Common Practices in Business - Common Practices in...

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
by developing more business fliers leisure fliers. The "Future Fund" was designed to