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Question: Critical Thinking The purpose of this assignment is to identify and apply Logistics and Supply Ch...

Critical Thinking

The purpose of this assignment is to identify and apply Logistics and Supply Chain Management concepts/tools to suggest logistics performance priorties. To this purpose, you should review about these comnpies through secondry avilabe information. Think about how you can apply the concepts/tools that you learned in this course .

Suggest logistics performance priorties for the following, explaing why you have come to your conclusions:

1)A low fare Airline FLYADEAL

2) A fast food chain Such as Albaik

The Answer should be 3- 4 pages in length including the cover and appendices, with 1" margins on all sides, double-spacing, and 12 point font. The cover of the report should include title, course code and name, your full name, and your University id number.

The Answer must follow the outline points below:

1. Executive summary (no more than one page)

- Summarize what is logistics performance priorties, what Logistics and Supply Chain Management concepts/tools have been applied to achive the compnies objective.

2. Background information

- Briefly introduce the company background (e.g., name, products, business size, location, internal/external interesting facts, etc).

3. Problem Description

- Describe the objectives clearly and specifically.

- The objective may involve either logistics decision-making or process improvement.

4. Application of logistics and Supply Chain Management concepts/tools that can be applied

- Describe what specific logistics and Supply Chain Management concepts/tools can be applied to achive the objective.This section should make it clear that you understand the concepts/tools you are about to use.

5. Analysis of expected results

- Analyze the expected results of the proposed solution.

6. References

( please Do not answer with your hand writing , it is really hard to understand it from a screen, thank you=)

Answer 1

Porter's five forces analysis is a very useful methodology to analyse the external environment effect on any organisation or industry. By applying the external five forces we can easily determine the after effects of those forces on the specific organisation.
Five forces of porter's analysis are as follows.

Competition rivalry
Supplier Bargaining
Customer bargaining
Threat of new entrants
Substitute threats
Five forces analysis on the airline industry

Airline industry is a very big market and has been producing huge revenues as well as facing the huge competition in each and every aspect. As the new competence are entering the markets they are increasing the overall competition and affecting the structure.

Competition rivalry

Because there are so many operators available in the same region with the same route. As the low cost Carriers entered the market, start to find the most profitable way to surpass the safety regulations of the industry. This specific Innovation and ideation is driving extreme changes in the airline industry. Airline industry is mainly fuelled by the regulator and they decide what should airline industry do. Low cost Airlines are having their full authority over the domestic transportation but in international trade premium carriers are only id and they are driving the industry. By having extreme diversity in the field we can say it is one of the most competitive businesses in the country.

Supplier bargaining

As the Companies are increasing number of plane manufacturers the plane suppliers are also increasing. Everything from labour to the fuel has a supplier and the suppliers usually bargain with the companies for getting a better price and a better profit. Geo political factors also influenced the condition of supplying and labour is also fuelled by the power of unions who usually bargain for the costly concessions from the Airlines.
and Boeing both are the biggest companies in providing aircrafts to the different airline industry and plays a major role in bargaining with those industrial companies.

Customer bargaining

As the online ticketing has introduced, customer has power to compare multiple ticket fares from different Airlines which gives in the authority to choose between the lowest available fare. This is specific revolution in the Information Technology has bring a bigger problem for the airline Industries to be more competitive. This specific power of the customer is driving the industr, hence airlines are helpless to reduce their affairs and work accordingly to the customer.

Threat of new entrants

Airline industry is going very fast and multiple new companies are putting off their planes in the industry every day. By having different competitors in the same field the number of increased competition also produces a threat for the existing airline companies as well as the new companies who is entering the industry. New entrants also increase the competition by reducing their affairs and implementing new strategies to attract the customer.

Threat of substitution

In United States America there is no threat of substitution as people prefer applying rather than going into the buses are the trains for long distances. Has been in the culture for a long time that's why there is no threat from the substitution of the airline industry that's why the airline industry has been growing since then. Airlines are providing different services like Wi-Fi and free food which is also attracting the customer towards them and they don't go for any other substitute.

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