Table of contents • Outline the contents of the report in numbered sections. • Give titles of Appendices. Introduction IAG comprises three of the leading airlines in the UK and Spain. The combination of these three airlines, each of which operates’ significant networks; enables IAG to offer passenger and cargo customers unique benefits from its larger combined network. IAG continues to believe that retaining the core assets of brands and products in each of its operating airlines is important to maintaining valuable customer loyalty. IAG has maintained its disciplined approach to evaluating future inorganic growth opportunities and will only act if it is in the interest of its shareholders. This disciplined approach is reflected in IAG’s six core strategic objectives, which are described below: • Leadership in IAG’s main cities • Leadership across the Atlantic • Grow share of Europe-to-Africa routes • Stronger intra-Europe profitability • Competitive cost positions across businesses IAG uses clear and objective financial targets across their operating companies to support the delivery of their long-term goals. Non-financial Key Performance Indicators (KPIs) are not used to measure performance by IAG, although each operating company has strong internal non-financial KPIs that are monitored monthly by the executive teams and Boards of the operating companies. The 2013 financial element of the annual incentive plan was focused on the operating profit performance of British Airways and the second half cash targets of Iberia. Synergy targets were incorporated in the personal element of the incentive award where applicable. For the longer-term performance share plan, Earnings Per-Share (EPS) is 50 per cent of the potential reward wh... ... middle of paper ... ...will appraise the trade off in a different way based on individual risk aversion description. The suggestion is that a rational investor will not invest in a portfolio if a second portfolio exists with a more favourable risk expected return. Member Name and SRN Recommended Contribution Mark out of 5 Comments (optional) Bonolo Caroline Mataboge SRN: 1046285 5 Organised most of the meetings. Volunteered to do most of the work Sandra Ndulor SRN: 1052165 3 Selina Singh SRN: 5 Contributed towards the work and attended the meetings Overall Reflections: What worked well? What aspects did you find challenging? Is there anything you would do differently in hindsight? Any other comments. Everything started well, we had our first meeting without any issues, but had less meetings to finish he work. It was hard to find a day in which all of us were free. References
The following value chain, which focuses on Spirit Airlines, is representative of most of the firms in the Ultra Low-Cost Airline industry. Spirit is the industry leader in many areas such as operational efficiencies/cost structure, aircraft fleet management, brand/network and growth. The firm, however, trails industry foes in areas such as customer service and operational reliability and recoverability. While most in this segment pursue the cost-leader competitive strategy, Spirit has demonstrated the most effective model to date – whether the model is the most sustainable remains to be seen.
Harriet E. Wilson is an African American woman who based her story, Our Nig, on her own personal accounts during her enslavement. Our Nig is a unique story because it gives another perspective of different forms of slavery (i.e., Northern indentured servants) and sheds light on the hardships faced by female indentured servants. However, there are many other reasons why Our Nig is distinctive, including its compelling story, its analyses that give a detailed breakdown, its interesting language of the period, and ability to produce a reaction from oneself.
Furthermore, it is commendable that, the three core values of the company which reiterates the value of work and people, but allows the employees to have fun, are reinforced by the company frequently. From all indications, these unique core values have partially helped to catapult the airline to the financial statute they are enjoying today (“Corporate Value,”2011).
The focus of the report is on the various strategies adopted by the two airlines viz. Emirates & British Airways in the various markets they operate and provide their service and are looking for growth opportunities across globe.
Great, I had a positive professional relationship with the staff. I made myself available to assist with various assignments to build a rapport with all the staff members. In the beginning I thought some of the staff was standoffish, but after working with all individually I realize everyone has task they are trying to complete and time is limited to fraternize and build rapport in a busy setting.
Investment theory is based upon some simple concepts. Investors should want to maximize their return while minimizing their risk at the same time. In order to accomplish this goal investors should diversify their portfolios based upon expected returns and standard deviations of individual securities. Investment theory assumes that investors are risk averse, which means that they will choose a portfolio with a smaller standard deviation. (Alexander, Sharpe, and Bailey, 1998). It is also assumed that wealth has marginal utility, which basically means that a dollar potentially lost has more perceived value than a dollar potentially gained. An indifference curve is a term that represents a combination of risk and expected return that has an equal amount of utility to an investor. A two dimensional figure that provides us with return measurements on the vertical axis and risk measurements (std. deviation) on the horizontal axis will show indifference curves starting at a point and moving higher up the vertical axis the further along the horizontal axis it moves. Therefore a risk averse investor will choose an indifference curve that lies the furthest to the northwest because this would r...
Air India airline is one of the biggest airline in the India. It was established by the famous company TATA and since its incorporation. It has grown very well and has spread all over the world in the different destinations. It has become the reputable brand in the airline industry with having the operations over 152 destinations. It has link up connection in the 35 countries and it has currently having 137 fleets. This company becomes the public limited company in the 1946. The company has international and the local route and its performance is increasing day by day with the pace of the good growth as compare to the other airlines in the industries in the area and the channels in which this airline is working.
It is evident through the research that Air Asia's success is due to its willingness to take risks using innovative strategies to reduce costs while maintaining profitability. The organisation has taken its resources and used them in a way that has really supported and complemented the brand, for example, technology. It has also utilised its surrounding market and environment to be able to adopt new strategies that has allowed them to be cost effective and operationally effective.
It is a formula based group incentive plan in which employees share in an organizations’ financial gain from its improved performance. Gain sharing leads a percentage of employees to motivate the commitment and also it helps to develop the respect and accountability towards the firm. During 2011, Infosys celebrated 30 years of success and reaped huge profits; each employee was rewarded with 5 company shares and additional shares with accordance to the years worked with Infosys. And there was a remarkable fall of attrition from 17% to 14.7%, which proves the logic to the firm. (James Gibson et al., 2011)
Air India currently operates a fleet of 113 aircraft, making it one of the largest airlines (by fleet size) in Asia and the world. It was once the largest operator in the Indian subcontinent with a market share of over 60%. Due to several reasons studied below, its standing dropped with a decline in domestic market share by 25%. However, after financial restructuring and enforcement of strict rules and regulations, the airlines showed signs of turning around. The airlines bolstered its financial and physical performance with a 44% slash in its operating losses in 2013-...
In a dysfunctional time for the airline industry, most airlines, especially major carriers, are adapting the concept of "doing less with more." One low-cost carrier, JetBlue, is changing the domestic aviation landscape in this regard and is defying the odds. Here is a company that has examined each marketing mix elements carefully, has adapted them to its customer’s needs, and is succeeding because of this approach.
Porter stated; “for an airline to succeed in the marketplace, it must have a sustainable competitive advantage” (Porter M. E., 2008). The airline industry is the highest competitive industry, and I believe a sustainable completive advantage is essential to succeed in the future of the aviation industry. The competitive advantages that an airline embrace, needs to be based on the airlines strategy and differentiation to competitors. Emirates displays how it has a strategy and how the airline gets ahead of its competitors through how unique it is.
The Singapore Airlines needs to thoroughly understand the plans being pursued by the British Airways, Cathay Pacific, and Virign Atlantic in improving the comfort and quality of service it provides to its customers. The Singapore Airlines needs to continue differentiate itself by examining the strengths/weaknesses, and key points of these and other competitive airlines.
These benefits are best discovered and maximized if used in conjunction with KPIs. A KPI is a key performance indicator and they allow a company to measure and manage ...
Risk in this model is identified with the standard deviation of portfolio return. Rationality is modeled by supposing that an investor choosing between several portfolios with identical expected returns will prefer that portfolio which minimizes risk." (Wikipedia, 2005) Figure 1 and Figure 2 are examples on how this theory can be illustrated on a graph.