Common Practices in Business

Common Practices in Business - Common Practices in...

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Common Practices in Business Companies must have satisfied employees to satisfy customers. Continental Airlines is a perfect example of how a company can succeed by putting the emphasis on employees and customers. Continental shows remarkable turnaround from a disastrous performance. In the early 1980s, Continental's management believes that the only way to save the company would lower prices, and reduce all possible costs. Thus, the product was demolished and its quality of service. For example, in the 1990's, the pilots can earn bonuses if the rate of fuel consumption of his plane fell below a specific amount. Pilots flying start program to slow, which often resulted in the arrival times was lost. Due to delays, sometimes it was necessary to divert customers to competitors. Another example of this horrible "low cost" program approach cove. Continental replaced all first class seats on some aircraft with economy class seats to reduce the cost per seat. This failed when the aircraft were exchanged during adverse weather conditions, business class seats were not available for passengers who had paid for them. On the other hand, eliminated all foods Calita flights, all travel agency commissions, and all corporate discounts. This angered many of its customers very important. After 15 years of this "low cost" approach, Continental had been successful in creating services that nobody wanted. Culture of the continental organization was terrible. Many employees are embarrassed to work for Continental. Some employees were so embarrassed, he removed the logo from their shirts. To make matters worse, Continental has implemented a horrible communication structure: Nothing told the employees unless absolutely necessary. Most employees learned of the company's activities, plans, and performance through the public press. They had no way to share your ideas or ask questions. For example, if an employee had an idea to improve service for passengers in first class, there was a useless form filling. The information was gathered almost never, and never was used as a source of potential improvements to the company. In addition, there were so many rules to follow that employees could not do what was best for the customers. The Department of Transportation ranked Continental one tenth of the ten largest U.S. airlines in all key customer services. Results particularly abysmal on-time performance, baggage handling, customer complaints, and volunteers for denied boarding. Continental had been through two bankruptcies and the presidents of every ten years. Besides, had not published any benefit since 1978. The "Go Forward" plan was implemented under Gordon Bethune, chairman and CEO of Continental, and Greg Brenneman, president and COO. This plan has four components: (1) "Fly To Win" as a marketing plan, (2) "Future Fund" as a financial plan (3) "Make reliability, Actually" as a plan product, and (4) "Working Together" as a people plan. In "Fly To Win", the plan was designed to build Houston, Newark and Cleveland markets
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This note was uploaded on 09/20/2011 for the course BUS 475 475 taught by Professor Webster during the Winter '09 term at University of Phoenix.

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Common Practices in Business - Common Practices in...

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