Jet Airways is one of the biggest airline companies in India. The company started its
operations in May, 1993 from Mumbai/India. The main products of the company are
passengers air transportation, cargo service and services such as City Check-in or Ramp
handling. Jet Airways operates 340 flights daily and mostly to their 44 domestic
destinations but the company also serves the six following international destinations:
Malaysia, Nepal, Singapore, Thailand and the United Kingdom. Jet Airways’ revenue in
2006 accounted for 1379.9 million USD, which signifies an increase of 38.8%
compared to 2005 (ICFAI, 2005).
The trend of fast global travel goes together with the strong supplier power, as aircraft
manufacturing is dominated by a duopoly. The global airline industry is a deregulated
industry which attracts new entrants (airlines) and the most successful segment is the
domestic one, with a volume of 67.3%. Another indication for more and fast global
travel are growing passenger numbers of 6.5% (2002-2006)(ICFAI, 2005).
Table of Contents
1. Introduction
2. TOWS- Analysis
3. SAF-Analysis
4. Choice of Strategies
5. Risk Assessment
5.1 Short-Term Strategy
5.2 Mid-Term Strategy
5.3 Long-Term Strategy
6. Implementation
6.1 Short-Term Strategy
6.2 Mid-Term Strategy
6.3 Long-Term Strategy
7. Monitoring & Control
8. Conclusion
Objective and Topics
This case study examines how Jet Airways can select, implement and monitor strategies while managing risks across short-, mid- and long-term planning horizons. Its guiding question is how strategic options can be evaluated against the airline’s circumstances and translated into practical risk management measures.
- Jet Airways and the Indian airline industry
- TOWS analysis of strategic options
- Suitability, acceptability and feasibility assessment
- Risk assessment across three planning horizons
- Strategy implementation, monitoring and control
Excerpt from the Book
6.1 Short-Term Strategy
According to the short term strategy, the objective is to establish internal stability. As mentioned, internal stability is rather important in a dynamic environment and to be successful in a business. The aspect of internal stability can be seen as a circle. It starts with a well working management and ends with high motivated and satisfied employees. But the current company organisation is too complicated and Goyal, the founder of Jet Airways takes a critical role in any decision making (ICFAI, 2005).
By re-arranging the current company structure and responsibilities, the installation of a supervisor board will be an important step to become an internally stable environment. This board should be included in the company’s decision making and have the right to interpose its veto or give its blessing concerning crucial decisions.
Furthermore, it is important to secure the current strategies and in the case of a failure, the establishment of strategic alternatives which secure an effectively working business. Finally the regular monitoring, motivation and training of employees is important as well. As mentioned above, stability starts with the management. However, the management has to ensure that the basis of Jet Airways, their employees are motivated and well trained in order to communicate the philosophy of the company. By introducing a regular training scheme and a reward system, employees will be both, motivated and satisfied, which supports internal stability. Nevertheless, the regular monitoring of Jet Airways competitors is essential and in the case of an innovation introduced by a competitor, Jet Airways has to react on this innovation by introducing innovations as well.
Chapter Summaries
1. Introduction: Introduces Jet Airways and outlines features of the airline industry relevant to its strategic environment.
2. TOWS- Analysis: Combines internal strengths and weaknesses with external opportunities and threats to develop strategic options.
3. SAF-Analysis: Evaluates the options using suitability, acceptability and feasibility criteria.
4. Choice of Strategies: Discusses strategies for the short, medium and long term, including stability, partnerships and product-line extension.
5. Risk Assessment: Examines risks associated with each time horizon and considers possible responses.
6. Implementation: Describes organisational, personnel and operational measures for putting the strategies into practice.
7. Monitoring & Control: Considers managerial oversight, performance monitoring and control mechanisms.
8. Conclusion: Brings together the strategic recommendations and the role of ongoing risk management.
Keywords
Jet Airways, strategic risk management, airline industry, TOWS analysis, SAF analysis, strategic planning, risk assessment, strategic alliances, code-share agreements, internal stability, product-line extension, implementation, monitoring and control
Frequently Asked Questions
What is this work about?
It is a case study of strategic decision-making and risk management at Jet Airways.
What are its main subject areas?
It covers strategic analysis, the selection of business strategies, risk assessment, implementation, monitoring and control.
What is the primary objective?
The report aims to evaluate strategic options for Jet Airways and consider how they could be implemented and managed over different time horizons.
What method does the report use?
It applies a TOWS analysis to develop options and a suitability, acceptability and feasibility analysis to evaluate them, followed by an assessment of associated risks.
What does the main body discuss?
It discusses strategic alternatives, their associated risks, proposed implementation measures and procedures for monitoring and control.
Which keywords characterise the work?
Key terms include Jet Airways, TOWS analysis, SAF analysis, risk assessment, strategic alliances and product-line extension.
How does the report distinguish its planning horizons?
It considers internal stability in the short term, partnerships in the medium term and product-line extension in the long term.
Which potential alliances are mentioned?
The implementation discussion mentions OneWorld and Star Alliance as possible alliances for Jet Airways to join.
How does the report propose monitoring risks?
It proposes regular meetings involving departmental risk managers and executives or supervisors, alongside audits of procedures, performance and resources.
- Quote paper
- Thomas Punzel (Author), Elisabeth Stockmann (Author), 2008, Case Study “Risk and Decision Making”, Munich, GRIN Verlag, https://www.grin.com/document/122442
