Iberia Case

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Category: Business and Industry

Date Submitted: 01/14/2013 08:49 AM

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Rodolfo Mendieta

Tutor: Tom Trirttipo

International Marketing

11/13/12

Iberia airlines

Introduction

Corporate companies have a task of ensuring that they provide quality services in line with their mandate. This is in addition to maintaining quality staffing and operational activities. These organizations however are faced with challenges in terms of management and business practices. This is because of the external business environment, laws and regulations that face these companies. Iberia Airlines is one of corporate organization that has faced many challenges. With its main aim being provision of quality services to the clients the company has had a lot of challenges to face. Operation cost and income is important to be monitored so as to ensure both profitability and the provision of quality services.

Iberia Airlines is faced with a problem of making a decision to purchase its intended new fleet of airplanes. Boeing and Airbus are the competing bidders for the supply. The types of planes they both offer differ in specifications, reliability, performance, fuel consumption, capacity and the cost. Iberia is faced with a tough decision to make a choice in consideration of all the factors that these manufacturers offer regarding each type of plane. Cost is a major constraint that the company has to consider due to the fact that it intends to minimize cost to maximize profitability. It has to consider other factors such as reliability which is equally important if the company is to maintain its reputation.

Being a reputable company, Iberia intends to maintain the quality of service that it provides to the clients. The company has dominated the market and is among the best aviation service providers with a large number of fleet. It has dominated Latin America’s market over its competitors. This has seen the company ranked as the 18th in the world rankings for its quality service provision. The company has a decision to make between...