Company strategy analysis help on: Fletcher Jones company & continental airlines
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Introduction |
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Fletcher Jones & Staff
Fletcher Jones Company was founded by David Fletcher Jones who was a Businessman. He was born at Bendigo on 1895.In his initial stage of Life he had also served the army in Egypt, France and Australia. As he suffered from injuries doctor had suggested him to do sales job. He started to sell soap door to door with the help of Hawkers Van. Later on when he had some finance he started to explore the business of garments by taking three shop premises on rent basis. After sometime he found his business to be full of struggle because the shops were located at wrong location and was under capitalized. His one of the shop was famous for making men’s trousers and suits. Though there were financial difficulties the business started to grow because of the increasing number of tailors and the shops being located at prime locations (Australian Dictionary of Biography 2012). He always wanted to create a business based on the equality model. David Fletcher Jones started to find ways how to fill the gaps between rich and poor sections of society. He was highly influenced with Dr Toyohiro Kagawa developed Japanese Society by starting cooperative projects. |
Continental Airlines
Continental Airlines was founded on 1934.It was named as Varney Speed by founders called Walter Varney and Louis Mueller at EL Paso, Texas. In 1937 it was named as Continental Airlines and was moved to Denver, Colorado. It had participated in world war to expand its business by providing transportation service to the military. In 1950 Continental Airlines was merged with Pioneer Airlines. It used to operate 7 days a week in the route of Chicago & Los Angeles. With the Deregulation Act of 1978 Airlines started to exercise freedom by expanding their routes by being flexible which helped them in expanding their business in new markets. During those days Continental Had more than 100 aircrafts. In 1983 there was a huge loss for Continental due to rise in fuel prices. To manage the loss it started to participate in air wars with a hope to earn profits and manage the loss. On 1993, 90 Boeing aircrafts were purchased and it was financed by its new partners like Air Canada (Seat Maestro 2009). It helped to manage the loss business and turned it into the profits. Today it is known as the world’s fifth largest Airline Company. Continental important assets were its employees. |
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Theory of Business |
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| Fletcher Jones business was based on quality and integrity basis. David Fletcher Jones valued people before the profit. Business was started with keeping in mind about the social welfare of the people (Fairfax Media 2012). Socio economic theory also helps to think about their stakeholder’s interest. For setting the same type of Japanese based Cooperative business model Fletcher Jones also invited Kagawa to speak at Warrnambool. | |
Strengths
This theory provided Fletcher Jones new ways to compete with the other emerging cheaper retailers who were also dealing with garments business.
David Fletcher Jones was also inspired by the Japanese Business theory which was related with shared ownership and community Participation.
Fletcher Jones also opened chain of retail stores in Australia to explore his business.
Weaknesses
The weakness of this model was that during depression this model failed.
It took several years to make cooperative model a success for Fletcher Jones.
Due to lower tariff and cheaper imports it was unable to manage different changes related to its management & Technology.Continental Airlines theory of business was based on mergers with several other airlines. It also expanded its business by participation in second world war. It managed its problems by working in a team. With the help of Airlines Deregulation, Continental Airlines expanded its route system by developing price structure. President of Continental Airlines Mr. Gordon had founded a consultant who could support him in solving his problems.
Strengths
Continental always tried to take suggestions from the consulting companies like Bain’s Consulting. Certain factors related to finance were tracked on a routine basis.
It managed its bankruptcy by managing various cost by framing appropriate decisions
Such as efficient hiring system and reducing other finance based activities.
Team based working system was developed for the successful completion of the work.
Weakness
It was unable to change as per the time because of its inefficient management system.
Poor services were being offered to the customers.
Continental management was dysfunctional to fix the problems because leaders did not have their stability at top Positions.
Competing Values Frame Work
Fletcher Jones Employees/staff
Those tailors were recruited who were being discharged from other firms and ambitious sales person were also hired. Previously David had sole trader business but later on it was converted to private company. Fletcher Jones was a great philanthropist .He employed poor and disabled people in his company to uplift the society. It also reflects that he wanted to remove the gaps between rich & poor people. Employees/Staff got inspiration from their Leader to work with honesty and integrity.
As per Peter F. Drucker Theory of Business, David Fletcher Jones had a vision to create a garment company which was able to satisfy the needs of all stakeholders in the environment based on the equality and cooperative model.Continental Airlines Employees/staff
Employees had to qualify certain tests like IQ, Tests, get the things done properly and have a team spirit. Employee’s performance was linked with the rewards and recognition. People who did not have any airlines experience were also hired by the management. Multi tasking people were required to perform the two jobs simultaneously. Employees were given training related to the improvement in customer service and for better communication service.
As per Peter F. Drucker Theory of Business, Continental Airlines was to be one of the reputed airlines Company known globally. Company’s progress was measured against its performance.New Markets were being approached by hiring the shops at various locations on Lease Basis.
Every employee at Fletcher Jones knew what they need to produce to earn profits.
The business theory was tested on a constant basis by the leader by analyzing the Financial aspects, and labor policies related to the health, housing, & education of employee and their families. Care of business was taken by valuing employees before the profits. The management always forecasted the business by keeping an open eye (Harvard Business School Publishing 2012).The motive was to earn profits and manage the crisis of the company. The balance sheet was managed by cancelling the unwanted flights. Leasing of airplanes was reduced.
The interiors of the Continental was managed properly to attract the customers. It tried to take care by reducing the mishandling of baggage’s, addressing customer complaints, and improving the cleanliness. Proper communication channel was used to create a peaceful environment at Continental Airlines. A proper working culture was created where people would love to work.
FOUR PLUS TWO FORMULA BY NOHRIA (4+2)
The four factors should be considered for the progress of any company. Those four factors are strategy, Execution, culture and structure and also include the other elements like Talent, Leadership, innovation, Mergers and partnerships (Harper Business 2003).
Fletcher Jones & staff Company(4+2)
1.Strategy
Strategy was framed by David Fletcher Jones based on quality and integrity. It was made clear to everyone in the company. Previously it operated on a small scale basis. It was based on innovation of new garments. They focused on producing the garments for the rich as well as the poor customers.
2.Execution
It explains how to operate all the activities related to Jones company. Resources like man, machines, and space was increased and managed from time to time for smooth flowing of the activities. Though it faced the challenges but was managed by stitching the trousers for the military and Olympic people. Transparency was maintained at work. It was executed by all the employees of Fletcher Jones. The tailors executed the designs in stitching the garments for their customers.
3.Culture
Proper Australian and Japanese culture was followed for the smooth function of the Fletcher Jones. The management and employees both were very loyal towards their work.
4.Structure
It had an Informal structure of company where suggestions were invited from stakeholders too. It worked on the basis of cooperation with lower polices and autonomy among the workers. They had a decentralized process with fewer rules and regulations in their company.
The other factors related are listed below.
1.Talent
Talent was managed properly by Fletcher Jones by implementing staff ownership strategy. Creative people were hired.
2.Leadership
The leader at Fletcher Jones was connected with each and every employee at different level.
3.Innovation
They focused on producing new garments for the army and other common people.
4.Mergers & Partnerships
It was not being merged with other garments producing companies.
Strengths
The strength was of Fletcher Jones was the support of its people in the Organization. It also extended the brands of garments as per the emerging changes in the business environment. Moreover it had been offering after sales service to the customers to build better customer relationships. The foundation of business was based on ethics and it expanded between 1920-1930.It also implemented new technologies like designing and cutting systems of garments.
Weakness
It had to face competition when china had entered into global markets and offered the low price garments which had affected the sales of Fletcher Jones.Continental Airlines(4+2)
1.Strategy
It was framed by top management. It was based on grand strategies like merging continental airlines with other global airlines of that time. It was based on innovation which was related to reduce the other cost. The strategy of Continental Airlines was to be leading airlines of the world.
2.Execution
Teams were formed for proper execution of the activities. Everything was systematically planned and organized in a proper manner. Poor decisions which were taken earlier were revised to grow the business. Previously it was participating during the world War but later on its strategy was to make is a customer based airlines service Company. Certain standard related to performance of employees was set to check whether proper execution of strategy is being implemented or not at Continental.
3.Culture
Proper corporate culture was followed by the pilots and the management to replace the old culture by new one. After facing the loss a new working culture was developed to make it a good working place.
4.Structure
It was following Formal Organizational structure where decisions were made at top level and pushed down at lower level. They followed the fixed rules and the responsibilities. Centralized communication flowed from top to the lower management.
The other factors related are listed below.
1.Talent
Appropriate talent Acquisition Strategy was framed to hire as per their requirement. Multi skilled people were hired.
2.Leadership
The leaders were directive in nature and employees had to follow their instruction individually or working in a team.
3.Innovation
They focused on providing the best customer services by maintaining their touch points.
4.Mergers & Partnerships
It was merged with several airlines companies to grow as and when required.
Strengths
Continental airlines have been known as one of the established airlines in the world. It has been improving its operational performance by being located at various locations. It has been growing due to increasing number of the passengers throughout the world. Due to Deregulation in the aviation industry Continental Airlines was being merged with other several airlines to operate globally. The new strategies framed after bankruptcy has been its strengths.
Weakness
Continental failed to manage its business due to the rise in fuel prices. Leaders at top level were changing frequently due to ineffective style of management.
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Kouzes and Posner Five Key Leadership Practices |
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| Fletcher Jones & Staff Company | |
David Fletcher Jones five Leadership practices are listed below.
1.Challenging the Process
Whenever there was financial problem at Company it was managed by accepting it as a challenge. He searched for opportunities by accepting the various garments contract. Company‘s management always got inspired from the other’s ideas.
2. Inspiring a Shared Vision
David Jones has a vision to serve the society by providing employment to people. Profits were being distributed for the welfare activities. He was participative in nature and was confident.
3. Enabling Others to Act
Collaborative approach was used by supporting the activities of the employees. Previously it was a sole Trader business but later on it was converted into a private company.
4.Modeling the Way
The never give up attitude of the leader provided short term wins for the company. The business was started from a small scale and was turned into large scale. Customers were given the first preference.
5.Encouraging the Hearts
Individual contribution was well recognized by the management and the Leader of the company. He always motivated the employees.
Continental Airlines
Continental Airlines five Leadership practices are listed below.
1.Challenging the Process
The leaders managed the challenge by managing the various financial crises. Appropriate action plans were framed to overcome with such situations like Bankruptcy. Leader framed the strategies which were being implemented by managers.
2. Inspiring a Shared Vision
Leaders at Continental wanted to lead the airlines business successfully throughout the world. Leaders were directive in nature so that employee’s activities could be managed properly. Messages were communicated from top level.
3. Enabling Others to Act
Due to Deregulation in the aviation industry many competitors were providing better services than continental airlines but it managed to maintain success by working in team. Teams always provided synergy effect in their performance.
4.Modeling the Way
The Leaders knew that customers get attracted with other lucrative services easily, so they tried to maintain the quality services. Strong direction and turning around activities helped to manage smooth functioning of the business.
5.Encouraging the Hearts
Leaders rewarded their performance of employees by offering incentives, increasing their pay, motivating them to get recognition and etc (Jossey Bass 2010).
Conclusion
Fletcher Jones & Staff Company
Fletcher Jones did not have merging strategies and team based working system. The management was very traditional sort of where decision was taken by the Leader alone. According to time it tried to manage its business by locating the shops premises at prime locations. As compared to continental both of them faced the financial crisis during their early stages of business. Management was not confident to adopted new techniques to manage the change as per the changing business environment.Continental Airlines
Continental Airlines merged with other airlines to explore the business but it also failed to manage the change because every time leaders were replaced. The company did not have any back up plan to manage during crisis in initial stages of business. After some years Consulting companies provided services to manage the business. They had directive leaders to manage the talent in a team, innovate something new for the customers, and also link the rewards to their performance of the employees.
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