Executive Summary
WestJet is facing an urgent problem. The pilots’ contract expires in two weeks’ time and the pilots are unhappy with the offer that has been presented. This has created conflict between management and the pilots as the pilots feel that too many things are being taken away. If a quick agreement is not reached, flights would be grounded, which would impact the bottom line and negatively affect culture. A collaborating approach will need to be applied in order to come to a swift resolution.
WestJet is also facing a strategic problem, the longer term impact that growth is having on WestJet’s culture. WestJet’s success and competitive advantage have been a direct result of…show more content… If they do not maintain their culture what would the results or impact be on the company? * What skills and competencies will be required by leaders who are expected to drive the culture? * Despite WestJet’s predictions of further growth and success, pilots seemed dissatisfied with elements of the new contract offer. * Has contracting out international employees had an effect on WestJet’s culture?
SWOT Analysis
Strengths
* Unique corporate culture. * Low operating costs - cost savings are generally passed on to guests. * WestJet operates in a non-union environment which means they have lower labour costs and a relatively low risk of labour disputes. * Organic growth has occurred to this point, so there have not been any problems integrating cultures and systems. * Proven access to capital markets. * Excellent equity position: $820 Million cash on books so they are well positioned for growth. * Fleet was replaced in 2005. Newer fleet means savings on maintenance costs. * Low training and maintenance costs due to using one model of plane. * Amenities such as LiveTV and lounges. * Easy to attract quality applicants due to culture, profit share and Employee Share Purchase Plan, and decent salaries. * Strong brand.
Weaknesses
* Employees at the international destinations are not WestJetters so they may not be acting on the basis of the WestJet CARE-antee. * Missing
