Case Study Analysis On Air Canada: Issues And Recommendations

Issues related

The Air Canada is one of the major name in the field of airlines in the world. The Air Canada is was founded in the year of 1937 and is serving more than 32millions of customers. The organisation is having offices and major hubs in the cities like the Toronto, Montreal and other major cities all over the Canada. One of the major step towards the business came when the organisation acquired the Canadian Airlines. In order to manage the information technology the Air- Canada hired the information technology giant IBM. The IBM accessed all the information related to the organisation (Karimi-alaghehband & Rivard,  2014). Other than this, the Air Canada also hired multiple other small vendors in other to enhance the services. The organisations integrated with other organisation in order to provide the services to the other organisation.

The Air- Canada has an IT department which had several functional groups and management offices. That is for all the suppliers, there were different departments present in order to manage the data. This was one of the major problem for the orgasaition in order to retain all the information and store them in a strategic manner. IT sourcing is one of the major policy that was undertaken in order to ethane the security services of the organisations. This change became one of the major change that is needed to be implemented. The vendor selection was one of the key thing that was to be ensured in order to enhance the services. Thus, it can be said that the working of the airline industry is one of the most effective way of working. In the terms of the technicality, the air Canada was one of the most advanced air carriers of all time. It became the first organisation in the world which in came up with the idea of the 2D bar code scanning system. It helped the customers to check in the without any hustle. Under this system, at these points the bar code that were send to the customers by mail or SMS is been read by optical readers. Hence it can be said that the organisation has always been technically advanced and provided some of the major support to the customers.

One of the other department of the organisation that helped in enhancing the customer satisfaction and marketing department. Thus it can be this is one of the major department of the organisation that ensures proper customer satisfaction. The department was responsible for the proper management of the webpages and customer interaction web sites. Other than this the organisation also did had the IT operations department which enhanced the operations of the flights and the maintenance. It can be said that this was one of the major department of the organisation which works for te process of enhancing the customer experience.

Issues related:

In order to run the airline in a proper manner the organisation faced some of the major issues that are related to the working of the organisation. In terms of the information technology, the use of the modern technology is one of the major applications in the industry. The use of the information technology although enhances the working of the regular intervals easier but it creates some of the major problems also. One of the major problem it faced it faced was while the outsourcing of the information technology.  When the organisation selected the IBM for the process of ensuring the daily operations of the organisation it faced many of the problems.  According to thee porters value chain rule, it states that the activities of a firm that is based on the process view of the organisation and the idea of the manufacturing as a system. In the firm level there are certain levels that are needed to be followed. This has to be ensured that all the processes are worked in the proper way.

Analysis

One of the other major problem that was faced was the multiple department of information source outsourcing was the fact due to all the vendors have different teams for proper information analysis it resulted in poor infrastructure and management.  This created some of the major disadvantages of proper storage of the data and also in enhancing the working of the organisation. Other than this one of the other major thing that came up with time was due to the fact that IBM did not provided quality work to the organisation and hence the organisation had to try for some other major deals. This created much of the errors in the working of the organisation and also increased the cost of the working. The customer solution den the innovations department is one of the other major department of the organisation. The organisation have a team of the 54 people who managed the customer care department. The team were to provide excellent support towards the customers. The unit was responsible for generating innovations and also making sure that the products were reliable and robust at the same time. Hence it can be said that this was one of the most important department of the organisation that increased the customer experience.

Analysis:

The use of the Porters model of analysis is one of the major thing that can be used. The portal model divides the marketing are:

• Competitive rivalry: Some of the additional issues came in the year of the 2000 when the orgasaition realised that the organisation would need telecommunication vendors for providing better supports to the customers. This also created some of the major problems in the area of the organisational development.  Proper investments became one of the other major problem for the organisation. Of there were no proper investments then it could have hampered the working of the entire organization. This decentralized IT structure brought new challenges though.The IT sourcing helped in the process of enhancing the business. This system was one of the weakest system that was followed by the orgasaition and hence the organisation has to implement a change in the system.
• Bargaining power of suppliers.IT Operations worked closely with Transformation IT because all the new systems needed to be supported by the airline’s IT infrastructure and to fit into the current architecture Depending on the representative responsible for a department’s IT needs, the department could either be very well served or dissatisfied with its IT services. Some departments did not even know their in-department representatives and would send their requests directly to the IT department.
• Bargaining power of customers: The unit worked closely with Customer Solutions and Innovations in a collaborative approach to source solutions for business requirementsHence this created some of the major problems that had to be solved by organization in order to work properly. Several other issues came up with the organization in order to enhance the customer satisfaction. Proper investments became one of the other major problem for the organisation. Of there were no proper investments then it could have hampered the working of the entire organization.
• Threat of new entrants: The threat of  new entrants is one of the major thing that have is one of the main thing that is to be considered by the organisation. New airlines can reduce the market value of the organisation. If the organisation does not work according to the market then it may reduce the value of the same.
• Threat of substitute products or services: The major reason that all these problems came up with the organization is the fact of the poor choices that are made by the management, and the poor decisions that are made by the management. It can be seen that all the issues that came up due to the poor management decisions. It can be said that there are number things where it can be said that decisions can be made so that problem would be reduced.

According to the model of the Porters value chain model the work of an organisation depends on the given sets of internal working.

Inbound logistics:  The inbound logistics are the supplies that on which the working of the organization depends. In this case the inbound logistics is the petrol or the diesel on which the airplanes work, the food for which the orgasaition are supplying and other things. This is one of the major thing that is needed to be done in a proper way.

Operations: The operations is the most important factor that is needed to be considered in this case. Operations are the works in which the entire organisation depends. This is the most important sectors which looks all the other sectors of the organization.

Outbound logistics: In this case there cannot be said as any outbound logistics, the airline industry only acts as a medium for other organisations outbound operations. It helps other organisation for the process of the proper logistics managements.

Marketing: The airline industry is extremely competitive, with companies offering very similar products vying for business from the same customers. Companies are using social media, non-traditional advertising methods, and loyalty programs and offering enticing perks to market their airline.

Service: The service can be explained as the process through which the working for the customers. The quality of the service the organisations is providing helps in the process of attracting more and more customers.

In order to reduce the issues in the organization some of the major steps can be taken. While in the case of the IBM instead of selecting various other vendors for the process of the management of the IT, Air Canada could have selected one single organization that would take care of the IT infrastructure. This would solve the problems of the mismanagement of the services and other major problems. Selecting one single vendor would also help in the process of the proper analysis of the data in the back office. This can also help in the process of the ensuring that there are not any error in the services of the airline. The introduction of the telecommunication industry was one of the issue that would not be anticipated and hence no resolution would have been made. One of the major thing that would have been done was to ensure that these services reaches the majority of the customers and hence no further implementation has to be made in the future. Other than the problems that are related to the customer service and the marketing must be ensured that all the problems must be solved in the best matter. The group of the seven was an excellent idea that was implemented by the organization in order to tale the ongoing problems. The team ensured that all the processes of the organization keeps going on in time and in proper manner. The Customer Innovation team is one of the major team that is responsible for technology watch. Its members attended industry meetings. They were knowledgeable about the business and passionate about IT, and this allowed them to create business technology. Thus it can be said that these things can be implemented in proper manner.

References

Karimi-alaghehband. F, & Rivard. S, (June 2014). Air Canada: Flying High with Information Technology. 12(2)