Analysis of Skyways Airlines' Strategic Decisions and Performance

This report provides a comprehensive analysis of the strategic decisions made by Skyways Airlines' management over twelve quarters to address declining profitability. It examines the company's vision, mission, and objectives, and traces the evolution of its operational strategies in light of management and promotional theories. Utilizing frameworks such as SWOT, PESTEL, and the 4Ps Marketing Mix, the report evaluates the effectiveness of the company's decisions, including pricing, promotion, product, and place strategies. The analysis encompasses aspects such as staff training, customer satisfaction, and promotional strategies. Based on these findings, the report offers SMART recommendations to align the organization with its goals and enhance its market position. The report also incorporates the application of management theories like Fayol's theory to address the challenges and propose improvements in the operational strategy of the company.

ANALYSIS OF DECISIONS TAKEN BY SKYWAYS

Executive summary
The report aims to present an analysis of the 12 decisions undertaken by the management of
Airlines to improve its business operation as the company's profitability has significantly
declined over time. The report aims to trace the improvement of the company over time with the
strategic decision undertaken in the light of effective management and promotional theories with
model and framework analysis. The report is developed to examine the strategic decisions and
performance of the company Skyways in context to the present situation. The company aims to
be a market leader and contribute to the country of the economy through customer satisfactory
services. For the profound analysis of the organization, tools like SWOT, PESTEL, and 4P's
Marketing Mix have been used. The strategies of the organizations have been analyzed and
ensured they align with the mission, vision, and objectives of the company. Based on the
findings the SMART recommendations have been developed to assist the organization to comply
with its mission and vision.
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Table of Contents
1. Introduction..............................................................................................................................3
2. The complexity of the management........................................................................................4
3. Analysis Simulation.................................................................................................................5
4. Theory application...................................................................................................................6
5. Application of models..............................................................................................................7
5.1 SWOT analysis.................................................................................................................7
5.2 PESTLE............................................................................................................................8
5.3 4Ps..........................................................................................................................................9
5.3.1 Price................................................................................................................................9
5.3.2 Promotion.......................................................................................................................9
5.3.3 Production.....................................................................................................................10
5.3.4 Place..............................................................................................................................10
6. Applied Theory evaluation....................................................................................................10
7. Conclusion.............................................................................................................................11
8. Recommendation...................................................................................................................12
8.1 Staff training....................................................................................................................12
8.2 Customer satisfaction.......................................................................................................12
8.3 Comfort Zone...................................................................................................................12
8.4 Promotional strategy and pricing.....................................................................................13
Reference List................................................................................................................................14
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1. Introduction
The report aims to provide a comprehensive analysis of the decision made to develop and restore
the operating capability of the Airline. The range of decisions has been taken quarter after
quarter to recover the company from a sharp decline. The report is to analyze the 12 decisions
which have been taken to improve the infrastructural strategy and cope with the existing flaws in
the operational strategy to maintain the integrity of the company. The simulation process will be
analyzed and the decisions taken will be aligned with the associated management theory to test
the reliability and success of the decision undertaken to restructure the operational strategy of the
company. The simulation process will be analyzed and the decisions taken will be aligned with
the associated management theory to test the reliability and success of the decision undertaken to
restructure the operational strategy of the company. The report also aims to incorporate the
marketing analysis through SWOT, PESTLE and create a marketing plan using 4Ps.
1.1 Vision
Airline likes to be a part of the major wheel in the global economy generating revenue for the
larger good and reducing the time in the traveling system as much as possible. The company
seeks to be the major partner of the global economy to provide a larger benefit to the traveling
population along with safety and security.
1.2 Mission
The company wants to create a safe journey without any incident by improving its network all
over the world.
1.3 Objectives
The company needs to improve its operating strategy to provide the best customer satisfaction by
improving its infrastructure to achieve customer loyalty and increase its market share.
1.4 Strategic planning
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The strategic planning of the company aims to resolve the associated problem of the company.
The company framed a plan to avoid the issues which may influence its revenue. The company
requires improving its revenue and therefore, its strategic planning is required to stabilize the
company.
1.5 Decision making
The decision making ability of the company requires a greater effort to be followed. The
company manager was required to take effective decisions to enhance the value of the company.
The decline in the company's structure requires an effective decision-making ability to support
the declining business.
1.6 Key take-Away
The company is found to have taken effective decisions on sales and promotion, recruitment of
sales personnel, customer satisfaction issues and many marketing activities to support the
declining Airline.
2. The complexity of the management
The management of the company initially failed to take effective decisions on a few issues. The
negligence on the part of the managing on certain areas has instigated the management to
undertake some major decisions. Though the major decision has been taken, there were some
weak areas remained undecided. The undecided areas have affected the operation of the
company as the company can hardly progress due to lack of effective marketing and promotional
strategy which left the company paralyzed and lead the company towards declining mode (Shaw,
2016). The increased focus of the company in enhancing infrastructure and inoperative system
made the look of the company praiseworthy, but lack of public awareness regarding the facilities
provided by the company reduced the customer volume, and therefore the company felt the
extreme need to change and modify its decision and business strategy to adapt the scene. The
company’s initial decision to make an effort to improve service did not serve the purpose. It has
required developing a promotional strategy to deal with the system effectively and efficiently.
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3. Analysis Simulation
 To meet the customer satisfaction level and create a favorable brand image on the
customer’s mind, the fare per mile was reduced by 1%, though the fare structure and the
food services were kept the same.
 To widen the target market and attract the target customers to the business, the
advertising budget was increased to $1,900 from $1,800.
 The extra funding for advertisement, cargo marketing, and sales forces was arranged by
reducing the promotional budget by 33.33% in the second quarter.
 To target the broader market, it was decided to follow the cost leadership strategy. After
ensuring that the broader target audiences are targeted to the business, it was strategized
to focus on the income of the farm along with meeting the customer expectations. As per
the strategy, the fare per mile was increased gradually and the free food services, such as
drinks were provided as per the previous.
 Along with the fare of flight, the charges levied against meals and snacks were
increased gradually to increase the net profit.
 The competitive strategies were developed and implemented to avail of competitive
advantage in the market. The profits earned from the service were invested in the
marketing and sales promotional activities.
 Budget for brand promotion, advertisements, salespersons, sales forces, cargo marketing
increased to promote the amenities and facilities of the service to the customers. As an
extra facility of service, and customer satisfaction, the in-flight magazine was offered to
the customers to exceed their expectations and make sure the customers will take the
services from the organization.
 Another strategic decision of the company was to develop a favorable brand image by
serving the local community and society. First, the organization endeavored to practice
the responsibilities for the community people. After the success of the strategy, the
company took the initiative to ponder upon the environmental issues and develop a
favorable brand image in the market.
 The company started to abide by the legal and ethical obligations by purchasing fuel
through contracts. Fuel contracts ensured the steady and routine supply of fuel at a
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foreseeable price margin. The fluctuation of fuel prices brought no harm to business and
air services.
 Frequent cleaning and maintenance have been exercised and the investment for
maintenance and cleaning has been increased for the comfort of passengers.
 Strategic decisions have been made regarding the acquisition of the business. To avoid
the issues associated with the integration problems and unsatisfactory financial outcomes,
the activity of acquisition have been avoided where possible. Furthermore, after
increasing the target customer and strengthening the customer base, the number of flights
has been increased to serve customer needs. The number of flights and the amenities to
the customers have been increased as per the revenue of the farm to ensure it does not
need to take lone from a third party.
4. Theory application
The theory of management and promotional theory are an integral part of the decisions
undertaken to rectify the wrong moves of the company. The company has developed a training
system and recruited personnel. The sales executive of the company could find an effective
means to deal with the rise in the ticket sale of the company (Uzuegbu and Nnadozie, 2015). The
training and encouragement to the sales employee have brought down the revenue decline of the
company. Henri Fayol's theory reveals that the management of the company needs to direct and
encourage personnel activity. The management needs to cooperate with the sales personnel. The
sales personnel training and encouragement with another employee will improve the company's
operation at large and it will lead them towards the effective improvement of the sales of the
ticket. The theory is also focused on the improving efficiency of the employee and improving
their ability to work in a team. The management of the company as it has been deduced from the
decision undertaken in the simulation process needs to organize manage and restructure its
system for constantly improving the company's ability to adjust to the competitive environment.
The work division is to be done for seeking cooperation and coordination of team members in
the sales workforce (Halpern, 2016).
The promotional activities of the company require to develop effective means to stimulate and
attract the customer towards its products and service (Kim et al., 2016). The promotional theory
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encompasses all like online selling, advertising, and sales promotion. All these effects have
resolved the company’s issues to deal with the effective model.
5. Application of models
5.1 SWOT analysis
Strength
The company has developed an excellent
infrastructure as it is found to be capable of
dealing with the competitive situation.
The company is found to be capable of dealing
with various situations. It well-developed
infrastructure, its pricing strategy, its effective
planning are the strength associated with the
organization.
The organization has a strength of effective
marketing and operative professionals who will
prove effective in dealing with the issues of the
company (Uzuegbuand Nnadozie, 2015).
The company is found to have no effective
debt. The absence of debt is the way to
process. The company’s balance shows the
absence of debt (Jiang, et al., 2018). The
absence of debt is itself a way that shows the
capability and strength of the organization to
operate in the market without falling for short
Weakness
The company has a lack of marketing strategy.
There is an availability of a team for promotion
and advertisement (Kim, et al., 2016).
The staff for the promotion requires handling
the situation promotional activities with great
effort. They need to entrust with the company’s
vision and mission to let them work effectively
(Phadermrod, Crowder and Wills, 2019).
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term and long term debt (Güre and Tat, 2017).
Opportunities
The company has a good market share. There
is a rising number of people preferring to travel
by air. There is a rising number of people who
prefer to travel by flight.
The company has a good market share which
has been oppressed by the other company due
to lack of an effective promotional plan for the
company.
Threat
There is a threat to the new entrant. New
domestic players in the industry can affect the
business operation of the company.
The company can have a route threat. There is
a chance of an accident, and the risk associated
with the airways is higher. Therefore the
company needs to develop a safety system
more effectively.
5.2 PESTLE
Political Economic Social Technologica
l
Legal Ethical
Politically,
the company
requires
stable
government
and free
from the
warlike an
intention to
allow the
The
company's
operation
basis strong
enough to
allow the
company to
develop and
flourish
without any
The social
condition is
related to the
cultural
tendency of
the place of
operation of
the
company.
The
The airline is
more
associated
with
technology
than any
other thing.
The
technological
development
The company
needs to
understand the
rules of the
different parts of
the globe to obey
the rules. The
domestic
operation of the
planes of the
The
company
need not
destroy the
ecological
balance and
follow the
culture
wherever it
establishes
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company to
deal with
effect
(Rastogi and
Trivedi,
2016).
company has
developed
and trained
the
employee in
such a way
to
understand
the diverse
culture and
diverse
language in
different
parts of the
globe
wherever its
flight will
land.
is an integral
part of the
company. As
a company in
the air travel
industry, it
has a well-
developed
technology
system to
cope with the
issues related
to the risk
and
convenience
of the
customer
(Holloway,
2017).
company has good
regulatory
compliance
(Walsh,
Bhagavatheeswara
n, and Roma,
2019).
its area of
operation.
The
promotional
activities of
the company
have a basis
rooted in
ethics.
5.3 4Ps
4Ps as a marketing strategy of the company will be very effective to analyze and improve the
company’s position. The decisions taken by the company will improve the company’s operation
and it can be analyzed in the strategy (Jang, et al., 2018).
5.3.1 Price
The company is found to raise the ticket price over time, but while improving the ticket price
increase, the company has considered the increasing benefits and increasing improvement in
infrastructure to attract more customers. Though the company raised the ticket's price over time,
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it has given a special focus on customer satisfaction. It has improved the company’s revenue.
The company needs to increase the ticket price in comparison to other airlines for gaining a
competitive advantage with good service quality.
5.3.2 Promotion
The company initially hardly promoted the service it has been offering. The company finally
realizes the way the company can be improved. The recruitment of the sales staff and trading
with them regularly enhanced the promotional activities of the company (Liu and Chang, 2017).
The promotional activities of the company increased the ticket sales of the company. More
travelers started pouring in (Abratt and Bendixen, 2018). More travelers started pouring in. with
the increase of the salesperson. The company can enhance its promotional activities by using
banners and brochures.
5.3.3 Production
The company is found to have delivered good service to the customer who has vested the places
of the airlines (Deng, Santos and Mathieu, 2018). The improved customer service attracted
luxuries and high-value customers towards the airlines. The airlines need to arrange cargos
which are more attractive and have a good design.
5.3.4 Place
The convenient location of the airlines has allowed the passengers to move to the city easily after
de-boarding the plane. The customer can also easily reach the airport due to the convenient
location of the company (Xiang, 2019). The convenient location of the company will effectively
resolve the issue. The passenger can have easy access to the flight if the location is convenient
for them.
6. Applied Theory evaluation
Theories that have been selected and applied in the analysis of the company's decisions were the
promotional and management theories. These theories effectively dealt with management. These
theories allowed the management to undertake decisions that converted the company’s declining
mode into progressing mode. To meet the customer satisfaction level and create a favorable
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brand image on the customer’s mind, the fare per mile was reduced by 1%, though the fare
structure and the food services were kept the same (Tyagi et al., 2017). To widen the target
market and attract the target customers to the business, the advertising budget was increased to
$1,900 from $1,800. The extra funding for advertisement, cargo marketing, and sales forces was
arranged by reducing the promotional budget by 33.33% in the second quarter. To target the
broader market, it was decided to follow the cost leadership strategy. After ensuring that the
broader target audiences are targeted to the business, it was strategized to focus on the income of
the farm along with meeting the customer expectations. As per the strategy, the fare per mile was
increased gradually and the free food services, such as drinks were provided as per the previous.
Along with the fare of flight, the charges levied against meals and snacks were increased
gradually to increase the net profit (Pásková, Hruška and Zelenka, 2018). Thereby, the
competitive strategies were developed and implemented to avail of competitive advantage in the
market. The profits earned from the service were invested in marketing and sales promotional
activities. Budget for brand promotion, advertisements, salespersons, sales forces, cargo
marketing increased to promote the amenities and facilities of the service to the customers. As an
extra facility of service, the in-flight magazine was offered to the customers to exceed their
expectations and make sure the customers will take the services from the organization.
Another strategic decision of the company was to develop a favorable brand image by serving
the local community and society.
7. Conclusion
The report was developed with the purpose to review the strategic decisions made by the
company Skyways to increase profit and enhance customer experiences. The company has
developed operational and strategic decisions in consecutive 12 quarters. The profound study of
the decisions made by the company depicts that the organization has attracted the customers
though reducing their fare first, and then gradually increased the fare to meet the financial
objectives. Although the strategy was good, the company needs to consider that completive
rivalry in the airline industry has been increased drastically. The company works for clients
belonging to different social classes and cultural backgrounds. Hence, it becomes necessary for
Skyways to identify the areas of improvement that could serve the customers regardless of
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