Garuda Indonesia

Topics: Airline, Better, Garuda Indonesia Pages: 5 (954 words) Published: March 8, 2011
de Guzman, Nolyn Mae J.
Lapason, Jan Marie Nicole
Parungao, Modesty April R.
Perez, Larizze Anne A.
Ponce, Justin Michael
Roque, Irvin Paulo
I. Time Context
II. View Point
Mr. Mohammad Soeparno, President Director of Garuda Indonesia Airways III. Statement of the Problem
How will Garuda Indonesia sustain their growth despite of the present constraints it is facing? IV. Major Policy Statement
Garuda Indonesia is the oldest flight company in Indonesia and owned by the government Garuda Indonesia is a state-owned company that provides air transportation either for domestic or international customers. It is the largest airline in the Southern Hemisphere and the second largest in Asia in terms of plane numbers. Garuda Indonesia is determined to improve its quality in all aspects of the company’s activities, and to prepare for privatization which will be realized in the near future. Through these efforts it is our sincere hope that Garuda Indonesia will remain a source of great national pride for Indonesia, and that we will continue to be one of Asia’s most respected airlines. Garuda has the obligation to make a reasonable profit in order to guarantee the company’s welfare and to take care of the interests of the nation, of the environment, of the customers, of the government, and of the employees. V. Objectives

Short-term Objectives
• To give excellent service
• To increase fleet utilization
• To improve employee’s welfare
• To improve services
• To boost tourism
Long-term Objectives
• To increase domestic schedules
• To continue its international flights as long as it does not interfere with the efforts to increase domestic schedules • To increase tourism activities
• To be the first largest airline
• To be one of the world’s top ten
• To increase finance condition by reaching 5% profit before tax • To support the success of the development of Transportation and Tourism • To strengthen national unity in order to increase national endurance VI.Alternative Courses of Action

ACA#1: Continue implementing and improving the policies of Mr. Lumenta ACA#2: Formulate new policies
ACA#3: Run the company privately
VII.SWOT Analysis
1. Garuda Indonesia Airways was able to establish routes reaching Europe and Tokyo 2. Largest airline in the Southern Hemisphere
3. Asia’s second largest in terms of plane numbers 4. Widely advertised
5. Direct routing between Indonesia’s gateways and the foreign cities 6. It has many kinds of aircrafts
7. It has product diversifications
8. It has product line
1. The quality of preflight, in-flight, and post-flight services are still low
2. Bad reputation
3. Lack of competitiveness in service, visibility, and distribution
4. System weakness
5. Heavy losses year after year
6. Lack of cleanliness habits of the crews
7. Lack of funds
8. High cost of aircraft maintenance
1. Political will of the government in tourism
2. Better condition of world’s economy
3. Technology advancement
1. Public displeasure
2. International traffic is governed by bilateral air agreements
3. Competition
4. Development of other means of transportation
VIII. Areas of Consideration
1. Economy/society
- Economic status of Indonesia
- Government regulations
- Quality/standard of living
- Culture/tradition
2. Mr. Mohammed Soeparno
- Past experience in Garuda airways
- Lumenta’s influence
- Personal outlook
3. Total Quality Management
- Operations
- Policies and guidelines
- Customer satisfaction
- Employee involvement

IX. Analysis of Alternatives
ACA#1: Continue implementing and improving the policies...
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