Porter Airlines Critique

1. Relate Porter’s customer centered philosophy to the interests of another stakeholder (employee). From your chosen stakeholder’s perception, what issues does Porters’ philosophy raise?

It is important to state, that Porter’s main line of business is not taking customers from destination A to B; but rather, what Porter really sells is great customer service (arriving on time to the destinations, “spotless customer service” (Porter Airlines, 2012)). Precisely the focus on excellent customer service, has allowed Porter to differentiate itself from the rest of the (crowed) North American airline industry. Please refer to Exhibit 1, where a comparison between working in Porter Airlines and Air Canada is interpreted.

How can Porter Airlines effectively execute a customer centered philosophy? It has to be through a satisfied work force. Satisfaction for the employees does not only come from monetary benefits or recognition, but also having the right people that understand the company’s strategic objectives. Employees seem to comprehend that the growth and expansion of Porter Airlines depends on their actions (as key stakeholders). Given that success of the company does not only benefit the organization itself, but also the employees themselves. For example if Porter Airlines expands its business and increases profitability (benefit for the company), employees have more opportunities to grow within the company, better wages and better benefits.

Having a strategy too focused on customers, may neglect other stakeholder interests. For example efforts to keep costs low may be at the expense of employee benefits and raises. Another example is that long term strategy may affect short term profitability or vice versa, short term profitability may be achieved at the expense of the long term strategy. All of these aspects affect employees directly (in terms of compensation) and indirectly (in terms of training programs or opportunities for growth within the company). To...