Introduction to Management Research Paper 2022

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Running head: INTRODUCTION TO MANAGEMENT
INTRODUCTION TO MANAGEMENT
Name of the Student
Name of the University
Author Note
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1INTRODUCTION TO MANAGEMENT
Introduction
The purpose of this paper will be to perform a research on the organization of Air
Canada, where a brief overview of the organization along with the customer base and the
mission, vision and value statements of them, through which they set their business objectives
and perform their business operations across the world. Both corporate and business level
strategies will be discussed in this paper. A SWOT analysis will also be performed on Air
Canada, which will help to identify the strengths, weaknesses, opportunities and threats that
prevail in the business environment and market places. A brief conclusion will sum up all the
discussed points and will end the research on this paper.
Overview of the Company
Air Canada is the largest aviation as well as the flag carrier of the region of Canada and
10th largest aviation company in terms of global context. The organization founded and started
their business operations in the year 1937, and the major hubs of this company are located in
Calgary, Toronto – Pearson, Montreal – Trudeau and Vancouver. The present fleet size is 189,
and provide travel to 222 destinations across the world. They are also the founding member of
the Star Alliance, and belong from the aviation industry. There are more than 30,000 employees
who are associated with this business organization, and the regional service is provided by the
management in the name of Air Canada Express. The fleet size of this company includes Airbus
A330, Boeing 777, Boeing 767 and Boeing 787 Dreamliner. The operational division of this
business entity includes Air Canada Cargo, Air Canada Jetz, which are private jet charters, Air
Canada Express and Air Canada Rouge, which is the leisure airline. One of the subsidiary of this
business house, Air Canada Vacations, is engaged in providing vacation packages in more than
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2INTRODUCTION TO MANAGEMENT
90 destinations across the world. More than 1,600 regular flights are operated by the
management of this aviation company (aircanada.com, 2020).
Customer Base
More than 50 million customers avail the user and environment friendly innovative
services offered by the management of Air Canada. Through the hierarchical structure which is
headed by the Chief Executive Officer, and more than 1,600 flights are operated across the world
on regular basis. An immense growth has helped to serve these customers, who are the solely
responsible for earning revenue for this organization. The utmost comfort along with modern
innovation and technology are provided by the management of this business entity, and the ever-
changing and ever-growing fleet helps to reflect the commitment to the customers, which enjoys
to gain the competitive edge over other rival institutions that are present across the world
(aircanada.mediaroom.com, 2020).
Mission Statement and Core Values
Mission Statement
The present mission statement followed by the management of Air Canada is connection
the region of Canada to the rest of the world. Through the mission statement, it can be said that
the management of Air Canada are focused in providing wide array of innovative services
through their aviation business and connect all the people of the world with the citizens of
Canada through core values that are valued by the management as well as the employees of this
company.
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3INTRODUCTION TO MANAGEMENT
Core Values
It can be said in this context that Air Canada is regarded as one of top diversity
employers within the region of Canada, which they are following over the last three years. The
management focuses on this as they are able to realize that diversity is the most vital point of the
success of this organization. They also value their customers and provide high quality service to
their customers or passengers who avail their services. The management has also established
fresh targets for 2018 to 2020, and provide updaters related to the loyalty business performed by
this company (Pigott, 2014).
Vision Statement
The present vision statement that is followed by Air Canada is building the loyalty
through following the processes of innovation and passion. Apart from this, the business
objective that is hugely focused by the management of this organization is providing fuel
efficient as well as environment friendly flights to their passengers, who provides the base of this
aviation corporation. It can be noted in this context that safeguarding the global environment is
one of the major or primary corporate social responsibility that needs to be performed by the
management of aviation companies and the same is done by the organization of Air Canada
(Pigott, 2014).
Corporate Level Strategies
The major corporate level strategy is to become the global champion through sustainable
profitable corporate objectives. The management always focuses to follow the modern
techniques and methods through their operations. There are many subsidiaries of Air Canada,
which are discussed earlier in this paper. Cost reduction techniques along with revenue
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4INTRODUCTION TO MANAGEMENT
enhancing initiatives are performed as the corporate level strategies by this business house.
Innovative and new corporate level strategies help this organization to maintain their leading
position in the market place of Canada, and continuous investments are done in order to maintain
the level of services they are performing to their millions of customers who are present across the
world (Liu & Kharina, 2017).
Business Level Strategies
Coming to the business level strategies, the first and foremost thing that is followed by
the management of Air Canada is improving the customer experiences along with engaging their
employees through the comprehensive strategy. This helps them to improve the profitability as
well as in the leisure markets. This strategy helps to increase the strengths of Air Canada, which
will be discussed later in this paper. They are also utilizing the opportunities in the leisure
markets through their subsidiary, which is known as Air Canada Rouge. Apart from this, other
market opportunities are also catered by the management of Air Canada in the mode of Air
Canada Vacations, which also serves different customer base, which helps to increase both the
market share and profitability for this globally reputed business entity.
SWOT Analysis
Strengths
The major strength of Air Canada is being the largest airline company in the region of
Canada. The management has entered into partnership with many local or regional institutions
under the banner of Air Canada Express, along with providing of passenger services in the
aviation market of Canada. Apart from these, there are many airline service providers which
operates under the banner of Air Canada. A strong financial position has been possessed by the
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5INTRODUCTION TO MANAGEMENT
management of this institution, and as a result the net income was almost $876 million Canadian
dollars. A strong aviation network is also enjoyed through the briskness operations of this
organization and as a result, the company is able to serve wide array of innovative and fresh
services to the millions of customers who uses their services on regular basis (Tbk, 2016).
Weaknesses
It can be stated in this context that the aviation industry fully depends on the technology
and the management of Air Canada has faced issues in the early 2018, which included issues
with the computer. Apart from this, aging aircraft of the fleet of this company is increasing the
overall maintaining cost of the company. Though the brand awareness of this organization is
high, but the brand affinity of them is low, which acts as one of the major weakness that is faced
by this aviation company. The domestic market share of the company is also getting decreased in
the local market, mainly to the low-cost competitors who are getting more in numbers in the
aviation market place. The flights to the region of the United States is also getting reduced for
this business entity (Vowles & Lück, 2013).
Opportunities
The major opportunity that is enjoyed by the management of this company is the route
expansion, where 30 more fresh routes which includes 20 fresh international routes has been
launched by the management of this business house. Routes from Toronto to Mumbai, Montreal
to Algiers and Vancouver to Frankfurt are some of the examples of new routes. Apart from this,
the booming tourism market place of Canada has also provided opportunities to this company,
which helps to penetrate into another market segment for this organization. They also launched
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6INTRODUCTION TO MANAGEMENT
low-cost airlines, which has provided opportunities for expansion in the aviation market globally
(Hartt, 2015).
Threats
The major threat that has been faced by the management of this organization are the
competitors, which they are facing in both the domestic and international market places. Few
local competitors like West Jet, Sunset Aviation, Air Transat and Provincial Airlines provide
tough competition to them. Other low-cost airlines are also posing threat to Air Canada, apart
from following the rules, regulations and legislations related to the Government. All these factors
are hampering the flow of the business operations that are decreasing the revenue and market
share of Air Canada (Energy, 2014).
Conclusion
From the above discussion, it can be concluded that Air Canada successfully operates
their fleet through business and corporate level strategies and by following the mission and
vision statements and follow the core values efficiently. The strengths of the management along
with utilizing the opportunities available in the market place helps them to overcome the
weaknesses and threats that exists in the highly competitive global aviation market place.
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7INTRODUCTION TO MANAGEMENT
Reference
(2020). [Ebook]. Retrieved from
https://www.aircanada.com/content/dam/aircanada/portal/documents/PDF/en/quarterly-result/
2018/2018_MDA_q4.pdf
Air Canada Establishes New Targets for 2018-2020 and Provides Update on its Loyalty Business
- Sep 19, 2017. (2020). Retrieved 29 February 2020, from
https://aircanada.mediaroom.com/2017-09-19-Air-Canada-Establishes-New-Targets-for-2018-
2020-and-Provides-Update-on-its-Loyalty-Business
Energy, N. N. (2014). Annual report 2013. Suncor Energy, Calgary, Canada.
Hartt, C. M. (2015). Change at the top of Air Canada: the governing liberal party perspective—
an analysis of non-corporeal actants. Journal of Business and Economics, 6(1), 21-34.
Liu, C., & Kharina, A. (2017). Canada-US transborder airline fuel-efficiency ranking (No.
Working Paper 2017-16).
Pigott, P. (2014). Air Canada: The History. Dundurn. com.
Tbk, P. B. S. D. (2016). Annual Report 2015. Industry Review: Management Discussion and
Analysis”, Diakses melalui http://www. bankmuamalat. com, pada, 17.
Vowles, T. M., & Lück, M. (2013). Low cost carriers in the USA and Canada. The Low Cost
Carrier Worldwide, 61-78.
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