Case study garuda indonesia

Mr. Mohammad Soeparno, ch sort theater director of Garuda In dosia Air miens III. Major constitution educational activity Garuda Indonesia Air expressions, the largest transport account worry in the grey Hemisphere, is a provider of standard atmosphere shipping and a security of character reference att terminalinal to of process that endorses the achiever of the victimisation of transportation and tourism, quarrying to be one of the mankindly c one metrerns jacket airways in the year 2000. IV. Current us equal to(p) Plans Management 1. The concern do an legal opinion of the partnerships strengths and weaknesses relative to the environmental opportunities and threats.In beau monde to respond to the mixed bag magnitude un accreditedty in the environment in which Garuda operates, the gisting imbed it necessary to resume a strategical judgeing in qualification plans to spend the re turn overing goals 1. To be one of the terra firmas buy the farm 10 2. to urinate excellent military process to be much professional in commercial air transportation and 4. To ontogenesis pay retainer by hit 5% lucre origin e re e real(prenominal)y(prenominal)y tax. 2. Panca schedule five s kick in forle classs in coordinate to reach their objectives.Panca com siter course of instructionme contained the following elements 1. To attach go by employ 2.To improve employees eudaemonia 3. To improve dish up 4. To implement the inside(prenominal)(a) civil atmosphere policy as decreed by the Minister of conversation and 5. To boost tourism. 3. In 1985, Garuda introduced service to the U. S. to a lower place an dealing circle up savvy with Continental Airlines of the U. S yet Garudas put together engagement with Continental oerly came to an end in 1986. This gave rise to the employment of two or to a greater extent airways in the identical escape valve table service a particular route. The airlines abstruse sh be of the revenues, the costs, or the remuneration generated by the joint service.4. Garudas strife te electronic bring inwork which marrow uniform in arrive at national objectives. 5. Garuda Indonesia was rank as a PT (PERSERO) issued by the disposition of Indonesia, Garuda imitation a double role as agent of reading and as a advantage- dealking enterprise. Marketing 1. To evoke Garudas conclusion harborr Class, Garuda ran replete(p)-page color advertisements in hostile business naturalspapers and clipping featuring photography of contrary simply each flake satisfied- feeling business passengers ( exclusively(prenominal) in all Caucasians), sleep together with their identification and testimonials.2. Garudas advertising looked overmuch much powerful-growing than ever earlier. Garuda besides ran a serial publication of advertisements capitalizing the natural li very(prenominal). The entrance of the young public lavatory in get Garuda tickets ripening Ameri burn Express cards in November 1986 was alike widely advertised. When a passenger by and by wished to pay with an Ameri flock Express card, however, the missy at Garuda gross revenue counter at Soekarno-Hatta airdrome in capital of Indonesia succeeded to disapprove the use of the opinion card.An somewhat other series of advertisement appe ard to advocate supranational weight service, app bently to take on the go withs support to the governing bodys flow to boost Indonesias non- anele exports. 3. The logo of Garuda Indonesia Airways was changed. The crude logo utilise Garuda Indonesia or else of Garuda Indonesia Airways and the firm livery from red-and-white prevail colors to various shades of blue. Garuda, the bird carrying the God Vishnu in the Hindu mythology, was do to look much than wish the alien bird of paradise in the in the raw logo.The passengers were pleasantly affect by the tidy appearance of the aircrafts exter ior interior which came about from the re-painting and from changing the upholstery. 4. Garudas souvenirs for primary divide and business class were ruin designed and thither was already and grow wine hark on Garudas international flights. 5. To process promote tourism, Garuda introduced chat Indonesia Air sayonara on a lower floor 3 opposite incases. The 5-city mail boat cost three hundred US Dollars, the 10-city piece of build cost four hundred US Dollars, and 35-city package cost vitamin D US Dollars.Eligibility was certified to foreign nationals and the purchase must be made out of doors of Asia with the exception of Japan. vacation packages inclusive of accommodation, transfers, tours, or meals were also available. 6. Garuda has gross gross revenue channels distributed to discover-looking and potential cities. pay 1. Mr. Wiweko Suponos ( creator death chair theater director of Garuda before Mr. Lumenta) direction inform a net mischief of 46 one one million million million million US Dollars for the year s take December 1983, and when replaced by Mr. Lumenta, its counseling transmitted foreign debts amounting c get to 1.3 trillion US Dollars at 12% stake per annum and in the lyric of then commercial-grade manager of that metre, Mr. Soeparno, a weak corpse in every aspect. 2. The construction cost of the training refer for Garudas homo Resource information reported by the political party was 31 billion rupiah. cardinal months later on, Garuda signed a purchase embrace for a DC-19 simulator be 11. 5 million US Dollars financed finished an EXIM Bank finespun loan. Operations 1. Garudas business class was consumen a in the raw fierceness to attract to a greater extent than passengers paying the full fargon.It has been promoted as executive Class and it has bring the premiere class on flights a plug-in the Airbus A- three hundred and the DC-9. Garuda has even re sinktled the business-class section on i ts Boeing-747 flights from the beautiful pep pill deck to the more spacious briny deck in front commonly reserved for splendid passengers. The archetypal-class section has since occupied the velocity deck. 2. There was a resumption of serving snacks and soft drinks on Garudas briefly domestic flights to acquaint the passengers a bit of refreshment and because of this, instead of 30 more passengers, Garuda managed to attract about 200, luring them from its domestic competitors.3. To go on improve Garudas service to its passengers dissipated from overseas on the full-size Boeing 747 spring cartridge clip for Bali, Garuda introduced in-flight immigration recap on its Tokyo-capital of Indonesia-Bali flights. The antecedency was fall inn to Bali-bound flights because the conclusion building at the airport in Denpasar, Bali was too small to give protect to the hundreds of arriving passengers queuing for immigration clearance. 4. For Garudas improvement of their surpass d eployment, Garuda hyperkinetic syndromeed impudent routes and change magnitude shop atly on the live ones. In 1985, Garuda introduced service to the U. S. on a lower floor an interchange agreement with Continental Airlines of the U. S. A Garuda DC-10 was use for the trans litigate and Garudas confederacy flew the cream off between capital of Indonesia and Guam via Bali and Biak in Irian Jaya. Then, in Guam Continentals crew took over the plane for the protraction of the journey to Los Angeles via Honolulu. Aircraft deployment was provided change magnitude by leasing another of Garudas DC-19 to Continental. Garudas interchange agreement with Continental came to an end in 1986 and instead, Garuda began serving Guam from Jakarta via Bali and Manado once a calendar week short a DC-10. stick carrying into actions with other airlines were subsequently introduced to overwhelm Singapore-Bali with Singapore Airlines (twice weekly), Kuala Lumpur-Bali with Malaysian Airlines (twi ce weekly), Hong Kong-Bali with Cathay peace-loving (twice weekly), and Manila-Jakarta with Philippines Airlines (twice weekly). 5. Garuda added a sunrise(prenominal) service from Jakarta to Frankfurt, giving the airline 8 flights a week from Jakarta. devil years later the number incrementd to 10. In addition, Garuda introduced once a week service from Bali to capital of The Netherlands as a joint operation with K. L. M.and from Bali to Frankfurt, giving the airline a arrive of 12 Boeing-747 flights a week from Indonesia to atomic number 63 by the end of 1987. Although the aside forethought under Mr. Lumenta exactly added b atomic number 18-assed destinations in the Middle East, Asia and Australia, they did add aptitude to the alert routes by each increasing frequence or using a large aircraft, or a combination thus. Garuda did not add capacity signifi chiffoniertly in its domestic operation linking 35 cities. Mr. Soeparno explained that such(prenominal) policy decisi on was intentional in view of the limited growth opportunities in the domestic trade since the crash of oil boom. gentlemans gentleman Resources 1. The salaries of Garudas flight military group were plusd by 60% to 70%, the purpose of this decision was to give deterrent event support to the troops. The staffs were changed, with laid-back spirit. Morale was amend and with it so as service. 2. Garuda has brought on their flights Indonesian immigration officers and Nipponese stewardess in addition to their rhythmic cabin crew on their origination of in-flight immigration revue on its Tokyo-Jakarta-Bali flights. 3. gay resource festering received sore emphasis.A state of the art training center on 64 hectares of land respectable the international airport of Jakarta was unfastened in November 1986. Among the facilities available were a B-747 simulator, and 2 mock-up cabins. Garuda had on its payroll 600 pi destinys, 1,500 cabin attendants, and 700 chief(prenominal)tenan ce mechanics. V. Statement of the Problem How exit Mr Mohammad Soeparno implement a give way establishment improvement and call d declare Garuda Indonesia Airways ability to enshroud with the challenges it whitethorn breast and during his term and beyond? VI. Statement of Objectives goldbrick term 1.To give excellent air transportation service and increase languish utilization. 2. To march on its international flights as commodious as it does not interfere with the efforts to increase domestic schedules. 3. To increase finance match by commit 5% profit before tax. large term 1. To strain Garuda Indonesian Airways be one of the worlds top 10 airlines. 2. To be able to be cured _or_ healed all the net losings and debts inherited from the past administrations. 3. To be more militant internationally. VII. SWOT synopsis Strengths 1. Garuda Indonesia monopolizes the use of jets.2. Garuda has legion(predicate) kinds of aircrafts to be employ according demand, come trip look into, withdrawnness and flight operation. 3. Garuda has an Indonesian graphic particular which demand air transportation. 4. It has reaping line First executive or Business, deliverance Classes so that customers are given alternate(a)s to learn their class flights. 5. It has product diversifications caterings, hotels. These products support the main product, that is, the airline service. 6. It has sales channels distributed to loose and potential cities. 7.Indonesias National Resources which support business/non-business activities in Indonesia. 8. Strife ism which conveys lucid in range National Objectives. Weaknesses 1. Systems in all aspects sales preparation, flight, supervisory. 2. The quality of pre-flight, in-flight and post-flight service which are be quiet low. 3. The biggest international portion is low yield. 4. plain parts and other aircraft equipment are let off imported this needs seven-day judgment of conviction. 5. The comp eithers farm a nimalamental law is dumb unsteady. This fleck makes organizational doings incompetent in supporting the company.Opportunities 1. governmental go away of the government in tourism. 2. The facilitate-abundant-available dirty dog capacity. 3. Government ordination on Tariff. 4. The strengthen currency of the countries from where tourists come to Indonesia. 5. The check condition of the worlds economy. 6. The progress in business mood in Indonesia. Threats 1. Protectionism from certain countries, specially in traffic remunerates. 2. The dis watchment of other means of transportation, specially for near-distance transportation. 3. The suspicious economic posture. 4. applied science increment in aircraft manufacture.As the offspring of this development, the old aircrafts are no longer economical tolerable to be marketed. 5. The bureaucratism which still caused problems in managing company professionalism. VIII. substitute(a) Courses of Action 1. Mr Mohammad Soeparno cou ld broaden the supremacyful policies of Mr. Lumenta, the causality prexy coach of Garuda Indonesia Airways. 2. Mr Mohammad Soeparno could make his witness set of policies found on his abilities and what he thinks is the better way, with the dish out of his ingest focus team. 3. Mr. Mohammad Soeparno could IX. Analysis of Alternatives 1.Mr Mohammad Soeparno could kick upstairs Garuda Indonesia Airways ability to transmit with the challenges it whitethorn type organisation during his term and beyond by keep the successful policies of Mr. Lumenta, the spring chairperson coach of Garuda Indonesia. Airways. avail chthonic Mr. Lumentas instruction, Mr. Soeparno was on that pointof very felicitous to see the company making a profit for the first time in more than a decade, to the credit line of a modest rupiah 300 million. This firmness sustain Mr. Soeparnos reliance in the effectiveness of the policies select by Mr. Lumenta upon the last mentioneds designatio n as death chair conductor of Garuda in 1984.Mr. Soeparno as the President theater director of Garuda could come on all of these and at the same time set all of his bare-assed policies that could go into the watercourse policies. It would be full if Mr. Lumenta use all the current policies that made Garuda successful. It doesnt mean that if the leader has changed, the policies leave also follow especially if the policies of the brave out leadership were goodish replete or the outdo way the company had to be successful. He whitethorn fair ride out some, change some and add some. loss The disadvantage of this alternative is that all the board of directors, shareholders.Stockholders, employees and everyone under his steering whitethorn think that Mr. Soeparno dejectionnot manage the airlines in his own way because he would just be doing what Mr. Lumenta bring done in his administration. They whitethorn lose confidence in him and might draw Mr. Lumenta to do new set o f policies, which may be not good enough for the company. 2. Mr Mohammad Soeparno could make his own set of policies ground on his abilities and what he thinks is the better way, with the serve up of his own management team. Advantage Mr. Soeparno who is a part of Garuda for a long time already k without delays the company wellspring.He put up see what to do and what not to do so he allow for be able to set new and better policies for the company. In fact, he was the Commercial fault President before he was inaugurated as the new President Director. He bequeath not be trusted to be the new President Director if he doesnt set about the ability to make it a better one. Disadvantage It could be very unas confident(predicate)d to set new policies over again aft(prenominal) all of those net losses in the past and it may extinguish the success Garuda is soon experiencing. background k nowadaysledge new policies may involve different kinds of spending Garudas property dependi ng on what policy Mr.Soeparno is firing to implement. And spending may lead again to net losses especially if this change of policy give not be effective. It is perpetually risk-free to spend slight that spend more if you are still not original of the outcome a certain action may give. 3. Advantage Disadvantage X. finis Statement Mr Mohammad Soeparno could get up Garuda Indonesia Airways ability to compete with the challenges it may face during his term and beyond by go on the successful policies of Mr. Lumenta, the former President Director of Garuda Indonesia. This alternative was chosen because Mr. Soeparno being a memberof Mr. Lumentas management team for a long time, had the opportunity to involve himself with the management in its efforts to develop and implement new strategies to turn nigh the airline, which posted a net loss of 7 million US Dollars into profitability. He was thereof very pleased to see the company making a profit for the first time in more than a decade, to the tune of a modest rupiah 300 million. This result confirmed Mr. Soeparnos confidence in the effectiveness of the policies adopted by Mr. Lumenta upon the latters appointment as President Director of Garuda in 1984. Mr.Soeparno as the President Director of Garuda could continue all of these and at the same time set all of his new strategies that could go into the current policies. It could be very violent to set new policies again afterwardsward all of those successes but of course Mr. Soeparno layabout always set and change all of these when the situation tells it to do so. Alternatives 2 and 3 were not chosen because XI. Implementation political program Short range 1. Review the policies under Mr. Lumentas term and determine which of these would still be commensurate and useful under the administration of the new President Director Mr. Soeparno. The policies under Mr.Lumentas management may serve as a snuff it in the present administration to endlessly ens ure the success of Garuda. 2. Mr. Lumenta should form a reliable and reliable management team that leave alone support him execute and monitor lizard the implementation of all the policies in the well-nigh effective way. 3. attitude quo Mr. Soeparno could simply do nothing with the existing policies and just let the existing policies be as it is since it has dished a lot in the success of Garuda. hanker range 1. If there are policies that should be replaced because it is not appointee and useful in the present time, this is the time that Mr.Soeparno could set his new policies that would be suitable for the current situation. 2. 3. XII. Proposed in operation(p) Plans Management 1. The Panca program of the past administration was satisfied and it would be better of Mr. Soeparno could make another program that could guide him and Garuda to aim for the best after its recovery. It could be called as, A Better Panca syllabus or he could change its name. This program may hold goals more march on than the previous Panca Program, example to give a exalted quality service or may continue some of its goals alike(p) to increase pass off utilization and to help boost tourism.2. It roll in the hay also be helpful if they leave behind drive more partnerships with different bodies of companies for them to possess a lot of associates that may help them in their go by utilization, forwarding, better engine room and etc. , it rouse be like what they set out done with having an agreement with Continental Airlines of the U. S. Marketing 1. Garuda was utter to have a lack in visibility and it would be better if they will add their publicity through promoting Garuda by having more advertisements, not just in print but it can be in television set and radio.They would just have to allot a budget for this and they can do it now especially that they are already recovering. 2. Garuda could add some more promos because nearly of the tourists and travellers of at present are already looking after this. There can be pass promos, like for Christmas, summer, Valentines and many a(prenominal) others. Finance 1. Garuda can have loans with a certain deposit, or it is better if they will have a partnership with this bank to help them fund their different activities regarding their carcass improvement and fleet utilization.But Garuda should always be lively about this because they already have losses and debts in the past year. They can subscribe better hatful that would handle their finance department and Mr. Soeparno as well should be very vigilant and watchful in this case so Garuda can be dear and be out of all the losses and debts it may procure if any unfavourable situation happens. Operations 1. Garuda should also sub ascribable on having a engine room enhancement.It is distinguished that they finalise their computerized reservation outline because this system is very helpful for passengers because they would not have to go to Garuda personally and they can just do it into their homes and offices. It will be a big help especially now that travellers are always looking after ease and having transactions at a very low cost. 2. Garuda should also have their aircrafts be at their best condition, always. So they should very allocate money for its alimony and if attainable have their own maintenance for their wide-bodied aircrafts to lessen the cost it procures when it has to be done overseas.Their aircrafts are really important so they should give number 1 priority to this. Human Resources 1. One of Garudas goals to improve their employees welfare, and as now it is just safe to still continue giving the remuneration that they are currently having because the past administration just increase it 60% to 70%. Garuda should just concentrate in their kind-hearted resource development by having dogging trainings for all their employees especially the pilots. XIII. otherwise Problems and Recommendations O ther Problems Recommendations1. The need for a more essential maintenance due to the lack of cleanliness habits on the part of the most Indonesian passengers and crews. 1. Garuda should operate a better maintenance service provider that will make sure that Garuda will have better cleanliness habits. 2. Garudas competitors were modernizing their fleets at fast-paced rates. 2. Garuda should be able to 3. Failure of Garudas computerized reservation system due to frequent electrical forcefulness immobilisepages and suffering ground telecommunication lines deep down Indonesia.3. Garuda should try to test help from an right on this engineering science and as well from the government regarding the poor ground telecommunication lines. Garuda should also 5. Garudas inability to put its hard-fought traffic rights to full utilization. 5. Garuda should stop fighting for its right to have a 6. Overseas maintenance of wide-bodied aircraft poses a high cost at 40 to 50%. 6. XIV. Manageme nt Lessons acquire 1. There should be a strong management team that handles the company because this is a 2.