Vision and Mission of Japan Airline Group - Essay Example

Japan Airline Group Vision and Mission of Organization Vision ment The vision ment of The Japan Airlines Group is to be “a transport enterprise with a global reach, will expand its worldwide network as a key industry supporting travel, tourism and transport in the 21st century, ‘an era of exchange’” (Annual Report 2005, retrieved April 12, 2006). The vision statement is supported by the primary values of the company reflected in its “Group Code of Conduct”. This multilevel hierarchy of values includes: Assurance of Safety in Flight Operations: “to carry out our mission of assuring safety, the management will exert its strong resolve and the employees will bear an awareness of their individual roles and responsibilities, and together we will combine our utmost knowledge and capabilities to ensure the safety and reliable operation of each and every flight” (Group Code of Conduct, retrieved April 12, 2006). It embraces complying with environmental laws and regulations, promoting efficient use of energy and resources, waste reduction and recycling, selecting environment-friendly products, and social contributions. Creation of a Barrier Free Environment with emphasis on improvement of services for customers with disabilities so that as many persons can move about freely as possible. Social Activities and Corporate Responsibility Disclosure of Information Respect for Indigenous Cultures: contributing to the development of local communities. The Japan Airlines Group Code of Conduct clearly articulates the values that the company pursues with regard to different aspects of its business activities. On the other hand, the group’s vision statement, although stating how the company sees its development and emphasizing global expansion, specifics of the supporting industry, and focus on differentiation, would benefit from more precise and quantifiable approach to what the Japan Airlines want to become. For instance, their vision statement may be “to become the world leading company in terms of safety” or “#1 Airline in the flights within Asian region”. Mission Statement The mission statement of the JAL Group is as follows: “Proud to be the largest domestic network in the industry, we bring peoples, their cultures and their hearts closer together, contributing to peace and prosperity in Japan and beyond. All this is predicated on a relentless commitment to flight safety. We strive to become a world-class air transportation group, one that is consistently chosen by our customers, and maximizes corporate value in pursuit of our fundamental policy of sharing the value we create with all our stakeholders. The JAL Group now is spreading new wings of trust, preparing for a renewed push forward” (Annual Report 2005, retrieved April 12, 2006). Overall, the mission statement of the Japan Airline Group can be assessed very positively. It reflects the company’s philosophy and its self-concept, clearly indicates what products and markets the company offers, how it sees its role in the society and what are the factors contributing to its success and growth. A more precise definition of the customers the Japan Airline Group serves will benefit the mission statement. Company Audit for Japan Airline Group External Audit External Factors Evaluation Matrix (EFE) Key External Factors Weight Rating Weighted Score Opportunities       New technology .05 3 .15 Global expansion (Asia) .15 4 .60 Increase number of travelers .10 2 .20 Increase number of destinations .10 3 .30 Corporate social responsibility .10 4 .40 Threats Cost of fuel price .15 2 .30 Regulation .10 2 .20 Social cultural issue and natural disasters .05 3 .15 Intense competition .10 3 .30 Mergers and acquisitions in industry .10 2 .20 Total 1.0 2.80 In the external audit process the major threats and opportunities currently faced by the domestic and international airline industry as identified in the TOWS Matrix were taken into account and the External Factors Evaluation Matrix (EFE) was developed. The average weighted score for the EFE is equal to 2.50. The obtained score for the Japan Airline Group is equal to 2.80 and exceeds the average of 2.50. Therefore, it can be concluded that the company addresses the external factors quite effectively. The high score is an indicator of the comparative strength The Japan Airline Group demonstrates in exploring the emerging opportunities timely and minimizing the effect of the external environment threats on the company’s performance. For example, The Japan Airline Group due to its strong brand recognition and solid financial position effectively addresses the challenges of the ‘era of exchange’ by global expansion. The company has very strong positions with regard to the corporate social responsibility and social and cultural aspects of its business. It is due to the fact that corporate values of The Japan Airline Group have been evolving and improving through its history, nowadays they legitimately play a significant role in the company’s day-to-day operations. Competitive Profile Matrix (CPM) The Competitive Profile Matrix (CPM) gives insight to the competitive position of the company in comparison with its two major competitors. The two closest competitors of The Japan Airline Group are Japan-based All Nippon Airways Co., Ltd., and Hong Kong-originated Cathay Pacific Airways Ltd. Both operators have established position in the domestic and international industry. Both companies, having started as solely regional carriers, now significantly expanded its presence on the worldwide scale and achieved a market share of several percent of the global airline market.   Cathay Pacific Airways Ltd. All Nippon Airways Co., Ltd. Japan Airline Group Critical Success Factors Weight Rate Score Rate Score Rate Score Advertising .05 2 .10 3 .30 2 .10 Product Quality .15 4 .60 3 .45 4 .60 Price .15 3 .45 2 .30 3 .45 Management .20 3 .60 3 .60 3 .60 Financial Position (net income) .10 2 .20 2 .20 4 .40 Customer Loyalty .10 3 .30 3 .30 4 .40 Global Expansion .10 4 .40 2 .20 4 .40 Market Share .15 3 .45 3 .45 4 .60 TOTAL 1.00   3.10   2.70   3.55 The CPM weighted score for The Japan Airline Group is equal to 3.55 and is far outweighs the corresponding values of 2.70 for All Nippon Airways Co., Ltd., and 3.10 for Cathay Pacific Airways Ltd. The Japan Airline Group is leading with regard to the market share, customer loyalty, and financial position, as reflected by the net income. It is on par with the competing companies in areas of management and product quality. However, the company can improve its standing in terms of advertising and pricing policy. References The Japan Airline Group: Code of Conduct. Retrieved April 12, 2006, from http://www.jal.com/en/corporate/action.html Read More