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

Scandinavian Airlines System 1998 - Case Study Example Jan Carlzon has undoubtedly initialized changes, which caused a dramatic turnaround in the overall business operation of the airline system. These changes were carried out in response to the problems that beset SAS and the entire airline industry as a whole. These changes were also geared to adapt to the rapidly changing external environment and trends in the transportation sector. Among the new strategies implemented by SAS during the presidency of Jan Carlzon was focusing on the business traveler. The airline has evolved as the "businessman's airline, " offering an excellent service to full-paying business traveler through the introduction of "EuroClass" that provides more amenities than the other business class airlines at the level of the old economy 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 execute the new strategies, SAS has undergone a corporate cultural revolution, which was a deviation from the company's 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 International 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 emergent strategies. 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 suit the changing needs of its market (Lynch, 2000). Prescriptive strategy was used in order to take into account 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 airline's 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 avail service when their need arises. We can trace these changes to the transformation in the socio-cultural aspect of the European community. As the economy was facing a recession, maximization of customer's purchasing power was a priority. Also, the demands of being an executive left a busier