The turnaround of continental airlines in the 1980’s is one of the most remarkable stories of the corporate world. The company was set up in 1934 and for decades had been known for quality of its service and the stability and caring of its governance structure. Indeed the CEO Bob Six had actually been CEO of the company from 1936 till 1981. The deregulation of the airline industry by the Carter administration changed all that. Suddenly, Airline companies became caught in a dog fight for market share. In an industry that saw its profits plummeting due to the increase of oil prices and also the lack of barriers to entry in the industry. By the time Gordon Bethune took over in 1994, the company had gone bankrupt already and had gone through 10 leaders in 10 years and looked, to all intents and purposes to be totally doomed. Continue reading
Category Archives: Service Industry
Charlyne Fothergill and Jonathan Bixby, GrowLab, Vancouver, talk to GEM & SFU students about entrepreneurship during Innovation Business Week
A group of 30 students from Grenoble Ecole of Management and Simon Fraser University who are participating in the Innovation and Entrepreneurship Program which started for the first time this year, were grateful to visit and discover GrowLab accelerator of Vancouver.
Strategy, Level 5 Leadership, Culture of discipline, The Hedgehog Concept, Corporate Culture, Packard’s Law, The Stockdale Paradox
This book is considered as one of the most important management books of the 1990s and has been in the best seller list ever since then. Collins says that the study required 10.5 people years of effort. 6,000 articles were read and coded and they generated more than 2,000 pages of interview transcripts. From this study they defined why 11 companies had made the transition from being good to truly great. Of course, time is always cruel with such studies and the business scholars today may have a wry smile when they see Fannie Mae & Circuit City. However, the others have done remarkably well since the study was published. Continue reading
An article about boarding passengers at airports highlights the difficulty in working in the service industry. However as annoying as customers can be, we still have to say “Please” to them. Continue reading