Case Study 1

Case Study 1

Read Case 7-2 titled “Airline Consolidations”. You are to write an essay that provides comprehensive answers to all four questions listed at the end of the Case Study. Answers to the questions are to be presented within your essay (not as bullet points or numbered lists). Critical thinking skills are essential when analyzing the case.

Answering the questions requires you to reference the textbook material. The EU library is excellent place to start when looking for additional sources. Text portion of each answer needs to be a minimum of two pages long and follow the APA-7 format. Make sure to include a cover page and references page.  Comprehensive and all inclusive answers are required in order to receive full credit. College level work is expected. Students are graded on critical thinking, research, and writing.

 

“252CHAPTER 7252CHAPTER 7CASE 7-2Airline ConsolidationsAccording  to  Airlines  for  America,  there  have  been  approximately  51  airline  mergers/acquisitions since 1930. Although this is not necessarily a verifiable number, it does show the magnitude of the consolidations that have taken place in the passenger airline industry. Probably  the  most  significant  combinations  of  carriers  began  in  2009  with  Delta  and  Northwest, followed by United and Continental in 2010, Southwest and Airtran in 2011, and American and U.S. Airways in 2013. These four “mega-carriers” account for approximately 80 percent of all domestic airline passengers today.The Airline Deregulation Act of 1978 was intended to open the passenger market to new entrants to increase the level of competition. Since then, however, there have been no new entrants into the traditional hub-and-spoke airline market. While there have been a few successful entrants into the market (for example, Southwest), they were point-to-point airlines  that  did  not  compete  against  the  legacy  hub-and-spoke  carriers  (for  example,  United).

 

CASE QUESTIONS

1.Based on publicly available data, compare the four mega-carriers across the following characteristics:a.Number of aircraft by type;b.Number of employees;c.Departures;d.Revenue passengers;e.Revenue passenger miles;f.Available seat miles;g.Operating revenue (total);h.Operating revenue per seat mile;i.Operating profit.

2.Knowing the intent of the Airline Deregulation Act of 1978, explain why the number of passenger airlines in the industry has actually decreased. Be sure to include a discussion of barriers to entry in your explanation.

3.With the total U.S. market being oligopolistic in nature and at some hubs monopolistic, should  the  federal  government  take  steps  to  impose  economic  regulation  on  the  passenger airlines again? Explain your opinion.

4.In your opinion, why did the Justice Department allow such consolidations to take place?”

Just one page is fine 

Case Study 1

Case Study 1: Statistical Thinking in Health CareDue Week 4 and worth 150 pointsRead the following case study.Ben Davis had just completed an intensive course in Statistical Thinking for Business Improvement, which was offered to all employees of a large health maintenance organization. There was no time to celebrate, however, because he was already under a lot of pressure. Ben works as a pharmacist’s assistant in the HMO’s pharmacy, and his manager, Juan de Pacotilla, was about to be fired. Juan’s dismissal appeared to be imminent due to numerous complaints and even a few lawsuits over inaccurate prescriptions. Juan now was asking Ben for his assistance in trying to resolve the problem, preferably yesterday!”Ben, I really need your help! If I can’t show some major improvement or at least a solid plan by next month, I’m history.””I’ll be glad to help, Juan, but what can I do? I’m just a pharmacist’s assistant.””I don’t care what your job title is; I think you’re just the person who can get this done. I realize I’ve been too far removed from day-to-day operations in the pharmacy, but you work there every day. You’re in a much better position to find out how to fix the problem. Just tell me what to do, and I’ll do it.””But what about the statistical consultant you hired to analyze the data on inaccurate prescriptions?””Ben, to be honest, I’m really disappointed with that guy. He has spent two weeks trying to come up with a new modeling approach to predict weekly inaccurate prescriptions. I tried to explain to him that I don’t want to predict the mistakes, I want to eliminate them! I don’t think I got through, however, because he said we need a month of additional data to verify the model, and then he can apply a new method he just read about in a journal to identify ‘change points in the time series,’ whatever that means. But get this, he will only identify the change points and send me a list; he says it’s my job to figure out what they mean and how to respond. I don’t know much about statistics — the only thing I remember from my course in college is that it was the worst course I ever took– but I’m becoming convinced that it actually doesn’t have much to offer in solving real problems. You’ve just gone through this statistical thinking course, though, so maybe you can see something I can’t. To me, statistical thinking sounds like an oxymoron. I realize it’s a long shot, but I was hoping you could use this as the project you need to officially complete the course.””I see your point, Juan. I felt the same way, too. This course was interesting, though, because it didn’t focus on crunching numbers. I have some ideas about how we can approach making improvements in prescription accuracy, and I think this would be a great project. We may not be able to solve it ourselves, however. As you know, there is a lot of finger-pointing going on; the pharmacists blame sloppy handwriting and incomplete instructions from doctors for the problem; doctors blame pharmacy assistants like me who actually do most of the computer entry of the prescriptions, claiming that we are incompetent; and the assistants tend to blame the pharmacists for assuming too much about our knowledge of medical terminology, brand names, known drug interactions, and so on.””It sounds like there’s no hope, Ben!””I wouldn’t say that at all, Juan. It’s just that there may be no quick fix we can do by ourselves in the pharmacy. Let me explain how I’m thinking about this and how I would propose attacking the problem using what I just learned in the statistical thinking course.”Source: G. C. Britz, D. W. Emerling, L. B. Hare, R. W. Hoerl, & J. E. Shade. “How to Teach Others to Apply Statistical Thinking.” Quality Progress (June 1997): 67–80.

Assuming the role of Ben Davis, write a three to four (3-4) page paper in which you apply the approach discussed in the textbook to this problem. You’ll have to make some assumptions about the processes used by the HMO pharmacy. Also, please use the Internet and / or Strayer LRC to research articles on common problems or errors that pharmacies face. Your paper should address the following points:

  1. Develop a process map about the prescription filling process for HMO’s pharmacy, in which you specify the key problems that the HMO’s pharmacy might be experiencing. Next, use the supplier, input, process steps, output, and customer (SIPOC) model to analyze the HMO pharmacy’s business process.
  2. Analyze the process map and SIPOC model to identify possible main root causes of the problems. Next, categorize whether the main root causes of the problem are special causes or common causes. Provide a rationale for your response.
  3. Suggest the main tools that you would use and the data that you would collect in order to analyze the business process and correct the problem. Justify your response.
  4. Propose one (1) solution to the HMO pharmacy’s on-going problem(s) and propose one (1) strategy to measure the aforementioned solution. Provide a rationale for your response.
  5. Use at least two (2) quality references. Note: Wikipedia and other Websites do not qualify as academic resources.

Your assignment must follow these formatting requirements:

  • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA format. Check with your professor for any additional instructions.
  • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

  • Describe how organizations use statistical thinking to be more competitive.
  • Apply the basic principles of statistical thinking to business processes.
  • Apply the SIPOC model to identify OFIs in business processes.
  • Use technology and information resources to research issues in business process improvement.
  • Write clearly and concisely about business process improvement using proper writing mechanics.
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