1)http://www.nytimes.com/2009/09/16/business/global/16air.html?_r=1&ref=business
2) This article outlines the situation of Japan Airlines (JAL) after losing $1 Billion USD in April-June 2009. It also discusses, possible strategic objectives the company plans to take, as well as potential takeover from rival airline companies. Delta Airlines and American Airlines are planning to bid for a takeover of JAL. This would be a high-risk takeover, as the company recently suffered a drastic financial loss. Japan Airlines also hopes to turn to other external sources of finance in the forms of share capital from Air France-KLM and Korean Airlines. Internally, JAL will reduce its costs of production by reducing 6800 jobs over the course of the next 3 years.
3) 2.1 Human Resource Planning
-Dismissal and Redundancy
1.7 Growth and Evolution
-External Growth
3.1 Sources of Finance
-External Finance
1.3 Organizational Objectives
-Strategic Objectives
4) 1.3 Organizational Objectives
What is an objective? They are short term, specific goals that companies plans to achieve.
This article mainly focuses on the Tactical Objectives of the JAL Business. These are objectives that are aimed to be accomplish over a short-term. In this case, JAL's main tactical objective is survival.
JAL plans to cut 6800 jobs over the next 3 years. This will help lower the costs of production, and eliminate and redundancies of positions in the organizations. This will ultimately help Japan Airlines maximize sales and profits, which will assist their effort in surviving in the market.
Another part of JAL's plan to survive was to change the product they are selling to the customers. JAL hopes to reform flight routes, so that less popular routes can be reduced, and they can lower the supply for a low demand product. This will help reduce JAL's costs, and ultimately their losses in this harsh economic climate.
My dear classmates, what are your thoughts about Japan Airlines and their current situation? Please leave your valued opinions below. Thanks :D
