What are the objectives identified for the airline for each perspective?
The objectives identified for the airline for each perspective are financial, customer, internal, and learning. These objectives provide relevant feedback as to how well the strategic plan is executing, in order for adjustments to be made as necessary. Additional objectives for airlines may include meeting passenger expectations and connecting with various market segments. Overall, an airline must build its business model on the premise that it must meet passenger expectations while adhering to strict regulation in the industry. Therefore, all of its strategies regarding consumers, alliances, and even supply chains or cargo transportation must be interconnected with these concepts. It is a circular model with the passenger in the center and the rest of the objectives balancing regulatory environment, technological capabilities, and airline industry standards. Airlines must consider short-term objectives, such as market segmentation of passengers, as well as a long-term, such as the price of services and fuel (Boeing, 2016).
What measures are used for the objectives in the customer perspective?
The measures that are used for the objectives of the customer perspective are customer service satisfaction, customer retention, and market share in the target segment. More so than other businesses, airlines need to ensure competent and effective service delivery due to the high reliance that customers commonly have on these services. By doing so, airlines can attain a competitive advantage, thus attracting loyal customers and a long-term economic benefit. This is achieved through properly designed customer service programs. However, it is difficult to do, since the value for an airline service is unclear, and there are few tools to measure the impact of service-quality attributes. It is critical to develop measurement tools for key performance indicators that would define service-quality dimensions in the airline industry and focus on service-recovery actions (Ford, Paparoidamis, & Chumpitaz, 2015).
What initiatives are planned to achieve the objective in the learning perspective?
The learning perspective seeks to define how an airline can grow and develop, while still creating value and profit. The initiatives are measures such as employee satisfaction, employee retention, skill sets and so on. Some companies may use high salaries, flexible union contracts, and employee ownership of company shares. An example of a strategy from this perspective would be splitting their approach into industry expertise and talent. This shows that a flexible approach is possible, and the scorecard does not have to be followed explicitly (Lucco, 2017). Executives receive feedback on whether the strategy implementation is proceeding according to the plan and on whether the strategy itself is successful. Learning and growth are tied to other perspectives in strategic management and helps to ensure value is added.
References
Boeing. (2016). Airline strategies and business models: 2016 airline planning workshop. Web.
Ford J., Paparoidamis N., & Chumpitaz R. (2015). Service quality, customer satisfaction, value and loyalty: An empirical investigation of the airline services industry. In M. Dato-on (Eds.), The sustainable global marketplace. developments in marketing science: Proceedings of the Academy of Marketing Science (p. 187). Cham, Switzerland: Springer.
Lucco, J. (2017). A full & exhaustive balanced scorecard example. Web.