Over the years Air Canada’s business strategy has changed and has been reconstructed a number of times. Air Canada’s mission has always remained the same, “connecting Canada and world” (Air Canada, 2016), but their visions and goals, have transformed.
Air Canada’s early strategy was to grow the business, with minimal concern about their staff members and customers. Without any benefits or rewards their staff felt underappreciated. Their customers felt as though their feedback wasn’t being heard but in the eyes of Air Canada as long as their business was expanding, they were satisfied.
This was evident with the purchase of Canadian Airlines, in 1999 (The National, 2003). With the purchase of this airline, Air Canada also inherited their estimated eight billion dollar debt (The National, 2003). Also inherited from the merger, were underappreciated employees and under trained employees who lacked morale (The National, 2003). In 2003, Air Canada filed for bankruptcy (The National, 2003), this was due to the large financial deficit, the economy and the underappreciated/paid employees. Although, this was a difficult time for the airline, this truly marked the change in how the airline is structured. In 2005, it marked the true return of Air Canada, they reached record breaking revenues and far exceeded anyone’s expectation, including their own. Currently Air Canada, is the largest Canadian Airline, which has a lot to do with their change in business strategy.
Air Canada is now an
Canadian National Railway Corporation through reform, have achieved a series of achievements and various beneficial measures taken by the railway enterprise, CNR accomplished this in three years. CNR combined a perfect global transaction system and an environment strategy to improve their market competitiveness. At the same time, they used sustainable ability to reduce their consumption of their own cost effectively, while also positively working with a clear global development direction. Canadian National Railway displayed both long term and short term strategies which contributed into the growth of the company through its unique competitive landscape. In summary, it is evident that the Canadian National Railway has not only succeeded throughout decades of operations, but has grown to become a multi-billion dollar company by utilizing and executing unique and diverse business strategies in a successful way and taking full advantage of their competitive edge in the market.
Overall, from this cash flow statement it can be said that WestJet reinvested a lot of money from its earning in 2012 compared to 2011 to make more profit and make more use of that money rather than keeping in hand. Even after reinvesting a lot of money WestJet was able to increase its cash balance from 2011, which indicates that the managers of WestJet who takes strategic decisions are creative, credible and well informed about the
This paper seeks to examine how WestJet’s culture contributed to their growth and success through the
The Air Canada case contains a problem in the structure of the company regarding how they are sourcing in their supply chain, managing the risk, and growing the company while maintaining their core competencies. Based off the overall information in the reading, Air Canada seems to be making the correct steps in the success of their business. If you look at page 20 of the reading, Air Canada holds a good majority in the domestic, international, and even transborder market shares.
For decades, all Canadian airports were managed directly by the federal aviation regulatory authority Transport Canada. In the early 1990s, the federal government analyzed options to reduce financial subsidies in the management of public airports. In 1994, Transport Canada instituted the National Airports Policy, whereby it privatized airport operations to newly formed airport authorities that are non-profit capital corporations. All four of Air Canada’s hubs were
WestJet is also facing a strategic problem, the longer term impact that growth is having on WestJet’s culture. WestJet’s success and competitive advantage have been a direct result
Truth is, there will never be a perfect company. With great success, there’s always turbulence along the way, WestJet is far from the perfect company. WestJet’s main concern is expanding and if they don’t expand, it will give other airlines a chance to enter the market that could hurt the carrier’s low-cost, low-fare, short-haul, point-to-point services of Western Canada. Additionally, the expansion project will make it difficult to keep WestJet’s famous culture alive as the company grows on a global scale. Remember, WestJet’s strong and outstanding culture was the root of the growing company. WestJet emphasis on the commitment to maintaining the culture, stating “a vibrant corporate culture was so central to WestJet’s success that preserving it was Bell’s and Beddoe’s main obsession”.
WestJet’s strategic plan and the organizational structure, both are driven by technology but like any other organization there are loop holes. The integration with Sabre, a flight reservation
The major strength of this assessment is that Cheryl was able to identify the issues that are key for WestJet to maximize and align IT with the business strategy as well as to add value to the company. Furthermore, Cheryl has started to act and take wise decisions without letting herself to feel overwhelm by the situation or by other person’s decision so she can have a clear picture of the business as well as the impact of its actions. A clear example of this situation was her decision to stop the PMO recommended by IBM. Also, she has focus on managing and improving current IT processes performances, adding tangible value to the organization Additionally, the actions proposed by Cheryl have the goal to update and upgrade IT according to the challenges of the industry in order to take WestJet into a higher level, moving people out of their comfort zone so they can increase their contribution to the company’s strategy. Besides, she found out that the IT group has excellent technical
Air Canada is Canada 's largest full-service airline and the largest provider of scheduled passenger services in the Canadian market, the Canada-U.S. trans-border market and in the international market to and from Canada. In 2010, Air Canada improved its reputation as one of the world’s leading international air carriers. Significant progress was made on executing and delivering on its four key priorities and this, coupled with improving economic conditions, allowed Air Canada to record operating income of $407 million in 2010, a $677 million improvement from 2009. Air Canada’s financial strategy is to continue to improve both the level and sustainability of its
using their own core competencies to turn the airline around. By applying their own strategies,
From 1994 through the end of 1997, Bethune’s “Worst to First” business strategy relied little on technology. Bethune began by reshaping the company with his “Go Forward Plan,” which still guides the business today. The Go Forward Plan has four interrelated parts, dealing with the airline’s product, finances, market and people: > Fly to Win. Understand what products customers want and what they are willing to pay for. > Fund
The overall problem in this case is how Air Canada will handle quadrant one risk, and how much of these risks will they hedge. Volatility in this industry, such as changes in fuel prices, have been eating at Air Canada’s profits. They currently purchase fuel futures for thirty four percent of needed fuel. Air Canada is also hedging on interest rates, exchange rates and personal stock price fluctuations. It seems like their business model is not flexible or adequate if they need to insure and hedge almost every single risk they encounter. This decision mainly focuses on how this airline should handle risks and to critique their current strategy in terms of effectiveness.
There is such a large amount of outsourcing that led to a severe lack of communication and disconnect between Air Canada
They faced challenges from acquiring many companies because during the acquisitions Bombardier inherited the data, processes and systems of each company which created inefficiencies. Systems didn’t communicate with each other resulting in low inventory turns and price inconsistency. This was not productive for Bombardier and was time consuming for the employees. The biggest problem was the low visibility of inventory and the lack of communication between systems. Bombardier had now a global presence but was not organized to maintain growth without changing the vision and processes. Another challenge is resistance to change, this factor can have a huge impact on the new vision and