Foundations of Management
1.0 Introduction
This paper deals with the strategic review of Cathay Pacific Airways Ltd (CX), an airline which operates passenger and cargo flights to and from Hong Kong. For the purpose of this paper, only the passenger operation is reviewed.
The review will analyse the strategy and direction of the company, its strengths and weaknesses, the state of the company and the market in which it operates. Based on the review, recommendations will be made for the future of CX.
2.0 CX described and analysed
2.1 Brief background to CX
CX started business in 1946 with two small aircraft. In a matter of two years the airline was operating to five destinations around Asia. Then, in 1986, CX was listed on the Hong Kong Stock Exchange. Now, some 50 plus years on, CX owns 64 aircraft and flies to 50 cities around the world.
Being Hong Kong 's de facto national carrier CX invested US$1 billion in setting up its headquarters and infrastructure at Hong Kong International Airport (HKIA) at Chek Lap Kok[1]. The headquarter complex, Cathay Pacific City, centralised staff who had been scattered over 19 sites in Hong Kong and provides an environment for staff to work, rest and play. (CX Inflight magazine, Discovery)
2.2 CX Mission, Objective, Strategy and Tactic
CX does not have a mission statement as such but its vision is to become the most admired airline in the world. CX will strive for:- • Ensuring safety comes first • Providing service straight from the heart • Encouraging product leadership • Delivering superior financial returns • Providing rewarding career opportunities
(http://www.cathaypacific.com/aboutus/story)
Management objectives of CX, promulgated to staff via news letters and posters, have been split into external and internal: i.e for the business and for the organisation respectively.
The external management aims are to:- • Put safety and security first • Reduce costs to
This paper deals with the strategic review of Cathay Pacific Airways Ltd (CX), an airline which operates passenger and cargo flights to and from Hong Kong. For the purpose of this paper, only the passenger operation is reviewed.
The review will analyse the strategy and direction of the company, its strengths and weaknesses, the state of the company and the market in which it operates. Based on the review, recommendations will be made for the future of CX.
2.0 CX described and analysed
2.1 Brief background to CX
CX started business in 1946 with two small aircraft. In a matter of two years the airline was operating to five destinations around Asia. Then, in 1986, CX was listed on the Hong Kong Stock Exchange. Now, some 50 plus years on, CX owns 64 aircraft and flies to 50 cities around the world.
Being Hong Kong 's de facto national carrier CX invested US$1 billion in setting up its headquarters and infrastructure at Hong Kong International Airport (HKIA) at Chek Lap Kok[1]. The headquarter complex, Cathay Pacific City, centralised staff who had been scattered over 19 sites in Hong Kong and provides an environment for staff to work, rest and play. (CX Inflight magazine, Discovery)
2.2 CX Mission, Objective, Strategy and Tactic
CX does not have a mission statement as such but its vision is to become the most admired airline in the world. CX will strive for:- • Ensuring safety comes first • Providing service straight from the heart • Encouraging product leadership • Delivering superior financial returns • Providing rewarding career opportunities
(http://www.cathaypacific.com/aboutus/story)
Management objectives of CX, promulgated to staff via news letters and posters, have been split into external and internal: i.e for the business and for the organisation respectively.
The external management aims are to:- • Put safety and security first • Reduce costs to
References: Used Patel, H., "Airline Industry in the Asia-Pacific Region", Henley Foundations of Management, January, 2001 Porter, M.E., Competitive Advantage:Techniques for Analysing Industries and Competitors, The Free Press: New York, 1980. CX Annual Report, 1999 -----------------------