Aerospace Management Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Aerospace Management Case Solution

Among all three methods of performance appraisal, the most suitable method is the graphic rating scale because it has behaviors or traits which are significantly important for effective performance which gets listed out & each employee is being rated against these behaviors and traits. The method is quite user-friendly and easy to understand. The scores of each employee are meant to separate employees onto tiers of productivity & performance which could play an effective role in determining salary adjustments and promotions.

Despite the high significance of the graphic rating scale, the major disadvantage or weakness of the method is the high risk of bias and error of the rater and the methods include differences among how people score evaluation, a feedback block, perceptions of rating, and a halo effect.

Leadership styles from the University of Iowa Studies: considering the situation presented in the file, the democratic style of leadership is helpful as it is used to foster the culture of collaboration and communication and encourage open decision & allow participation in decision making. By adopting a democratic style of leadership, I would be able to bring more viewpoints to the table, allow more efficient problem solving, invites a high level of commitments, and increases job satisfaction and employee morale.

The Fiedler Model: this method is suitable for the scenario because the type of task assigned to the team is structured and clear and requires a high amount of collaboration, teamwork, dedication, and commitment. Furthermore, it helps in maintaining the close relationship with the team members and it would be easy to exercised influence in accomplishing goals and task due to the degree of respect, trust and confidence the team members have in the leader.

Question 4

a)Five Macro-Environmental Factors for Air Trust

In order to improve its profitability by being a low cost carrier, Air-trust should consider the following macro-environmental factors.

·Political Environment

The political environment for Air-trust includes all the laws, rules 7 organizations. Enforced by the government authorities, agencies or lobby groups, influencing the organizational performance and profitability. In order to be a low-cost carrier, Air-trust should maintain strong and good relationships with the government authorities, as the government can reduce the taxes by providing a tax shield or it can provide subsidies, which can reduce the overall cost of the company. For instance, a Singaporean Airline – A380, gained the first mover advantage and a well –known reputation in Australia, because it was dubbed by the Australian air traffic control authorities, which helped in achieving a landmark in the history aviation industry in Australia.

.Technological Environment

The technology can shape the future of the airline industry, as the technological advancement creates new opportunities and profitability potentials for the company. Air-trust needs to be a low-cost carrier, and it needs efficient aircraft carriers, which reduce its overall cost, due to which Airtrust needs to be technologically competent. For example, to compete with aircraft's, Airbus developed it A380 aircraft, which is considered as the largest aircraft with huge passenger space and 4 Rolls Royce 900 engines, which proved to be smarter, quieter and cleaner.

.Economic Environment

The economic environment of a particular country has a direct effect on the purchasing power and of the consumers. The factor affecting the airline could be interest rate, GDP, inflation rate, exchange rate etc. These factors have a huge impact on the profitability of any firm. As there is a direct effect of these factors on consumer spending and purchasing power, so airlines such Airbus, Singapore airlines etc. have introduced full service airline and budget service airline, in order to meet the needs of the consumers, living in such an economic environment.

·Demographic Environment

The demographic environment includes factors such as age, population, location, gender, occupation, income levels etc. For airline industry, consumers are very important and so is their demographics. The aviation industry in Asia is growing because of the increase in population, which make up the whole industry.

·Natural Environment

It refers to the natural resources needed by the company to operate in a competitive environment. The aviation industry also faces a lot of pressure as the whole world is facing problems like environmental pollution and shortages of energy. For instance, the Airbus A380 carrier is known as the “Green Aircraft”, which emits low CO2 and is designed to protect the environment.

b)Marketing Mix for Air-trust

The marketing mix for Air-trust is defined as below

·Product

The products offered by the Air trust must include the actual and the core value product i.e. the convenient passenger flights for travelling along with augmented products such as good in-flight and lounge experience. It should also the other revenue streams i.e. by having partnerships with restaurants and hotels and charging a 10-15% margin. Further, to be a low cost carrier, the meals should be sponsored through other companies.

Price

Air-trust should adopt market penetration strategy by offering the flight bookings at lower costs, in order to grab more market share. The 70% of the seats should be offered at lowest fares, and remaining 30% should be kept for high profile business class customers. Adopting this strategy, will ultimately achieve the objective of being a low cost carrier, by grabbing more profits and market share.

·Place

The company should not use the agents for booking of it tickets. Rather the company should use company operated websites and online systems to get the flights booked by the customers. This will reduce the agent fees. Also, to achieve a good consumer position, the company must direct marketing appeals to gain more customers. Also, it should try to keep the aircraft in the air, as long a possible in order to keep the costs low and by choosing secondary airports where there is less air traffic.

·Promotion

Advertising should be done efficiently, in order to keep the costs low. Rather than advertising the services through third parties, the company should use in-house marketing to reduce the overall cost. Online marketing will be the best and cheapest promotion source for the company.

c)Ans-off Growth Matrix

Airbus can use Ans-off growth matrix in order to choose the best marketing strategy, which helps the company in becoming a low cost carrier. Choosing an appropriate strategy depends on the product life cycle. The possible strategies for Airtrust under the growth matrix include

·Market Penetration

The strategy aims on increasing the sales of the existing products into the existing markets. The possible ways to adopt a market penetration strategy includes decreasing the prices, increasing the promotion and advertisement or acquiring any competitor, in order to gain larger market share. This strategy involve the least risk.

·Market Development

The market development strategy, the firms try to enter in new markets through its existing product portfolio. The new markets could include new customer segments or geographical locations. The strategy helps a lot as the company will be having the intellectual property rights in handling a new market. Secondly, the new market will provide new profitable customers and there will be higher customer loyalty as the brand switching costs in new markets are high.

.Product Development

The product development strategy aims to offer new products to the existing markets, so that the firms may differentiate themselves from the existing players in the industry. But the usage of this strategy would require the firm to invest more in its Research & Development, in order to develop new and innovative products, serving the needs of its existing customers better than the rivals..........................

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Aerospace Management Harvard Case Solution & Analysis

Aerospace Management Case Solution

Question 4