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USEAST AIRLINES

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USEAST AIRLINES
A Case Analysis in Operations Management
University of the Philippines in the Visayas
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[31 August 2013]

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I. Case Background
The USEast Airline scenario reflects how companies in this contemporary business world
operate. In adapting the highly turbulent business environment, most of the companies are
strategically pursuing a number of cost cutting measures to manage the financial statement of the
business including reduction of employee head counts and other operational expenses. As a
consequence, employees who remained in the company has huge workload and responsibilities
brought about by the transition whereby 2 different jobs normally performed by 2 employees
now handled by 1 employee. For sales employees who are deployed in the field, scenario of 2
territories previously managed by 2 salesmen now covered by 1 salesman due to the collapse of 2
territories. Sales Targets and other related accountabilities are now in the hands of a single
salesman. Management nowadays defines these challenges as the “New Normal”. With New
Normal employee’s mental conditioning is geared toward moving forward than looking back the
good old days of the company.
Wherever and whatever company an individual is working with, the above situation is
currently happening in the working environment. Companies are momentarily and strategically
manage their business by “patching” rather than maintaining a highly structured organization in
order respond to a highly volatile and dynamic business environment brought about by influx of
information and technology. Most often times, companies are deemed to be evolving at a rate
slower than how demands are growing trigged by the increasing empowerment of consumers. No
wonder, a lot of highly performing companies in the 500 Forbes like Pfizer, Nike, HP and the
likes are now growing relatively lower than how they perform for the past 3 decades. Dealing
with these challenges is totally different from working on the solutions prior to the information
age.
II. Statement of the Problem
The case of USEast Airline is not different from the rest of the businesses in the world.
After the US Twin Towers collapsed and prevalence of terrorism act in the country, people were
consequently afraid to travel by airplane. This hostile condition has greatly contributed to the
huge decline of passengers traveling by air. Eventually, USEast Airline has to manage its losses

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 I. Case Background The USEast Airline scenario reflects how companies in this contemporary business world operate. In adapting the highly turbulent business environment, most of the companies are strategically pursuing a number of cost cutting measures to manage the financial statement of the business including reduction of employee head counts and other operational expenses. As a consequence, employees who remained in the company has huge workload and responsibilities brought about by the transition whereby 2 different jobs normally performed by 2 employees now handled by 1 employee. For sales employees who are deployed in the field, scenario of 2 territories previously managed by 2 salesmen now covered by 1 salesman due to the collapse of 2 territories. Sales Targets and other related accountabilities are now in the hands of a single salesman. Management nowadays defines these challenges as the “New Normal”. With New Normal employee’s mental conditioning is geared toward moving forward than looking back the good old days of the company. Wherever and whatever company an individual is working with, the above situation is currently happening in the working environment. Companies are momentarily and strategically manage their business by “patching” rather than maintaining a highly structured organization in order respond to a highly volatile and dynamic business environment brought about by influx of information and technology. Most often times, companies are dee ...
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