tutorial work strategic planning september

7/29/2019 Tutorial Work Strategic Planning September

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UNIVERSIDAD CATLICA DESANTIAGO DE GUAYAQUIL

INGENIERIA EN COMERCIO Y FINANZASINTERNACIONALES

SUBJECT: STRATEGIC PLANNING I B

TOPIC: Planning Tutorial Work (2 ND Term)

NAMES:

Karen Martnez

Karen Salmon

Sara Rojas

Jorge Cuenca

COURSE: 7 B

DATE: September, 2013

TAME1


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1.OVERVIEW

Tame EP was founded in 1962 in Quito. The goal that motivates itsestablishment is linked to the need to integrate Ecuador andencourage the commercial, social, and cultural tourism.

In 2009, TAME decided to renew their image, so they worked on anextensive program of branding with Facultad de Agencia y Alma. Alsothey are in engaged of transportation of people and cargo by air to

various cities in Ecuador and abroad. It also provides transportservices charter for example flights to: Cartagena, San Andres,Panama, Punta Cana, Jamaica, Havana, Varadero, Curacao, Manausand Buenos Aires. In certain cases with the following operators:Decameron, Viamerica, Feritur, PGV and Maxitravel.

FLEET AIR:Enrollment brand Type

HC-CEX Embraer ERJ 170

HC-CEY Embraer ERJ 170

HC-CGF Embraer ERJ 190

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Industry Regional Airlines

Companys Name TAME EP- TransportesAreos MilitaresEcuatorianos.

Sector Services


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HC-CGG Embraer ERJ 190

HC-COH Airbus A330

HC-CGW Airbus A320

HC-CGJ Airbus A320

HC-CID Airbus A320

HC-COC Airbus A320

HC-COE Airbus A320

HC-CGT Airbus A319

HC-CMO Airbus A319

HC-CMP Airbus A319

HC-COF Airbus A319

HC-CLT ATR 42-500

HC-CMB ATR 42-500

HC-CMH ATR 42-500

Organizational chart

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a) Competitors

Aerogal - Quito - Guayaquil - Cuenca - Galpagos Avianca - Quito - Guayaquil - Cuenca Copa Airlines - Quito - Guayaquil Icaro - Quito - Guayaquil - Cuenca - Galpagos Lan - Quito Guayaquil-Manta Quiport - Quito Saereo - Quito - Guayaquil Taca - Quito - Guayaquil

Market share of airlines in local- domestics flights

LAN (31,70%)

Aereogal(16,09%)

Tame( 45,06)

Fuente: Diario HOY, 23/04/2013

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ROUTE MAP:

Local Flights from : Quito Guayaquil Coca Cuenca Esmeraldas Galpagos Lago agrio Latacunga

Loja Macas Manta San Cristbal (Galpagos) Santa Rosa Tena Tulcn

International flights to:

Caracas Bogota

Buenos aires Lima

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Panam Sao Paulo La habana

Cali New York (soon)

2. DEFINE THE STRATEGIC PROCESS

a) Companys Mission and Vision:

MISSION:

Proporcionar transporte aerocomercial nacional e internacionalcon aviones modernos, garantizando a sus clientes altosestndares de calidad, a fin de obtener rentabilidad social yfinanciera.

To provide national and international commercial air transportwith modern aircraft, to ensure its customers high qualitystandards in order to obtain social and financial returns.

VISIONMantener el liderazgo nacional, ser preferida por la calidad desu servicio y proyectarse internacionalmente

Maintain national leadership, and to be preferred by its qualityof service and project abroad.

b) Mission and Vision Alternative:

We developed a new Mission and Vision, based in what theyestablished, but following the correct process of creating acorporate mission and vision.

Mission Structure:

What are you? In what business are you in? : We are anEcuadorian airline company that provides airtransportation services.

What services do you offer? : We offer local andinternational transportation for people and cargo withhigh standards of services

What activities distinguish you from the competitors? : Weimprove the tourism with competitive and fair flight pricesfor our clients and care about security in flight routes.

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Target: Our service is for Ecuadorians and foreign touristwho need to travel around the country of Ecuador andthen for international routes such as Panama, Colombia,Peru, Argentina, etc.

Mission

We are an Ecuadorian airline company that provides airtransportation services offering local and international flights forpeople and cargo with high standards of services and constantlyimproving the tourism with competitive and fair flight prices forour clients always caring about security in flight routes.

Vision Structure:

Time: Become a leader company in Ecuador and LatinAmerica in the next five years of air transportation.

Future : making expansion and covering routes than othercompetitors doesn`t have being more efficiency andeffective in our operational and logistics management.

Technology: Through diversification and use of new andupdated technologies in our air operations. Customer Services : Giving always a safe travel on the

time required for our customers.

VisionBecome a leader company in Ecuador and Latin America in thenext five years of air transportation making expansion and

covering routes than others competitors don`t have being moreefficiency and effective in our operational and logisticsmanagement through diversification and use of new andupdated technologies in our air operations and always giving asafe travel on the time required for our customers.

c) Objectives:

The principal pillars of this company are based in the followingobjectives:

MAIN OBJECTIVE:

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Overcome competition

Meet the expectations of our customers

Provide new products and services

Competent staff

Ensure the participation of people to achieve theobjectives

Improve the integrated quality management

Preventing incidents and accidents and avoid negativeimpact on the environment.

Alternative Objectives:

1) FINANCIAL OBJECTIVES:

Control the budget of the Managers, specificallycommercial management.

Improve control and budget analysis.

2) SALES OBJECTIVES:

Establish Measurability: is that sales agents will beable to end a day of work and assess their own levelof achievement according to the standards that wereassigned.

Implement Relevance: sales agents must be relevantand appropriate for their work.

3) HUMAN RESOURCES OBJECTIVES:

Select employees who demonstrate motivation towork and good performance.

Train frequently to our employees. Implement an evaluation system and employees

performance (all areas). Provide professional guidance to the entire working

group, forming motivation, companionship andavoiding internal conflicts.

4) MANAGING OBJECTIVES:

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Continuous monitoring of activities in the Operationaldepartments, finance, logistic, human resources andmarketing strategies.

Prepare plans internal meetings, in order to provideinternal and external solutions.

To strengthen the organization by developing strategiesand motivation.

d) Values

Service

It reflects love, vocation and self-satisfaction by assistingothers. Is affection, cordiality, respect and kindness indealing with our customers, travelers, business partnersand colleagues.

Integrity

Be honest and loyal to our customers and ourorganization, and with high sense of responsibility, in allour actions.

Commitment

Requirement assumed voluntarily, using our best abilitiesfor mandated compliance and achievement of theobjectives of our organization.

Be punctual Give the best treatment to the passenger Discipline

Teamworke) SWOT Analysis:

TAME has as every single business its own Strengths,Opportunities, Weaknesses, and threats which are well-knownas SWOT Analysis by their initials, the SWOT will be analyzed asfollows:

I. STRENGHTS Market Positioning with local direct routes- National

market leader

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Extensive network of routes and frequencies- Routeexpansion to Brazil (Sao Paulo) and Argentina(Buenos Aires).

legal Resources Points of sale across the country. Ability to provide services to other companies Acquisition of an Airbus A-320 to expand toward

New York route. TAME has the certification IOSA International

Operational Safety Audit to comply with controlsystems and operational systems. It is certified withthe certification ISO 9001 (Quality Management),ISO 14001 (Environmental Management), andOHSAS certification 18001 (Work Security andHealth Management)

Over 50 years of experience in aeronauticalindustry.

II. OPPORTUNITIES

High demand of flights due to FIFA World Cup 2014 Government improvement in airport infrastructure and

capacity promoting tourist flux Possible increment in clientele due to fixed prices Possible new route to New York Increased domestic tourism New profitable routes Link with government agencies Support from government

by implementing politics that help in fair competition

III. WEAKNESSES

Lack of direct international market positioning Airplanes with low passenger capacity Limited operational capacity Tame is subject to political actions that can affect

business liquidity due to being government bound It is not possible to reserve a flight ticket via the only

method, the only way to do it is to approach the offices The lack of training to the airline staff on land to affront

the delays giving the correct information to the clients.

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IV. THREATS:

Excessive expenses due to state politics taken toeliminate subsidies in airplane fuel

Budget loss due to fixed prices in seasons of high

demand seasons Avianca competition recently acquired another airline

called TACA making itself stronger strategically The lack of information for passengers when the flights

present delays.

f) SWOT Matrix

S W

O Potential aircommercialmarket

Increase of thenationaltourism.

A companywithexperience in

the localmarket. The Ability to

provideservices toother

companies

Weakcommercialplan.

Poor Internallegislation.

Highadministrativeand operatingcosts.

T o Other airlinesare expandingnew localroutes.

o Governmentmeasures.

The subsidy ofthe airplanefuel.

The newinternal taxesin airports

I. SO: Strength Opportunity

Potential air commercial, Tame has the opportunity toexpand its national and international routes even with

foreign airlines.

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Another strength for tame is that this company countswith a variety of equipment and can rent to other localairlines.

Tame has many years of experience in comparison withother companies in the air industry.

II. SW: Strength Weaknesses

o In despite of tame has a commercial plan is not enoughstrong for the company.

o Poor internal legislation is not well defined for someemployees at the moment to put in practice.

III. ST: Strength Threats

o

Other airlines are expanding new routes causing morecompetitive for us but the advantage of tame is cancover the same route many times at day.

o The governmental measures can affect Tame but inother hand its principal client is the Presidency so inthat way there is a benefit.

IV. WT: Weaknesses Threats

The subsidy to the airplane fuel its a high cost thatevery local airline should define in its budget andthis measure can affect in the final consumer.

The internal taxes involve all the operations willincrease in the next days and it is another cost forthe local airline.

g) Porters 5 Forces

1. Threat of new entrants:

Potential competitors:

Airline Competition Notes

AEROGAL DIRECTCOMPETITOR

15 shared routes ( 38% ), 8 shareddestination ( 20% )

LAN Airlines STRONGCOMPETITOR

12 shared routes ( 30% ), 8 shareddestination( 20% )

Copa

Airlines

LOW

AVIANCA LOW

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http://www.whichairline.es/aerolinea/aerogalhttp://www.whichairline.es/aerolinea/lan-airlineshttp://www.whichairline.es/aerolinea/copa-airlineshttp://www.whichairline.es/aerolinea/copa-airlineshttp://www.whichairline.es/aerolinea/aviancahttp://www.whichairline.es/aerolinea/aerogalhttp://www.whichairline.es/aerolinea/lan-airlineshttp://www.whichairline.es/aerolinea/copa-airlineshttp://www.whichairline.es/aerolinea/copa-airlineshttp://www.whichairline.es/aerolinea/avianca


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Airline Competition Notes

American

Airlines

LOW 6 shared destination ( 15% )

Service differentiation

Excellent customer service Low prices New Plane -capacity

It is not easy to enter in this market because of the cost of

resources that you need to enter. The barriers are high, getting

the licenses and patents to use the airports and airplanes are

costly.

2. Threat of substitute Services:

The threat for substitute of this kind of service is low, given by

the fact that there arent many ways of traveling, but on the

ground, air and sea. So the lack of time saving is what attracts

customers to airways transportation.

3. Bargaining Power of Suppliers

Fuel is the most principal resource we need in order to perform

its mechanical activities, and the acquiring of this is

becoming more expensive every time. the government is

cutting off the subsidy for the fuel, the government is also

raising the tariffs of international arrival and departures, the

parking, and lightning on the tracks.

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http://www.whichairline.es/aerolinea/american-airlineshttp://www.whichairline.es/aerolinea/american-airlineshttp://www.whichairline.es/aerolinea/american-airlineshttp://www.whichairline.es/aerolinea/american-airlines


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4. Bargaining Power of Buyers:

There is a high bargaining power of buyers, although there are

few competitors, we all offer a similar service. so what we are

backed up is the loyalty of our customers

5. Intensity of rivalry among competitors

To analyze the intensity of the competitors we have taken thefollowing characteristics.

Competitors are numerous: in the case of TAME , thereare competitors have similar services

The services are no different: All services offered by thecompetition fulfill the needs of customers, but what sets aTame is the quality they possess due to the use andimplementation of new technologies.

Competitors have the same market target: All competitorshave the same market but each has specific customerswhom are loyal to the company, due to the service theyhave received, the expertise of the company and theyears in the market.

h) Assets

14

Tangible:

Infrastructure

17 Planes

Technology

Labor force

Intangible:

Brand

Know How

Knowledge (skills andexperiences).


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i) Capabilities

Unique within the internal market. The loyalty of ourcustomer represents the power of our brand

Customer service, showing respect integrity, andcommitment, which is part of our culture

Logistic: 86% of punctuality without the influence ofmeteorological facts.

Alliance: Copa Airlines. Tame should also get an alliancewith AWAS the leasing company of planes, which would

lead to a backward integration, Tame also has to makealliance with the government to ask for the subsidy of thefuel.

Unique within the internal market. Loyalty to itscustomer represents the power of our brand.

Tame has a large trajectory in the Ecuadorian aviation market.It started to provide commercial, social, tourist and culturaldevelopment. Tame had increased the level of commitmentwith its customers and one alternative for this is implementingnew services online to ensure the previous checking.

To show the right information for the surprising delays,the staff of tame is always caring for the passengers andbringing them the occasional assistance.

Customer service, showing respect integrity, and commitment,

which is part of our culture. All these years Tame has had thecharacteristics of being in contact with the principal needs of itsclients.

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Tame provides an excellent national and internationalair transportation service under the highest safety andenvironmental standards in care counting on competentand committed staff.

Tame strives to totally satisfy the needs and expectations of ourcustomers and establish good relationships with our suppliers inorder to get mutual benefits.

Tame is committed to continuous improvement, damageprevention and fulfillment of requirements and national andinternational applicable legislation for the benefit of all parties.

Logistic: 86% of punctuality without the influence ofmeteorological facts.

Tame is one of the local airlines that tries to deal with thedelays in a positive ways, they bought new aircrafts to solve thedemand in the market and to cover new routes. But in theaviation industry the meteorological facts are unmanageable.

Value Chain

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Industry and Market Analysis

Client Evaluation and Follow Up

Commercial

Passengers

Commercial

CargoCostumer Service OPS MNT

Human Resources

Logistics

Finance

Informatics

Planning and Business Development

Internal Audit

Legal Counseling Aviation Policy

Social Communication

Integrated Quality Management, Security, and Environment

Clien

t

Clien

t

Management

Processes

OperationsProcesses

SupportingSkills

Processes

CounselingSkills

Processes

Process forISO- IOSA

Support


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Support Activities

Research and Development:

Tame has been improved it equipment acquiring new aircraftsand investigating what is the best option to enter in the nationalmarket. Each month tames teamwork selected an idea to put inconsideration and then analyze with the principalmanagements.

Human Resources:

The part of the recruitment in Tame is one of the mostimportant parts, the selection of one person could take 1

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month. The select person should approve 2 interviews one inEnglish and other in Spanish then a logical test and of coursethe reference are important.Our staff is prepared to supply every problem on board or land.

General Administration:

The General Administration in Tame is managed on theheadquarter located in Tame, in this office the main decisionsare taken and addressed to the rest of the country where tameis as Guayaquil, Manta, Loja, Cuenca, and other small airports.

Support processes:

Its activities are aimed at providing human resource support,financial, material and technological processes required for theirvital actions and they are comprised of:Human Resource Management: for managing the mostimportant resource: People.Financial Management: provides economic resources requiredat all levels.Logistics Management: provides infrastructure support andsystem-level materials.The Technology and information Management: that managesthe database and technological platforms and communications

with its own hardware and software.

Customer Value:

The customers opinions are important for that reason TAMEmake surveys about it services and ask to the customers howcan the company improve in that way the company can clarifywhat are the benefits on board for them and what are thefailures.

Tame has a select group of clients; they are executives whotravel every day or people who can pay the prices of thiscompany. The clients in Tame are seeking an excellent servicewith an appropriate cost. Tames clients are looking for comfort,security, and a good service, before and after a flight. Clientspay a little more in this airline in comparison with others, andthey expect more than their commercial rivals and it isimportant to remember this information at the time of atechnical problem and the solution that the company gives toyour customers.

Customer value preposition:

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In all of those years Tame has been reaching an importantposition in local the market, to buy new elements for its aircraftfleet. Tame offers its clients good prices with a very niceatmosphere, specialized trained staff with the latest security

standards, new national and international routes. In the lastyears tame has signed agreements with international airlines inPeru and Colombia.The incorporation of modern planes with a higher capacityincreases the number of passengers and consolidates Tame'sprestige in the commercial aviation market.

-Quality service-Competitive Tariffs-High technology equipment-Routes not operated by other airlines (domestic routes to theeast, highlands and coastal)

Quality objectives:

Meet the expectations of our customers. Provide new products and services. Having more competent staff. Achieve the participation of employees to achieve goals. Permanently improve the organizational climate. Increase net profits of the company. Establish a system of evaluation of suppliers. Implement and certify the quality system based on ISO

9001-2000, 14000 and OHSAS 18001 IOSA. No incidents or accidents have and avoid negative impact

on the environment.

Tames Goals and Objectives 2013

N

Area ordepartmen

t

Goal Objective Dead line Person incharge

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1 OperationalManagement

Comply with95% of planneditineraries

Meet theplanneditinerary.

31/12/2013

LeonardoGuzman Operational Manager

2 Maintenan

ceManagement

keep 100%

of theaircraft inoptimalconditionsof operation

Provide

scheduled andunscheduledmaintenanceof aircraft.

31/12/20

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Rommel

Rubio-MaintenanceManager

3 CommercialManagement

Operate tointernationaldestinationsSao Paulo,

BuenosAires andNew York.

Expandinternationalair operations.Integrate andconnect to

Ecuador andthe region,stimulatingtourism,business andtrade, alwayscommitted tosustainabilityand social andfinancialreturns.

-Being theairline emblemof Ecuador,recognizedinternationally,integrating theregion, servingworldwidedestinationsand offering atravelexperienceEcuador LoveLife.

Open newroutes is tocontinue thedevelopmentofinternational

markets,focusing onthree types of

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Commercial Manager

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clients:businessmenof the twocountries,tourists and

students.

4 FinanceManagement

Cover 100%ofcommitments for thepurchaseand leasingof aircraft.

Meet financialcommitmentscharacter forthe purchaseand leasing ofaircraft.

31/12/2013

Eco. DavidChedraui-FinanceManager

5 Human

ResourcesManagement

Apply 100%

of theregulatorytraining.

Having trained

and qualifiedstaff throughthe regulatorycompliancetrainingrequired bytheaeronauticalauthority.

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Dr. Jaime

Nuques-HumanResourcesManager

Tame s Balanced ScorecardFINANCIAL Strengthening the financial management

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systemIncrease returns 6%Decrease costs 4%

Improve the asset utilization

Risks reduction 2%CUSTOMERS Increase the market participationCurrent customer loyaltyIncorporate new customersDevelop the customer service cultureImprove the level of customer satisfaction 4%Increase the profitability for the customersMake evident the leadership in the aerocommercial industry in Ecuador

INTERNAL Implement the product design systemImprove the productivityNew businesses line development

Implement the post sales servicePermanently fleet renovationNew airplanes fleet standardizationOld airplanes fleet modernizationReform domestic legislationReform and amend the statutes of the companyUpdate the internal regulation

LEARNING ANDGROWTH

Implement the system of human talentmanagementDevelopment and capacitation of the personal inoperational security and customer serviceImprove the organizational climateStrategic information system developmentExploit the useful information for the decisionmakingImplement a procedures organization

Transform the functional organization into aprocedures organizationEstablish the competitions and evaluate theperformance processes

TAME STRATEGIC MAP

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Bibliography:

Tames Office in Jose Joaquin de Olmedo Airport http://vuelos.idealo.es/linea-aerea/TAME-EQ/Venezuela-

VE/ http://www.tamevirtual.org/index.php

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http://vuelos.idealo.es/linea-aerea/TAME-EQ/Venezuela-VE/http://vuelos.idealo.es/linea-aerea/TAME-EQ/Venezuela-VE/http://www.tamevirtual.org/index.phphttp://vuelos.idealo.es/linea-aerea/TAME-EQ/Venezuela-VE/http://vuelos.idealo.es/linea-aerea/TAME-EQ/Venezuela-VE/http://www.tamevirtual.org/index.php

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