Air Canada And Detrimental To The Market Extension †Free Samples

Question: Discuss about the Air Canada And Detrimental To The Market Extension. Answer: Synopsis Air Canada, founded in 2001 has its headquarters located in Saint-Laurent. The company is dominated by its rival and competitor Westjet and it is due to the lack of strategy and implementation of the same. Their lack of governing policies has also proliferated the number of employee confrontation and a decrease in the productivity rate. From the case study, it becomes apparent that Air Canada has done very little to compete in the U.S airline market dispersed by competent airline companies. At a glance it becomes evident that Air Canada lacks innovation in the sector of offering products and services to the passengers. There are many areas where Air Canada has lagged behind like making customer satisfaction upmost priority. Moreover, the credit account of Air Canada has gone bankrupt due to their high operational costs as a result of which the revenue has declined significantly to $1million from the stipulated $900 million. Over the years market analysts have predicted decline in the revenue quarters and lost domestic has market share (Williams, 2017). Furthermore, on a number of occasions Air Canada has found itself dominated by employee union and customer demands. The situation was further aggravated by its constant elimination of employees in order to curtail the expenses which in turn de-motivated the younger employees who just started off their career. The case study in a nutshell brings to the surface the loopholes in the operation andmanagement sector of Air Canada that have sprung a number of disadvantages. Symptoms Air Canada has failed to mushroom its network and as a result Westjet has taken over the position of being the dominant airline in the Canadian market. Air Canada has lagged behind in providing customer satisfaction even during their own failure in providing punctual and quality services. It is also apparent how Air Canada has failed in understanding customer requirements and catering accordingly. Air Canada is far behind in employee motivation and appreciation as a result they are losing out employees to other airline companies like Westjet who has always kept the employee satisfaction as the first preference. Themanagement sector has failed to curb the draining of $1 billion revenue especially when Air Canada is on the tip of bankruptcy. Instead of implementing strategies they slacked potential employees. Air Canada has high maintenance cost and they have done little to craft a competent budget to evaluate or moderate the annual expenditure. Problems There are a number of issues faced by Air Canada and detrimental to the market extension and networking of Air Canada. Lack of Innovation- Air Canada has failed to improve its technological aspects that would prove beneficial in serving the passengers better, since these are already embraced by its rival competitors, it has furthered lowered its popularity. In fact, Air Canada has proven in efficient to provide proper accommodation to those customers who faced inconvenience due to abnormal delay in flight (Limpanitgul, Boonchoo Photiyarach, 2014). On the other hand, its rival competitors like Westjet, has been handling exceptionally well by choosing SabreSonic Customer Sales and Service Solutions. High Operational Costs- operational costs like salary expense per employee can affect airline profitability. Fuel costs add up to one-seventh of Air Canadas total expenses. These factors have dwindled the profit of Air Canada as it has repeatedly failed to cope up like increasing the ticket prices with these changes. Employee Dissatisfaction- according to the case study, employees has shown contempt and dissatisfaction towards the job. This is because of work-life balance and random elimination of employees and lack of employee motivation. Whereas, in Westjet, the workers were treated as potential weapon for companys growth and success. This has negatively affected the service they cater to customers thereby affecting customer satisfaction (Ford, Paparoidamis Chumpitaz, 2015). In order to increase profitability and market share, Air Canada needed to ensure employee motivation and customer satisfaction (Anitha Begum, 2016). The employee pension gap hurdle is the other issue that has been detrimental to employee satisfaction. Shrinking the company time and again has only added to their list of bad reputation and management. Causes Air Canada has consistently shown incompetency in the organizational capacities to value their employees and integrate them in companys work and culture. The fact that there has been an issue regarding work-life balance, flexible work schedule and performance evaluation has went unnoticed by themanagement authorities. This has aggravated the situation. Lack of effective operational cost management in Air Canada has led to a failure in achieving a balance between service and cost. The same has hindered the company to achieve highest revenue retention with the least or necessity expenditure on resources. The cause behind poor innovation is Air Canadas failure to embrace trends in technological sectors and analyzing consumer psychology. Alternatives Air Canada should focus on developing a competent HRM policy by which they will be able to retain talent in the workforce instead of restructuring or downsizing. It makes the employees feel demotivated, inadequate and incapable. Air Canada should create a formal office to deal with passenger complaints instead of spending in bulk for operational costs. They can implement plans to deal with delayed flights, poor handling of luggage and flier programs that charge high fees (Kandampully, Bilgihan Zhang, 2016). Proposed Solution The operational cost management crew should schedule marketing objectives and aircraft assignment and utilization to confront the immediate problem of high operational costs. A detailed plan and budget on aircraft maintenance requirements and expenditure is also required. The same has helped Westjet to take over the Canada sky and dominate the market. The Human Resource Management can introduce a policy of stringent selection of employees and invest in extensive training for proper training sessions. They can motivate the workers through a program of coupons and vouchers, employee health plans, rewards and recognition. Creation of espirit de corps can enable the management to know about strengths and weaknesses and implement strategies according to improve the same. Air Canada suffers from a lack of technical innovation in an era of seamless digital interface and other operational efficiencies. The management should take steps to reduce the occurrences of operational glitches (Wang et al., 2017). However, with dynamic pricing, Air Canada can make presumptions about the type of passengers they are catering to and their preferences. Providing superior quality customer convenience should be the primary goal of Air Canada especially when it is competing with Westjet which has allowed the benefit of flight cancellation up to 24 hours with full refund. The operating model and management skills of Air Canada should be focused on enhancing customer satisfaction. Implementation Lack of Innovation Employee Discontent High Operational Costs 1. keeping a pace with the technological innovation 2. Assessing consumer psychology and behavioral pattern to implement it in areas like flight booking or seat reservation. 1. Introducing promotional schemes and other hike in wage on employment evaluation. 1. Maintenance of supply chain requirements. 2. Developing an IRROPS Cost Model. 3. A measurement system to track costs and evaluate performance according to shifting trends. References: Anitha, J., Begum, F. N. (2016). Role of organisational culture and employee commitment in employee retention. ASBM Journal of Management, 9(1), 17. Ford, J. B., Paparoidamis, N., Chumpitaz, R. (2015). Service quality, customer satisfaction, value and loyalty: An empirical investigation of the airline services industry. In The Sustainable Global Marketplace (pp. 187-187). Springer, Cham. Kandampully, J., Bilgihan, A., Zhang, T. C. (2016). Developing a people-technology hybrids model to unleash innovation and creativity: The new hospitality frontier. Journal of Hospitality and Tourism Management, 29, 154-164. Kristjanpoller, W. D., Concha, D. (2016). Impact of fuel price fluctuations on airline stock returns. 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