Further forethought on a critical analysis on the statistical records of both firms ostensibly surface the economical eccentric schemes of business reasoning. As for the case of Continental Airlines, given the fact that such the company has invested a huge amount of money for the production and operation of the business chosen, it prudently shows that the debt incurred by the company has been piously ascending in number, thus, the revenue generated over such flights was not able to meet the standard equilibrium of equity and stability.
For a scale of three years, the mounting of their business had been experiencing a snail-motion, as a matter of fact; the probability of the company’s salvation over the raging increase of problems in the supplies had not been thoroughly met. Moreover, the company’s investing cash has declined in during the year 2004, incurring -$2M expenditure over an approximate 10% raise only in revenue generation -- definitely not healthy and sustaining in the economic basis.
On the other hand US Airways, small-scaled as it may seem, is gradually towering its success in generating income hence consequently expunging company debts leading to stability and development. As a matter of fact, the taxes which USAir is actually paying have been lowering on a scale of 2% for the past 3 years compared to Continental’s rise of 1% per year. Aside from that, the development of the company’s expense on labor analogy has sustained in 3% than that of the other with a decrease of 8%. Consequently, given with such data, it is evident that Continental Airlines is not developing and is only losing much of its investment per year.
A comparison on both firms would only prove the downfall of the latter by then. Demand Forecasting One of the fundamental proactive processes upon determining the kind of products needed for a business to perform lies in the field of forecasting. This demand focused activity is comprises the entirety of logistic systems aimed in supporting activities with regard to planning, master production scheduling, inventories and all the other factors affecting the latter. The revenue generation of such is maximized although the efficiency of the given perspective rests on the company’s income statement, balance sheet and cash flow.
Conceivably for both firms to be able to meet the standards and live themselves to the whirlwind of the business mainstream, it may be taken to anticipation that in long-term utilization of the aforementioned technique, it is most likely to sustain positive outputs, such that there will be intangible results in the long run, armed in the view of stability and sustainability. Such though, is expected to bounce in less fewer back orders and lost sales; development in customer service levels; improvement in processes with regard to production planning and inventory stock investment and an advanced recognition over marketplace trends.
Contrary to such, the level of accuracy on forecasts may somehow lead to erroneous if the following will not be able to be given rather much attention: average, clustering of demands to a certain echelon; trend, increase and decrease of demands; seasonality, the whirlwind of consistent intervals whether it be in hours, weeks, months or seasons; cyclical, annual form of cycle of forecast involving recession and expansion; and random error, unpredictable changes enormously take occurrence.
A painstaking viewpoint of downfall shall be experienced by Continental Airlines if their managerial behavior will not be changed. Hence, rather feasible programs must be implemented by the company in order to meet global competitiveness. Conclusions and Recommendations In the light of having been vested with the responsibility of meeting the demands and the challenges of the 21st Century, the most realistic and efficient move to venture is to critically analyze certain factors which may have been the cause of pressure within the company.
The following may be relevantly assessed: first, conduct an evaluation of the company’s performance in the economic realm and cite the strengths and the weaknesses of the organization (Hazlitt); second, a trace back on the company’s generation of income then noting on the highest market rate versus the lowest, then computing the average level income (Ray; Sheehan).
Furthermore, assessment on the new challenge of producing a new entity and establish the benefits/disadvantages it may entail in the company must also be considered; fourth, examine the ability of the new technology to captivate the indulgence of the masses and the profit it may raise not only during the era of its production but for lifelong necessity (Hazlitt); and lastly, to distinguish the kind of managerial style or technique to be implemented, which will them pave a web of connectivity in leadership style, appraisal, productivity level, employee satisfaction and organizational development (Evans).
The concepts of qualitative measure, stimulation, causal and time series are considerably vanguards of the gist of the scenario’s success. A multiple implementation of the aforementioned organizational techniques are anticipated to arm the ascending complication which has blatantly risen due to Globalization and Industrialization. However, all the implications caused by such changes in environment, innovation and competition must not be considered as a threat, but rather an opportunity to enhance and develop the skills and the capacity of the company in achieving consumer satisfaction (Hazlitt).
The key to reaching the economic goals laid beforehand in both Continental Airlines and US Airways primarily depends on the company’s approach towards the possible changes which are inevitable to take occurrence. One must keep in mind that there will always be complications and competition in the arena of business strategies, thus further emphasizing the significance of applying the system of organizational development (Wong). However, it does not only require a mere implementation of the latter, but furthermore integrating the idea of considering its appropriateness and ability to drive along with the transformation of the emerging society.
Easey, Mike. Fashion Marketing. Malden USA: Blackwell Publishers, 2001. Evans, James R. Total Quality: Management, Organization and Strategy. 4 ed: South-Western College Pub, 2004. Hazlitt, Henry. Economics in One Lesson: The Shortest and Surest Way to Understand Basic Economics. New York: Three Rivers Press, 1998. Hersey, Paul H, Kenneth H Blanchard, and Dewey E Johnson.
Management of Organizational Behavior. 9th ed. New York: Prentice Hall, 2007. Ray, Sally J.. Strategic Communication in Crisis Management: Lessons from the Airline Industry. Westport: Conn. Quorum Books, 1999. Sheehan, John J. . Business and Corporate Aviation Management: On Demand Air Transportation. New York McGraw-Hill Professional, 2003. Williamson, David, et al. Strategic Management and Business Analysis. Pap/Cdr ed. New York: Butterworth-Heinemann, 2003. Wong, Zachary. Human Factors in Project Management: Concepts, Tools, and Techniques for Inspiring Teamwork and Motivation. San Francisco: Jossey-Bass 2007.