Garuda Indonesia

GARUDA INDONESIA I - Garuda Indonesia introduction. AREAS FOR CONSIDERATION (SWOT ANALYSIS) A. STRENGTHS: 1. Low cost manufacturing capabilities 2. Technological know-how 3. Proprietary technology / superior technological skills 4. Superior intellectual capital 5. Better product quality 6. Market share leadership 7. Strong financial condition 8. An attractive customer base 9. Product Innovation skills 10. An attractive customer base 11. Reputation of good customer service 12. Fruitful collaborative partnerships with suppliers and marketing allies

B. WEAKNESSES: 1. Systems in all aspects: sales, preparation, flight, supervisory. 2. The quality of preflight, in-flight, and post-flight services which are still low. 3. The biggest international market segment is low yield. 4. Spareparts and other aircraft equipment are still imported; this needs longer time. 5. The company’s organization is still unsteady. This situation makes “organizational behavior” incompetent in supporting the company. OPPORTUNITIES: 6. “Political will” of the government in tourism. . As, BUMN, Garuda is based on UUD’45 article 33, paragraph 2. 8. The still-abundant-available seat capacity 9. Government Regulation on Tariff. 10. The strengthening currency of the countries from where tourists come to Indonesia. THREATS: 11. Protection from certain countries, especially in traffic rights. 12. The development of the other means of transportation, especially for near-distance transportation. 13. The more increasing competition. 14. The uncertain economic situation. 15.

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Technology development in aircraft, manufacture. As the result of this development, the old aircrafts are no longer economical enough to be marketed. 16. The bureaucracy which still caused problems in managing company professionality. II. STATEMENT OF THE PROBLEM What measures must be undertaken to eliminate the burdening high debt of the company and what alternatives must be undergone in order to boost up its service competitiveness, visibility and distribution so to have profitable operation? III. ALTERNATIVE COURSES OF ACTION 1.

The top management must reconstruct its organization structure into a more credible and competent one. 2. There must be a thorough assessment with regards to product diversification to identify the different problems plagued with such business. 3. Conduct a comprehensive and credible feasibility study for every business undertaking before going into its implementation and operation. 4. Reinforce the working personnel by training them according to the objective compliance of the company. 5. Improve the customer service rendered from domestic to foreign.

IV. RECOMMENDATION Since the burdening high debts of the company and its overall weak system is of much the serious problem, Garuda Indonesia must conduct a through study and better assessment on how to solve these internal problems plagued within and beyond the company’s control. Primarily, there must be reconstruction or reorganization among the working force or the management team in order to have a smooth flow of monitoring with regards to the operation of its business not merely its main product but as well as those business diversifications it has.

In addition, the top management must improve its customers service, both domestic and foreign. The company must assure the full satisfaction of its passenger and never disregard their concerns to such. More importantly, there must be a credible and thorough feasibility study for every future moves, project or any undertaking of the company prior to their implementation in order to assure the better operation result. V. DETAILED ACTION PLAN 1.

Aside from making use of publishing materials like magazine, journals and newspaper, the use of Internet or e-commerce technology is a very good alternative that the company may opt to towards advertisement and service promotion. 2. Training its personnel according to the company’s objective is a better move for the company to have a better customer service. 3. The company’s effort towards great and better customer dealings must be manifested not merely by advertisement but also through to its service itself and to its operation. 4.

There must be a proper resource utilization about the company’s’ every move aside making loans as the only option for its future project. 5. The company must seek ways on how to build a competitive edge over the foreign market and build a competitive edge over its competitors. VI. CONCLUSION Indeed, Garuda Indonesia has of much advantage for its monopoly position compare to its domestic competitors. Even though it is a state-owned enterprise that is an agent of development, it assures government support towards its continuous operation.

Nevertheless, because of its overall weak system from within and beyond operation, the company experienced losses that its overall efficiency is affected by improper management and monitoring to its function. More so, the cost disadvantage of the company became more severe as a result of its skyrocketing debt burdening the whole company. Only if the company conducts a comprehensive and massive feasibility study to its every future move prior to the implementation of such undertaking, the company, perhaps, could expect better result from these projects and plans.

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