Vision value and direction 800
Introduction
We will be presenting a strategic plan for Baazo Air. The overall generic strategy used by Baazo is to focus on the high-end customer and attain operational efficiency in the business. There was an increase in the air fair rates due to luxurious flights to concentrate on customer satisfaction and provide the best possible services to the customer. In-flight catering services were addressed while considering competitive advantage and analysis. The vision, value, corporate social responsibility, industry analysis, analysis of capabilities, performance results, performance diagnosis, and the plan is reflected in the presentation. We will discuss the significant contribution of Baazo Air while reviewing the quarters and comparing the quarters. There are several challenges that the business face while focusing on growth. These are described in detail. The significant issues that were presented are scheduling leased flights, high operating expenses, focus on marketing, and promotional activities. A generic strategy will be discussed with the plan to carry the next four quarters for Baazo Air.
Vision is the primary objective of the company that it wants to achieve in the long run with the help of employees, customers, and the public. A mission spells to be a direction to which the company will carry on its significant activities to achieve short term goals. The purpose of the company is the statement that deals with stimulating, authentic, inspiring, and ambitious results. We will learn how Baazo Air has enhanced the mission and vision of the company to achieve the target market. Values are considerably the tools of the business to which view is attained in a given period. The benefits of the business should adhere to the rules and regulations that declare the brand image and good intention of the organization. Therefore we will study the significant aspects of vision, mission, values, and corporate social responsibility. We discuss the major points that need to be included in vision, cost, and social responsibility. Corporate social responsibility mostly operates with values, mission, and image of the business to consider sustainability and business growth. There are companies to which profitability, growth, and prosperity are considerable with pertinent needs in the industry. The market trends are relatable with business objectives, and the employees are focused while serving the community and taking care of the needs of the company. There is a significant link between CSR and competitive advantage. When an organization considers corporate social responsibility, there are chances that the brand builds goodwill and enhances longevity in the business. Shared value guarantees the business aspects and enhances posterity in the industry. Therefore to achieve the vision and mission of the company, Baazu Air focuses on corporate social responsibility aspects and values of the company. Sustainable business practices are highly motivating the company to achieve performance that results in a profitable situation. The vision of Baazu Air is to become a leader in the airline industry. The mission of the company is to focus on customer services while providing in-flight experience to the customers. Safety is the prior consideration that enhances the business strategy. Baazu’s airline strategic plan is highly considerable. A vision statement provides long term objectives of the company that will be achieved in 5 to 10 years. For the long term objective to be made, a generic business strategy will be considered by the organization. Baazu air provides luxury and premium services to the customers; therefore, the target market is to focus on world-class luxurious travelers. The target customers are seeking travel experience and need maximum comfort. Therefore Baazu Air will focus on achieving the organizational and performance objectives while targeting business looking for cargo air services and travelers seeking quality services.
The key trends of the airline industry are spending on marketing and ensuring that the brand image is built with the help of human resource practices. Retaining employees at work, and considering recruitment and selection is the best way to focus on attaining brand image. The target customers will be attracted while providing customer services and decreasing fare. These are unavoidable business trends that are addressed by Baazu Air to which important aspects are considered in attaining CSR stance and attaining the vision and mission of the business. The performance objectives are linked with customer services to reach a niche and elite market. The generic business strategy is applied in the industry to which customer service is the primary focus, and quality and promotion are the significant aspects of achieving a competitive advantage in the business.
Industry analysis 400
In this section, we will cover the theoretical tools that will help us to analyze the company’s position based on industry analysis. Industry analysis consists of Porter’s five forces analysis to which Baazo Airline’s detail is presented. He observation and profit of the organization are considered and explained in detail. Porter’s five forces analysis consists of industry rivalry, the threat of substitutes, the bargaining power of buyers, barriers to entry, and the bargaining power of suppliers. These are five forces to which the primary purpose of the business is to find the attractiveness of an organization in a specific industry. We will make sure that these forces are addressed adequately to achieve the results of troops compared to the airline industry. The analysis will provide the significant aspects of formulating generic strategy in the business to which landscape and company operations are addressed adequately. There is SWOT analysis and PESTLE analysis that can be considered as the tool to analyze the business situation. Still, we will discuss Porter’s five forces model as it is relatable and consists of vital forces for analysis.
The bargaining power of suppliers is higher due to the immense competition in the airline industry. The threat of substitutes is low due to the luxury and premium services expected by the customer. The bargaining power of the buyers is low because there are considerable expenses that are levied by the organization to provide customer services. The threat of new entrants is little in the airline industry due to the significant investment that airline companies need while entering in the industry. Alpha Q is the rival of Baazo Airline, and it provides premium services to its customers. The industry analysis presents the significant aspects that involve the current state of the company in the airline industry. Baazo is trying to cater to the niche and elite market with its promotion and marketing activities while addressing the price strategy to consider nominal fare for customers. Customer service is the primary objective of the business to which the company strives to achieve with its performance indicators. There are many expenses that are reduced by the airline industry to which profit can be gained in the next quarters. A generic strategic plan will help to provide the business objectives to which significant insights into the business operations are considered. We will now focus on the next session of analysis of capabilities that ensures a competitive advantage in the industry.
Analysis of capabilities 800
In this section, we will analyze the company’s internal capabilities and related them to the generic strategy. There are tangible and intangible assets of the business that help to achieve the competitive advantage of the business. The internal capabilities include employee strength, R&D, promotion activities, etc. We will now understand the importance of capability analysis to which there is a set of calculations that address and assess the system to meet the requirements of the business. We know that specifications and conditions tend to attract the system operations, and maximum acceptable values are addressed with the cost of the company. Occasionally, few specifications engage in numerical requirements that ensure control limits. While analyzing all the seven quarters, there are specific calculations that have been addressed with numeric and statistics. The goal of business is to achieve the generic business strategy and engage in the data that constant growth of the company. Baazo Air is capable of meeting the requirements as per the analysis of quarters to which decision logs are mentioned. In the first quarter, the business aims to attain the market and ensure maximum returns and benefits for the business and customers. The company in the first quarter considered upgrading the airline by catering to elite customers and achieving a competitive advantage. This was possible while adding a new region in the daily flights. The luxurious crafts were leased in the first quarter, which provided the updated condition of the business. Changing the airline to focus on cargo carriers and passenger were the significant aspects to generate revenue for the company. In the 7th quarter, the fare per mile was reduced while the promotion budget was increased to $65,000. The company has provided the change, and the promotions were raised with the ongoing strategic plan. This seems that the company will now make decisions to focus on recruitment and human resource development. Maintenance was the significant aspect in quarter seven, as mentioned in the statistics to which level 3 was more frequent, and full preventive maintenance cost was addressed as per the aircraft per quarter. Fuel contract was the essential thing considered in the last quarter to which 50% of the fule was purchased on the open market, and the other 50% was on contract. There were no acquisitions, but mergers were addressed to attain a competitive advantage in the business. The quality and training budget was $100,000 to which compensation policy sent to 4.50% with a prevailing wage rate, and 20% of profits were increased as an advantage in remuneration to employees. There were not purchase of aircraft, and stock dividends were not provided. The incident choice that was made was entirely based on diversification planning and tended to focus on investigating the merger situation in the business.
The company focuses on continuous training and development of human resource capital. Spending on human resource capital and considering recruitment in the business will help to achieve the performance objectives of the company. High skill workforce will provide significant insight into customer attraction, which leads to the promotion of brand image. We know that the development of brand image will let customers attract for the products and services and attain profitability index. The overall goal of the business is to focus on internal and external capabilities to which market share can be attainable, and the use of marketing activities will produce effective change in the industry. To attain a competitive advantage, the business will focus on quality and promotion. These are the elements that the company should focus on to gain a competitive advantage in the airline industry. Baazo Air works on both aspects to achieve a competitive advantage. The intangible and tangible assets provide unique value to which competitive advantage is expected, and promotional activities are addressed. The core competencies of the business are marketing, finance, promotion, and human resource development. These are the areas that the company should focus on creating a brand image and attaining profitability.
Operating efficiency is improved in the business while working on increased promotions and reduced cost strategy. Therefore, a unique value to the user is provided, which helps to achieve a competitive advantage. Working on promotional activities will increase the sales volume of the business, which directly impacts the business performance and ensures the achievement of business objectives. In the context of human resource development, the company provides an increase in remuneration to the employees, benefits to achieving the standard goals, and recruitment of new employees. Recruitment as a function will create a new profile of salesperson and administrative manager. The business then explores the training and development function to provide training to the employees and work on customer services. Satisfied customers get attracted to brand image, which automatically leads to achieving business objectives and mission statements. Even increased promotional activities will enhance business growth as there is an awareness among customers to try new services by Baazo Air.
Performance results in 200
We will now move ahead with the overall assessment of performance results that were obtained by Baazo Airline. The results of quarter 1 to quarter seven are presented in this session while providing the data with the actual performance showing a balanced scorecard target that has been outlined in the strategic plan. The actual results of quarter eight are compared with the steady scorecard targets. The actual results of quarter eight consist of using the generic strategy that focuses on a niche market and elite market. Service fee in quarter eight was not charged, which ensure that customers are free from the service fees. The results of service fees affect the reliability of customers accepting and attracting the benefits that they are provided. The company strives to focus on corporate social responsibility, as presented in quarter 8. Now, these are large compared with the balanced scorecard target with the performance indicators of financial objectives, customer satisfaction, internal process, and organizational capacity. Considering financial goals, the business achieves a 10% reduction in the 6th quarter and revenue growth of 15% as decided. The primary goals of maximizing revenue and reducing expenses are performed to increase the profit margin of the business. The measurements were made with passenger ticket reservations and movement of cargos. The initiatives were made with the help of a fuel contract and supply chain management system.
Overall assessment graphs charts from quarter 1 to 7
Industry average
Our results with core competitors
Diagnosis of performance 800
In this section, we will link the performance results with the strategic objectives. The performance objectives, as mentioned in the strategic plan, consists of obtaining over 90% on service providing to customers and obtaining 85% in terms of reliability. These objectives were fulfilled while comparing it to the 8th quarter results. The significant change in the 8th quarter was focused on considering the niche and elite market. The issues and problems that were discussed in the meeting regarded flight scheduling and the charges to be levied on exceeding mileage in terms of previous quarters. The critical incident presented in the quarter reflected the rationale decision made towards several implications and considering service fees. The service fees find customer services. Therefore, the decision regarding operating policy is to highly consider investing in corporate social responsibility.
The decision summary presented the importance of fare structure, fare per mile, and food service for the travelers. The overall fare structure was considered based on luxury services for customers. The objectives were attainable while comparing to the promotion budget, in-flight magazine cost, advertising budget, cargo marketing budget, salespersons hired, current sales force size, and social performance budget the primary link of expenses that were considered as relative to the performance objectives achievable for the business. The strategic objectives were accomplished to which quarter eight comparison was found. The problems of scheduling were similar compared to quarter one and quarter 8. The overall focus that was considered in regional markets to diversify the product and consider thriving the business objectives were considerable with light airfreight cargo. The focus on changing the company structure was achieved entirely by addressing significant changes in the fare structure and company structure. It seems regular flights are upgraded maintenance was considered as and when required by the corporate strategy.
The major decisions that were made in quarter one are upgrading the airline to attract elite customer, adding new region in the route, leasing new luxurious aircraft, changing airline to cater cargo carrier and passenger group, investing in promotion and marketing activities, investing in hiring new sales staff, focusing on CSR and taking a long term loan of $1,000,000. These decisions were considered in quarter two, such as reducing flight maintenance cost, fuel contract made, and reducing training cost. The airline company then made decisions regarding the increase in training budget, adding a new market, and leasing new aircraft called TP-300 to cater to the new demand. In the next quarter, the new airliner helped to load passengers in the existing market. In quarter 5, the significant investment in marketing and promotion of the airlines was considered as the best decision to which performance objectives were achieved. Training and development helped to increase the overall service quality of the business while considering hiring decisions for the airline helped to promote the business. The significant judgments made in quarter 6 represented the importance of investing in promotion and marketing activities for Baazo airline. The considerable investment was considerable to which existing staff tends to increase overall service quality and present expertise knowledge for improving operational efficiency. Hiring staff, such as sales staff, helped to promote the business with the help of a headhunted technique. Catering foreign markets in the region was a less accepted fact due to less competition in the given segment. The decisions that were made in quarter 7 reflected in investing in corporate social responsibility and hiring new staff to help in the promotion of the business. We will now consider decision quarter eight and the significant decisions made in the operating policy. Investing more in the CSR aspect is the first decision that ensures a dissenting perspective and investing in maintenance to obtain operational efficiency. Therefore, while comparing the fare per mile from quarter 1 to quarter 8, the results consider the reduction in fare per mile, which will help attract customers and ensure luxury services while paying food service that costs $5.50 per passenger. The meal services were provided with an extra cost to consider the revenue of the company, which can be used as the source of operational efficiency and growth in the business. The unwanted expenses, such as maintenance and hiring, were not made in quarter 5. This seems to be the right decision made by the organization to achieve performance objectives. A considerable change in the business was addressed while focusing on growth and gaining a competitive advantage in the airline industry. There was a fuel contract considered while focusing on a 50% purchase of fuel from the open market and the rest on the contract basis. The disposals were considerable, and the significant impact on training and budget was considered by Baazo airline. There was regular fare that was taken into consideration while analyzing different aspects of luxury services in various types of aircraft.
Diagnosis of critical incident 800
We now move forward to focus on one critical incident of 8 quarters. The selected significant event is hiring staff that reflected to achieve the overall goal of the organization. Employing a staff decision is mentioned in quarter 6. Before that, we will consider steps taken by the organization and the decision that reflect the critical incident. The rationale behind the decisions is reflected in each quarter to present dissenting views and to engage in successful business activities. The crucial event in quarter 1 represents the focus on regional markets that helped in a thriving business. High potential is expected that will cater business of light airfreight cargo. Therefore it reflects the primary aspect of more revenue in the market to which income is received and objectives are achieved. High-end customers were focused in quarter 1 to which increased fare rate was considered. More flights were leased earlier to make a higher profit and provide the best possible flight experience to the customer. In-flight catering was an address, and magazines were provided to maximize the benefit of flight experience and focus on customer service. These are relevant aspect helped in taking the decisions on a further step. The critical incident decisions in quarter two consist of reducing flight maintenance costs, fuel contracts, and reducing training costs. The performance objectives were achieved in every aspect, while the operating policy considers the rationale behind the decision made for increasing profit and reducing cost in the business. Training cost was reduced to which staff training skills were already provided; this means a reduction of training cost will lead to increased operational efficiency. This was a successful business criterion as it enabled the reduction of expenses. There was a positive spin that was considered in quarter 3 to which the statement released to focus on growth in the organization. Heroic action steps were taken by the aircraft, and actions were taken to focus on difficult situations in the cockpit. Staff represented the actions that satisfied customers to which the safest feasible strategy was made to show that staff was trained enough to handle these types of situations. Increase in training budget, adding a new market to focus on passenger factor, and leasing new flights to cater to the market. These decisions were taken to attract customers and to ensure effective services for customers. The training budget was increased, and the staff was provided 20% of the net profit to increase efficiency and motivation. A new market will increase the passenger travel to which high-end customers were attracted, and the increase in profit was addressed.
In the fourth quarter, the critical incident that was reflected ensured that the decision of not entering the auto rental business was considered. The involvement of the third party led to the control of the company. Therefore the % of failure would be higher, and profit was divided. The expected returns were higher, and investment to a new venture was not the right decision because retain profit was not higher for the latest airline business. In quarter 5, the critical incident that reflected the decision-making criteria was immense. So the company management decided to call the president with neutral terms to know the success of the business. With the given information, competitors charged $3 for food and services. The organization accepted this decision to increase revenue. The decisions on investing in promotion and marketing activities were highly considered. The hiring sales staff was the right decision, and investing in training and development was much needed for the new team to attract customers.
The critical incident that was presented in quarter 5 helped to consider recruitment and selection strategy. The company decided to hire a salesperson and maintenance director in the aviation industry. The decision was made to increase revenue by attracting new customers and engaging in a headhunting strategy. The major decisions were considered that included investing in promotion, an increase in training and development, hiring maintenance experts, hiring sales staff, and catering to a new market. However, the decisions were applied in quarter 7 to engage in achieving performance objectives. In the 7th quarter, the possibility of a merger was investigated that helped to provide fleet strength and ensured keen independent regional airlines. This will engage in leading the airline industry and attract customers. The major decisions that were made were to invest in CSR and hire sales staff to promote the airlines. Two particular choices were considered in quarter eight, which were basically to invest in CSR and employ sales staff for an increase in promotional activities. Organizational objectives were achieved in each quarter that reflected the decision making criteria.
Plans
Now we will focus on the future aspects that need to be carried in the business to achieve competitive advantage and increase market share. In the next four quarters, the company needs to focus on the elite market, generic business strategy, and increase the remuneration of employees. Staff training and development programs were considered in the future to improve the skills and capabilities of employees. Hiring new staff will ensure attracting new customers and engaging in increase brand image. These strategies tend to ensure providing relief to customers when it comes to a reduction in the fare structure. The fare structure that was announced in quarter one was reduced in quarter 8. However, the reduction in cost will attract customers to try in0flight experience and service for Baazo Airlines. Staff will engage in training and development programs to attract customers and provide value satisfaction.