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Management Practice – Report on Simulation – Ascend Airways


Management Practice – Report on Simulation – Ascend Airways

Word count 4426


Produce a professional report of 3,000 words on the performance of your company in the simulation, showing how theory which you have learnt on the MBA course was demonstrated both in your management of your business and in the way the other companies in your industry competed. Some specific questions regarding your vision, mission, objectives, strategic planning, decision making and key take-aways, will be provided for you to address and you will also have the opportunity to highlight other areas of your own choice. Your report must be fully supported by directly relevant quality academic sources in demonstrating the integration between the theoretical academic frameworks and your strategy, planning, decision making and overall performance of your organization during the simulation. A key aspect of the assignment is that you evidence a clear link between the strategy you adopt during the simulation and the various academic frameworks you have been studying throughout your MBA units to this point in time.

1. Show adequate independence of thought in evaluating the usefulness of theory in practice applied to a live consultancy project or a simulated task of running a business, monitoring performance and adjusting decisions in the light of the success or failure in a competitive environment

2. Demonstrate adequate appraisal of the complexity of management in the implementation of strategic decisions

3. Research, select and use creatively appropriate business and management theory to manage and complete a project in the context of a new situation

Additional information

Table of Contents

Executive summary
1.0 Introduction
1.1 Introduction to Ascend Airways
1.2 Vision and Mission
1.3 Core Values
1.4 Key Objectives
2.0 Evaluation of Strategic Decisions
2.1 Corporate Strategy
2.2 Business Strategy
2.3 Functional Strategy
2.4 Sales and Marketing Strategy
2.5 Finance Strategy
2.6 Human Resource Strategy
2.7 Operation Strategy
3.0 Conclusion
4.0 Recommendation


Executive summary

Ascend Airways is a regional which handed over to new management in order to increase airlines profitability and market share. This report critically evaluates strategic decisions undertaken by the new management throughout the past 12 quarters and how those impacted on airline’s performance and profitability.

Ascend Airways expand its operation in the current region in order to penetrate the market and enter into region two as a new market development strategy. Additionally, introduce cargo service and air ambulance service for passenger patients in order to align new product development and diversification strategy. By analyzing the external factors and SWOT analysis Ascend Airways decided to implement a hybrid strategy to gain a competitive advantage.

In the initial phase financial performance of Ascend Airways indicated poor position due to high operational cost and comparatively low passenger loading factor. However, by effective utilization of aircraft Ascend Airways is able to recover by reducing the operation cost. Furthermore, company recovered from the short-term working capital issue by selling two aircraft and adding new fuel-efficient aircraft under lease agreements.

Ascend airways invest heavily in advertising and promotional as well as training and development to gain a competitive advantage. Aggressive promotion and advertising helped to increase demand and increase loading factor and quality ratings improved due to investing in training and development.

From the inception Ascend Airways allocated budget for sustainable development and try to move from move eco-friendly aircraft to ensure effective and efficient resource utilization. Overall Ascend indicated good performance in the past 12 quarters and was able to gain cumulative net profit in the Q12. Therefore, there is a potential for Ascend Airways to gain a more competitive advantage in the future.

1.0 Introduction

Contribution of the air transportation is key for the global economy and plays a significant role (Rahman Sarker, Golam Hossan and Zaman, 2012). An upward trend has been seen in the airline industry since 2004 (European Commission, 2017). There has been a small increase in the amount of spend by consumers therefore industry experts expect future growth in the airline industry (The International Air Transport Association (IATA), 2018).
Regional airlines play an important role by offering short- and medium-haul scheduled airline services. Hence regional airlines operate in fewer demand routes while connecting smaller communities with larger cities it is important to make correct strategic decisions to gain a competitive advantage.
Three years ago, when new management takes over the operation of the Ascend Airways past records indicate inconsistent performance. It was a challenging situation for the new management to turnround the company performance and increase the completive position of the Ascend Airways.
Main purpose of this report is to analyze the decisions taken by the new management during the past twelve quarters. It will describe the corporate strategy, business strategy, and functional strategies adopted by the new management team to change the direction of the company. Further, it will explain how governance and sustainable initiatives helped to increase the stakeholder value and gain competitive advantage. The latter part of this report contains a list of recommendations that would help to increase revenue, profitability, and stakeholder value.