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strama paper summary part 2

Recommended Strategies

Market penetration strategy seeks to increase market share for present products or services in present markets through greater marketing efforts. This includes increasing the number of salespersons, increasing advertising expenditures, offering extensive sales promotion items, or increasing publicity efforts. Product development usually entails large research and development expenditures. In airline industry, the company always pursues product/service development, because customers increasingly are willing to pay more for the products and services with excellent facilities or technologies.

 

Internal Strengths

 

            Pioneered low fare - Cebu Pacific started offering big discounts on passengers who

book their flight early. This attracted more passengers which is why other airlines started to offer low rates too.

 

            Provides new facilities and equipments – In the past two years, Cebu Pacific acquired

New airplanes like the Airbus and ATR as part of their improvement to provide better

service to the customers. In 2010, they are still waiting for the arrival of more Airbus planes ordered in 2009.

 

Ties up with hotels, car rental services, travel insurance -  Cebu Pacific not just offer flights, they also offer tour packages to make sure that the passenger not only enjoys a comfortable flight but also a comfortable travel and tour to the destinations which they offer.

 

Website is multi-lingual – to better serve their customers who book their flights online, the website is multi-lingual so that the prospective client can better understand the terms and conditions which are part of the ticket they are buying.

 

Increasing number of investors on 2008 – on 2008, there was an increase of outstanding stocks of Cebu Pacific, which signifies that they have increasing number of investors which further means that more and more people are trusting Cebu Pacific. It is a good indicator that the company is getting stronger.

 

Internal Weaknesses

 

Delayed Flights - there was a time when Cebu Pacific advertised about being always On Time, no delayed flights. This proved to be wrong as their flights are delayed sometimes not just for 1, but more than an hour. In the internet blogs, passengers complain about delaying flights without even being told about information as to when the flight will leave for their destination.

 

Limited flight destination (only inAsia) – unlike the Philippines Airlines, the only international flights of Cebu Pacific are within Southeast Asia. Loyal consumers who would have wanted to ride Cebu Pacific to destinations like the United States would be forced to choose another airline, like Philippine Airlines. Thus, Cebu Pacific has lots of Opportunity Costs for not being able to cater to other destination outside Asia.

 

Poor customer service – according to the survey the strategists conducted, and also through interviews and blogs online, consumers hate the service of Cebu Pacific. Lost baggage are often never found, flight attendants and crew are not friendly and approachable, consumer hotlines are not functioning or are not being answered. These should be given emphasis by Cebu Pacific if it targets more profit and more consumers in the future.

 

Website is not user-friendly - though their website is multi-lingual, it is not user-friendly and quite confusing than other airlines’ website. This problem should be addressed as soon as possible because more customers are booking their flights online and they might get turned off when they find the site not easy to use.

 

External Opportunities

 

Development of tourist destinations in the Philippines – tourism in the Philippines is being improved which means that more people are traveling to tourist destinations. This is a great opportunity for Cebu Pacific because this means that there is a bigger market that they can cater to.

 

Increasing number of Internet users – internet is now one of the basic modes of communication and more people have access to it. This is another opportunity for Cebu Pacific to put online advertisements and to make their company be more attractive by positive feedbacks of critics and bloggers.

 

Increasing number of foreign students – foreign students come to the Philippines to study. This is already a given fact, which means that the market for prospective passengers is really getting bigger.

 

Business Globalization - businesses are expanding to different countries and business is getting easier due to internet. Though people transact online, they still travel to different locations to do business or use cargo to send packages here and abroad.

 

External Threats

 

Economic instability – economy is very unstable, as no one can really predict exactly when it will get worse or get better.  Cebu Pacific will be affected greatly if the economy is not good because the price of fare they offer can go high, which will not be afforded easily by other passengers.

 

Terrorism – terrorism has always been a problem or the Philippines, and though Filipinos know that it is just in Mindanao which is filled with terrorists, foreigners get afraid of coming in the Philippines, for fear of being kidnapped in the streets.

 

Oil price instability – though Cebu Pacific hedges its fuel, they can still be affected because just like in 2008, they experienced fuel hedging loss, which contributed significantly to the net loss in that year.

 

Competition within key destination – competition to key destinations is getting tighter as other airlines start to offer promo fares too. This is threat to lose customers for Cebu Pacific because of the poor customer service which they offer to passengers.

 

EU Blacklist – all airlines in the Philippines are part of the European Blacklist because none was able to pass the safety standards of the European Airline industry.

Boston Consulting Group Analysis

 

Basis:

            Company Profile

Analysis:

            The Seat Sale Promo and Web Check-in has a high relative market share in high growth markets and it is ranked as “Stars” in the BCG grid because they offer both excellent profit and excellent growth opportunities. Seat Sale Promo and Web Check-in, ranked as a Star, is one of the leaders in the business but still need a lot of promotion and placement. To maintain the market share in order to more likely to grow from the rank of “Stars” to “Cash Cows”

 

QSPM ANALYSIS

 

 

Based on the above matrix, the total attractiveness score of market penetration, product development and market development is 6.48, 5.13, and 6.10 respectively. The highest TAS is market penetration that would mean it is the most attractive strategy among market penetration, market development and product development.

           

Market penetration strategy seeks to increase market share for present products or services in present markets through greater marketing efforts. This includes increasing the number of employees, increasing advertising expenditures, offering extensive sales promotion items, or increasing publicity efforts.

 

Product development is a strategy that seeks increased sales by improving or modifying present products or services. Product development usually entails large research and development expenditures. In airline industry, the company always pursuing product development, because customers increasingly are willing to pay more considering the convenience in service like flight booking, on time departure and arrival schedule, that they will experience.

 

Market Development Strategy involves introducing present products and services into new geographic areas. This includes putting additional destinations not only locally but internationally.

 

 

 

 

 

 

 

 

VI. STRATEGY RECOMMENDATION

 

I.              RECOMMENDATION

Proposed Action Plan:

·         Under Market Penetration strategy we propose the following strategic programs:

1. Develop new advertisements to increase customer awareness

2. Improve their marketing plans that will accommodate customer needs

3. Conduct more promotions nationwide

·         Under Market Development strategy, we propose the following strategic programs:

1. Put additional international destinations.

2. Improve their competitiveness in terms of their facilities for convenience of foreign and domestic customers

 

 

·         Under Product Development strategy, we proposed the following strategic programs:

1.  Develop new technology or process that will easily give back refunds

2. Reduce delay of flights by implementing an on time guarantee arrival and departure of       flights

3. Provide additional planes that offers different class layout

 

Financial Implications

            Under market penetration, developing new advertisements, improving marketing plan, and conducting more promotions nationwide for Cebu Pacific will have a decreasing effect on its assets because they have to pay for advertising like TV and radio commercials. But then, it will have a positive effect on their sales because more people will be aware of their services, and knowing that Cebu Pacific has very cheap fares and quality service, people will tend to patronize it.

            Under market development this will have an increase on their expenses because they will have to hire more employees particularly flight and ground attendants.

            Under product development strategy, it will increase their liabilities because of acquiring new planes.

Controls

 

The following areas will be examined for the attainment of the plans and objectives:

 

            1. Reviewing the fundamental bases of the organization’s strategy.

 

            2. Measuring the organization’s performance.

 

3. Comparing expected results to actual results, investigating deviations from plans, evaluating individual performance, and examining progress being made toward meeting stated objectives.

 

1.    Taking corrective actions if necessary. Changes will occur in the company and it requires taking corrective actions to suit present strategies.

 

 

CONCLUSION

 

Market Penetration strategy seeks to increase market share for present products or services in present markets through greater marketing efforts. This strategy is widely used alone and in combination with other strategies. Market strategies include increasing the number of salespersons, increasing advertising expenditures, offering extensive sales promotion items, or increasing publicity efforts.

 

The action that we will apply to increase control over other competitors is to merge with other hotels. With financial position of Cebu Pacific, it has the capacity to merge with other hotels and still be able to take control.

 

 

 


strama paper summary part 1

I.EXECUTIVE SUMMARY

 

Cebu pacific (CEB) is the leading domestic airline in the Philippines and one of the fastest growing low-cost carriers in the world. It has a unique low-fare, great-value strategy that has allowed travelers to enjoy affordable flights to various local and international destinations it offers industry affordable budget fares through year-round all-inclusive fares, which makes use of a tiered-pricing system.

 

Innovations such as Global trend of e-ticketing and internet booking, allowing everyone to interact in this kind in the industry.

Www.cebupacificair.com

 

In the present, CEB is the youngest fleet to operate in the Philippines, and one of the youngest to operate in Asia, using the airbus A320 family (10 A319 and 11 A320). In addition, CEB has taken release of eight ATR72-500 aircraft, which will serve destinations with limited runways.

 

Here in the Philippines, there are two major competitor of CEB identified: Philippine Airlines and Zest Air. PAL has the greatest in the market share due to the many destinations it can offer while Zest Air has the lowest rate to offer due to limited destination it can offer.

 

Based on CPM, Philippine Airlines is the top in the market as it got the total score of 2.95. Cebu Pacific’s major strength is price competitiveness, as it pioneered low fare and still continues to offer promos like GO LITE where they offer big discounts on flights internationally and domestically. It got a total of 2.70

 

The .25 difference indicates that there exists an intense competition between the two airline companies.

 

The internal and external and external audit performed by the strategies revealed that CEB’s strength is they the pioneer of low fare. Provide new facilities and equipment. Tie-ups with hotels, car rental services, travel insurance. Website is multi-lingual and increasing number of investors in 2008.

 

Crowded ticketing office, delayed flights, limited flight destinations (only in Asia), poor customer service and website is not user friendly are the given weakness of the CEB.

 

Development of tourist destinations in the Philippines, increasing number of internet users, increasing number of foreign students, business globalization and increasing accidents in sea transportation are the given opportunities in the CEB.

 

The threats are economic instability, terrorism, oil price instability, competition with key destinations, and EU blacklist.

 

Based on the IFE matrix, the factor poor customer service is given the heaviest weight because as a service providing company. This should be given a better importance to ensure customer loyalty. Thus they must be aggressive in improving their customer service.

 

Based on EFE matrix, Cebu pacific must generate strategies to use the opportunities to gain more customers and they must have a competitive advantage to be the top choice in the airline industry because the other airlines are offering almost the same key destination with Cebu pacific. It garnered a total score of 2.70

 

An IE evaluation must be made and the outcome is that the CEB must make strategies which involve hold and maintain strategies.

 

 

Suppliers

 

Airbus S.A.S reported that Cebu Air. Inc. has placed a firm for an additional seven A320 aircraft this increases Cebu Pacific’s A320 family order backlog to 22 aircraft, which are scheduled for delivery between that last quarter of 2010 and 2014. The aircraft powered by CFM 56 engines will join the airlines existing A320 Family fleet flying and regional network.

 

 

Consumers

 

Most Filipinos prefer air travel which has been one of the regularly used means of transportation. Because of business matters, many corporate executives need to travel. The largest population of their consumers is local of foreigner tourists since Philippines is known to be a recreational place. The season also determines the number of their consumers.

 

 

 

 

 

Substitute Services

 

Other types of transportation may possibly come to be a substitute to air transportation such as RORO, Super Ferry, Negros Navigation, and any similar types of transportation. However it cannot be totally replaced by some other kind of transportation because of the range of destination, time convenience and by means of traveling. Taking Cebu Pacific is the most effective and reliable means of getting in your wanted destination

 

MARKET COMPETITORS

 

The three (3) major competitors of Cebu Pacific Air are Philippine Airlines, Air Philippines and Zest Air.

 

 

COMPETITORS PROFILE

 

Zest Airways

 

Zest Airways was established Asian Spirit in September 1995 by three(3) friends. Antonio “toti” Turalba , Emmanuel “Noel” Oneta and Archibald Po, who contributed $ 1 million each to start up the Airline Employees Cooperative (AEC). They invited 36 of their friends, mostly former Philippine Airlines employees to run Asian Spirit through a salary – to – equity swap deal.

 

The operation started in April 1996 with two second hand Dash 7 aircraft servicing only one scheduled commercial route with two flights per day from Manila to Malay, serving the fledged resort island of Boracay to maximize its aircraft utilization, it introduce new routes to present day town of San Jose, Virac, Daet and Alcantara, and the cities of Cauayan and Masbate, regarded as secondary and tertiary routes by Air Transportation Office, and are not serviced by major airlines. In 1997, the cooperative change to corporate set-up with the establishment of Asian Spirit Inc. whose registration was approved by the Security and Exchange Commission (SEC) in 2005

 

At the time, Asian Spirit has the distinction of being the first scheduled airline to serve Boracay. Other operators serves the airport on the charter basis then, it became the Philippines fourth flag carrier (after Philippine Airlines, Cebu Pacific and Air Philippines) in 2003

 

Air Philippines

 

The airline with slogan “Fly High Filipino” was founded in February 13, 1995 owned by Mr. Lucio Tan. Air Philippines is a low cost airline based in Pasay City, Manila Philippines. It operates extensive domestic scheduled services from manila and Cebu. Air Philippines is operating all PAL express flights on behalf of their parent company, Philippines Airlines. Domestic routes include Cebu and Davao.

 

 

 

 

Philippine Airlines

 

“Asia’s Sunniest”, Philippine Airlines is the longest institution airline service in the Philippines as a flag carrier. Incorporated February 26, 1944, it started operating march 15 the same year, they now have 49 aircraft servicing the Philippines and abroad Philippine Airlines has its own terminal – Centennial Airport to airport 2, for its domestic and international; flights, except the PAL express flights which use the NAIA terminal 3
II.EXTERNAL AUDIT

 

 

A. INDUSTRY ANALYSIS

 

 

A.1 Economic Forces

 

            Generating billions in revenues and creating hundreds of thousands of jobs. In recent years, the global aviation industry has been through many ups and downs. From skyrocketing fuel prices to pandemics to recent financial crisis, aviation industry has confronted a very rough weather in last ten years or so. Consolidation in mature markets, higher ticket prices, modernization of airports, policies to reduce emissions and tremendous growth prospects in emerging economies have been some of the trends during the decade. According to recent industry reports, the global aviation industry is on the path of recovery and future looks optimistic and would present ample opportunities for the stakeholders.

 

CHANGES IN THE ECONOMY

 

            The airline industry is inextricably tied to the overall economy even minor recessions result in reduced demand and increased sensitivity to prices for leisure as well as business travellers. Changes in the economy have a big affect on the airline industry. The elasticity of demand, externalities, wage inequality, and monetary, fiscal, and federal policies all have an impact on this industry. The airline industry is constantly changing due to todays market and today we will be looking at the reasons behind it.

            By successfully managing opportunity cost, and adapting to an ever changing economic environment, airline industries can have economic success. However, the well-being of the nation’s economy will have a direct impact on the level of success experienced in the airline industry. During economic shortfalls in the nation’s economy, travellers will have fewer resources available to travel for pleasure. Contributing to the negative economic influences in the airline industry, future and existing policies targeting the airline industry will continue to hinder the industry’s ability to recover losses in periods of economic hardships.

 

 

 

 

LAUNCH OF LOW COST AIRLINES

 

            The launch of low cost airlines in Philippines has provided a boost for the industry. Airlines that have been part of this trend are Asian Spirit and Southeast Asian Air, offering affordable fares to local and even international destinations. The public seems to have embraced this, as the rate of flying passengers has increased. This increased not only accounts for new fliers but also regular flying passengers who were on a budget and now have a choice to choosing budget over luxury.

                       

COMPETING AIRLINES

 

            There are quite a few negative externalities in the airline industry. Another thing that the economy is affecting the airline industry is the competing airlines. The bigger airlines can afford lower fares which make it hard for the smaller airlines to compete. Different airlines have plans to expand but will not be able to until the cost of fuel is under control. For the low fare carriers who allow advanced booking, they will need to work on a plan to avoid bankruptcy. This will make the airline industry continue to boost prices due to the fact that oil prices are expected to continue rising due to the supply.

 

A.2 Environmental Forces

 

Environmental impact

Aircraft engines produce emissions that are similar to other emissions resulting from fossil fuel combustion. However, aircraft emission is unusual in that a significant proportion is emitted at altitude. These emissions give rise to important environmental concerns regarding their global impact and their effect on local air quality at ground level.

A comprehensive assessment concerning aviation’s contribution to global atmospheric problems is contained in the special report on aviation and the global atmosphere, which was prepared at ICOAO’ (international Civil Aviation Organization) request by the intergovernmental panel on climate change (IPCC) in collaboration with scientific assessment panel to the Montreal protocol on substance that deplete the ozone layer and was published in 1999. This told us inter alia:

  • That aircraft emit gases and particles which alter the atmospheric concentration of greenhouse gases, “trigger the formation of condensation trails and may increase cirrus cloudiness , all of which contribute to climate change and
  • That aircraft are estimated to contribute about 3.5 percent of the total radiative forcing (a measurement of change in climate) by all human activities and that this percentage, which excludes the effects of possible changes in cirrus clouds, was projected grow.

The report shows that the effects of particular types of aircraft emissions are well understood, revealed that the effects of other are not, and identified a number of key areas of scientific uncertainty that limit the capacity to project aviation impact on climate and ozone.

In contradiction of this background, the ICAO assembly in 2001 commended states to promote scientific research intended at addressing the uncertainties identified in this report and requested the council to continue to cooperate closely with the IPCC and other organizations involved in the definition of aviation’s influence to the environmental issues in the atmosphere and the need to take initiatives for scientific understanding of the problems (Assembly Resolution A35-5 (PDF), Appendix H). This was repeated by the assembly in 2007 (Assembly Resolution A36-22(PDF) Appendix I). ICAO has requested the IPCC to include an update of main findings of the 1999 report in its fourth assessment report published in 2007.

The new findings related to aviation emission:

  • Due to developing scientific knowledge and more recent data estimates of the climate effects of contrails have been lowered and aircraft in 2005 are now estimated to contribute about 3.0% of the total of anthropogenic radiative forcing by all human activities.
  • The total CO2 aviation emissions is approximately 2 % of the global greenhouse emissions
  • The amount of CO2 emissions from aviation is expected to grow around 3-4 percent per year.
  • Medium-term mitigation for CO2 emissions from the aviation sector can potentially come from improved fuel efficiency. However, such improvements are expected to only partially offset the growth of CO2 aviation emissions.

 

In the past, ICAO’s policy-making to lecture the environmental effects of aircraft engines emissions focused primarily on the ground level effects. In past years, the scope has been expanded to include the global effects of aircraft engines emissions. In this concern, the Kyoto protocol (PDF) (1997) to the united nations framework convention on climate change (UNFCCC) is particular significance. The Protocol, which entered into force on 16 February 2005, obliges countries listed in annex I to the convention (industrialized countries) to reduce their collective emissions of six greenhouse gases, the most relevant to aviation being carbon dioxide (CO2)

Aircraft are necessary to meet up the engine certification standards adopted by the council of ICAO. These are contained in annex 16 – environmental protection, volume II – aircraft engines emissions to the convention on international civil aviation. These were initially intended to respond to concerns regarding air quality in the vicinity of airports. As a consequence, they establish limits for emissions of oxides of nitrogen (NOX) carbon monoxide, unburned hydrocarbons, for a reference landing and takeoff (LTO) cycle below 915 meters of altitude (3000ft) . there are also provisions regarding smoke and vented fuel.

Another concern for the environmental is the aircraft noise. Much of ICAO’s effort to address aircraft noise over the past 30 years has been aimed at reducing noise at source. Aero planes and helicopters built today are required to meet up the noise certification standards adopted by the council of ICAO. These are contained in annex 16- environmental projection, volume I – aircraft noise to the convention on the implementation of the technical procedures of annex 16 is contained in the environmental technical manual on the use of procedures in the noise certification of aircraft (Doc 9501).

In 2001, the ICAO assembly authorized the concept of a “balanced approach” to aircraft noise management. The assembly in 2007, reaffirmed the “balance approach” principal and called upon states to recognize ICAO’s roles in dealing with the problems of aircraft noise this consist of identifying the noise problem at an airport an then analyzing the various measures available to reduce noise through the exploration of four management, noise abatement operational procedures and operating restrictions, with goal of addressing the noise problem in the most cost effective manner. ICAO has developed policies on each of these elements, as well as on noise charges

(http://www.icao.int/icao/en/env/aee.html)

 

 

 

 

 

 

 

A.3 Social, Cultural & Demographic Forces

 

Philippines are archipelagic, separated by water with other countries and is composed many island. Filipinos live in immense geographic locations. Depending on distance, options of travel are land air and sea.

 

As the world seems to be borderless and globalization concept is being embraced by everyone, airline industry seems to be growing. Tourist, businessman and foreign students are also growing. Airplane is the common used as a mode of transportation for long distance travel. Airplane are choose because its speed and comfort ability and safety that is why most business use this due to world requires fast pace. People who love to travel are the common passenger of airlines inside and outside of the country. Going home to their respective provinces, during holidays and having vacations are there other reason why they use the airlines.

 

There are several factors affecting thing in choosing the airlines by the travelers. Safety, customer service, facilities, comfort ability and price but the most wanted of all is the speed. Promos are being offer for cheaper seat price for early booking, tour packages and partners with establishment. Some customer avail this packages/ promos. Tickets are commonly being bought in advance.

 

Nowadays, whether upper class, middle class or even low class people can avail domestic or international air travel, this airline promos/ packages due to airlines offer many kind of vast options to choose from

 

 

 

A.4 Legal, Political & Governmental Forces

 

In 1973, from the letters of instruction (151 and 151A) the airline industry in the Philippines was monopolized by the Philippine airlines (PAL). The monopoly lasted for more than twenty years until the executive order 219 in 1995 which liberated the airline industry establishing the domestic and international civil aviation liberalization policy in the county. The E.O, 219 stipulated the removal of restrictions on routes and flight frequencies, as well as governmental control and fares and charges. Following the grand air, Mindanao express. Unfortunately, grand air and Mindanao express were unsuccessful, then the SEAir and Asia spirit comes to birth

Today, airline industry in the Philippines is under the regulations of department of transportation and communication (DOTC) under the civil aviation sector. The civil aviation sector is composed of the manila international airport authority (MIAA) mactan Cebu international airport authority (MCIAA) Philippine aerospace development corporation (PADC) civil aeronautics board (CAB) and the civil aviation authority if the Philippines (CAAP) formerly known as ATO) the department continuously upgrades and improves the international and domestic airport  facilities to meet international standards and to provide better service to the commuters.

 

A.5 Technological Forces

 

Technology seems to be running fast in the globe, Nowadays. An airlines industry is really a field of technology. An airline will be left out by other competitor if not technologically efficient.

Numerous technologies can the airline companies can adopt in providing services, from booking to payments. Given that today’s world seems to be a paperless economy, transactions tend to be done electronically: airlines can use this technology, e-ticketing, online booking and even online payments through the use of banks. With use of internet, by creating websites, an airline can be more efficient.

Safety is the most important factor; airlines should invest on such technologies that will improve the safety of their passengers. Company called Amsafe developed equipment that will improve the safety of passengers, airbags and seatbelt was created by this company. Airbags are located in the front seat belts and will be out in the event of shock or impact is intensive. The advantage of the air bag is located in this belt is every aircraft do not need to make massive modifications to implement the airbags in their aircraft, enough to replace the old seat belt with this one. Price is the main barriers $1200 will cost this airbag, compared with ordinary seatbelt which will cost only by $35.

Global commerce continues to increase, the need for passenger and cargo transportation grows as well. Many have speculated that growth in Pacific Rim travel may be impetus for high speed aircraft development.

Airline industry in the future, technologies will continue to change and in a very fast pace manner.

 

 

NEW ENTRANT

 

There is no new entrant in the airline industry in the Philippines in terns of local companies.

 

CONSUMERS

 

  • Local and Foreign Tourist – Now a days local and foreign tourist wants to go in the Philippines to see the beautiful places, to make some tours and for pleasuring and going to the beautiful spot of our country like the rice tereces
  • OFW -  when the OFW arrived in the Philippines the OFW will go home in there respective provinces
  • Businessmen – tend to travel a lot due to business trip and meetings.
  • Students – as a use for tours
  • Professionals -  to travel around the Philippines for there own reasons

 

 

COMPETITORS

 

·   Philippine Airlines - is the national airline of the Philippines and Asia’s first airline. It is headquartered in the Philippine National Bank Financial Center in Pasay City and was founded in 1941 and is the oldest commercial airline in Asia operating under its original name. Its hubs are at Ninoy Aquino International Airport of Manila and Mactan-Cebu International Airport of Cebu City.

·   Air Philippines - is a low-cost airline based in Pasay City, Philippines. It operates extensive domestic scheduled services from Manila and Cebu. Air Philippines is operating all PAL Express flights on behalf of their parent company, Philippine Airlines.

·   Zest Air - Zest Airways was established Asian Spirit in September 1995 by three(3) friends. Antonio “toti” Turalba , Emmanuel “Noel” Oneta and Archibald Po, who contributed $ 1 million each to start up the Airline Employees Cooperative (AEC). They invited 36 of their friends, mostly former Philippine Airlines employees to run Asian Spirit through a salary – to – equity swap deal.

 

 

 

SUBSTITUTES

 

·   RORO – A water type vehicle that can provide a traveling time and also you can also bring your cars inside the ship.

·   Shipping Lines and Ferries – A water type vehicles that was specialize for bring a big carrier for the items of the consumers and for business porposes.

·   Private Planes – An airplane that you can reserve for special purposes if you want to have an private use.

 

 

 

 

SUPPLIERS

 

·   Visa , Master Card , Ticket World – are use for paying the ticket for the plane and also you can also pay here.

·   Airbus - is an aircraft manufacturing subsidiary of EADS, a European aerospace company. Based in Blagnac, France, near Toulouse, and with significant activity across Europe, the company produces around half of the world’s jet airliners.

·   Petron – Petron Supplies the cebu pacific for the gas of their planes


 

services that they offer and prefer other airlines Based on the CPM, Philippine Airlines leads the aircraft industry with 2.95

 


Considering the above EFE, Cebu Pacific’s current competitive position or business strength in the industry is above average. Over-all, it has been coping up well with the factors which can positively or adversely affect its financial positioning, especially in the current period.

 

 

III. INTERNAL AUDIT

 

A.   Company Profile

 

In March 1996, Cebu Pacific entered the market with a promise to give “low fare, great value” to every Juan who wanted to fly. After offering low fares to domestic destinations, CEB launched its international operations on November 2001 and now fly to Bangkok, Busan, Guangzhou, Ho Chi Minh, Hong Kong, Jakarta, Kota Kinabalu, Kuala Lumpur, Macau, Osaka, Seoul, Shanghai, Singapore and Taipei. In short, destinations, where one can go shopping and sightseeing!

To get every Juan to more places everyday, CEB operates a fleet of 24 Airbus (10 A319 and 14 A320) and 8 ATR 72-500 aircraft, the youngest fleet in the Philippines. With the completion of the re-fleeting program, our capacity has doubled.

CEB offers the lowest year round “all-inclusive” fares for its domestic sectors while it continues to sell Go Fares – providing the lowest year-round fares in all its international destinations. CEB remains to be the pioneer in creative pricing strategies as it manages to offer the lowest fare in every route it operates. Go Fares are not promotional and are exclusive of surcharges and government tax.

Cebu Pacific is not just the leader in low fares but also in innovation and creativity! CEB is the first local airline to introduce e-ticketing, prepaid excess baggage and seat selection in the Philippines. Guests have also learned to anticipate a uniquely upbeat flying experience with CEB, as this is the only domestic carrier that offers fun in the skies with its games on board popularly known as Fun Flights, together with its entertaining inflight magazine – Smile.

CEB also partnered with various destination hotels, car rental service, travel insurance and entertainment ticketing service, to provide its guests a more convenient travel experience. On time performance, schedule reliability and a smooth, comfortable flight are just some of the things that the air-travelling public has come to expect from Cebu Pacific.

 

 

B.   Mission and Vision Statement

 

 

Our Mission

Cebu Pacific brings people together through an affordable, reliable mode of travel—a fun-filled experience that’s delivered with a true heart and soul for service.

We enhance the quality of life of the communities we serve and are an active partner in the nation’s progress.

 

Our Vision

 

Cebu Pacific is internationally renowned as the most successful low-cost carrier in the Asia-Pacific region.

We take pride in being the best domestic airline and the Filipino travelers’ first choice.

We are reputed for our unparalleled genuine, warm and caring service.

We are recognized for our innovation and commitment to excellence, and we are the industry and academe benchmark for success.

We are an employer of choice, providing many opportunities for professional and personal growth in a learning, egalitarian and non-bureaucratic workplace.

Our people are goal-oriented team players, empowered and disciplined, with a big sense of integrity, enthusiastically spreading the culture of fun throughout the world.

Our equipment, facilities and systems enable us to ensure consistent highly efficient levels of operation.

We have a deep sense of family extending beyond the airline, encompassing the communities we serve and the family we love.

 

 

C.   Services Offered

 

GO FAIRS

 

Cebu Pacific offers low fares thru our go fares available all year around. with our go fares, you can go see your family or go  have a vacation. In order to have the lowest possible fares, you need to go book quickly. The earlier you book, the lower the fares.

 

GO LITE FARES

 

Traveling light burns less fuel, and less fuel means more savings. Saving that the company has are passed to every guest as a fare discount of php. 100. Go lite fares are for guest with no check baggage. They may have a carry-on (hand carry) bag that weights 7kgs or less.

 

SEAT SALE

 

At certain times of the year, Cebu Pacific offers seat sales with up to 50% off for air fares. These are advance bookings. They currently held a seat sale last February 18-21, 2010 for travels on July 1 to December 31.

 

 

ADDITIONAL SERVICES

 

 

FUN TOURS

 

Fun tours is Cebu Pacific’s tour package product which allow guest to combine the lowest round trip  airfare with the cheapest hotel accommodation in your desired destinations, here you can choose to add more activities like city tours.

 

 

 

 

 

 

 

 

RENT – A – CAR

 

Cebu Pacific has partnered with Euro car. If you are looking for Philippines car hire, euro car  has covered you. Euro cars operates car hire stations at all destination in Philippines with a wide range of car makes and models from which to choose. A hire car is a handy way to get around the Philippines.

 

PREPAID EXCESS BAGGAGE

 

For the customers who have extra luggage the  customers can simple upsize your baggage allowance at the time of booking your flight. Book this and you can get 20% excess baggage rates.

 

SEAT SELECTION SERVICES

 

In every flight booking you can avail this promo. You can choose your seats you can choose everywhere you want. This promo has an extra payment.


group members

Leader: Bruel, Dale Marco S. Asst. Leader: Lhera, Diola Secretary: Pedrano, Paul Rommel Treasurer:Merced, John Philip Presentation Asst.: Capiral, Allan Members: Calusin Russel Cadaoas, Paolo Co, Raymond

group policies

NO Delays

-NO Absent

-No to Drugs

-No to Child Labor

-Environment Friendly

-Rehearsal Every Weekend (at least 3hrs)

Group Policies

dalemarco:

-NO Delays

-NO Absent

-No to Drugs

-No to Child Labor

-Environment Friendly

-Rehearsal Every Weekend (at least 3hrs)

GROUP MEMBERS (STRAMA)

dalemarco:

Leader: Bruel, Dale Marco S.

Asst. Leader: Lhera, Diola

Secretary: Pedrano, Paul Rommel

Treasurer:Merced, John Philip

Presentation Asst.: Capiral, Allan

Members: Calusin Russel

              Cadaoas, Paolo

              Co, Raymond

bakit!!!??

nakakatuwa kang kasama.. 

what cha say

Our lives are defined by opportunities, even the ones we miss