1 Think of a business you are familiar with and the operatio

1. Think of a business you are familiar with and the operational measures we discussed in our first conference call (efficiency, variety, responsiveness, and quality). Select one of these measures and discuss specifically how the business perform on the measure and how the performance affects the competitiveness of the business.

2. Select a business and an industry you are familiar with. Briefly present the competitive players in this industry and how the business you are familiar with performs relative to other competitors.

3.Considering what a forecasting system must do, select a characteristc of a system (accuracy, cost, flexibility, etc.) and discuss its importance in how the system is used for planning and decision making.

Solution

1. Think of a business you are familiar with and the operational measures we discussed in our first conference call (efficiency, variety, responsiveness, and quality). Select one of these measures and discuss specifically how the business perform on the measure and how the performance affects the competitiveness of the business.

The measure that I will like to discuss is Quality keeping in mind the airline industry. The airline industry is based on experience and service, it is important the customer is satisfied with the quality of service being provided to them. The quality of the service in the airline industry starts with, the compliances to the rules and regulation of the key regulatory bodies and the national authorities associated with the industry.

The other measures are the schedule and the price of the airline. If the airline flies in schedule and falls in the economic price range it increases the quality of the airline. If the customer is gaining more in the experience, the customers are satisfied by the quality.

The quality of the airline is measured by the safety control of the airline, the comfort in the airline, the flight attendants and the ground staff support of the airline. Some of the other measures are on time flight service, proper baggage accounting, frequent flier program and loyalty benefits of the customer.

Quality is an important measure for measuring the competitiveness of the airline business as the airline industry is in the service industry, enhancing the quality of the services is a better option than engaging in price wars with the other service providers. Higher the airline’s perceived quality the more the consumer will be attached to use the same airline. Retaining the customers can be very beneficial for checking the competition.

2. Select a business and an industry you are familiar with. Briefly present the competitive players in this industry and how the business you are familiar with performs relative to other competitors.

Considering American Airlines the best in the airline industry. The airline industry has two kinds of players one is the larger or major giants of the airline industry and second are the price competitors or the discount carriers. Where there are low cost airlines major giant like the American Airlines faces huge competition as the low cost airline attract the major customers. American Airline checks its competition in a very effective manner, the airline operates from the five hubs which are the busiest city in the US these are New York, Chicago, Miami, Dallas and Los Angeles. These cities act as a hub for the customers as well as the cargo. The airline has also acquired major players like Trans World Airlines and Air California thus increasing their business. American Airline also introduced the most efficient loyalty program with more than 67 million members as per October 2011 statistics. The American Airline also have major tie up with international companies like the British Airways, Air Pacific. With the large fleet, high integration of information technology and efficient strategic alliances make American Airline one of the best airline in the industry.

3. Considering what a forecasting system must do, select a characteristc of a system (accuracy, cost, flexibility, etc.) and discuss its importance in how the system is used for planning and decision making.

Accuracy, and its importance to planning and decision making process. Both Planning and decision making process requires an accurate or true picture if the scenario. While planning to take any decision, it is important to know a few facts accurately, this would include, the consequences which are to follow, the budget for making decision, communication of the plan across the organization. During the planning phase of the project we have to give the exact or accurate measure of the above listed parameters only then can the study or the project is successful. If the project is dis- oriented in its planning stage itself it will fail to achieve the goal of the study and hence accuracy is very important in the planning stage.

          In decision making process, the following steps are involved:

·        Define the problem.

·        Identify limiting factors.

·        Develop potential alternatives.

·        Analyse the alternatives.

·        Select the best alternative.

·        Implement the decision.

·        Establish a control and evaluation system.

In all these steps, accuracy plays the most important role. Only a problem that is defined accurately will stand correct to the field of study if in any of the steps of decision making accuracy is not maintained it will lead to wrong results of the study and the resources that have been spent in the study will be wasted. For making the best decision it is important that accuracy is maintained in all the involved steps of decision making.