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LOG317-Procurement Strategy and Policy

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Question 

Phoenix-Air is an African budget airline. Typical of all budget airlines, Phoenix-Air focus on cost management and high operational efficiency. For example,

Operating no-frills flight with destination in 2nd tier cities to reduce landing cost.

• Do only point-to-point flight, avoiding the need and potential complications of transferring passengers.

• Flying with a handful of aircraft types (less than three) to reduce variation, build economy-of-scale and streamlining its operational process and maintenance.

• Leverage on the internet and digitisation technology, i.e. e-commerce, automated checking in, baggage tagging, customer service chatbots to

• Land and flight staff are expected to multi-task, i.e. pilots could double up as a cleaning crew after all passengers alighted the flight as it prepares for the turnaround

Information on Phoenix-Air:

• Rank 8th on the ‘on-time arrival’ ranking by the regional African aviation authority, out of a total of 44 airlines, of which 30 are classified as budget airlines.

• Phoenix-Air pays a competitive remuneration package. The airline is considered by many as one of the top-5 employers in the airlines' industry in the African continent.

• The airline recently experiences an increase in work absentees resulting in flights delay, impacting the on-time arrival at their destinations. As a result, 50 flights (mostly latenight outbound) were cancelled. This is an increase from the preceding year.

• Recent customer survey indicates that customers are satisfied with the airline: airfares, service quality (ground handling and in-flight), aircraft cleanliness, Flight safety, flight scheduling and timeliness. The one area that did not score well is on the e-commerce booking platform. Customers commented that it is not intuitive and multiple steps are required to complete a booking, making it a tedious affair. This is exacerbated in places where the internet reception is poor. Calling the airline means a long wait, and when connected, the sales agents are not knowledgeable about the product nor have the authority to handle the request.

• The number of passengers carried by the airline has grown steadily. In 2018, the airline carried 800,000 passengers on 7,200 flights. One key reason for this growth is that the company enjoys either a duopolistic or monopoly on 30% of its routes.

With the liberalisation of airspace in the African continent, Phoenix Air will lose it oligopolistic hold on air routes. The company will have to prepare itself to face competition. 

a) Analyse the four (4) perspectives of the balanced scorecard.

(b) Assess whether the balanced scorecard (BSC) approach should be used here. In the above scenario, is BSC a more appropriate performance measurement tool than the traditional financial approach i.e. relying on financial performance measures?

(c) Develop a balanced scorecard for Phoenix-Air. Propose one (1) goal along with a corresponding performance measure for each of the BSC perspectives. 

LOG317-Procurement Strategy and Policy

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1 Academic year and term: 20 20 -202 1 Module title: Business and Management Dissertation part 2 Module code: Module Convener: LEARNING OUTCOMES • Knowledge outcomes – Students will be able to plan how to conduct a dissertation /thesis based on their o ...

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Business Models

To successfully complete this assessment, you are required to explore the academic literature on business models and to write an essay addressing the following statement: According to Kodama (2009), Zott and Amit (2010), and Itami and Nishino (2010), who published in Long Range Planning in 2009 and ...

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7BSP1355 Leadership and Management in International Business

Question: For your online test you will have to answer questions based on one case study. The case study you will have to answer will be selected from six different case studies below. The questions have not been included. You are asked to read and revise the theory that you think can be used to a ...

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