Evaluate American’s 1992 announcement of a new rate structure:
a. What changes did American make?
American Airlines (American) made four fundamental changes to its rates. First, it moved to a four-tier rate structure; American offered first-class rates and three tiers of coach: full-fare, 21-day advance purchase and 7-day advance purchase. Overall, it expected to reduce coach fares by 38% and first-class fares by 20% to 50%. Though full fare coach prices dropped by about 38%, advance-purchase fares dropped by 6% when compared to the advance purchase tickets already being offered. Through this fare structure, American also eliminated deep discount tickets. Second, American eliminated the negotiated discount contracts of many large companies. Though it intended to fulfill any outstanding contracts, it did not intend to renew any of these contracts. Third, American realigned its pricing with its costs. Under the new structure, American fares were more distance based (therefore cost-based) than they had been in the past. Finally, American changed its non-refundable policy. Advance purchase tickets could now be rescheduled for a $25 processing fee.
b. Which customers benefited most from the move? Were any customers made worse off?
There are five groups of customers that are affected by the rate changes. Travel agents are affected financially by reduced fares that will result in reduced commissions. On the other hand, American’s four-tier structure substantially reduced the numb...
By checking the percentage of different groups of travelers, we found out that business and leisure travelers are nearly equal to each other, but business travelers are always a little higher than leisure travelers in overall. Therefore, we were more aggressive with Miami in our price increases for the weekdays because most of our customers are not price sensitive. Based on a few results of ours, they also showed that increasing price will benefit us more in profits. For the weekends, the market size of leisure travelers is higher. In order to match with the inelastic demand, we adjusted our price based on the demand
of price versus service in the airline industry as a whole, as well as, the
The airline industry has become more and more competitive over the years. It takes determination, preparation, knowledge, and recourses to start an airline company, and that is just what happened forty-five years ago in Dallas Texas. Southwest Airline is a very successful airline company serving around 100 million customers annually (Southwest Corporate Fact Sheet). Many things stick out about Southwest such as their satellite-based WIFI and free luggage. These accommodations appeal to the customers. The company describes its mission as “dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit” (About Southwest). From a customer standpoint, there is nothing else
The American Airline Industry The Airline Industry is a highly competitive industry with companies operating in domestic and/or international markets. Many airlines are stilled owned by their respective countries and have treaties between countries to allow airlines to land there. The industry has been taking a relatively shaky course as costs are rising and profits have been decreasing. This was further intensified with the recent terrorist attacks on US soil, which lead to higher costs as the need for more security arose. Recent financial statements of major airlines showing major losses reflect the problems that the industry is having.
Spirit addresses “price” by attempting to get the lowest possible fair for their potential customers. They have instituted their “unbundling” strategy that essentially removes all the conveniences that other airlines afford. Fees for checked bags, fees for flight changes, and no complementary in-flight beverages are just a few of the cost-trimming techniques employed. This strategy allows Spirit to come up with impossibly low fares. It also conforms to customers who just want to get from point A to point B without paying extra for services they don’t use. This strategy, coupled with an in-your-face “promotion” ploy, has made Spirit Airlines “the most profitable airline in the U.S.” (Nicas, 2012).
The novel Things Fall Apart written by Chinua Achebe highlights the many important historical events that happened during the period of colonialism, spread of religious fervor to Africa from Europe, and the importance of the native religion among African societies. Achebe shows that religion holds a major influence in many African societies and influences the daily life of the natives. Furthermore, the novel introduces a major event that happen during pre-colonial Africa, the spread of the Christian faith, which forever changed and affected the natives in Africa, more specifically the Igbo society located in Nigeria. Things Fall Apart vividly describes and explains how the Christian faith that arrived in Africa changed both the individuals in the Umoufia and society. To add on, the novel shows how the spread of Christianity ultimately leads to the destruction of the many native African cultures, and shows what redeeming qualities that arise from the destruction of their culture. Achebe describes how the Christian faith acts as a guide to the Igbo society and at the same time acts as the inevitable downfall of the Igbo society.
In today's competitive marketplace, all firms are seeking ways to improve their overall performance. One such method of improvement, recently adopted by many firms, is benchmarking. Benchmarking is a technique used to evaluate internal business processes. "In this analysis, managers determine the firm's critical processes and outputs, baseline those processes, then compare the performance of each process against a standard outside the industry" (Bounds, Yorks, Adams, & Ranney 1994). To effectively improve a business process to world-class quality, managers must find a firm that is recognized as a global leader, not just the industry standard. Successful benchmarking requires tailor-made solutions, not just blind copying of another organization. Measurement and interpretation of data collected is the key to creating business process solutions.
Beginning in 1880, there was a growing desire for European countries to expand and control their rule. The only continent at that time that was left uncontrolled and, in the European's eyes uncivilized, was Africa. This was the start of Western Imperialism. All European countries wanted their piece of Africa and to get it, they would let nothing stand in their way. They would change the entire government, religion, market, and behavior of most of the African nation and affect almost every person living there. An account of the impact of Imperialism is given in Chinua Achebe's Things Fall Apart. This book shows the changes that occurred in Africa during Imperialism and its affect on the community and the people of the tribes that existed there.
Delta Air Lines is one of the many airlines in this industry that is trying to make profit in this competitive industry. A slow recovery from bankruptcy forced many of the U.S carries to join with other airlines in order to continue in this business. Like many airlines in this industry Delta Air Lines has been operating off a hub and spoke system. Having to place different hubs all over the country allows the company to efficiently provide scheduled air transportation for its passengers and cargo throughout the states and the world. Delta’s global route network and strategically placed hubs in different parts of the world allows them to make profit domestically and internationally. The company’s network is centered on a system
In Things Fall Apart, Okonkwo was one of the strongest proponents of violence against the white missionaries. Throughout the book, he advocated for violence while be outnumbered by his fellow natives who objected. Near the end of the book, he had had enough. During a village meeting gathered to discuss what to do about the white missionaries, a messenger for the missionaries arrived to tell them the meeting had been ordered to be stopped. “In a flash Okonkwo drew his machete. The messenger crouched to avoid the blow. It was useless. Okonkwo’s machete descended twice and the man’s head lay beside his uniformed body”.3 The man had been killed. Shortly after, Okonkwo hanged himself on a tree. Violence was by far the most disruptive response to to the presence of white missionaries in Africa. It was the only response that led to deaths. Not only was the violence disruptive, it was also ineffective. In the last paragraph of the book, the Commissioner of the missionaries articulated how Okonkwo’s actions would make a good paragraph in the book he planned to write. Violence against missionaries was disruptive and led to death for both the locals and the
He was in great conflict with the ideas of the white men and the missionaries. Okonkwo saw that their beliefs had not only changed the daily life of the Ibo, but it also changed the people themselves: “He mourned for the warlike men of Umuofia, who had so unaccountably become soft like women” (Achebe 183). The author uses strong diction to compare the men before and after colonization. This quote also portrays Okonkwo’s opinion towards the cultural collision. He values strength and masculinity immensely because of his fear of appearing weak like his father Unoka. When he describes that the men of Umuofia changed to be soft like women, this shows how much he dishonors the Western ideas and how it has taken over the village. He made an attempt to get rid of the Western influence by urging the tribe to fight like men, but they refuse to. He was determined and still attempted to furthermore encourage the people of Umuofia to revolt against the new culture. He realizes that his attempts to return the village back to the way it was before were futile. He knew that Christianity was tearing his people apart, but knew he was incapable of making change to help his people. Okonkwo then starts to feel hopeless and abandoned by his clan, which causes him to commit suicide by hanging himself: “Obierika… turned suddenly to the District Commissioner and said ferociously: ‘That man was one of the greatest men
According to The Science of Drug Abuse & Addiction, there are different types of commonly abused drugs. They are
Drug use as well as drug abuse is on a constant rise. There is a wide spread misunderstanding about drugs. Many believe a drug is something that the government has said is illegal to use or consume. However this is not entirely true. A drug is any chemical you take that affects the way your body works. Alcohol, caffeine, aspirin and nicotine are all drugs. A drug must be able to pass from your body into your brain. Once inside your brain, drugs can change the messages your brain cells are sending to each other, and to the rest of your body. They do this by interfering with your brain's own chemical signals, I will discuss this further later on in the paper.
Among teens in the United States, some of the most commonly abused drugs are prescription drugs.
The use of illegal drugs in the United States is considered by some to be the biggest problem in our society. Over 40% of high school seniors use some kind of illegal drug, and in a recent 1999 National Household Survey on Drug Abuse showed that the three most common drugs are Marijuana used by 11,100,000 people, Cocaine used by 1,500,000 people, and inhalants that is used by 991,000 people nationwide.