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TablecontentBackgroundProblemStatementPESTanalysisandPorter’sfiveforcesAnsoffproductmarketstrategyDesignapproachKotter'sModelRecommendationandGanttchartConclusionBackground
Vision:
Becomingtheworld’sNo.1airlinegroupintermsofbothservicequalityandbusinessvolume.Missionstatement:Wewillnotonlytransportpeopleandgoodstotheirrespectivedestinationssafelyandontime,butwillalsobringpeoples,theirculturesandtheirheartsclosertogetherasourcontributiontoworldpeaceandprosperity.(RepresentativeDirectorYoshiharuUeki)BackgroundComparetopreviousyears:DebtratiogoesdownRevenueandprofitgoesupExpensealsogoesupPorter's5forces
ThreatofNewEntrantsThreatofSubstituteSupplierPowerBuyerPowerInter-firmRivalryLOWHIGHHIGHLOWInter-firmrivalry:IntensecompetitiverivalryFixedcostsandentrybarriersareoverall
highStagnateofmarketshareSupplierpower:LaborqualityJetsupplier(Singapore)PlanesupplierBoeing:47%Airbus:53%Threatofsubstitute:Highregardingshort-haulroutes,asrailAA,ANA,Asiana,Delta,LCCs.Buyers’bargainingpowerHighfuelpricesHighSwitchingcostsThreatofnewentrants:HighcapitalrequirementsStrongbusinessAnsoffMatrixItisabusinessanalysistechniques,whichprovidesaframeworktoidentifygrowthopportunities.MarketPenetration
IncreasingcurrentproductmarketshareStrategyinpricing,promotionandAdvertisingIncreasebrandawarenessIncreasingtheusage“TechnologyChange”Self-checkinKiosk
&mobilecheck-inIn-flightWi-FiCustomerLoyalProgramJALMileageBankSellingexistingproduct/servicesintoexistingmarketNewGeographicalMarketChina:60%
flight
not
on-timeSoutheastAsia:lowVISArestriction,moreflightlinesNewDistributionChannelCollaboratingwiththedestinationtouragents/wholesalers/hotel(220destinationun35countries)MarketdevelopmentSellingexistingproducts/servicesintonewmarketProductdevelopmentIncreasecustomerservicequalitySeat/spacearrangementLarger
seatspaceforeconomyclassIndividualcabinfor1stclass(full-flatbed)IntroducingnewproductintoexistingmarketDiversification
IntroducingnewproductsintonewmarketFullDiversification3hotelbrandsIn
Japan,China,USAandEuropeForwardDiversificationTourAgent“JALPAK”1stJapaneseoverseaspackagetourDesignapproach
Example:MessinSafetyProblemsFormulatingthemessHarshbusinessenvironment:GroundingofBoeing787aircraft&RapiddeclineinYenSolution:“JALGroupMediumTermManagementPlanforyear2012-2016”Designapproach
Example:MessinSafetyProblems2.EndsPlanningGoal:MaintainingthehigheststandardsofsafetyAim:ZeroAircraftaccidents&ZeroseriousincidentsDesignapproach
Example:MessinSafetyProblems3.MeansPlanning(Newpolices/programs/procedures)ExpansionofRiskAssessment:MechanismtopredictanaccidentFocusontheoccurredmalfunction&investigatecausesPredicttheriskmayleadtoanaccidentDesignapproach
Example:MessinSafetyProblems3.MeansPlanning(Newpolices/programs/procedures)SafetyLeadersProgram:DesignatedstaffareresponsibleforpromotingsafetyInitiativesEnsure2-waycommunicationflowstomanagementgroupDesignapproach
Example:MessinSafetyProblems3.MeansPlanning(Newpolices/programs/procedures)CultivatingaCulturetoProtectSafetyJALGroupSafetyEducationtocultivate“safetyprofessionals”DeclaredownsafetypledgesduringthetrainingSharestoriesofsafetyindailyoperationsDesignapproach
Example:MessinSafetyProblems4.ResourcesPlanning
People:SafetyAdvisoryGroup/GMofSafety/SafetyLeaders/EmployeeinSafetyDepartment/Training
Manager/GeneralmanagerandalltheotheremployeeinJALPlace:TrainingRoom/ConferenceRoomEquipment:MultimediaProjector/Microphones/Laptop/RemoteControl/Videoequipment/LaserpointersDesignapproach
Example:MessinSafetyProblems5.DesignofimplementationExpansionofRiskAssessment:SafetyAdvisoryGroup/SafetyDep./EngineeringDep./MaintenanceDep.SafetyLeaders:Alldepartments/GeneralManagerCultivatingaCulturetoProtectSafety:TrainingManager/AllEmployee
Designapproach
Example:MessinSafetyProblems6.DesignofControlPerformanceAppraisalsDisciplinepoliciesEmployeeObservationsKotter'smodel1.EstablishaSenseofUrgencySoldlargepassengeraircraftsEndedupofinvestmentinotherrelatedenterprisesReleasedthecontroloflaborunionNegativefactsandwhatcouldbedone?DecisionmakingwastoolateTop-downbusinesscultureKotter'smodel2.FormaPowerfulGuidingCoalitionBusinessreconstructionunderGovernmentsupportCorporationwithaformerexecutiveofKyosera (PresentJALhonorarychairman)Negativefactsandwhatcouldbedone?Keptineffectiveownbusinessstrategies(MinisterofInfrastructure,Mr.Maehara)(Mr.Inamori,formerpresidentofKyosera)Kotter'smodel3.CreateaVisionRe-formstaffconsciousnessDepartmentalprofitabilityevaluationsystemNewcompanyphilosophyby50executivepersonnelinOct2010Negativefactsandwhatcouldbedone?UnorganizeddivisionaltrainingLowlevelfocusofprofitsCompanyphilosophywasneglected(PhilosophyhandbookforJALemployees)Kotter'smodel4.EmpowerotherstoactonvisionPracticeoftheAmoebaManagementstylewhichempoweremployeetoengageactivelyinworkplaceEachAmoebaunitsmaketheirownplanManagementbyallNegativefactsandwhatcouldbedone?PutpeoplewronglyinwheretheeffortneedstobeCabincrewbeginmisplacedandusefordoingcleaningup(Themiddleone,DrKazuowhocreatedAmoebaManagement)Kotter'smodel5.Planforacreateshort-termwinsLeadersshouldbuildlongtermwinswithshorttermwinsSetuptheMediumTermManagementPlanwithshort-termgoalsNegativefactsandwhatcouldbedone?Shouldhavemakeattainableshort-termgoalstostimulateandmotivateemployeeE.g.BestServicesAward(TheMediumTermManagementPlan)Kotter'smodel6.ConsolidateimprovementsandsustainmomentumforchangeNewapproachneedtobeconsolidatetosucceedThecultureofreportingwasbeginconsolidateagainNegativefactsandwhatcouldbedone?ShouldhavekeepeducatingorremindingemployeetheimportanceofreportingthroughtrainingordailymeetingRecommendationsAssetandCapitalFocusedExpansionofflightlinesinSouthEastAsiaWorldclassservicequalityVisarelaxationofSouthEastAsiancountriesThailand:74%↑,Malaysia:35.6%↑in2014NewManagement
DevelopmentofcompanyphilosophyKeeptheconsistentbusinessmodelRaisethemoraleofallemployeesNeverrepeatthebusinessfail
FYs2012–2015
FY2016(1stApril,2016–31stMarch,2017)Ganttchart
Conclusion
Analyzedbusinessapproaches,coreissuesandimprovementDifferentiationChallenging&SpeedReferences1.JapanAirlines|SWOTAnalysis|USP&Competitors|BrandGuide|MBASkool-Study.Learn.Share..2016.JapanAirlines|SWOTAnalysis|USP&Competitors|BrandGuide|MBASkool-Study.Learn.Share..[ONLINE]Availableat:/brandguide/airlines/5136-japan-airlines.html.[Accessed22March2016].2.JapanAirlines,JapanMissionstatement---wewillnot-MARKETING-1.2016.JapanAirlines,JapanMissionstatement---wewillnot-MARKETING-1.[ONLINE]Availableat:/file/p2c8cpt/Japan-Airlines-Japan-Mission-statement-we-will-not-only-transport-people-and/.[Accessed22March2016].3.ClarkeAlexander,2014.Strategicanalysis,valuationandmarketmechanisms:the2012InitialPublicOfferingandsubsequenttradingofJapanAirlines.[ONLINE]Availableat:http://pure.au.dk/portal-asb-student/files/74981978/bachelor_done.pdf.[Accessed22March2016].4.CaseStudyJapanAirlines|Self-PublishingatGRIN.2016.CaseStudyJapanAirlines|Self-PublishingatGRIN.[ONLINE]Availableat:/en/e-book/163063/case-study-japan-airlines.[Accessed22March2016]5.JapanAirline(2015).JALReport[online].Avaliableat:</en/investor/library/report/pdf/index_2015.pdf>[Accessed19Mar.2016].References6.Hays,Jeffrey.(2013)"JAPANESEAIRLINES:JAPANAIRLINES(JAL)ANDALLNIPPONAIRWAYS(ANA)|FactsAndDetails"[Online]Availableat:<http://www..><Accessedon20Mar.2016>7.Reuters,WilliamMallard(2013)"TheVeryBigPoliticalIssuesBehindJapanAirlines'BigBoeingSnub".[Online]Availableat:</2013/10/16/the-very-big-political-issues-behind-japan-airlines-big-boeing-snub/><Accessedon20Mar.2016>8.Inc,P.(nodate)PRESIDENTonline.Availableat:http://president.jp/articles/-/5241(Accessed:20March2016).9.Tozaki,H.(2011)Theroadtobackinthemarket.Availableat:/ja/currents/d00051/(Accessed:20March2016).10.SANKEIDIGITAL(2014)Visa
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