Continental Airlines

Essential Facts Frank Lorenzo, an MBA from Harvard became the chief executive officer of Texas Air in 1971 and in 1981 Texas Air bought Continental for $154 billion. Lorenzos failure to connect with his employees and his flaw handling of labor relations coupled with an economic recession and rising fuel costs led Continental into bankruptcy. In 1991 alone, the keep caller reported a net sledding of $1550 one thousand million. Gordon Bethune was brought on board in February 1994 as the president and CEO to facilitate improve the news report of the company and pose it profitable. Gordon led a change in the outline by concentrating on woodland aspects such as on clipping performance, customer complaints, mishandled baggage, however to name a few. In 3 years the company reported a net income of $389 million which seemed like kinda a turnaround. In 1996 Continental was awarded the J. D. office staff Award and was named the airline of the Year in 1997. By 2005 the company had garnered a market share of just over 28% and was among the top 3 airlines in the US. Lesson Summary One of the most(prenominal) important lessons learnt is that injury reputation is paramount. It takes years of toil and freight to build a brand and it must be protected.

Also, empowering your employees by giving them enough permissiveness with regards to policies and procedures helps a great mass in uplifting the team spirit of the workforce. An open accession policy improves vertical and horizontal communion and creates a tributary environment for teamwork. A clear revolve around on organizationa l goals helps put effective plans and strate! gies in place. These goals along with effect plans must be communicated to the workforce so they micturate a clear picture of the roadmap the company has envisioned. This helps in having an boilers suit corroboratory influence on the workforce. As far as the price schema is concerned, low cost does not of all magazine augur well for a firm. Low cost strategy (Continentals strategy at the time of Lorenzo) can happen as more and more people start reckon down...If you want to get a full essay, order it on our website: BestEssayCheap.com

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