Scandinavian Airlines System 1998 Case Study Example | Topics and Well Written Essays - 3000 words

Scandinavian Airlines System 1998 - Case Study ExampleJan Carlzon has undoubtedly initialized changes, which caused a dramatic turnaround in the overall moving in operation of the airline system. These changes were carried out in solution to the problems that beset SAS and the entire airline industry as a whole. These changes were in addition geared to adapt to the cursorily changing external environment and trends in the transportation sector.Among the current strategies implemented by SAS during the presidency of Jan Carlzon was rivet on the business breaker. The airline has evolved as the businessmans airline, offering an excellent service to full-paying business traveler through with(predicate) the introduction of EuroClass that provides more amenities than the other business class airlines at the level of the old thriftiness fare. This was further strengthened by the improvement of flight schedules and punctuality. To provide a more attractive schedule, Eurolink was also created for short distance routes. Scanorama which feature lounges for the exclusive use of full-paying class were also introduced by the company in order to further different and highlight the luxury offered to the business traveler.In order to completely escape the new strategies, SAS has undergone a corporate cultural revolution, which was a deviation from the companys focus on resources and technology. There had been a restructuring which involved decentralization, education, and empowerment.A second wave of strategies were c... SAS has banked on its aim of being a full service, door-to-door, travel service company, and offer a unique product which we could control from A-Z. These have lead to the introduction of SAS worldwide Hotels, SAS Reservation System, Credit Cards, SAS Service Partner, other related activities such as publishing and advertising, and a new group structure. We can see that in SAS major reforms, Jan Carlzon made use of both prescriptive and emerging strat egies. According to Richard Lynch (2000), prescriptive strategies are those whose objectives have been defined in advance while emergent strategies refer to those strategies which has unclear objectives and whose components are developed during its course of life.As the case presented, the company has tailored its strategies to showcase the changing needs of its market (Lynch, 2000). Prescriptive strategy was used in order to take into narrative the rapidly altering socio-cultural trends in the airline industry, thus the utilization of the socio-cultural theories of strategy. According to the case, the focus on business travelers was due to the fact that full-paying business travelers comprise the largest chunk of the airlines revenue yet the total number of passengers serviced was declining. This was prompted by the change in preferences of travelers as they seek more value for their money and change in lifestyle, which necessitated them service service when their need arises. We can trace these changes to the transformation in the socio-cultural aspect of the European community. As the saving was facing a recession, maximization of customers purchasing power was a priority. Also, the demands of being an executive left a busier