There are various ways of structuring organizations. The type of structure adopted determines the manner of operation and performance of an organization. Divisional organization structure is proposed for Okinawa air. While the organization currently operates solely within Japan, it has immediate ambitions to diversify its routes to other parts of Asia. Akita, Misawa, and Sendai have already been identified as possible destinations. These destinations have been noted to bear different weather conditions from those in Okinawa. The organization is also looking forward to exploring the South Korean resort island of Jeju. Thus, the organization will be operating in different geographical areas. The divisional organizational structure is suitable for organizations whose operations cover a span of geographical areas (Collins, 2018). It constitutes geographical departmentalization based on countries of operation. This is important given the different conditions that are likely to result in divergent brand responses and taking into consideration the flexible service offerings and country-specific marketing strategies (Adler, 2018). Although the approach might be costly and result in operational inefficiencies due to the separation of specialized functions, it will allow marketing approaches to focus on specific markets. Consolidation can be done later.
Question 2: Mission Statement and Core Values
Okinawa Air is dedicated to the delivery of high-quality client-centered service in a friendly and warm environment at affordable costs.
Okinawa Air’s core values include:
v Trust: build a relation of trust among stakeholders including, staff, clients, management, and stockholders.
v Honesty: Honesty is a pillar of Okinawa Air. It is our commitment to being not only honest internally but also with clients.
v Transparency: Okinawa Air seek to keep its operations and pricing transparent at all levels.
v Excellence: Okinawa Air is committed to ensuring that excellence remains at the core of its service delivery. It is committed to always giving the best at affordable rates.
v Integrity: maintain integrity in all aspects and levels of its operations.
v Respect: Okinawa Air is committed to offering all employees a high level of respect. The employees receive the same level of respect accorded to clients.
v Equality: Treat all equally irrespective of their diversity.
Question 3: Basic Marketing Strategy for Okinawa Air
Okinawa Air is a new market player. It joins a service industry with several existing competitors. It also intends to venture into areas with no regularly scheduled commercial flights, that is, between Naha and either Jeju or Manila. Thus, Okinawa Air will need market entry approaches commensurate to the competition it is likely to face from not just other air operators but also alternative means of transport. The following strategies are proposed:
Introductory offers are meant to attract prospective clients to get a feel of what the airline offers in the hopes that even after the offer is withdrawn, they will find a need to continue using the service.
Providing Flight Perks
This involves in-flight experiences not offered by competitors. These include in-seat systems that feature the latest TV shows, movies, and music. Flight perks are meant to not only entice clients but also retain them (Westhuyzen & Horan, 2014). Client retention is extremely important.
Providing Loyalty Programs
The loyalty program is intended to encourage customers to remain loyal to the airline. A good option would be to offer clients a card that offers them discount points each time they fly with Okinawa air or even points redeemable for tangible gifts.
Advertising will involve posting ads in popular media. A good option will be to target popular TV programs, business and travel social media sites, and popular magazines, among others (Ďado & Táborecká-Petrovičová, 2013; Parsa et al, 2018)). This is meant to not only make consumers aware of the airline’s entry into the market but also the perks on offer.
Question 4: Product flops
Product flops define products that have been developed but failed to have an impact on the market. These products eventually fail and exist in the market. Although many product flops have been reported in the past, the recent case of the Windows Phone operating system offers vast lessons. Unprecedently, the much-hyped Windows Phone OS finally admitted losing to iOS and Android operating systems, thus ceasing production (Herrick, 2018). Much has been said about the possible failures. However, it is widely agreed that Windows failed to access the market properly (Freedman, 2017). The OS was not only released late after android and iOS had had a considerable grip on the market but also the producers failed to anticipate the challenges of introducing a new OS incompatible to existing apps that users were already accustomed to using (Warren, 2017). It has also been argued that android played a disruptor role through its open-source approach. The matter was further complicated by the need for specific phones to feature the OS (Herrick, 2018). It was saddening that to use both OSs, one had to acquire a new phone. This discouraged its penetration, coupled with its app limitations. It was expected that the developers would have anticipated these challenges and sought to curb them. Surprisingly, the new OS was produced without consideration of these important factors that shape phone use.
Question 5: Breakeven Analysis
The need for breakeven analysis cannot be emphasized more than stating the need to know not just if a business will be profitable but when or at what volume and price. It helps in determining cost structures and sales units (Cafferky, 2014). Putting these figures against market statistics helps prospective businessmen to assess the viability of their targeted venture. Additionally, breakeven analysis is a useful pricing and cost control tool (Farber, 2014). Every businessman will want to know what quantity needs to be sold at a specific price to recover the costs incurred. It is the simplest way through which a business can decide its product/service pricing to cover the cost incurred in the delivery of product/service.
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Cafferky, M. (2014). Breakeven analysis: The definitive guide to cost-volume-profit analysis. New York: Business Expert Press.
Collins, K. (2018). Exploring business: Version 3.0. Boston, MA: FlatWorld.
Ďado Jaroslav, & Táborecká-Petrovičová Janka. (2013). Marketing strategies. Banska Bystrica: Matej Bel University.
Farber, D. A. (2014). Breaking Bad? The Uneasy Case for Regulatory Breakeven Analysis. SSRN Electronic Journal, 12 (3), 65-69. doi: 10.2139/ssrn.2430263
Freedman, A. E. (2017, October 9). Windows Phones Are Really, Truly Dead. Retrieved from https://www.tomsguide.com/us/windows-phone-dead,news-25957.html
Herrick, J. (2018, March 30). We know exactly why Windows Phone failed. Retrieved from https://www.technobuffalo.com/windows-phone-failure-reason-terry-myerson
Parsa, R., Yaghmaei, O., Ansarimehr, M., Hoseini-Rivandi, M.-H., & Najafiolasli, P. (2018). Designing and Marketing Features of International Airlines Websites: A Comparative Study. Business Management and Strategy, 9(1), 136. doi: 10.5296/bms.v9i1.12267
Warren, T. (2017, October 9). Microsoft finally admits Windows Phone is dead. Retrieved from https://www.theverge.com/2017/10/9/16446280/microsoft-finally-admits-windows-phone-is-dead
Westhuyzen, B. V. der, & Horan, L. (2014). Marketing strategies. Mowbray: Future Managers.