Solve Management Issues By United Airlines Team †Free Samples

Question: Discuss about the Solve Management Issues By United Airlines Team. Answer: Introduction In this article that has been selected, the main area of focus is how the main management team of the United Airlines was able to solve one of the biggest management issues that it faced in the recent times. It gives a brief review of the problem that the company faced and the strategies that the company and its CEO Oscar Munoz to reach a winning solution that will be helpful in solving the major issues that the company faced. A lot of it was because of the extremely impressive leadership qualities of Oscar that led a team of hundreds of laborers to get the desired result. It shows that if the leadership is in the right hands than no problem is big enough that it cannot be solved(Schlege, et al., 2017). Analysis The given company faced a lot of issues with its labor force, having the numbers in hundreds and the management was very poor. That led to a lot of complications. Even after having the best assets in the business, the company was not able to tap its full potential because of the ongoing network issues. The downfall that the company faced because of the mergers that it entered into 2010, led to an aftermath in its labor policies. This led to a loophole in the labor element that was present in the company. To solve the same the management understood that the airline company is a people business and in case they fail to engage in their own employees, they wont be able to excel. So they started looking for options by which they can solve these issues. They started with revamping of the labor deals, some were very expensive for the company, some were easy to crack, and some had a lot of complications involved(Baal, et al., 2016). The CEO held an approach that all the investment that the c ompany is making in these labor deals can be treated either as a cost or they can consider the same as a future investment that will help the company to excel in the times to come. The CEO believed in that cracking or ratifying the labor deals was not the sole solution to the problem, what was needed was that the ground level workers must be approached. He himself approached them to understand their demands, their needs and what the company can do in the long run to retain these employees when the competition in the airline sector was so fierce. With the solving of the labor issues, the other issues that the company faced were related to the high fuel costs and the labor incentives that the airline had to provide. To solve the same, the airline induced in certain cost cutting methods that will help in reducing the overall cost and also opted for higher operational efficiencies. The overall fare structure of the customers were also changed and a lot of specifications were involved so that no unreasonable fare is charged neither free services were provided to the customers. All the different cost centers in the company were managed to reduce the cost as much as possible. Along with focus on the international sector, the company tried to maximize revenue from the domestic flights as well. It also opted for development of better network transaction between the various flights that were operated so that eventually the company will be able to tap in both the domestic and international market. As stated in the article because of the efforts undertaken by the management the overall capital expenditure was reduced by $1.6billion for 2016 and 2017. This has led to increase in the overall profit for the company and had also provided a base that will help the future development(Dichev, 2017). Conclusion The CEO and the management team have been able to get a winning solution for one of the major cost management issue that the company was facing. The potential opportunity that the company was able to tap in was the availability of cheap labor by entering into agreements. The major potential weakness or threats that can be identified from the system is the presence of fierce competition that is always ready to tap in the optimum resources and the weakness may be in the co operation of the management team. However the biggest point to be taken back is that if the leader is fierce enough to take the responsibility on his own shoulders, the company was always progress. A good team only works when they have a good leader to support them and guide them(Maynard, 2016). Refrences Baal, P., Meltzer, D. Brouwer, W., 2016. Future Costs, Fixed Healthcare Budgets, and the Decision Rules of Cost-Effectiveness Analysis. HEALTH ECONOMICS, 25(2), pp. 237-248. Dichev, I., 2017. On the conceptual foundations of financial reporting.Accounting and Business Research, 47(6), pp. 617-632. Maynard, J., 2016. Financial Accounting, Reporting, and Analysis. U.K: Oxford University Press. Schlege, D., Frank, F. Britzelmaie, B., 2017. Investment decisions and capital budgeting practices in German manufacturing companies. International Journal of Business and Globalisation, 16(1).