Problems at China Airlines
Table of Contents
1.0 Identification and Prioritization of Key Issues/ Problems 2
2.0 Application of Theory and Critical Analysis 2 2.1 SWOT Analysis 2 2.1.1 Strengths 3 2.1.2 Weaknesses 3 2.1.3 Opportunities 3 2.1.4 Threats 3 2.2 Business Model 4 2.2.1 Customer Value Proposition 4 2.2.2 Profit Formula 4 2.3 Best-Cost Provider Strategy 5
3.0 Recommendation and rationale 7
References 8
1.0 Identification and Prioritization of Key Issues/ Problems
In 1959, China Airlines Limited (CAL) was the flagship carrier of the Republic of China (ROC). However, it is not completely state-owned. The China Aviation Development Foundation (CADF) had a nearly 54 percent stake in CAL.
Key issues: Poor safety record in the 1990s severely tarnished its brand image besides lowering passenger traffic. Faulty pilot recruitment policies, lax maintenance systems, high cost operational structure, inefficient corporate culture of company added to its troubles. Strained political relations between mainland China and Taiwan prohibited the airline from launching flights to routes in China.
After that, CAL mounting problems prompted it to look for ways to restore its image. The efforts were focused on improving its brand image and regaining consumer confidence. CAL sought to pursue stringent safety norms, increase its maintenance facilities, hire trained experienced pilots from foreign countries and also improve cross-strait relations between Taiwan and mainland China. Finally CAL succeeded to hit their goal by undergone many changes, efforts and initiatives.
2.0 Application of Theory and Critical Analysis
2.1 SWOT Analysis
SWOT analysis is useful for an organization because it provides a good framework for reviewing strategy, position and direction to a business. This is because SWOT analysis involves specifying the objective of the business venture or project and identifying the internal and external factors that
1.0 Identification and Prioritization of Key Issues/ Problems 2
2.0 Application of Theory and Critical Analysis 2 2.1 SWOT Analysis 2 2.1.1 Strengths 3 2.1.2 Weaknesses 3 2.1.3 Opportunities 3 2.1.4 Threats 3 2.2 Business Model 4 2.2.1 Customer Value Proposition 4 2.2.2 Profit Formula 4 2.3 Best-Cost Provider Strategy 5
3.0 Recommendation and rationale 7
References 8
1.0 Identification and Prioritization of Key Issues/ Problems
In 1959, China Airlines Limited (CAL) was the flagship carrier of the Republic of China (ROC). However, it is not completely state-owned. The China Aviation Development Foundation (CADF) had a nearly 54 percent stake in CAL.
Key issues: Poor safety record in the 1990s severely tarnished its brand image besides lowering passenger traffic. Faulty pilot recruitment policies, lax maintenance systems, high cost operational structure, inefficient corporate culture of company added to its troubles. Strained political relations between mainland China and Taiwan prohibited the airline from launching flights to routes in China.
After that, CAL mounting problems prompted it to look for ways to restore its image. The efforts were focused on improving its brand image and regaining consumer confidence. CAL sought to pursue stringent safety norms, increase its maintenance facilities, hire trained experienced pilots from foreign countries and also improve cross-strait relations between Taiwan and mainland China. Finally CAL succeeded to hit their goal by undergone many changes, efforts and initiatives.
2.0 Application of Theory and Critical Analysis
2.1 SWOT Analysis
SWOT analysis is useful for an organization because it provides a good framework for reviewing strategy, position and direction to a business. This is because SWOT analysis involves specifying the objective of the business venture or project and identifying the internal and external factors that
References: China Airlines, n.d., Dynasty Flyer Program, accessed 23/4/2013, https://calec.china-airlines.com/club/enroll.aspx?lang=e Hamel, G 2013, The Relationship between Business Model and the Strategy, Demand Media, accessed 23/4/2013, http://smallbusiness.chron.com/relationship-between-business-model-strategy-25963.html MindTools Corporate, n.d., SWOT Analysis: Discover New Opportunities, Manage and Eliminate Threats, accessed 22/4/2013, http://www.mindtools.com/pages/article/newTMC_05.htm Taylor, D 2012, Ghana Business: The Importance of Using Corporate Social Responsibility (CSR), Development Wing, accessed 24/4/2013, http://corporatesocialresponsibilitygh.com/?p=36 Thompson, AA, Peteraf, MA, Gamble, JE & Strickland, AJ 2012, Crafting and Executive Strategy, The Quest for Competitive Advantage: Concepts and Cases 18th edition, McGraw-Hill Irwin, New York, USA. Purkayastha, D, Faheem, H & Samanta, M 2010, Problems at China Airlines, IBS Center for Management Research, India.