Intro of the Bsc and Its Role as a Management Control Tool

: Intro of the BSC and its role as a management control tool

The Goals (3-5) for the next 5 years; explain what completion of these goals will look like when achieved

Between 2015 and 2018:

International expansion/strategic international growth

Cost reduction & revenue growth

Customer engagement

Culture change

New financial targets for 2015-2018

EBITDAR margin 15% to 18%

Return on invested capital (ROIC) 13% to 16%

Leverage ratio of 2.2 by 2018

Achieve enhanced aircraft utilization through:

longer average stage length

optimizing network efficiency

focus on new international destinations

Increase widebody, narrowbody, and regional fleet

Learning and growth: focus on employees

Increase total issued shares held by employee to 15% (?)

offer employees discounts (such as bonus paid in shares)

more likely to stay at the company if they are invested in its success

key indicator to monitor: employee retention

Productivity

key indicator to monitor: # of customers served in a particular amount of time

Employee competence

ability to perform their job/feel comfortable in all aspects of their position.

offer extensive training program and implement employee support/advice centre.

key indicator to monitor: employees competence

Ground crew alignment

Job security/pension plans

quality of workplace

Internal business processes/flight operations: what must we excel at internally?

Reduce sick day

Flights taking off on time

fast ground turnaround

efficient runway routes

enhance plane utilization

lower cost per passenger

effective launch of new fleet

enhance IT systems

Customer perspective: focus on existing and new customers

Air Canada has reached company record setting numbers, and company growth grossing its highest revenue to date in 2014. Rated the best airline in North America for the fifth year in a row winning the Skytrax award for the best airline in North America. Air Canada is currently the only Skytrax Four-Star North American network carrier airline. Air Canada has flown more customers in 2014 than ever before with a passenger load factor of 83.4% and passenger revenue in all market segments increasing 7.1% from the previous year. Air Canada is committed to expanding operations on a global scale, increasing sustainable returns, improving customer service, corporate culture and while continuing to operate in the top 2% of the industry in employee safety. Air Canada has set goals to accomplish in Between 2015 and 2018:

International expansion/strategic international growth

Cost reduction & revenue growth

Customer engagement

My three customer objectives are the following:

Increase vacation destinations & packages

Improve on plane amenities

Improve business and premium passengers experience

Customer Objective #1: Increase Vacation destinations & packages

Currently Air Canada offers a variety of different Vacation packages to many destinations around the world for people of all ages, families and regardless of your marital status Air Canada has a Vacation package for you to enjoy. Air Canada offers group vacation packages, wedding vacation packages, spa vacation packages and a variety of other packages to choose from. Air Canada currently flies to 186 destinations worldwide on five different continents, comprised of 61 canadian cities, 50 destinations in the united states and total of 75 cities in Europe, the Middle East, Asia, Australia, the Caribbean, Mexico and South America.

To increase the amount of Vacation destinations and packages Air Canada must take the initiative to enhance their Air Canada Vacations operation and division to add more destinations and more exotic niche oriented vacation travelling packages. We must first research our customer needs to see which destinations customers are willing to travel to but are currently not available with Air Canada or its associated partners. The next step is to review our company's position/agreements with partners/associates to make sure we can transfer customers to this destination and we must also review our current vacation destinations which already include vacation packages to make sure we don't overlap or fly to unnecessary destinations which would result in unsatisfactory returns.From there we must develop vacation packages suitable, and fit for the destination and create specific age, gender, marital status and group packages to accommodate potential customers.

Air Canada must develop more niche packages like exotic safari vacation packages, extreme tourist packages, and cutting edge low cost packages for cost savvy travellers. Air Canada should contact newly established hotels and resorts in exotic destinations from Africa to South America to greater enhance their product line and services which will result in an expanded customer base creating enhanced revenues. It will be an opportunity for Air Canada to distinguish their vacation package services from other companies offering travel routes to destinations other airlines can’t support. Finding the newest, hippest, and trendiest vacation resorts and hotels to partner