OPERATIONS ASSIGNMENT As flying becomes a commodity and as airlines strive to of
ID: 364294 • Letter: O
Question
OPERATIONS ASSIGNMENT
As flying becomes a commodity and as airlines strive to offer the lowest fares possible, Southwest is finding it increasingly hard to distinguish itself from its competition. A proposal has been made to offer a business class on its longer flights. This class would have more comfortable seats, more legroom, and complimentary magazines, movies, meals, drinks, and Wi-Fi. A toilet would be dedicated to this section. These passengers would also get priority boarding and de-boarding of flights. If the experiment is successful Southwest would consider rolling out business class on all its flights.
What are the operational implications of this proposal?
What role do the other functions (specifically, Finance, Marketing, and HR) have to play in examining the feasibility of this idea and successfully implementing it?
Explanation / Answer
Q1) The operational implications of the proposal of Business Class on Southwest Airlines include -
1. Re-design of the flights currently operating to accommodate space for business class
2. Adding new facilities like Wi-Fi, magazines, meals, drinks, entertainment avenues etc.
3. Scheduling the entry and exit of the passengers based on the priority boarding and de-boarding of business class passengers
4. Increased operational costs to accommodate all the additions
Q2) Below are the roles each of the functions need to play in examining the feasibility of the idea and successfully implementing it -
1. Finance department needs to look at the costs and the expected revenue from the business class and the way overall cost and revenues are impacted. Depending on whether it leads to long-term profits or not, the decision can be made.
2. Marketing department needs to ensure that the communication reaches to customers/passengers regarding business class and its facilities. It also needs to be involved in pricing of the service.
3. HR department needs to ensure that the staff is dedicated and properly trained to handle the business class passengers.
4. Operations department needs to take care of the facility management, daily operations etc.
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