People Express
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In late 1982, People Express was experiencing significant problems with respect to human resource management. In part, these problems were caused by forces external to the company such as the air traffic controllers' strike. In part, these problems were a result of the company's success its growth was too fast to permit the acquisition of sufficient number of personnel who met the company's criteria. Unfortunately, these problems were also a function of the apparent inability of top management at the company to recognize their existence. At the same time, the company was attaining significant market share growth while most of the rest of the participants in the airline passenger industry were floundering.Explicitly, the mission of People Express was to provide efficient, low cost, no frills air transportation services to the traveling public in the United States. Implicitly, Donald Burr and several of the other top executives at the company intended for People Express to become a major player in the American air transportation industry. Donald Burr and his senior staff were the chief strategists at People Express. These same people were members of the company's board of directors; therefore, they had the power to make the decisions required to implement strategies they desired. There were three segments in the passenger carrying component of the airlines industry at the time of t
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ortheast in 1982, and was looking west and south to expand its horizons, Southwest Airlines was still enjoying great success in Texas, while looking east and north to expand its horizons. Southwest Airlines expanded outside of Texas when the federal government initiated deregulation in the airline industry, just as People Express became a certified air passenger carrier in the wake of deregulation. In 1982, Southwest had expanded only into the southeastern states. There was little doubt, however, that the company had it eye on the lucrative northeast market.
Subsequent to deregulation of the airline industry, the competitive responses to Southwest's no frills strategy became serious. The company has managed to thrive against no frills competition from Texas International and Continental. Through 1982, People Express had faced no frill competition only from the newly formed New York Air. In late 1982, therefore, it was highly important for People Express to firmly establish itself at the market leader in its base northeast market, before competition from the likes of Southwest materialized. In pursuit of this goal, it was highly important for People Express to continue to minimize its costs, and maintain its service standar
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Some common words found in the essay are:
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Approximate Word count = 1560
Approximate Pages = 6 (250 words per page)
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