Strategic Management in Regional Airline

This report discusses the performance of a regional airline in the simulation process, including the impact of leadership style and the effectiveness of change management. It also explores marketing mix strategies and strategic management theories.

Executive Summary
The report discusses about regional airline. Performance of the company in simulation
process is being describe in the study. It includes leadership style that is being adopted by the
firm and impact of inappropriate leadership style on the business performance. It is described
that regional airline initially adopted authentic leadership but later on it has made changes in its
style and has adopted transformational leadership style. Furthermore, study describes Kotter’s
eight step change management theory and its effectiveness for the cited firm. Organizational
culture, market segmentation and target market theories are being described in this report. Report
emphasis on marketing mix strategies and strategic management theories. It explains porter’s
five forces and Ansoff matrix models with references of regional airline. It explains that regional
airline focuses on advertisement strategy due to which it is unable to attract people and enhance
its revenues but later on company has taken support of social networking sites and campaign
marketing strategies. These models are effective for attracting more passengers and spreading
brand image of the corporation across the world.

Management Practice

Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................4
Analysis...........................................................................................................................................4
Conclusion.......................................................................................................................................9
Recommendations..........................................................................................................................10
References......................................................................................................................................11

Introduction
There are many internal and external factors that influence business practices. Each firm
concentrate of market condition and makes changes in its practices so that it can sustain in the
market for longer duration (Garg, 2016). Changes may create risk to the firm because it may
spoil existing performance of the company to great extent. Present study will be based on airline
industry. The main motive of simulation games is to develop understanding for theories and
strategic management tools so that entity can run its business in smooth manner. Study will cover
major aspects that can help the airline forms in gaining success in the market. Report will explain
leadership theories in effective strategic management situation. Analysis of various theories will
be done that can support airline firms in managing their business well and generating more
revenues.
Analysis
Regional airline was the popular airline firm in the United State, it offers amazing
services to travelers. But cited firm has faced huge difficulty because competition was too high
many other airlines were providing amazing services and accommodation facilities to the
passengers. In such condition it is essential for regional airline that to take some strategic
decision so that it can meet with its objective and can sustain in the market for longer duration
(Chow and Tsui, 2017). In this respect adoption of differentiation strategy can be considered as
effective strategy. This strategy can be beneficial in filling gap between entrepreneurial
orientation and overall performance of business uni. After implementing differentiated strategy
regional airline has changed its name and after that it was known as Air breeze. Differentiated
strategy can help the company in providing exclusive products to the customers and meeting
with their travel needs. It is very important for the regional airline that to identify needs of
consumers and provide them products accordingly. When pother competitors were applying
market growth strategy at that time regional airlines have taken support of differentiated strategy.
This has helped the company in providing variety of products to the consumers and offering
them better aircrafts and routes (Mallikarjun, 2015). It has offered meal services and luxurious
facilities to the consumers. But this strategy has not given desired results to regional airline
because company has failed to maintain fleet operations and managing cost as well.

Ansoff matrix is another strategy that supports in managing business operations and
expanding operations globally. Regional airline has taken support of market penetration strategy.
It has made acquisition with other big airlines (Hussain, Al Nasser. and Hussain, 2015). It has
increased its fleet routes that has assisted in attracting mass audience. Market penetration has
supported in increasing market share of regional airline. But this approach was not that much
effective as it was expected.
After implementation of market penetration strategy net profit of the company was
getting fluctuated. Leadership is the term that define the ability of leaders to manage team
members and conduct business operations in smooth manner. Effective leaders help the
employees in managing their work effectively and guide others well so that they can perform
well and can contribute well in accomplishing business objectives. Each firm recognizes
important of effective leadership. The success of the firm is highly depended upon leadership
style and characters of leaders. Regional airline taken support of authentic leadership style
(Dobruszkes, Givoni and Vowles, 2017). It is the type of style in which leaders give more
attention towards truth and originality. This style was implemented in the initial phase but
employees have started misusing the trust of the company. Later on, regional airline has made
changes in its leadership style. Leaders of the firm has adopted transformational leadership style.
But modification in the leadership style was not suitable for the company and has not given
desired results to the firm (Yeh, 2014).
Market is very fluctuating, in order to sustain in this market, it is very important for the
Regional airline that to make changes in its business practices time to time. They have to

understand the new rules and accordingly have to manage changes in workplace. Change
management is much more based on the strategic planning of the entity. If planning of the
company is not effective then it may create complication for the business unit. Regional airline
was facing huge issues where its net profit was continuously decreasing (Bolman and Deal,
2017). In such condition it was very difficult for the firm to sustain in the market for longer
duration. Kotter’s eight step change management strategy has been applied in the cited firm. The
first stage of this model was to create urgency to make changes in the organization. Regional
airline has created urgency for the staff members that they have to make changes and have to
adopt new technologies. In the next phase company has to create vision. Higher authorities have
make changes and has developed more routes and improved its accommodating services
(Fairhurst and Connaughton, 2014). People were trained according to the new policies and
practices. Eight stages are to comprises of sustaining valuable acceleration so that productivity of
regional airline can be improved. But after implementing this change management theory in
workplace, it was analyzed that company is unable to generate desired results. Its profitability is
very low and due to changes employees are unable to perform well in workplace. This has
decreased satisfaction level of consumers and entity gets failed to survive in the airline industry
for longer duration (Covin and Slevin, 2017).
Organizational culture is the values, belief of the company. It can be defined as the way
in which Regional airline treats its workers and consumers both. It is the duty of manager that to
conduct meeting and discuss regarding change management. They have to take their suggestions
as well so that it can generate positive result in the workplace. One of the major issue that has
been identified in the regional airline is that there is poor communication between employees and
employers (Cross, Belich and Rudelius, 2015). Leaders always expect positive response from
employees but they do not involve them in decision making process. In such condition workers
feel demotivated and they do not perform their work effectively. Leaders promote their favorite
people thus; skilled labor fails to get development opportunity in the organization. These issues
have affected performance of the firm to great extent. Company was required to develop fair
environment where all employees can get equal opportunities and they can discuss their issues
freely with their employers (Dolnicar and et.al, 2014).

Strategic management is considered as essential tool that supports the entity in
formulating effective strategies and gaining positive results. Cost leadership is the most effective
strategy which was implemented by Regional airline. This is effective strategy that supports the
firm in flourishing business and increasing profit margin as well. In the initial years regional
airline has adopted low cost strategy. Where it was offering airline services to travelers at low
cost but at that time duration overall profit of cited firm was not good (Weinstein and Cahill,
2014). In such condition entity was facing survival issue where it was difficult for the firm to
sustain in the market for longer duration. But later on Regional airline has adopted cost
leadership style. This has started utilizing its assets effectively and has supported in minimizing
issues in various departments. This has helped entity in gaining success and sustaining in the
market for longer duration.
Marketing mis strategy is considered as the main strategy that helps in market the product
across the world (Garg, 2016). It is theory which concentrate on product, place, price,
promotional aspects of business unit. It makes effective strategy so that overall goal of the
company can be accomplished. There are major factors that need to be taken into consideration
by the firm while implementing marketing mix theory. It has to ensure that manager allocate
resources effectively and utilize skills of employees properly. They have to give them
responsibilities as per their talent and skill. Product of company plays significant role in the
success of the firm. If products of the firm are not satisfactory then it may create complication
for the entity because it may get failed to meet with the needs of consumers and fail to satisfy
them. Regional airline is the low-cost airline, it offers limited products to consumers. Initially
company was focusing on selling seats of flight but after merger it has started offering luxurious
services to the travelers (Chow and Tsui, 2017). Now it is providing meal, drinks to passenger’s.
This was nice effort of regional airline which has helped the firm in attracting more travelers and
retaining them in the corporation for longer duration.
Price is another element of marketing mix, it is the factor that can influence overall
performance of the company. Initially regional airline has adopted price skinning policy. It was
offering airline services to the passengers at low cost (Mallikarjun, 2015). Fair rates of tickets
have attracted many people towards the location. But after merger it has started offering
luxurious services to the consumers. In such condition it was unable for Regional airline that to

generate profit because it was unable to recover its cost. After that company has implemented
competitor pricing strategy. It has increased its cost of tickets and has set prices as per the
competitor’s prices (Hussain, Al Nasser. and Hussain, 2015). This was great strategy for the
cited firm because by this way it has become able to attract more people and gain desired profit.
This has improved profitability of company and it has become able to sustain in the market for
longer duration. Place is another element of marketing mix strategy. Regional airline is operating
its business at convenient place. During the fourth quarter company has extended its routes and
services. This has attracted more travelers towards the firm (Dobruszkes, Givoni and Vowles,
2017).
Promotion is the most important part of business unit. If entity is unable to promote its
product and services then it can not be able to sustain in the market for longer duration. For
sustaining in the industry for longer duration it is very important for the firm that to promote
brand in efficient manner so that more people can get to know about it and take interest in its
services. Regional airline is the low-cost airline which allocates poor budget for marketing and
promotional activities. Company promotes its product and services through newspaper
advertisement (Fairhurst and Connaughton, 2014). This has increased burden of the firm because
it was failed to attract people towards the location. But after that in the fourth quarter regional
airline has maximized its investment and has allotted 8000 for promotional activities. They have
taken support of social media and campaign marketing strategies. Both these tools have raised its
revenues. More people were raising their quarry and were taking interest in the flight. This has
increase competition in the market and has helped the firm in accomplishing its revenues
significantly (Covin and Slevin, 2017).
Situation analysis is the most important part of business unit, each entity is required to
understand the situation of the firm and accordingly they have to make their planning. Porters
five forces is the most effective situational analyses factor. It helps in analyzing core
competencies of the firm. As regional airline is operating its business in airline industry where
company has to face direct and indirect issue which may spoil overall performance of the firm.
Company has to look upon the needs of existing consumers and have to provide the products
accordingly. Bargaining power of buyers is too high (Hussain, Al Nasser. and Hussain, 2015).
Consumers can influence overall performance of the company to great extent. Thus, entity is

required to analysis their needs and have to provide them products and services accordingly.
Power of new entrance is very low. New firm required to invest huge amount and require to have
good experience in this field otherwise it may get failed to establish its business in this industry
successful. Suppliers power is moderate. There are limited suppliers those who are providing
quality raw material to the regional airline. If they do not serve the firm well the company has
option to move towards other suppliers. Competitors power is high in the company because
British airways etc. are running operations successfully (Mallikarjun, 2015). These entities are
providing luxurious products t the passengers that is why people are very satisfied towards the
brand.
It is very important that to target right consumers in order to generate more revenues.
Airline firms has to segment their market, Correct segmentation allows firm in identifying
specific needs of consumers and providing them services and products accordingly. Regional
airline fails to target the right people (Weinstein and Cahill, 2014). It is the crucial decision and
if this decision is not taken in the right manner so it can give negative result to the corporation.
Market segmentation allows the firm in dividing the population on the bases of their
characteristics. This theory explains that each consumer has different behavior, life style etc. It is
very important for the firm that to divide them perfectly. This assists in developing knowledge
about their needs, wants and desires. Regional airline has not demonstrated market segmentation
effectively that is why it was unable to understand needs of passengers (Cross, Belich and
Rudelius, 2015). This has given loss to business unit and it was unable to attract more people
towards the location.
Conclusion
From the above study it can be concluded that each firm is required to set its goal and
have to make effective planning so that objective of business unit can be accomplished. It has
been identified that airline industry is facing huge issues such as poor leadership, in appropriate
strategic management. That is the main reason that regional has faced huge complications.
Company is required to make changes in its practices and has to align its practices as per the
market demand. This can support the entity in improving its performance and sustaining in the
market for longer duration. Ineffective promotional activities may create complications for the
firm because it may get failed to make people aware with the product and services of business

unit. Company has to make sound strategic decision and have to take support of correct
promotional strategy’s so that it can promote its brand well and can gain attention of mass
audience.
From the above study it can be articulated that in the initial phase regional airline has
offer services to the consumers at lower rates. This was the reason that entity was unable to
generate profit. It was unable to provide good services to passengers because of high operational
cost. But later on, company has adopted cost leadership style which has given positive result to
the firm and has supported in attracting more people towards the brand. Competitors were
offering luxurious travel facilities to the consumers that is why people were expecting high with
regional airline as well. Company has taken decision to extend its routes and after merger it
become able to provide luxurious services to travelers. This has increased profitability of the
company and regional airline has become able to sustain in the market for longer duration.
Recommendations
Regional airline should make changes in its marketing communication strategies. It has to
conduct market research and has to identify needs of passengers. Accordingly, it has to provide
services to consumers so that they feel satisfied and retain in the organization for longer duration.
Cited firm should analysis its core competencies and have to utilize its competencies in effective
manner. This will help the entity in managing its operation well and sustaining in the market for
longer duration. Regional airline should involve its employees in decision making process and
has to enhance communication with them. This will help in implementing changes in workplace
for longer duration and minimizing conflicts situation in workplace. By this way all people will
perform their work effectively ad will contribute well in accomplishing goal of the organization.
Cited firm should provide reward and recognition to its employees. It has to share its vision with
other workers. This will encourage them and they will feel valued. Tis is the best way through
which employee engagement can be enhanced. By this way they will not resist changes and will
accept these modifications happily. This will enhance healthy culture in workplace and all people
will work together in order to accomplish goal of the corporation.

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