Posted: September 5th, 2023

Max Ward approach to airlines

Max Ward approach to airlines
World airlines have not created business value for airline companies since they are in operation. Over the years the companies have been experiencing loses due to the strong dependency on economic impact and development. In the airlines industry were the margins for profits are quite low a firm needs to think outside the box. The airline’s managers are required to look for approaches which can allow more efficiency either through the company size or by cooperating with other companies. A network provides a firm with a chance to operate in more efficiency and realize net effects in the big entities. Max Ward realized this quite early and decided to look for an approach that could provide the airline with a better business approach.
From my understanding I think one of the approaches that Max came up with is making the business simpler. Instead of focusing on the old model where there is the top management then there is the protocol down the firm, he thought of making the business so simple. He could at times take part in the process of cleaning the planes and working closely with each employee. Most of the companies within the aviation were making much loses because of the stringent approaches that they were using. The approaches were increasing the expenses while at the same time minimizing the profits. But max thought that by taking a simple approach to business he could be able to make more profits and still make the company have an international view.
One of the good things that I observed from the company’s success story is its approach to management. For instance, the company does not focus on the old methods where one needs to write a memo to the employees on issues. In the model that Ward advocates for, each employee should know their roles and be responsible for carrying out the things that are expected of them. With there not being any direct form of authority, every employee feel accountable for carrying out their tasks without much oversight. What one might say is that the approach that Ward has come up with rides much on building a culture of responsibility. Employees know their roles, and thus they just fit into their roles.
Besides I noticed that Ward seems to focus much on is the idea of regulation. With the rule, it becomes hard for a firm to do business and often the problem is that the costs are high. With a higher price, there is the problem of low activity and thus low profits. However, Ward has successfully managed to overcome the challenges of regulation and thus offer the lowest prices for the clients. The lower prices thus lead to more business and higher profits. Therefore one thing that needs to be overhauled in the Canadian airlines is the aspect of regulation.
People might have doubts about the model that Ward uses in running his empire. However, one thing that seems clear is that his model is increasing the profits. It is from this view that the current airlines should stop running airlines and start doing business. A business approach to the airline industry would allow more profits and get rid of the bureaucracies. Doing business means that all operations should be focused on reducing cost and increasing profits. Ward has been able to achieve this.

References
Max Ward [Video file]. (n.d.). Retrieved from https://www.youtube.com/watch?v=ChU8yEzvbhc

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Study Notes & Homework Samples: Super Power relations during the ColdWar »Read The Middle Grounds section in Chapter 2 of your textbook