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In the mid of 1990 there were eight private airlines plied the skies over India. Indian airlines had enjoyed being a monopoly in international airline market between 1953. Jet airways claimed to be only private airline which earned a profit of more than $6 million in 1994-95, for a strong survival in aviation market, jet airways planned to start international service, which was risk factor in 90's economy. Jet airways made its own freed to fly outside the country on March 22, 2004. Colombo, Sri Lanka was the first international destination for jet airways and flight to Bangladesh, Nepal followed soon after.
NEW FACE OF JET AIRWAYS (CHANGE)
Jet airways came up with a new identity in Indian aviation market.
Implemented changes in jet airways JET AIRWAYS NEW LOOK
New Boeing -737 aircrafts
Opening International sectors
A new opening of international sectors created a strong impact among the employees. Employees has been motivated with their financial aspects at
the same time uniform change gave a motivational thoughts towards the work. Jet airways launched a new operational software called SABER, which is user-friendly. Jet airways started using beoing 737 aircraft for international leisure travellers.
Now jet airways currently fly to more than 50 destinations with the help of 62 aircrafts with 49 classic Boeing 737-400/700/900/800, 3 airbus A340-300 aircraft, 2 airbus A330-200 aircraft and 12 modern ATR 72-500 TURO aircraft. The international Air plans has been extended to America ,Europe ,Africa and Asia. The company has achieved average factors in international operation sectors of 67.6% which is a profit of 2.6 million.
Five factors of change equation
D x V x S x B = R
When jet airways started international sectors most of the passengers were dissatisfied with the operating service because international operation of flight are more complicated then the domestic. But thats totally rectified through hiring technical civilized people. Employees has been trained with international rules and regulations.
Vision of jet airways was starting international sectors, which was greatly achievable with the experience of seven years airline service
In 2007 , jet airways came up with refreshed look for brand based idea of proving , jet airways is the smarter choice. The new look created international image for jet airways. It was entitled as new spirit of india. In 2008 jet airways became one of the top three airline in india
By 2006 jet airways emerged as a india's leading airline, gaining itself stellar reputation of efficiency, professionalism, consistency and unheard quality of Indian aviation. Jet airways had an ambitious plans to create an international network crisscrossing the world.
Jet airways has recognized and accepted the dissatisfaction that exist by communicating Indian aviation industry trends, best practise, leadership ideas and analysing competition to identify the requirement of change.
1.2 ORGANIZATION CONTEXT FOR CHANGE
The cultural web was designed by Mr. Gerrry Johnson and Kevan schools in 1992 . cultural web identifies six major interrelated elements of the organisation and its environment .By analysing this we figure out the clear picture of organisational culture
In 2008 when jet airways and kingfisher joined together as a code share partners, the agreement was misjudged inside and outside of jet airways. Jet employees came out with the wrong justification of jet airways was undertaken by kingfisher. Then Mr. Naregh Goyal gave a clear description about the agreement to every department of jet airways
RITUALS AND ROUTINES
When jet airways started international sectors , all employees were gone under training in operational , technical and service basis. Cabin crews are trained for new airbus 737 to learn about the security procedures. Jet airwsys has its own training academy for employees in Mumbai.
Jet airways came with look of logo and staff uniform to create a more impact on international travellers. The new look maintain the golden FLYING SUN with the primary colour blue, but introduces swirl ribbons of golden and yellow resembles typical Indian DUPATTA.
ORGANIZATIONAL STRUCTURE OF JET AIRWAYS
This a organizational structure of jet airways which is totally different from other business hierarchy .
Jet airways is a Indian based airline which has a total administration in Mumbai. It has primary hub and maintenance base also in Mumbai and secondary hubs are in delhi, kolkatta, Chennai, pune, bengaluru ,Brussels. jet airways follows TOP TO BOTTOM method control sysytm. jet airways control system are framed according to the cities, each city has its own administration head with controlling power and HR department are allotted to appropriate city. If any change or rule are implemented , that will intimated to every city head administration office and the information will be passed to the rest of the departments through circular or through mail .
According to jet airways company, Chairman Mr. Naresh Goyal is a decision maker for any implementation of change. And the implementation will take place from top level management particularly from Mr. Nikos Kardassis CEO of jet airways. In jet airways power structure flows from top level management to bottom level management.
2 EXPLOARING CHANGE
2.1 DRIVERS OF CHANGE
Michal porter (Harvard, competitive strategy 1980) developed the five divine forces analysis model to identify the factors that mould the character of competition, to evaluate the structural attractiveness and value of business for all industry and to identify strength and weakness in an organization.
THREATS OF NEW ENTRANTS OR SUBSTITUTE
In 2000s there was a tremendous increase in competition in Indian airline industry. In the end of 1990s, there was a very few effective private airline had exited the Indian aviation industry and only jet airway were only left to compete with Indian airlines. Indian aviation market was very small with an tremendously low penetration rate (as of 2005, the average air travel in India was 0.014 trips per passenger in a year. The competition for a market share in a small market become very hard.
In 2005 UB group launched a new airline in india called kingfisher airlines. Kingfisher came up with all brand aircrafts and it got a five star image in Indian aviation. The entry of kingfisher had badly affected the market share of jet airways.
BARGAINING POWER OF BUYERS
In 2004 the bargaining power of domestic passengers become high because of new entry of kingfisher and existing domestic airlines like INDIGO, PARAMOUNT AIRWAYS etc. But jet has overcome that issues by undertaking AIR SAHARA which is low cost airline.
BARGAINING POWER OF SUPPLIERS
Here the pilots becomes a suppliers , in 2008 there was a pilot strike in jet airways for their salary hike, because kingfisher airlines was taking jet airways pilots with great intention and salary. So jet airways was pressured in pilots part of operations. The another supplier issue was aircraft jet airways came with new fleet 737-Boeing which was very expensive but there was no option , the tight competition leads them to acquire.
THREATS OF SUBSTITUTES PRODUCTES OR SERVICE
THREATS OF MARKET SHARE ACURED BY OTHER AIRLINES IN INDIA
In domestic operations jet airways found bit difficult in creating market share because there was a some substitute airline for economy passengers. Indian economy become one of the difficult factor in gaining market share. In this circumstance jet airways didn't lost their market share but they found difficult in increasing their market shares.
2 CREATIVITY AND IMPROVEMNET
The EFQM excellence model represented in the diagram is used by more than 30,000 non prescriptive organisation in the Europe and beyond, regardless of size, sectors, maturity or structure, organisation requires to build an appropriate management framework that enables organisation to:
Assess where they are
The effective communication
Integrate existing and planned initiatives
Provide the basic organisation structure
Jet airways has a great leader than any other airline in india. Mr. Naresh Goyal has 25 years of experience in civil aviation sector. Under his leadership jet airways become a india's most preferred airline. Today the net worth of jet airways is over 94 billion (Rs 8100 cr), which makes him be the sixth richest Indian as per the business concern.
Life time achievement award by TAAI on 2010.
Voted "international entrepreneur of the year " by UK secretary of state transport
"Travel Entrepreneur of the year" by TTG
NDTV profit business award 2006 by NDTV
'Outstanding asian- Indian ' award by Indian American central political academy
'Distinguished alumni award -2000' for meritorious and performance
'Entrepreneur of the year 2000 award for service'
POLICY AND STATEGY
Jet airways has strongly established its mission statement, "To be the most preferred domestic airline in india and achieve this pre-eminent position by offering a high quality of service". It will make the world to look up to the Indian skies. Jet airways wants to be a universal model for domestic travel. There are four missions of jet airways as given below.
jet airways will be the most ideal domestic airline in india. It will be the default first choice carrier for the for the public and set standards, which rest other competing airlines will look for to match
jet airways will achieve this most excellent positon by offering a professional and a high quality of service and consistence, comfortable and efficient operations.
Jet airways will be an airline ,which is going to be advance in domestic air travel and be a world class domestic airline
Jet airways will achieve these goals and objectives simultaneously ensuring reliable profitability, achieving healthy
When jet airways started international air service, they have recruited lot talented people in order to give a great performance particularly pilots , they have haired expansive pilots for most of the high traffic air sectors like London, Brussels etc. The company strength become high and strong. Because the existing employees are trained and worked with the domestic operations.
RESOURCES AND PATNERSHIP
In OCT 2008 jet airways and kingfisher airline joined hands together as an alliance which mainly includes an agreement on code sharing on both domestic and international sectors like fuel management in order to reduce expenses, ground handling, joint operation of crew and sharing of frequent flier programmes.
Jet airways operation resources
Jet Airways Fleet
Airbus A330-HYPERLINK "http://en.wikipedia.org/wiki/Airbus_A330-200"200
When jet airways decided to make change from domestic to international , the first step which they took was new look , and they have started preparing their staffs to implement the change by giving technical training , model advices ,professional tactics and technical education.
When looking towards people results , jet airways employees are the real indicators for their company.There was a tremendous change among their employees ,they have been stimulated with their new looks and payments . The new blood made their employees to seek toward their goals . In 2004 the staff turn over of jet airways become 7% which non of the India based airline experienced before.
The customer result has been taken in well consideration in order to improve in jet airways , here is an example
"I travelled with jetairways from NJ toÂ DelhiÂ with my 10 months old son and my experience with it isÂ so goodÂ that I can't think about other flight. Crew members were so nice with my son and helped in warming up the formula and giving some space in their freezer to keep the milk bottle and did provide the baby food on time, AHHH.. what else you want when you travel alone with an infant and did help in carrying my hand luggage ".Â
-Mrs. Adi Gupta (29 DEC09)
Jet airways become a new identity of India. Social results are clearly reflected in the market share of the company .jet airways has announced its market share of Europe, Jet airways has posted 81.1 % occupancy in international sectors. As a result international traffic has gone up till 11.5 % in Indian airports. Which created a new history in Indian aviation market.
KEY PERFORMANCE RESULTS
With the effect of change jet airways announced its profit of Rs 53 crore in the end of march 2009 and the market has been increased up to Â 53% in Indian aviation market. But jet airways couldn't make a better profit in international sector when comparing to other international airline like British airways and Emirates. The key performance results is lack of advanced aircrafts fuel cost.
CREATIVITY AND IMPROVMENTS
In the terms of creativity and improvements , jet airways came out with programme called JET PRIVILAGE system . its about accumulating point while travelling with jet and other code share airlines. This has created a great impact among the frequent travellers.
CITI BANK joined their hands with JP plan. They have started using JP scheme in Citibank credit card were the customer get points while using CITI BANK credit cards with the help of JP points passenagers can buy free air tickets by baying their taxes.
IMPACT OF CHANGE ON PEOPLE
After a successful beginning of international sector, jet airways had a very hard time in 2008. Jet airways sacked 1,900 staffs including crew members and ground crews in 2008 without any intimation and compensation was give to the staffs according to their designation. But it became a black history in jet airways carrier and many of the domestic service were terminated. staffs are sacked because of a critical economy
Reasons for termaination
Drop of customer demand
High cost of fuel
Rate -cut by the competitors
TACKELING RESISTANCE OF CHANGE
After lay off of staffs jet airways had a threat of losing their market. The existing staff are badly affected by their insecurity of their jobs. Mr. Naresh goyal has taken a brillent decision in order to rectify this issue. After a week of sacking , he made an announcement that jet airways going to take back all the 1900 staffs. On 17th October 2008 all staff has been taken back to the company with the same privilege and desigination
In order to survive, jet airways got merged with kingfisher airline as a alliance patner including code sharing of domestic and international flights , joint fuel management to reduce expenses and combine utilisation of crew and frequent flyer programme
EVALUATION STRATEGIC CHANGE INITIATIVES
S W O T analysis is an vital tool for auditing the strategic situation of a business and its environment. Its key tool to spot the strategies which create a firm specific business model
That will align an organisation's resources and capabilities to the firm operation. In other words its a basic establishment to evaluate the internal potential, limitations, probable likely opportunities and threats from the external forces.
S. W. O. T. ANALYSIS OF JET AIRWAYS
LOSING DOMESTIC MARKET SHARE
OLD FLEET WITH AVERAGE YEAR OF4.79
LESS SCOPE IN INFLIGHT
WEAK BRAND PROMOTION
EXPERIENCE EXCEEDING 14 YRS
PRIVATE AIRLINE WITH INTERNATIONAL OPERATION
LARGEST FLEET SIZE
FUEL PRICE HIKE
OVERSEAS MARKET COMPETITION
UNTAPPED AIR CARGO MARKET
SCOPE IN INTERNATIONAL SERVICE AND TOURISM
According to the SWOT analysis jet airways have a great strength which is called experience it the is the only private airline which operates international service. Jet has better technical power than any other airlines in india. They use SABER interactive software which is based on Canada. It h ``as a large employee strength which help to handle any kind of critical strength. Jet airways has a better aircraft like AIRBUS 737 than other Indian based airlines.
In weakness part of jet airways is promotion part. Promotion strength of jet airways is bit weaker than other airlines like kingfisher. Fact behind of weak promotion is they have more branches in all over the world so the higher level of promotion will lead to higher expenses. But my suggestion is they can give strong promotion in certain branches like in metropolitan cities, which gives more business .
Jet airways has a opportunities to rise their CARGO service in higher level because india don't have great cargo service as like FED EX or DHL. Its a great opportunities for them to enter in a new sector with the available sources. Because jet airways is the only private airline which has more aircrafts.
Kingfisher is a main threat and a strong competitor for jet airways. Kingfisher has accrued 9% of jet airways market share in the start. The upcoming airlines like indigo, paramount are the least competitors but it still affects the corner part of their market share.
The major threat is fuel, crises in middle east countries might affect the jet airways in the order consumption cost.
This assignment educated me about the changes which take place within an organisation .It narrates about the effects and reactions of internal and external force, which affects the implementation process of a change. In order to understand the entire issues and process, I took india's leading international air transport company called jet airways, which was started from a basic level of business as a air taxi service . This project taught me the nature , behaviour , analysing methods of a corporate civilized leader of an organisation. Mr. Naresh Goyal leadership reflects the mental and confidence of a survival leader. This case study tell us, an effective change can leads a organisation towards a success