stipulated $900 million. Overthe years market analysts have predicted decline in the revenue quarters and lost domestic hasmarket share (Williams, 2017).Furthermore, on a number of occasions Air Canada has found itself dominated byemployee union and customer demands. The situation was further aggravated by its constantelimination of employees in order to curtail the expenses which in turn de-motivated the youngeremployees who just started off their career. The case study in a nutshell brings to the surface theloopholes in the operation and management sector of Air Canada that have sprung a number ofdisadvantages.
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2AIRLINE ASSESSMENTSymptoms 1.Air Canada has failed to mushroom its network and as a result Westjet has taken over theposition of being the dominant airline in the Canadian market.2.Air Canada has lagged behind in providing customer satisfaction even during their ownfailure in providing punctual and quality services. It is also apparent how Air Canada hasfailed in understanding customer requirements and catering accordingly.3.Air Canada is far behind in employee motivation and appreciation as a result they arelosing out employees to other airline companies like Westjet who has always kept theemployee satisfaction as the first preference. 4.The management sector has failed to curb the draining of $1 billion revenue especiallywhen Air Canada is on the tip of bankruptcy. Instead of implementing strategies theyslacked potential employees.5.Air Canada has high maintenance cost and they have done little to craft a competentbudget to evaluate or moderate the annual expenditure.Problems There are a number of issues faced by Air Canada and detrimental to the marketextension and networking of Air Canada. Lack of Innovation- Air Canada has failed to improve its technological aspects that wouldprove beneficial in serving the passengers better, since these are already embraced by its rivalcompetitors, it has furthered lowered its popularity. In fact, Air Canada has proven in efficient toprovide proper accommodation to those customers who faced inconvenience due to abnormal
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