Question: Explain how this company can solve problems and improve by using control theory which are feedforward, concurrent and feedback. Give me an recommendation analysis including
Explain how this company can solve problems and improve by using control theory which are feedforward, concurrent and feedback. Give me an recommendation analysis including recommendation practicality, justification and evaluation.
Panther Air - Case study 2 Panther Air is a low cost Australian Airline that started in 2006 with flights from Melbourne to Darwin. Australia has suffered for too long from high flight prices caused by a lack of competition. This new service by Panther Air has offered truly low fares and has been welcomed by the tourism industry and Australian passengers. At launch, Panther Air was aiming to challenge other low cost carriers in the Australian market, such as Virgin and Jetstar. Panther Air made an aggressive entry to the Australian Domestic market with fares that were signicantly lower than the competition, which started a price war with the other airlines. Panther Air is a low cost carrier (LCC) airline, meaning bags and food are not included in the price of their tickets. Australian transport safety bureau (ATSB) suspended all Panther Air flights in Australia for 10 days because of "serious" safety concerns. Their investigations revealed multiple unreported incidents where Panther Air had flown unsafe planes or had flown in unsafe altitudes and they were given 10 days to prove that they could improve their pilot safety training, manager training and maintenance systems. This was the first time that the ATSB had grounded a whole airline in Australia. Panther Air went from 48% growth in 2008 to losing 7% of revenue in 2009 and then 26% of revenue in 2010. Panther Air managers have been criticised for failing to understand the market. Panther Air blames airports for the cost increases but the airports have fired back and suggested that the airlines need to provide more seats. Panther Air senior managers have said that it does not make sense to provide more seats when most of their flights had some empty seats on them, and prices were also being affected by rises in fuel costs, which have increased 28%. Desperate to make a prot, Panther Air management have tried adding lots of additional services (and charges) for their passengers, including in-flight entertainment, like internet, video games and movies, valet parking and gourmet food. However, the cost of providing these services has been greater than the increase in revenue. One of the main challenges Panther Air management has faced was not being able to negotiate better competitive prices from these suppliers of value added items. This problem can be traced to Panther Air's senior managers failing to understand that their business as a whole. Many of these managers have failed to be flexible in their product offerings and marketing to adapt to different needs and culture of customers in different states and cities across Australia. They have not been able to obtain accurate and up to date information in their external environment that related to their business model. They have also often failed to balance the needs for low cost to be able to offer low prices that drive customers to use Panther Air, with the need for good customer service to attract those customers to y on Panther Air again. Panther Air keeps their labour costs low by employing graduates and workers who are just starting a new career in aviation. This means they do not have to pay a lot for workers with good training and experience but it also has an impact on the quality of these worker's activities ying planes, helping customers and organising Panther Airs logistics. Due to such strategies of getting inexperienced workers to cut costs has resulted in Panther Air managers not being able to build good, long-term relationships with their new recruits due to high labour turnover. Many of these problems are hidden or not understood by Panther Air managers who are just focussing on the nancial results, especially cost figures, market share and number of passengers ying with Panther Air. In a special television investigation in 2018 from Australian TV show Raisin Concerns ex Panther Air staff revealed that most of the airlines problems stem from incompetent management, ancient outdated technology and process and the way that the overall airline operations are managed. They complained that all Panther Air cares about is the cost and empty seat data and ignore customer and employee feedback and terrible results for employee turnover that suggest Panther has a serious problem it needs to address. However, nothing has been done since the safety crisis in 2009. Panther managers regularly broke their promises regarding pay rises, promotions and bonus payments and that instead they would be offered free ights to undesirable locations like Alice Springs or Adelaide. Panther Air managers have not always ensured that their employees have had the proper skills or knowledge to be able to do theirjobs well, as they try to use the lowest cost inexperienced staff. Panther Air staff have frequently complained that they are not provided with working conditions or safe effective aircrafts to be able to produce the results necessary for good performance reviews that lead to salary increases or bonus payments. Panther Air has had to suspend all flights and operations from the 26th of March 2020, in response to the coronavirus outbreak. They have made all their pilots redundant and 1500 of their administration and operations staff in reaction to the virus creating the world's worst airline crisis. Panther Air intends to use the $50m it has received from the Australian government's assistance fund for the aviation industry to review what they have been doing and to try and find new efficiencies and improvements to operating systems. Panther Air staff are nervous about their future and don't believe promises that some of them will get their jobs back when the crisis is over. Aviation experts suggest that Panther needs to take this opportunity to fix fundamental issues with the airline, including high staffing costs, expensive overheads, low customer satisfaction and repeat business as the low fares are not enough to keep the business alive