WestJet Case analysis
Case analysis “WestJet”
Introduction.
WestJet was established in 1996 in Western Canada. Clive Beddoe, Don Bell, Mark Hill and Tim Morgan, the founders of the company, aimed to provide their customers low-cost air travel. Company is based Cangary,AB, and it has its secondary hub in Toronto Pearson International Airport. WestJet operates the most modern and fuel-efficient Boeing 737 aircrafts. WestJet is one of the most profitable airlines in North America. All employees shared in company profits.
Problem definition.
WestJet has to focus on maintaining low prices and compete with other airlines in the market and with substitute forms of transportation (cars, buses, trains, etc.) “Low fares need low costs”. Company has to show people the reasons to travel with them. Maintain the company’s culture.
Conceptualization.
Productivity through cost-effective rate: company had no frequent flyer programs, no meal, minimal in-flight service, no airport lounges; utilized Internet to sell tickets, operated without paper tickets; operated with three times less people per aircraft comparing with other full service airline
Organizational Culture: “It’s the culture that creates the passion to succeed” C.Beddoe. Non-unionized workforce, re-labeling tasks and responsibilities, creating the Pro-Active Communication team – association that allowed engaging employees in management decision making and problem solving, establishing of a “vision of the future” for the employees and inspiring to follow it; job satisfaction, organizational commitment, recognition and rewards , training and coaching, place “where people wanted to manage themselves”, bottom-up management style, “set some standards and expectations, but don’t interfere in how people do their jobs”, lead by example ( “actions of executives”) , focus on empowerment and trust, “ opportunity culture”, teamwork.
Growth: Fleet size expansion; destinations expansion; alliance with JetBlue.
Alternatives.
Flying larger
Introduction.
WestJet was established in 1996 in Western Canada. Clive Beddoe, Don Bell, Mark Hill and Tim Morgan, the founders of the company, aimed to provide their customers low-cost air travel. Company is based Cangary,AB, and it has its secondary hub in Toronto Pearson International Airport. WestJet operates the most modern and fuel-efficient Boeing 737 aircrafts. WestJet is one of the most profitable airlines in North America. All employees shared in company profits.
Problem definition.
WestJet has to focus on maintaining low prices and compete with other airlines in the market and with substitute forms of transportation (cars, buses, trains, etc.) “Low fares need low costs”. Company has to show people the reasons to travel with them. Maintain the company’s culture.
Conceptualization.
Productivity through cost-effective rate: company had no frequent flyer programs, no meal, minimal in-flight service, no airport lounges; utilized Internet to sell tickets, operated without paper tickets; operated with three times less people per aircraft comparing with other full service airline
Organizational Culture: “It’s the culture that creates the passion to succeed” C.Beddoe. Non-unionized workforce, re-labeling tasks and responsibilities, creating the Pro-Active Communication team – association that allowed engaging employees in management decision making and problem solving, establishing of a “vision of the future” for the employees and inspiring to follow it; job satisfaction, organizational commitment, recognition and rewards , training and coaching, place “where people wanted to manage themselves”, bottom-up management style, “set some standards and expectations, but don’t interfere in how people do their jobs”, lead by example ( “actions of executives”) , focus on empowerment and trust, “ opportunity culture”, teamwork.
Growth: Fleet size expansion; destinations expansion; alliance with JetBlue.
Alternatives.
Flying larger