Management Control System
A common fleet significantly simplifies scheduling, operations, and maintenance. Training costs for pilots, ground crew, and mechanics are lower, because there’s only a single aircraft to learn. Purchasing, provisioning, and other operations are also vastly simplified, therefore lowering costs. 2. People: Southwest tries hard to different way. For example, not assigning seats in its flights helps to reinforce its image that it gets passengers to their destinations when they want to get there, on time, at the lowest possible fares.
By not assigning seats, Southwest can turn the airplanes quicker at the gate. If an airplane can be turned quicker, more routes can be flown each day. That generates more revenue, so that Southwest can offer lower fares. About 60% of Southwest’s passenger revenue was generated by online bookings via southwest. com. That southwest. com was the number one airline website by revenue and Nielsen/Net Rating identified it as the largest airline site in terms of unique visitors.
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2. How do Southwest’s control systems help execute the firm’s strategy?
Southwest’s control system help execute the firm’s strategy by: – Implementing short haul and medium haul, on-line booking, less time at the gate, hedged fuel and oil Southwest consistently sought out ways to improve its efficiencies and pass on the cost savings to its passengers. In 2004, Southwest had reduce the headcount per aircraft to 74 from 85 in 2003. It hedged about 85% of its fuel and oil needs as a result saved about $ 455 million . It also entered new airports after a process of due diligence and with a sense of commitment to the people it served.
Southwest pilots were among the only pilots of major U. S. airlines who did not belong to a nation union. National union rules limited the number of hours pilots could fly. But Southwest’s pilots were unionized independently allowing them to fly far more hours than pilots at other airlines. Othe workers at SWA wree nationally unionized but their contracts wrere flexible enough to allow them to jump in and help out regardless of the task at hand. From the time the plane landed until it was ready for takeoff took approx 20-25 minutes at SWA and required a ground crew of 4 plus 2 at the gate.
Is the controller relationship of Martex better than that of Rendell current organizationalrelationship ? Objective: To achieve profitability and growth Ans 1: What is the organisational philosophy of Martex with respect to the controller function? What do you think of it? Should Rendell Adopt this philosophy? The organizational philosophy of Martex with respect to the controller function is thatdivisional controller report to the corporate controller for transparency of information on budget issues. According to us it has the following Adv and disadv: