Name: ___________________________ Student Number: __________________ VBD Final Report Upward Airlines (add a brief description of your virtual business + the mission statement + one (1) strategic goal plus two (2) associated tactical goals) BSD115 Management Semester 1/2016 Submission Date: Tutor: Tutorial Time & Date: Word Count: [Total number of words in the document, not including the title page or reference list. No word count = 10% penalty] 1 BSD115 00213J Cricos No. Assessment Item 3: Virtual Business - FINAL 1.0 Introduction (70 words approximately) Identify the purpose of the report (add together Part A, Part B + final) 2.0 Discussion of the organisational problem (460 words approximately) Give a brief description of the organisational problem (approx. 50 words) 2.1 Identification of the causes of the problem (approx. 310 words) Identify at least three possible underlying causes (issues) and the functions to which they relate (Planning, Leading, Organising, Controlling) 2.2 Critical underlying cause (approx. 100 words) Select and justify the most likely cause and relate this to your Virtual Business 3.0 Analysis of the most likely cause (700 words approximately) Linking to the most likely cause of the problem, give a brief outline of why it is important to resolve the problem (approx. 50 words) 3.1 Identification of possible solutions (approx. 400 words) Identify and discuss three possible solutions for the most likely cause linking to the relevant management function/s (Planning, Leading, Organising, Controlling), tools (eg. financial tools like profit and loss statements), management theories 3.2 Environmental factors (approx. 150 words) Consider environmental factors that may impact the underlying cause and recommended solutions 3.3 Most appropriate solution (approx. 100 words) Select and justify the most appropriate solution to overcome the underlying cause 4.0 Recommendations (300 words approximately) Start with a concluding statement which should be forward looking (eg. The management of Upward Airlines failed to define the __________ due to its ___________ and ____________. In order for Upward Airlines to establish and maintain a clear vision and direction, two action plans are recommended: 4.1 Action Plan 1 (both need to state the courses of action that should be taken and each has to be linked to the earlier analysis and relate to the chosen theory/theories 4.2 Action Plan 2 Reference list - use 11 or more sources - use QUT APA referencing system 2 BSD115 00213J Cricos No. Running head: UPWARD AIRLINES 1 UPWARD AIRLINE Name: Institution: UPWORL AIRLINES 2 Introduction The airline industries are one of the most lucrative sectors in the world everybody else would wish to find a job with. From the look of the fancy dresses and clothes the pilots and flight attendant adorn in their line of duty, one would only but wonder how interesting the job must be. Though not very clear how much the pilots and attendant are paid, from the physical look of these personnel you can only guess how much they are paid and the truth of the matter is that they must be receiving very good salaries from their work. From this glamour expressed by the personnel working in the airline industries, it is not easy to believe that such a fancy enterprise can be facing challenges as witnessed in the Upward Airlines Problems facing Upward Airlines industry The problems facing the Upward Airlines industry can be said to be serious and seemingly they are as a result of neglect of the necessary procedures. Among the problems facing the airline, there are three major ones that the management must swiftly move in to tackle to assure the future of the business. The three main problems facing the Upward Airlines are the safety of the passengers and their luggage, convenience, and finally environmental and financial sustainability (Branch, 2015). The above mentioned are the main disciplines that are affecting the operations of the airline industry at the moment and for this reason. The increased rate of mysterious loss of luggage at the airports has caused an alarm to the flight attendant and the airport workers. It has been established that at the end of every flight, at least once a week there are one or two incidences of passengers complaining of lost luggage. What is so unsatisfying about the whole issue is that the lost items are never found casting a heavy doubt on the sincerity of the package people who are responsible for loading the UPWORL AIRLINES 3 passenger's items into the cargo. Could it be that some of the passengers' valuables are not loaded into the cargo intentionally or is it that there is theft of the languages at the airport? The other aspect of safety is brought about by the current rate at which air jets are getting crushed off the radar at unknown destinations. Over the past years, it has been established that a number of flights have already crushed as a result of bad weather, technical problems and also geographical landscape uncertainty (Raab, 2010). So far these accidents have caused a lot of tension and uncertainty in customers traveling via planes. Most customers have now preferred the use of more established airline industries due to the increased safety assurance and as such living the smaller airline industries line Upward with very little do deal with in terms of customers. Upward Airlines is also facing the problem of inefficiency. There are very many situations in which the airline flights don't take off as scheduled due to delays in crowdsourcing and computer algorithms. According to Morrell (2013), other forms of delays could be caused by the unrevised system of paperwork and procedure of booking flights that are occasionally recalled to allow for clarification of certain aspects of the ticketing process. As a result of the great inefficiency in the airline, caused by poor technological implementations the company is finding it hard to balance its drive for profits, security maintenance and at the same time keeping up with its competition with the other transport offering organizations most especially the airline industries. Environmental issues The need to go green and the push for renewable and environmentally friendly fuels is another problem affecting the airline industry. The introduction of the policy on environmental conservation has seen the airline industries being subjected to new rules and regulations in which UPWORL AIRLINES 4 they are forced to use renewable energy sources that are environmental friendly. As Yu (2008) stated that those companies that shall go against this new order are liable for a taxation which is likely to cost the company about $8 billion in the next eight years. On the other side, use of the renewable energy sources is estimated to be more expensive for such small airline companies to bear. These changes in events have so far left the company management in dilemma still consulting on the right direction to take. Solutions to the problems of Upward Airline To minimize the loss of passengers' luggage in the plane the company has engaged in a lot of improvements in the tracking system within the company. The company has increased the number of CCTV cameras in the within the company to improve the chances of tracking the movements in and outside the premises and as such improving the chances of tracking a misplaced or lost passenger items. In addition, the company has boosted its method of cargo storage by serializing each item according to the passengers ticked to provide efficiency and ease of tracking the lost properties at any point. On the skepticisms on the safety of passenger lives in the flights, the company in collaboration with Australian Aero engineers has formed a partnership. Through the partnership, the engineers shall be providing regular services and maintenance to the passenger jets to help improve customers' confidence in the company's services. As much as accidents cannot be written off, there are so simple accidents that can simply be avoided of the right things are done at the right moments. In addition, to boosting the confidence to the organization's services, the company has established a partnership with the Australian national airline to have common traffic radar to be UPWORL AIRLINES 5 able to boost their ability of analysis circumstances and situations in the airline industry (Barnhart & Smith, 2012). As Morrell (2013) stated that through the adoption of modern technology of automatic and online ticketing systems, the company can be able to boost its efficiency and effectiveness when it comes to time wastage problems. With a more elaborate system that can ensure that the passengers obtain their tickets in a more convenient way and verifications done in a more digitalized way shall ensure that the company saves more time and in the long run reducing the immense work related to paperwork. Solutions to environmental issues The current issue in the society is about environmental conservation, everybody everywhere is getting credit for his or her little steps towards conserving the environment. as much as it may be cost demanding g to implement the use of renewable and environmentally friendly sources of energy, Upward Airlines has no other choice but to follow the suit in taking the right direction towards showing their concern towards the environment. Such a move shall serve to give them credits when it comes to customers who are drawn to companies with good will towards the environment and moreover better rate them in the global conservation measures. Recommendation and action plan From the above discussions, it very evident that Upward Airlines has faced series of challenges in its operations. As much as it is true that the company has numerous challenges, the company is already in the move to bring back the normal operation. To ensure a quick recovery UPWORL AIRLINES 6 to the competitiveness of the organizations activities, several protocols have to be put in place. The cargo personnel should be very much on the look out to ensure that they bring into the planes the passenger items. The company should be able to adopt the use modern technology, and it is through the use of modern technology that efficiency can be guaranteed within the company operation. The company should be able to use the modern platform in ticket booking and verification of payments by their clients before they can aboard the plane. The adoption of the technology shall further give opportunity for the clients to be able to do their booking from anywhere they are without being physically present within premises of the airline. The vigilance of the cargo workers may also be boosted by establishing a proper check in and out of the premises. Moreover, the company should install more cameras to monitor the movements of the people in and out of the company. Conclusion It thus very obvious that the future of Upward Airlines is not sealed yet. As much as they could be a few steps from the real success any other company may wish for it is very mush clear that their situation can still get a remedy. With the concern, the company has shown in its good will towards correcting the mistakes and bridging its gaps to solve the existing deficits it is convincing that it is all but just a matter of time before the company rises above its knees. UPWORL AIRLINES 7 References Harrington, H. J. (2006). Change management excellence: The art of excelling in change management. Chico, Calif: Paton Press. Spedding, L. S., & Rose, A. (2008). Business risk management handbook: A sustainable approach. Oxford: CIMA. Barnhart, C., & Smith, B. (2012). Quantitative problem solving methods in the airline industry: A modeling methodology handbook. New York: Springer. Maddison, S., & Denniss, R. (2013). An introduction to Australian public policy: Theory and practice. Cambridge, England: Cambridge University Press. Raab, G. (2010). The psychology of marketing: Cross-cultural perspectives. Burlington, VT: Gower. In Belobaba, P., In Odoni, A. R., & In Barnhart, C. (2016). The global airline industry. Morrell, P. S. (2013). Airline finance. Farnham, Surrey, England: Ashgate. Gido, J., & Clements, J. (2014).Successful project management.Cengage Learning. Branch, L. J. (2015).The Impact of Project-Based Learning and Technology on Student Royal Aeronautical Society., & Royal Federation of Aero Clubs of Australia. (2007). Aircraft. Melbourne: Royal Aeronautical Society Australian Division. Yu, G. (2008). Operations Research in the Airline Industry. Boston, MA: Springer US