Research Topics: Cathay Pacific

Cathay Pacific

Cathay Pacific Executive Summary Airline business is a challenging business. It has been noted to be the most competitive business in the world. Marketing executives should also be competitive to cope with the challenges of this kind of business. Cathay Pacific is one of the market leaders in the airlines business in Asia. The company has it great opportunities. The airline is committed to quality service. In addition, it has its competitive advantage. Cathay Pacific has great opportunities of expanding and improving its services. This paper is a business plan for Cathay Pacific Airways to exploit the business opportunities that are open to the company.   Business Background Cathay Pacific Airways Limited is an Asian commercial airline founded in 1946 which is based in Hong Kong and offering passenger services and cargo services to 102 destinations world-wide. It is a flag carrier of Hong Kong with its main base at Hong Kong International Airport. Cathay Pacific is the major shareholder in AHK Air Hong Kong Limited, an all cargo carrier that offers scheduled services in the Asia region, and is a shareholder in Hong Kong Dragon Airlines Limited.  “The airline business is a challenging operation. Operational information can be very dynamic and keeping customers well informed is a daunting task. Information, fares and schedules have to be accurate; sales promotions and marketing activities are constantly changing and typhoons cause last minute schedule changes or cancellations.” ()   The opportunity and strategy Despite the various challenges in which airlines faces, there is an opportunity for e-business. It has been known today that travel and the Internet have a natural association. Cathay Pacific Airways has the potential of this partnership and be successful in consumer e-commerce. In 2000, Cathay Pacific Airways forged ahead with an ambitious goal to become Asia’s leading e-business airline and promptly set up a new cross-functional department staffed by experienced airline people and newly recruited e-business professionals. Cathay Pacific Airways is committed to invest in services that enhance value to their customers while improving productivity and reducing information technology costs. With this, the company has leveraged to e-business. Cathay Pacific Airways is known to be Hong Kong’s leading airlines gives them the opportunity to acquire more customers and generate more revenues. People would have more confidence on airlines that are recognized by the award winning bodies because it would make the people have more confidence on flying with the said airlines. In addition, with Cathay Pacific Airlways’ online booking, they give more convenience to their customer giving them the chance to attract more customers especially with people that have no time to go to airlines branches for bookings.  The airline has also an opportunity of technology advancement for easier transaction and operations and for more convenience for customers and employees. Moreover, with its recognition, the airline attracts more opportunities of expansion.             Furthermore, the company has design learning experiences for the employees to deliver consistent good services to customers. The company has encouraged a culture of self responsibility, courage to innovate and openness to collaborate within the organization. Additionally, e-learning strategy cut the time required for certain training courses. ()             The online brand building technique has also been a good strategy for the company. “The airline’s approach towards reaching its audience by building online partnerships with leading brands such as Universal McCann, CNN, Yahoo! and ZUJI.com has made it one of the major online marketers in Hong Kong and across the Asia Pacific region.”() Source of competitive advantage The source of Cathay Pacific Airways competitive advantage is from the continuous dedication to high-quality service which has elevated the company to new heights of success in the highly-competitive airline industry. In addition, Cathay Pacific has always relied on Information Technology (IT) to meet their infrastructure demands while gearing up its internal operations for efficiency. IT provides the airlines with two distinct advantages—an efficient reservation system and an engineering system that keep the airlines’ planes constantly fit for air travel. “Cathay Pacific is renowned for its award winning “Service Straight From The Heart” both on the ground and in the air. As the airline of Hong Kong, Cathay Pacific is committed to enhancing Hong Kong as a leading global aviation and logistics hub.” () Management Background, Qualities and Experience Name Position Background and Experience Senior Management Chris Pratt Chairman CBE, joined John Swire & Sons Limited in 1978 and has worked with the group in Hong Kong, Australia and Papua New Guinea. He is also Chairman of Swire Pacific Limited and John Swire & Sons (H.K.) Limited, and a director of Swire Properties Limited. He served as Executive Director of Swire Pacific’s Trading and Industrial Division from 2000 to 2005. Philip Chen Chief Executive He joined Swire in 1977 and has worked with the group in Hong Kong, Mainland China and the Asia Pacific region. He has been a director of Cathay Pacific since 1997 and was appointed Chief Operating Officer in 1998. He served as Chief Executive of Hong Kong Dragon Airlines Limited from 1994 to 1997. Tony Tyler Chief Operating Officer He joined Swire in 1977 and has worked with the group in Hong Kong, Australia, the Philippines, Canada, Japan, Italy and the United Kingdom. He served as Director Corporate Development from 1996 to 2004 and is a Director of Hong Kong Aircraft Engineering Company Limited, Dragonair and Air Hong Kong. Robert Atkinson Finance Director He joined the Swire group in 1979 and in addition to Hong Kong, he has worked for the group in Japan, the United Kingdom and the United States. Nick Rhodes Director Flight Operations He oversees all aspects of the airline’s global flight operations. He has worked with the Group for more than 22 years, including the past five years in the Flight Operations Department as General Manager Aircrew. Derek Cridland Engineering Director He joined Cathay Pacific in 1982 and was previously employed by the International Civil Aviation Organisation (ICAO) and British Airways. He is also a Director of Hong Kong Aircraft Engineering Company Limited, Hong Kong Aero Engine Services Limited, and Associated Engineers Limited. James Barrington Director Sales and Marketing He joined Cathay Pacific in 1983 and has since held a variety of posts in the company. These include Country Manager for Malaysia and Brunei, Staff Manager for Outports, Manager for Passenger Product, Vice-President for Canada, and General Manager Cargo. William Chau Director Personnel He first joined Cathay Pacific in October 1973 as a Cargo Officer, and has held a number of positions within the airline in the areas of cargo, airport services, and personnel. Augustus Tang Director Corporate Development joined Cathay Pacific in 1982 as a management trainee and has held several positions with the airline, including postings to Malaysia and Japan. He was previously Director Corporate Planning since 2000 and is also a Director of Cathay Pacific Catering Services Hong Kong Limited and Air Hong Kong. Edward Nicol Director Information Management His responsibilities include overseeing the strategic positioning and delivery of the airline’s information management and technology needs.He has previously held positions as CEO of Tenzing Communications,providers of airline inflight email and SMS services,and CEO of Cathay Pacific’s Catering Division.He has worked with Cathay Pacific since 1975. Ron Mathison Director and General Manager Cargo joined Cathay Pacific in 1984. He has held a number of managerial positions overseas as well as in marketing and sales and revenue management. He has been involved in loyalty marketing since January 1995, and launched the Asia Miles Travel Reward Programme in 1999.   Quince Chong Director Service Delivery joined Cathay Pacific in 1998 as Manager Corporate Communication, was appointed General Manager Inflight Services in August 2000. She has been a Director of Cathay Pacific Catering Services Hong Kong Ltd since September 2000. Non-Executive Directors Martin CUBBON Director of the Company He is also Finance Director of Swire Pacific Limited and a Director of John Swire & Sons (H.K.) Limited and Swire Properties Limited. He joined the Swire group in 1986. Hung Ling Henry FAN Director of the Company He was appointed Deputy Chairman in January 1997. He is Managing Director of CITIC Pacific Limited. CHANG, Li Hsien Leslie Alternate Director to Mr. FAN Hung Ling Henry He is an executive director of CITIC Pacific Limited HO, Cho Ying Davy Director of the Company He is also a Director of Swire Pacific Limited, Hong Kong Aircraft Engineering Company Limited and John Swire & Sons (H.K.) Limited. He joined the Swire group in 1970. HUGHES-HALLETT, James Wyndham John Director of the Company He is also Chairman of John Swire & Sons Limited and a Director of Swire Pacific Limited and Swire Properties Limited. He joined the Swire group in 1976 and in addition to Hong Kong has worked for the group in Japan, Taiwan and Australia. LI, Jiaxiang Director and Deputy Chairman of the Company He is the Chairman of the Board and a Non-Executive Director of Air China Limited. He is also President of China National Aviation Holding Company. MOORE, Vernon Francis Director of the Company He is Deputy Managing Director of CITIC Pacific Limited. Robert Barclay WOODS Director of the Company He was appointed Director of John Swire & Sons Limited in May 2002. He is also Chairman of P&O Ferries and Southampton Container Terminal ZHANG, Lan Director of the Company She is the Vice President and Chairman of the Commercial Committee of Air China. Independent Non-Executive Directors LEE, Ting Chang Peter Director of the Company He is Chairman of Hysan Development Company Limited and is also a Director of Hang Seng Bank Limited and SCMP Group Limited. OR, Ching Fai Raymond Director of the Company He is an Executive Director of The Hong Kong and Shanghai Banking Corporation Limited. He is a Director of Hang Seng Bank Limited and has been a Vice-Chairman and Chief Executive since May 2005.He is Chairman of HSBC Insurance (Asia-Pacific)Holdings Limited, and a Director of Bank of Communications Limited, Esprit Holdings Limited, Hong Kong Interbank Clearing Limited and Hutchison Whampoa Limited. SO, Chak Kwong Jack Director of the Company He is Deputy Chairman and Group Managing Director of PCCW Limited. He is also a Director of The Hong Kong and Shanghai Banking Corporation Limited. TUNG, Chee Chen Director of the Company He is Chairman of Orient Overseas (International) Limited.   Operational Plan Company mission and objective The company’s vision is to be the most admired airline in the world. To achieve that hallmark as a service leader, the company is committed to service enhancements that reflect its unique motto, “Service Straight from the Heart.” <ul type="disc" style="margin-bottom: 0in"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Ensuring safety comes first </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Providing Service Straight From the Heart </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Encouraging product leadership </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Delivering superior financial returns </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Providing rewarding career opportunities</li> </ul> Distribution             Cathay Pacific weekly aircraft departures are estimated to be approximately 1,250 of 102 destinations in 35 countries. The reported passengers carried in 2005 reached to a total of 15,438,243 and cargo carried in 2005 reached to a total of 1,118,047 tonnes. Products Cathay Pacific Cargo operates scheduled long-haul freighter services to world-wide destinations that include Paris, Milan, Manchester, Brussels, Dubai, Dehli, Bombay, Sydney, Melbourne, Chicago, Los Angels and New York. Cathay Pacific Cargo also operate freighter services to Hong Kong-Tokyo-Taipei-Hong Kong six times a week, a direct freighter service to Tokyo and Seoul once a week. A freighter service to Sydney and Melbourne. Cathay Pacific Cargo arranges extensive trucking services within Europe, North America, Hong Kong, North-east Asia, Africa, Middle East and New Zealand. The services enable your cargo to reach destinations where Cathay Pacific does not fly directly. The Group’s principal activity is the operation of an international airline. The Group offers scheduled cargo and passenger services to 102 destinations around the world. Other activities include airline catering, aircraft handling and engineering, provision of computerised reservation systems, ground and ramp handling, aircrew and financial services and property investment. Operations of the Group are carried out in Hong Kong, Isle of Man, Canada, the People’s Republic of China and Bermuda.   Market Research and Analysis Target Customer             Cathay Pacific key target customers includes the multi-sector, premium, frequent international traveler.   Competitor and Competitive Edges Top competitors of Cathay Pacific include British Airways China Airlines, China Southern Airlines and Singapore Airlines. The main competitive advantage of Cathay Pacific is on their brand strength which is consistently good service and sophistication congruent with the world’s greatest city. It has also ties in with Hong Kong image faultlessly. Cathay Pacific also offers superb services in ground to air. In addition, Cathay Pacific is dedicated to technological excellence for its products and services. It was one of the first airlines to provide inflight email. It also offers online ticketing and check-in, a downloadable timetable, and the notiFLY flight paging service, which delivers real-time flight information updates to customers via email or on their mobile phones. The iPermit scheme enables Taiwan residents to apply for Hong Kong visas via the internet and collect them upon arrival at Hong Kong International Airport. Its inflight entertainment system offers more than 20 video channels and an audio/video on demand system for First and Business class passengers. It was voted “World’s Leading Use of Inflight Technology” in the World Travel Awards 2003 poll of 80,000 travel industry professionals.   Economic of the Business “Air travel remains a large and growing industry. It facilitates economic growth, world trade, international investment and tourism and is therefore central to the globalization taking place in many other industries. In the past decade, air travel has grown by 7% per year. Travel for both business and leisure purposes grew strongly worldwide. Scheduled airlines carried 1.5 billion passengers last year. In the leisure market, the availability of large aircraft such as the Boeing 747 made it convenient and affordable for people to travel further to new and exotic destinations. Governments in developing countries realized the benefits of tourism to their national economies and spurred the development of resorts and infrastructure to lure tourists from the prosperous countries in Western Europe and North America. As the economies of developing countries grow, their own citizens are already becoming the new international tourists of the future. Business travel has also grown as companies become increasingly international in terms of their investments, their supply and production chains and their customers. The rapid growth of world trade in goods and services and international direct investment have also contributed to growth in business travel. Airlines’ profitability is closely tied to economic growth and trade. Since then, airlines have had to recognize the need for radical change to ensure their survival and prosperity. Many have tried to cut costs aggressively, to reduce capacity growth and to increase load factors. At a time of renewed economic growth, such actions have returned the industry as a whole to profitability. To meet the requirements of their increasingly discerning customers, some airlines have to invest heavily in the quality of service that they offer, both on the ground and in the air. Ticketless travel, new interactive entertainment systems, and more comfortable seating are just some of the product enhancements being introduced to attract and retain customers. A number of factors are forcing airlines to become more efficient. The airline industry has proceeded along the path towards globalization and consolidation, characteristics associated with the normal development of many other industries. It has done this through the establishment of alliances and partnerships between airlines, linking their networks to expand access to their customers. Hundreds of airlines have entered into alliances, ranging from marketing agreements and code-shares to franchises and equity transfers. The outlook for the air travel industry is one of strong growth. Forecasts suggest that the number of passengers will double by 2010. For airlines, the future will hold many challenges. Successful airlines will be those that continue to tackle their costs and improve their products, thereby securing a strong presence in the key world aviation markets.” () Marketing Plan Overall Marketing Strategy Cathay Pacific Airways marketing strategy is focused in terms of market achievements, marketing strategy and positioning, advertising and promotion campaigns, product development, design and package as well as after-sales service, according to a press release from the Cathay Pacific Airways.   Market Segments             Cathay Pacific Airways key target market is the multi-sector, premium, frequent international traveler.   Business Expansion – set up plan The foremost expansion plan of the company is to make the company a wholly owned subsidiary which will create significant value. PArt of their expansion plan is to increase existing stake in Air China. There is also a plan to further order a number of aircraft for delivery. In addition, additional services will be offered. A freighter service to Chennai and increased our frequency to Atlanta, Dallas, Delhi, Mumbai, Penang and Singapore will be commenced. Strategic thinking explores the big picture, delves into long term, broad and significant implications of a company and the industry or industries it operates in. Through this process it enables a company to respond to change swiftly, which is most critical factor for survival in this digital age. Microsoft for example was thinking strategically four years ago when it discarded its definition of its company as a PC company at a time when the Internet is beginning to make “personal computing” a losing bet. The day will come when people would not use PCs but just a Net connection, A Web application and Web-based application. It was not the financial resources that saved Microsoft. It was the ability to respond to changes in the industry. In fact, Microsoft’s success today is attributed to its ability to respond to changes faster than its competitors. In a matter of few years, Microsoft has transformed itself from a proprietary content service, Microsoft Network (MSN) to development of separate Internet services which include its CarPoint car-buying service and Expedia services. It has further reinvented itself by creating a multimedia website or portal called MSN.com that also acts as a homepage for Microsoft’s Internet Explorer. In anticipation of more free offerings by competitors, Microsoft has purchased Hotmail to add free services to its e-commerce offerings. Strategic planning and Analysis In facing an environment of increasing competition and abundance of opportunities, organizations have to think strategically of how best to tap into resources to capitalize on these opportunities. Strategic thinking enables organizations to determine the viable and more attractive opportunities to pursue. It enables organization to scan the environment for opportunities which they can capitalize on based on their strengths.   Counter threats Strategic thinking explores not only opportunities in the market place but also threats and potential threats in the industry. For example, for a long time, piracy in terms of cassettes, videos and CDs have plagued the music industry. And music companies have been undertaking their own strategies to combat this. Today, the music industry is facing yet another threat from the internet. Any Internet user can get into the Web and download music as digital signals into a computer. The battle field has now changed, there is no recorded CDs, cassettes or tapes. Sustain competitive advantage In this digital age companies need to find new ways to sustain competitive edge in their business. Prior to the advent of the internet, portals and homepages, established companies in various industries from automobile manufacturers to banking, insurance, telecommunications, travel agencies and supermarkets can rely on entry barriers such as high cost of entry, brand recognition, scarcity of distribution channels and limited resources as ways to sustain their competitive edge in the businesses that they have developed over the years. Today with unprecedented information exchange, we have digital sellers and buyers who can transact with one another over the Net through a click of the mouse. New Internet start-ups such as PCCW as mentioned earlier has taken over brick and mortar company like HKT. Strategic thinking is needed to find new ways to create competitive advantages in business. In fact, strategic thinking is needed to ensure the long-term survival of an organization. The real intellectual capital of organizations of this digital age, is the strategic thinking capability of its management.   Reinvent the industry Strategic thinking allows an organization to go beyond reengineering its processes. Restructuring and reengineering is not enough to sustain the competitive edge of an organization. To become industry leaders, organizations often have to reinvent the industry. Apple for example created an entirely new industry – the personal computers industry. And Time Warner, Electronic Arts and other companies are reinventing the education and entertainment industries and redefining them into the field of “edutainment”. Restructuring and reengineering is about organization transformation. But organization transformation needs to be preceded by industry transformation. And to undertake industry transformation, leaders in organization need strategic thinking.   Future Plan Position for the future Strategic thinking allows the management to create the desired future of an organization. Through a process of strategic analysis and assessment of the opportunities in the environment, the management team can develop a common and a shared vision and strategy for the future of the company. It can help position the company to enable the company to grow. In fact, strategic thinking is needed to ensure that organisations survive in the future. In the future, the company is planning to build and operate on their own cargo terminal at Hong Kong International Airport with an eventual planned annual capacity of five million tonnes. This will enable the company to pursue aggressive cargo growth plans, make significant cost savings, introduce product innovation and strengthen Hong Kong’s position as a global logistics hub.       Credit:ivythesis.typepad.com

Cathay Pacific

Cathay Pacific Executive Summary Airline business is a challenging business. It has been noted to be the most competitive business in th...

SWOT Analysis of Cathay Pacific

SWOT analysis of Cathay Pacific   Using SWOT analysis, Cathay Pacific aspires to be a leader and will help to share future policies that affect the aviation industry by working with government and its partners as the strength. Cathay Pacific also identifies leveraging its brand and demonstrating that it is a company that can be trusted is its next target. A key part of the corporate reputation for the future points to the communication with its staff and getting them involved in delivering a more sustainable growth path (Flattoau, Matthews and Lott, 2006).   A key strength is through its dynamic team, the highest quality service could be provided hence making the customers happy with their choice. Further, Cathay Pacific is also committed to Hong Kong and its people that is why through its organisation and management style, various conditions are created to make it possible to deliver campaigns that in part a substantial investment to developing the industry and enhancing the company’s position as a regional transportation hub (Cathay Pacific online; Beckford, 1998, p. 185).   As such, the service is renowned because of the people who are always willing to go the extra mile to make the passenger feel special. The people use their training and intuition to provide all those little things that passengers may want even before they start asking for them so passengers can enjoy an exceptional travel experience.   One of the most evident marketing capabilities of Cathay Pacific is its affiliation with ‘oneworld’ alliance as Cathay Pacific’s other strength. Oneworld enables its members to offer customers more services and benefits than any airline could provide alone. Through the world renowned global airline alliance, Cathay Pacific was able to be a flight of choice since it can provide greater convenience of being able to choose flights on more days, or more flights on any given day. Customer satisfaction is what Cathay Pacific is after through providing the customers more flight choices, smooth transfers, access to other airport lounges and enhanced benefits.    Another strength apparent on Cathay Pacific’s operation is that it invests heavily on loyalty programmes as part of its customer relationship approach. There are two loyalty programmes for Cathay Pacific and one among this is the Marco Polo Club, which is a frequent flyer program. The Club is one of the most well-established schemes for Cathay Pacific and Oneworld alliance. The programme is so holistic that it is treated another brand inside Cathay Pacific especially since it is immediately adjacent to first class where passengers paying full economy fares enjoy improved service and facilities (Chan 2000).   Cathay Pacific’s weakness would be on its organisational structure that has become inefficient as the company become more complex. This could hinder Cathay Pacific’s ability to manage its international network of subsidiaries and other alliances. Prior to acquisition of Dragonair, Cathay Pacific has lost its competitive advantage which resulted in declining sales because of intensifying competition. During the 2000s, Cathay Pacific realised that there is the need to overcome the challenges of competition thus acquiring Dragonair. Future challenges of additional competition brings if Cathay Pacific will not resolve in strategic option (Page, 2007).    An opportunity and a threat, what Cathay Pacific and Dragonair can do to remain competitive in the regional and global airline industries is to strongly disprove the open skies in Hong Kong. Major routes of Cathay Pacific are also being served by five foreign airlines hence passengers have wide choices of carriers as well as schedules and fares of flights. Open skies therefore could threaten the operation of Cathay Pacific and Dragonair. This is to protect the financial stability of Hong Kong as well as that of the two carriers. Cathay Pacific and Dragonair have crucial roles in maintaining the interests of the entire aviation industry particularly in the Asia Pacific region (HKTDC, 2000).       References   Beckford, J 1998, Quality: an introduction, Routledge, London. Cathay Pacific information, retrieved on 22 February 2010, from http://www.cathaypacific.com. Chan, D 2000, ‘Air wars in Asia: competitive and collaborative strategies and tactics in action,’ Journal of Management Development, vol. 19. no. 6. Flattoau, J, Matthews, N & Lott, S 2006, ‘Big Deal?’ Aviation Week & Space Technology, vol. 164, no. 5, pp. 41-42. Page, S 2007, Tourism management: managing for change, 2nd edn, Butterworth-Heinemann. The Reality of Open Skies and Its Relevance for Hong Kong, 2000, HKTDC, retrieved on 22 February 2010, from http://info.hktdc.com/message/404.htm.    Credit:ivythesis.typepad.com

SWOT Analysis of Cathay Pacific

SWOT analysis of Cathay Pacific Using SWOT analysis, Cathay Pacific aspires to be a leader and will help to share future policies ...

Cathay Pacific : Scenario planning (management change)

Executive Summary Businesses undergo various changes depending on the situation in the industry and the demand for change by the internal and external environment. One change that happens to business is improvements in the technologies they use. Business improves their technologies so that they can create better products, improve their competitiveness against other firms and provide better service to clients. They also improve their technologies to correct any things not working well for the company’s operations. The improvements in the technologies can make the business and the employees perform better or it can create more problems for the company. This paper will focus on the business change done on the travel service industry.   People travel most of the time because of different needs and different reasons. People always look for the kind of travel services that will give them excellent kind of care and services.  There are many companies who offer such kind of travel services. One of these companies is Cathay Pacific Airways; this company strives to continue to be a leader in the industry it belongs to. This report will give a history and background of the said industry. This report will also discuss a background of Qantas and the failed take over bid. The report will also discuss how the company used decision making on the issue of the failed takeover. The report will discuss on how decisions in the company should be implemented and evaluated.  The paper will also determine the importance of decision making to the company. Contents Executive summary 1.    Introduction <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="line-height: 150%"> Organizational Structure </li> </ul> 2.    Brief of the case object 3.    Drivers of change <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="line-height: 150%"> External Driver </li> <li class="MsoNormal" style="line-height: 150%"> Internal Driver </li> </ul> 4.    Description for current scenario <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="line-height: 150%"> Organization growth stage </li> <li class="MsoNormal" style="line-height: 150%"> The scope of change </li> <li class="MsoNormal" style="line-height: 150%"> The process of change </li> </ul> 5.    Sources of resistance 6.    Assessment styles of leadership 7.    Prognosis 8.    Key issues in implementation 9.    Conclusion 10. References                     Introduction Cathay Pacific was generally seen as a quality airline, but one strongly associated with Hong Kong’s colonial past. A major challenge for the future was for Cathay Pacific to be perceived as more Asian rather than British/Asian in order to strengthen its market abilities in Asia including attracting a wider Asian customer base, as well as to reflect the changed political realities in Hong Kong. In short, the company needed to align its Conceived Identity with its new Identity. Cathay Pacific chose to undertake this identity realignment through a massive coordinated set of initiatives intended to transform the reality of the company to achieve the new perceptions that would reflect the new strategy and permit communications based on the substantive changes (Balmer & Greyser 2003). Cathay pacific is one of the most well known airline company in the world. It competes with different airline companies for prestige and notoriety in the airline industry. Recently the company underwent a change in image and strategies to counter the problems its industry has. It shifted the focus of its strategy into making sure that their will be an increase of clients who demanded their services, it also made sure that the services and technologies they use can be competitive to other airlines company.   The company has taken advantage of the information technology revolution and updated it with their ticketing system and booking system. The company makes sure that whenever someone wants to have his/her flight booked the data they will share can be available within minutes and information can be easily found.  The company’s system also makes it easier for a client to transact for tickets and acquire that ticket that will be used for the flight. Organizational structure The company‘s top man is the Chairman Christopher Dale. The CEO of the company is Anthony Tyler. The finance director is Robert Atkinson. They are the ones that lead the company; underneath them are department heads, sector managers and other personnel that work in different locations. This structure of the company intends to promote teamwork and camaraderie amongst the members of the organization. The people responsible for decisions on strategies the company intends to use include the Chairman and the CEO.   Brief for the case object The airline industry presents a paradox. For the last fifty years it has been characterized by continued and rapid growth in demand for its services. Yet it has remained only marginally profitable. Inevitably growth was much faster in the 1950s and 1960s when aviation was a new industry than it is today when it is reaching maturity. But growth rates are still impressive. In the 1950s and 1960s the world’s air traffic grew on average at around 14-15 per cent each year (Doganis 2002).  In the decade 1970-79 the annual growth was close to 10 per cent. This still meant that air traffic, and the airlines with it, doubled in size every seven years or so. In the following ten years to 1989 growth declined to around 6 per cent annually and in the decade up to 1999 growth was down slightly at 5.2 per cent. In absolute terms, because of the much higher base, a 5 per cent jump in recent years represents a much greater surge in demand than a 10 per cent annual growth thirty years ago (Doganis 2002). The airline industry appears to be cyclical and this inevitably impacts on growth rates from year to year. Nevertheless the underlying trend has been one of declining but consistently good growth in demand. Most industries or businesses faced with continued and high growth of demand for their products or services would be basking in substantial profits. Not so the airlines. This is the paradox. The financial performance of the world’s airlines taken as a whole has been very marginal, even in the years when the industry was highly regulated and largely protected from internal competition. The traditional measure of profitability, namely the rate of return on assets employed, cannot be applied to the airline industry as a whole (Doganis 2002).  This is because of the difficulty of estimating real asset values for airlines with varied depreciation policies, using varying proportions of leased equipment and often receiving direct or indirect government subsidy in a variety of forms. Another measure of profitability commonly used among airlines is the operating ratio, which is the annual operating or net profit or loss expressed as a percentage of the total annual revenue. The cyclical nature of the airline industry is clearly evident. Four to five years of poor or bad performance are generally followed by an upturn and five or six years of improving results (Doganis 2002).   However, even in the good years profit margins are low. The net profits after interest and tax rarely achieve even 2 per cent of revenues. Airlines can be low-cost and very unprofitable or high-cost and financially sound. Unit costs or unit revenues are not critical in themselves (Doganis 2002).  The airline industry has its own share of problems over the years; this does not mean that companies in this industry should be affected by such situation. To conquer the problems, the industry influences companies belonging to it to alter their strategies and relate it to strategies used by other industries. One company trying to succeed in the industry is Cathay Pacific. It constantly changes its strategies to meet the demands of the environment. The paper will discuss about the company, its strategies and the changes in its strategies. The paper will also discuss about the drivers of change for the company.    Drivers of change External drivers Political The company will not get any good reputation, trust and success if it will not be aware of what is happening in the political sector of the country. The company and the airline industry have made sure that they were aware of the political situation of every country they have operated in and the company has its position with regards to political issues. Cathay Pacific is continuously prepared for any problems concerning the political sector.   Economic Cathay pacific can be said to be economically stable for the past years. Its economic stature is doing well that’s why they try to improve their products to give the best to their clients. It is not only the internal economic situation of the company should be taken note of but also the economy of the country, the company checks first the economic status of the country they are operating in before making decisions because making decisions during a difficult time on the economy of another country may cause catastrophe for the company.   Social Cathay Pacific makes sure that the service they offer and the technology they use to tender their services will be accepted by the public. The company does not authorize the delivery of some services they know will cause outbursts or complains from different group in the society. The entertainment provided in flights will not contain anything that will cause problems with the passengers. The company also engages in social activities that tend to develop a better relationship between them and the clients. These activities can be in the form of outreach programs and free tickets to special people.    Technological Cathay Pacific offered new innovations in its technological aspect and introduced new concepts with regards to its industry. Since technology rapidly changes the company and the company makes sure they are updated to what is happening and they can adjust to these changes. Cathay Pacific makes sure that the services they offer are updated with regards to what technology is used to tender their services.  If other companies use new technologies to provide services, the company has the technology capable of competing with such technologies. Legal             In any country there are laws that need to be followed. These laws restrict or allow any action to be done. The laws make sure that the people do what is right and just. It prevents any arguments or differences. Cathay Pacific makes sure that it follows the different laws of a country they engage transaction in. The company also makes sure that the different local and international transportation laws are followed in any trips made by the company. The company doesn’t want to risk their client’s welfare by breaking local and international transportation laws.  Cathay Pacific follows the international air travel laws that provide regulations for different things like the route allowed for every flight.   Environmental The world is starting to be more conscious of building a better future for the children. Every possible way to ensure a better future is used. Different organizations are doing things to ensure that the future will be a bright one. Cathay Pacific makes sure that the technology they use to tender services to their clients will cause minimal problems to the environment. The technology should pass certain standards or the requirements of the state. The company puts up certain regulations on the gases and other equipments used on the air transport devices. The company then makes sure that the gases and the equipment will not be the source of more environmental problems. The company has also introduced better waste management strategies that aim to reduce pollutants and create a cleaner environment for the future. Internal Drivers Stage of growth Stage I of organizational growth is the inception of a new venture. In this stage the critical issues for management are to identify the markets and niches that will be served and to develop the products or services appropriate to the selected market segments. During stage I, the firm must perform all of the critical tasks of organizational success; however, the relative emphasis will be on the first two tasks: defining markets and developing products. If an organization successfully completes the key developmental tasks of stage I, it will reach stage II-the rapid growth or expansion of sales revenue, number of employees, and so forth. Expansion presents a new set of developmental challenges (Golembiewski 2000). Organizational resources are stretched to the limit as increasing sales require a seemingly endless increase in people, financing, equipment, and space. Similarly, the firm’s day-to-day operational systems for recruiting, production or service delivery, purchasing, accounting, collections, and payables are overwhelmed by the sheer amount of product or service being pushed to the door. The major problems of stage II are those of growth rather than survival (Golembiewski 2000).   During stage III of an organization’s life cycle the emphasis must be on the management systems, To this point, it was possible for managers to be hands-on doers, but what is increasingly required are people who are adept at administration: planning, organization, motivation, leadership, and control. Thus the individual manager is faced with a personal transition; He or she must increasingly adopt not merely the title but the behavior and psychology of a manager. During the growth to stage IV, the firm brings in new waves of people. The key problem in stage V will be to develop new products and services to facilitate additional growth. Typically a firm will grow to a point as a result of its initial products or service. Beyond that point the firm may well have to develop new products or services to facilitate future growth. This stage requires the reintroduction of the entrepreneurial spirit that launched the firm and also involves the development of segments of the firm that resemble new ventures. The firm’s growth from the diversification that took place in stage V has made it significantly larger and more complex. It may have geographically dispersed divisions, for example, which results in new organizational problems. In essence, each location of the organization is a different business, but also part of a larger entity (Golembiewski 2000).   Accordingly, the key management challenge for the firm will be to integrate the separate units into an operating whole while simultaneously allowing them to realize the benefits of quasi-decentralization. It appears inevitable that all organizations will ultimately decline, and the key issue at this stage is organizational revitalization. The organization will have to deal with the symptoms of aging. It will have to find new markets in order to reestablish itself as a viable competitive entity (Golembiewski 2000). The growth of a firm will depend on how its development prospers. Each stage of a firm’s development is important and vital for the firm’s success. The stage must have been successfully completed before any change to another stage so that any problems will not pent up and will not cause bigger barriers to the organizations success. The changes in each stage will help a company in determining whether it is ready to advance to a new stage or downgrade to a former stage.   Description for current scenario Organization growth stage Stage 1 Different problems and the consequent effects of these problems initiated the need for change for organizations.  In the first stage the focus of the company was to determine the main problem, what caused it and what can be done to solve it.  In the first stage of growth Cathay Pacific take a look at its systems and how its system provides service to the clients. Cathay Pacific made use of various strategies to know how its service systems relate to the changing clients.   Stage 2 In the second stage the company expanded and improved the materials it uses to provide services. Cathay started upgrading their systems and the different technologies they use so that better service can be given to clients. This was also done to provide solutions to the complaints aired by clients.  The company changed some of its personnel that have low evaluation ratings. The company hired better personnel that have new ideas on the updated service strategies. This helped the company to introduce changes on the way services are given to the clients. Stage 3 In the fourth stage Cathay pacific evaluated the way it manages the firm. It checked on how the firm evolved using its current management strategies. The company evaluated its management team and it tried to find out how the management team handled and motivated the personnel. The company then initiated changes in its management strategies. The company researched about new and better management strategies. They then studied the changes in the management strategies and initiated it in their own company. The company also replaced members of the management team when they believe that such member is not effective enough to perform his/her duty.   Stage 4  In the fourth stage Cathay pacific hired more people that passed their requirements. The company made sure that those newly hired by the company was given rigorous tests to see how well they can perform. The company also made sure that the new hires were successful in their previous fields. The company made sure that they have no previous records demeaning to the company. The new hires were given backup checks by chosen trusted members of the company.  The company believes that the newly hired people will bring more improvements to the company’s service and they will help the company adjust to new trends in the environment.  The newly hired people are expected to perform above standards with so much enthusiasm and dedication for the company to reach its goal. Stage 5 In the fifth stage Cathay Pacific tried to introduce new service that other airlines have not introduced. The company made sure that the clients will not forget about the company and the service it provided to them. The company created better systems that fit their goal of providing service straight from the heart. The company made use of new upgrades in technology to speed up the process of booking a flight and purchasing a needed ticket. This made sure that the clients won’t have to go long lines just to have their flights booked.   The scope of change System For every company improving a previously used system is a rigorous but beneficial task. Setting up a system requires a well thought out plan of action that intends to make sure that order is maintained as the information system is built. The internal and external environment of Cathay pacific plays a big part in the creation and improvement of systems. There are many things that should be considered before the system can be put into the company. The company considers first its internal capacities and fixes its internal conflicts before knowing means on how to improve the systems. The company then knows the situation in the industry and what changes have been done by the industry in terms of their own system. The company also sees to it that economic indicators are doing well before doing any changes in the systems.   The company then checks the need of the clients how it relates to their system. Culture Organizational culture helps in aligning the values and norms of the employees to the values and norms of the organization.  The organizational culture of Cathay Pacific is concentrated on making sure that their missions will be attainable. The missions include providing service straight from the heart, make sure that clients are safe whenever they are using the transportation services of the company,  encourage to their employees product leadership, make sure financial returns are made and provide beneficial career opportunities to willing and acceptable employees.   Mission The mission of Cathay pacific is making sure that the clients will be given effective service. The company wants to make sure that the best service will be given to clients but they want to make sure that the company will maintain its advantage over other airlines.   Structure The structure of the company focuses on the promotion of teamwork and camaraderie amongst the members of the organization. The company’s structure enables the personnel to have good interactions with their superiors. The company allows the both the management team and the personnel to discuss things that may or may not relate to the firms operations so that they can work together harmoniously for the benefit of the firm. The process of change Moving Information technology helped Cathay pacific to introduce newer means for them to provide service to the clients; this helped the company to put itself in a position that has a distinct competitive advantage. Information technologies are something that is constantly evolving and being improved over the course of time. It grows and adapts to the changes in the society. As time goes by IT is changing its different techniques in providing service to the clients and in making business transactions be done in the shortest time possible. Cathay pacific made use of IT to have better internal and external communications. The company used IT to have better communication with different departments and divisions in the firm. These have lead to better procedures in delivering funds, goods and information. The major change in IT that can trigger a major change in the industry is when IT cannot provide support towards newer and complicated problems that give the industry and firms within it difficulty to achieve each of their goals.   Freezing Change should not be forgotten after implementation, it is a continuing process and it needs maintenance. Cathay pacific needs to continuously adopt improvements to its systems so that the company will continuously achieve its benefits. Cathay pacific needs to strengthen the systems and information technologies its uses to prevent information going into the wrong hands. Sources of resistance Resistance may be mainly sourced from human barrier that stems from people’s fear to change in working place and uncertainty. There are different sources of resistance. It includes barriers to interpretation. This comes when employees have lack of information about the flexible working hour’s scheme. The interpretation part may fall onto the hands of various people but one person’s interpretation may be different from another person’s interpretation.   A source of resistance is distorted perceptions of the need for change. Employees may consider that the change is due to the possibility for the company to cut their current cost or increase the extra workloads for them to develop a flexible working time scheme. A source of resistance is the lack of creative response. Some leaders are not willing to involve themselves with the change. Since they are just outsourcing and they lack power to implement such scheme. Lastly a source of resistance is communication barriers. This may happen when the manager lacks awareness with regards to the change and there is poor communication in the workplace.     Assessment on styles of leadership Shared value Cathay Pacific stands for continuous innovation of services so that people will easier time in using the airplane as a method of transportation. The company based their values on the desire to provide a much better service to clients and make sure that such service will never be forgotten by clients.   Strategy Cathay Pacific through its leaders is trying hard to learn from its past mistakes so that they can be market savvy.  The company tries to minimize committing its past mistakes. The company is trying to have closer relationship with customers so that they can provide services that people will purchase. The company also wants to invest in better equipments. The new and better equipments will be the source of the company providing the best service.    Structure The structure of the company is decentralized wherein decisions are not made by a single person. Each department has a say on decisions that will be made. Each department communicates with each other before making any kind of decision. This structure of the company helps it to make the best decisions that in turn will be vital so that the company can provide the best service that people will avail. This also makes sure that any conflicts within the company can be minimized.   Systems The different systems of the company were reconfigured to make sure that the system will positive changes to the way the services are given. The different systems are revised according to the different concerns and needs of the department using them. The systems have been altered depending on the needs of the company in that environment. Staff Cathay Pacific makes sure that the employees they hire will be an asset to the company. They hire the best people for a specific job. This people are trained well by the company so that each employee will have an important role to play in the company. The company provides various financial and compensation packages to their employees. This ensures that for every effective service the employees do they are greatly rewarded.  The company also recognizes and gives awards to employees who perform above standards and do things that exceed what is expected of them.   Style Leaders of the organization are not all the times perfect in the way they handle the job and the way they treat the personnel. Their can be times when some of the leaders act differently from what is expected from them. Leaders learn from their mistake and they correct mistakes by making sure that the actions they will make will benefit the company.   Skill Cathay Pacific uses the personnel that have ideas on how service should be given and these personnel are the ones assigned to provide the best service.  The company tests these personnel before letting them provide service to the clients. Cathay pacific makes sure that the personnel are skilled enough to make use of high tech materials that will provide service to their clients. Prognosis No change scenario There will be no abrupt changes in the goal of the company and the company will continue upgrading its technologies to meet the changing demands of clients. The company will remain with its dedication to provide the best kind of service to its clients. This will lead for the company to maintain in its current path and make sure that the working strategies will be used continuously.   Change scenario achieved through organizational development The company will initiate change if there is a need for it and when organizational development calls for such change. When the problem cannot be contained and no solution can be given for it then change would be considered by the company. The change would focus on the part of the company that needs development and the one that has huge amounts of problems.  The change would be done in a step by step process so that those will be affected can adjust and not cause any other problem to the company.   Key issues in the implementation of the change program The change program may have various issues before it can be implemented. One issue is the effect of the change program. Some members of a company might be adamant to change because they are not sure of what will be the effect of changes to their welfare. Another issue in the implementation of the change program is the availability of the budget that will be used for the change program.  The budget is an important part of the change program. The lack of it will create problems for the initiation of the change program. Lastly an issue in the implementation of the change program is the time that will be used by the change program. The change program should not cause more time for the company and it should not disrupt any activity of the company that was previously scheduled.   Conclusion Cathay Pacific makes use of the best service strategies that intends to make an identity separate from the competitors. It concentrates on providing excellent service to clients.  That is the reason why the company made use of information systems. The company introduced the information technology systems on the belief that it will help them provide a different kind of travel experience. The company saw the potential of information technologies and how it benefited other firms.  With this kind change, there are different key issues that it needs to address. One is the maintenance of such change. Change if not maintained will be worthless. It should be gradually evaluated and altered if there is a need for it. Another issue is the ability of the change to maintain providing benefits to the company.  The change program should make sure that it will continue to provide benefits to the company. Lastly an issue that needs to be addressed is the change program‘s ability to adapt to the environment. 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Cathay Pacific : Scenario planning (management change)

Executive Summary Businesses undergo various changes depending on the situation in the industry and the demand for change by the internal...