EM 503 – SYSTEMS AND ORGANIZATION, Spring 2013
TAKE-HOME FINAL EXAM
Mission: Its belief is that everybody has the right to fly. The Pegasus Family, our suppliers and our partners work together in cooperation to achieve this goal. Vision: To be the leading low-cost airline in our region with our innovative, rational, principled and responsible approach. The Goal Space: Due to its focus on low cost airline aim and input Pegasus Airline is highly efficient company in his sector. Also its innovative approach such as usage of technological advantages, high safety aims increase the company effectiveness. All this reasons put the company in QUADRANT D. Strategy Space: Its anonymous effort in cost efficiency such as planning routes through low fuel cost countries, cost reduction offerings and flight training center with the latest flight simulation technology show that the firm has high exploitation. Its innovative approach to sector, seeking new technologies and newly aircraft are consequences of their complex and competitive environment. The firm attracts new technologies more than other sectors to survive and to take advantage of advance technologies such as their recently ordered advance aircraft. Due to these strategically approach firm has high exploration and takes place in ANALYSER WITHOUT INNOVATION. Environmental Space: Critical factors are the laws for flights, route selection and terminal allowance, global strict safety policies, geographical constraints, jet fuel price, exchange rates, competitors’ price, technological improvements, customer requirements, passenger requests, ethnicity of passengers. Many of these factors are interdepend of each other’s. So, the environment is highly complex. Also these factors unpredictability are more than normal. Regarding to interdependency and unpredictability, environment is exactly TURBULENT. The Organizational Design Space of Structures for Spanning Geography: It is highly important to have smooth customer relationship in flight sector. Pegasus airline has a call center that is operative for 7/24. The firm has sales offices where it operates like in Barcelona, Dusseldorf, Lion and Zurich. But Pegasus does not have managerial offices except Turkey. Also Pegasus has target-oriented training courses are designed for the purpose of further increasing its employees’ performance and improving their customer relationship. All of these are signs of above normal value on optimal sourcing axis. The firm operates mostly with online site of business it is designed with standardized work practices. Also the non-country decisions are taken from upper management located in Turkey. These shows low local responsivity of the firm. As a result, company can be classified as INTERNATIONAL. Knowledge Exchange Space: It uses in and ex computer systems for communications. It develops unique partnerships with other organizations (THY). Due to its high IT infusion and Virtualization it is on NETWORK. Task Design Space: Units are so dependent to each other in airline sector. Reservation department, Sales department, even advertisement department are responsible and affects others. That’s why Pegasus has low divisibility. Additionally, high managerial skills are required to keep up customers on hands and customer satisfaction is very important for the business going on. The firm is on KNOTTY quadrant. Configuration: Pegasus has highly functional specialization (different departments like reservation, ticket sales, advertisement departments with different individual trainings) and highly customer oriented (different prices for seats, adjustable seats, optional foods, additional insurance option). That’s why it can be classified as MATRIX. Complexity: There are fewer middle managers in Pegasus that coordinates top executives and lower levels. Therefore they are on FLAT. People Dimension: The Company has extensive trainings for its individuals like Human Factor...
References: -The Application of Six Sigma Method in a Power Plant, 2012, Sati, Zumrut Ecevit, vol. 3 page 143.
- R. Burton, G. DeSanctis, B. Obel, Organization Design: A Step-by-Step Approach, 2006.
Reference List for MCKINSEY
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