Cathay Pacific | Effectiveness Of Organisation Strategy | Case Study

STUDENT NUMBER: A69486
BUSINESS
STRATEGY
MANAGEMENT

STUDENT NUMBER: A69486
TABLE OF CONTENTS
INTRODUCTION...............................................................................................................1
ANALYZE, EVALUATE AND CHALLENGE THE EFFECTIVENESS OF
ORGANISATION STRATEGY...........................................................................................1
IMPACT OF STRATEGIC CHOICES IN ITS FUTURE DIRECTION................................5
EFFECTIVES OF THE ORGANISATION’S ENGAGEMENT WITH THE VALUES OF
GLOBAL SOCIAL RESPONSIBILITIES............................................................................7
CONCLUSION...................................................................................................................9
REFERENCES................................................................................................................11

STUDENT NUMBER: A69486
INTRODUCTION
Cathay Pacific is the airline of Hong Kong and in the recent times it has emerged
as one of the leading competitors in the airline industry. It has been serving many
countries and it is providing it cargo services to around 200 destinations in 52 countries.
Besides this, the airlines have developed many new services as well as the products
which are made especially for competing with the competitors. They have made
partnership with different airlines which will help them in the future. This report talks
about the strategies which are not successful and because of this the operations of the
company got hindered. Besides this, it also stresses on the strategic moves which are
made by the Cathay Pacific to sustain their leading position in the future.
ANALYSE, EVALUATE AND CHALLENGE THE EFFECTIVENESS OF
ORGANISATION STRATEGY
Cathay Pacific is one of the leading airlines of Hong Kong. According to the case
study, it can be witnessed that the airlines has been mostly benefited from low fuel
prices which led to increase of customers (Chaffey and White, 2010). It also increased
the number of flights from 14 to 17 flights a week to the San Francisco. Besides this, for
meeting the needs of the customers they have reduced the Toronto flights. This has
assisted in serving the customers effectively but with the frequent modifications it has
lost the customers who were there regular travelers because of the unavailability of the
flights. This was done to attract new passengers but in that case Cathay Pacific was
unable to fulfill the demands of the existing one (Teece, 2010). This has given chance to
its competitors in taking the customers which uses the Cathay Pacific. The existing
passengers switched to Singapore airlines and Jet Airways as they were able to meet
the needs of the existing users (Morrison and Winston, 2010).
According to the case study, they have added two cargo flights per week to the
North America (Ciliberto and Schenone, 2012). This strategy is useful in expanding its
target market but not focusing on the customer satisfaction. It has been seen that with
the increase in business, Cathay Pacific has been delaying flights schedules which is
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STUDENT NUMBER: A69486
resulting in loss of the customers. Besides this, they have made strategy regarding
developing of the business class; leaving a negative impact on the normal class people.
It has been reported that service quality has been degraded regarding poor
maintenance and several issues are identified by the customers. The strategy which
has been made for the business class employee is hampering the services of the
economy class people (Ciliberto and Williams, 2010).
According to the business environment, Cathay Pacific is facing challenges while
competing with the other airlines. The organisation has made strategy in increasing the
fleet and it even had expanded its hub. But by doing this also they are facing intense
competition in the Asian market (Berry and Jia, 2010). This is making difficult for the
organisation to compete with Singapore Airlines etc. For sustaining in this business
environment, it required by the company to make new strategy which can help them to
sustain in the European and the North American markets (Fu, Zhang and Lei, 2012).
On the other hand, making the strategies for the consumer and increasing the
satisfaction level of the users, Cathay Pacific was unable to the meet the demands of its
employees (BUSINESS 478-Section D400, 2016). As compare to other companies like
Qatar Airways they focus on the employee satisfaction which helps in carrying out the
operations smoothly (Han, Ham, Yang and Baek, 2012). This was the main reason
because of which the employees were not able to provide proper services to the
customers which resulted in dissatisfaction. This resulted in strike and also created a
negative image of Cathay Pacific. These were the strategies made by Cathay Pacific
which faced challenges in its effectiveness.
SWOT analysis
Strengths
 Strong base of satisfied customers
 Strong presence in global market
Weakness
 Very limited market in share in
some nations
 Cathay Pacific relies very heavily on
traffic which is moving onward
internationally
Opportunities Threats
2