Posted by mbalectures | Posted in Strategic Management | 13,506 views | Posted on 11-01-2011 |
Key success factors (KSFs) describes main parts of performance that are important for the firm to achieve its objectives and mission. Top level management absolutely considers these factors during the setting overall goals. These key success factors give a widespread knowledge for the entire company. Therefore, any action that the firm commences must make sure constantly greater performance in these key parts; if not, the firm may not be competent to accomplish its goals and thus may fail to achieve its mission. In the service/Airline industry, predominantly the capital-intensive, the key success factors are described below:
There must be strong management of every thing that is advantageous for the organization. The airline has at all the times evaded, disdained and vogue everything that may increase costs and makes difficult the basic travel plan. Management ranks are inclined, healthy compensated and significantly productive.
Highly qualified and competence workforce is very essential in this industry or service-oriented industry. They must possess strong communication skills and soft spoken with customers. There must be training programs focusing to enhance there abilities and skills and these campaigns must be customer-focused and focused on continuous-improvement. Staff must be highly paid so they can not leave the organization and create difference.
Service Promotions and In-Flight Services
The promotion in this industry is mainly targeted to enhance the base of loyal customers and also focused to the regular high-revenue customers. The in-house service such as booking ease, aircraft type, aircraft seating space, class of service offerings must be at least industry standards. Business travelers like the simple service; there must be a decent coach cabin that is slightly more spacious. There are no assigned seats, no meals, just beverages and snacks. Therefore, simple service is a major critical success factor.
Destination from one point to another point should be nonstop. This activity minimizes the time that planes take while reaching the destination and it allows airline more to be in the air. It results in good image and increases passengers credibility.
Thriving management of this factor facilitates airlines to regulate investment for growth. There is accountability of the unit revenue to compute the profitability, which is calculated by revenues minus all the expenses divided by the total seats flown.
Efficient Management of Cost
Maximizing revenue by implying creative and competitive pricing structures to attract all the profitable segments and sustaining frequent and profitable customer base is most important key success factor for this industry. Efficient management of cost by focusing on the price hedging during volatile periods and maintaining fuel procurement is an important factor.
An airline’s route organization is the most reliable factor. Where to fly and how frequently; are the success factors that must be harmonized to demand, and simultaneously planned to increase the aircraft utilization.