Strategic Implementation for Aeroplan Aeroplan

STRATEGIC IMPLEMENTATION FOR AEROPLAN 11

Strategic Implementation for Aeroplan

Aeroplan

Aeroplan is a famous loyalty management company located in Canadaunder the ownership of Groupe Aeroplan Inc. Currently, thecompany comprises of close to four million members awarded air milesdepending on the expanding network, which encompasses of close to 150retail brands, monetary as well as travel industries. Aeroplan’smission involves increasing the partners and associates’ loyalty,improving members’ lives, in addition to having an important impactfor the partners, personnel, shareholders and community at large.

Ethical and Corporate Social Responsibility (CSR) Strategies

Ethical and CSR approaches at Aeroplan implies connecting thestrength of partnerships in making a positive impact to thesurrounding and societies. As an international leader in themanagement of loyalty, the company comprehends the approach ofbringing together unions of same-minded partners (Groupe Aeroplan,2010). Aeroplan uses the similar knowledge to advance inventive CSRprograms, which involve all stakeholders, in addition to having apositive, significant and lasting influence towards the social andsurrounding problems of the world. Aeroplan endeavors to actaccountably and carry out its operations in an ethical manner,sustainably and considerately. The company has demonstratedcommitment towards the reduction of its environmental and carbonemissions arising from company activities. The involvements as wellas leadership of its workers hugely drive dedication to CSR. Aeroplanendeavors at operating in an environment, which encourages employeeinvolvement and motivates the stakeholders to be involved with thecommunities (Groupe Aeroplan, 2010). The company isaccountable for stepping forward and assisting societies in buildinga positive, as well as sustainable future. There are numerousillustrations of Aeroplan’s ethical and CSR strategies, which aremostly in form of programs to assist in society.

One of these programs is Beyond Miles Program, launched in2006. The program makes it possible for the members to join inhelping Canadian charitable groups via giving their Aeroplan miles(Groupe Aeroplan, 2010). The charitable groups are committedto enhancing lives and improving societies all over Canada andoverseas. The partners in Beyond Miles employ Aeroplan milesas a way of offsetting their expenses linked to travel through air,car rentals and hotel accommodations. Since the program’s launch,members have donated almost 200 million miles for the year 2010(Groupe Aeroplan, 2010). In accordance with the promise ofprotecting the environment, the company controls 100% of its carbonemissions deriving from flights as well as car rentals, taken bypartners via donations in form of miles (Groupe Aeroplan,2010). The support makes it possible for the company to gear theirresources towards the projects, whereas ensuring an answerableenvironmental strategy. Additionally, Aeroplan implemented a donationplatform, which permits the members to give 2% of their miles duringaccumulation to any of the partners. Members that would like todonate are only required to visit the company’s website and choosethe option of donating towards Beyond Miles Program. Anotherprogram is Aeroplan’s Charitable Pooling Program thatenables members to use miles in supporting persons, families ordifferent charities that need help (Groupe Aeroplan, 2010).

Aeroplan realize that to ensure good ethical and CSR practices, theyneed to involve employees. Employees represent the organization andare a crucial part in ensuring that the vision and mission are met.Aeroplan provides its workers with opportunities to attend EmployeeEngagement Trips through its Miles and Pooling programs (GroupeAeroplan, 2010). The trips enhance employees’ understanding, asthey are able to observe and become informed on the important supportAeroplan provides thus, continue the same in their work. The tripsare aimed at inspiring and involving Aeroplan workers throughassisting them to observe where and how the partners utilize donatedmiles. Personnel are also motivated to give back to society bydedicating paid hours to causes, which aim at improving theircommunities. These involves becoming volunteers, engaging in workslike tree planting in regional parks, creating baskets that carrypresents for needy families during holidays, as well as giving foodto shelters.

In America, CSR is apparent via the activities of CarlsonMarketing with customers, in addition to the extraordinarydevotion of workers to enhance living standards within theirsocieties. Carlson Marketing works towards improving workerinvolvement through the identification of various charitable groupswhere workers are given an opportunity to contribute via planningevents and harmonization, organizing fundraisings or offering toassist the needy (Groupe Aeroplan, 2010). Illustrations of theinitiatives include the Habitat for Humanity. This refers toan endeavor by Carlson Marketing workers to assist in theconstruction of homes. An illustration is a house constructed for aDetroit family, in 2010. The initiative involves collecting fundsthrough extra work where the money is used in ensuring needy personshave comfortable homes to live. The Bridge for Youth is adifferent initiative that allows workers to buy gifts through theholiday period in supporting an NGO. The NGO is involved incounseling, providing housing and emergency shelter to youths thathave run away from their homes or those that have no place to live.

Good ethical as well as CSR practices involves taking part ininitiative, which benefits community. Ethical business actions arebehaviors projected by an organization, which are professional andmoral. These practices are vital in ensuring business success. As theconsumers’ become more knowledgeable on the international socialissues, the relevance they place on ethics and CSR when selectingwhat companies to work with increases (Fallon, 2014). The strategieschosen by Aeroplan are reflective of proper ethical and CSR actions.The company comprehends the need for engaging in programs that enrichand improves the lives of society. This is made possible through thecharity programs and initiatives. Aeroplan also engages workers incharitable work in ensuring that they improve lives in theircommunities. By engaging workers, Aeroplan does not just promotecompany goals, rather engages workers in working together towardsmeeting the expectations of all parties involved in the company. Theenvironmental action of reducing carbon emissions means that thecompany is concerned about preserving the environment.

Good ethical actions and CSR practices have been instrumental inensuring the company progresses to grow. By engaging workers indifferent initiatives and trainings, they become reinforced anddedicated towards the company’s operations. This means thatAeroplan does not have to worry about issues like the need to hireworkers constantly, as all their employees are content with theirjobs. The charity work and environmental conscious actions ofAeroplan creates a brand for the company. Potential clients see anorganization whose focus is on improving society and not merelybenefiting the company. Partners are drawn by the commitment toimprove society. The outcome is an increase in partners, customersand personnel commitment.

Management of Internal Operations

Aeroplan is a large organization, which makes management of internaloperations an intricate procedure. Intricacy arises from the largevolume of the business. The company gets tens of thousands freshmembers on a monthly basis, in addition to having five million plusactive members (Unica Corporation, 2007). This means thatAeroplan needs a flexible and at the same time responsive managementapproach, to respond fast to altering markets situations and thedemands of partners. To meet such demands, management is divided intodifferent key areas.

Marketing project management – historically, every individual incampaign management employed his or her exceptional distinctive,undocumented procedure. Duties and accountabilities were not apparentand customers had minimal view concerning the status of theirprojects, and development via the campaign progress cycle. A newstrategy in process reengineering formulated particularly formarketers by Bridges Horizon assisted in the implementation ofa more structured manner of handling every phase of the marketingplan, starting with design and growth to implementation and tracking(Unica Corporation, 2007). Currently, Aeroplan has astandardized management approach to marketing. It involves thecreation of an online brief for centralizing and standardization ofall program specifications. In addition are simple to use, customworkflows that are transparent to all stakeholders. The outcome isthat projects are completed in time via work notification and alerts.

Financial management – the company has shifted from budgets andexpenses management using spreadsheets, which resonated to hours ofreconciling information with the finance sector. By usingspreadsheets, it was almost impossible to acquire real-timevisibility in budgets set aside for marketing, with frequent costoverruns or unnoticeable additional budget available. Over the years,under financial management, has been a change in managing andtracking marketing investment from a manual procedure towards acentralized, as well as modernized budget allotment, forecasting aswell as invoicing procedure. The financial module introduced in 2007via Affinium, a marketing consultant, has assisted inimproving cost predictions and tracking all financial processes toproject level (Unica Corporation, 2007). Whereas the abilityof capturing major metrics for creating media approximations andlinks to collaborate billing, has helped improve Aeroplan’scapability of tracking and handling the media income side ofbusiness.

Change management – Aeroplan has to implement many changes withinthe company constantly. They derive from the changing marketsituations, increasing and changing demands of both customers andworkers. In addition, change has to be managed well to avoid anyfailures or lack of acceptance to new procedures and technology bypersonnel (Unica Corporation, 2007). Key to triumphantadoption involves the use of a change management body andcommunication plan, in line with widespread training, as well as aphased-in strategy for change implementation.

Digital asset management – the management of digital asset acts asa manner of centralizing assets like images and logos, content suchas copy and creativity, as they advance during the production cycle(Unica Corporation, 2007). The creative approval procedureinvolves many rounds of approvals to several managers within andoutside the company. Aeroplan uses an online approval platform, whichmakes it possible to minimize the cycle periods or approval loops,whereas availing an audit track for formal analysis of the creativeagreement procedure. Technological factors for the company have beenimportant in ensuring they execute operations. With technologicaldevelopment, Aeroplan has improved their operations contributing tosuccess within the market they function. The approximations of moneyspent on software and technology is almost $2.4 billion, in additionto technology employed in Canada, Europe and Middle East (Proulx,2006). Aeroplan focuses on the upgrade of their technologies oftenwhen dealing with their daily activities.

Loyalty management – the value created by Aeroplan through theutilization of loyalty programs has increased value to customers,specifically in regards to flight expenses. Under loyalty management,the company has taken up programs, which would have been improbableto achieve incase loyalty programs were separate from customerspending behavior (Hazledine, 2011). Originality and innovativenessact as main resources, assisting the company function effectivelywithin the market. They have enabled a huge figure of clients becomemembers of loyalty programs. Innovation is apparent through theservices and goods the company gives customers with a specific levelof value. This kind of innovation is in line with Aeroplan’s needs,hence projected to increase value apparent by customers using theinnovative services (Hazledine, 2011). The company has as well usedseveral factors of creativity, which permit it to ensure convenienceto customers and become conscious of efficiency in the procedureexecuted in the company. Aeroplan has a good reputation concerningloyalty program management, which is an important resource to thecompany. The reputation endorses more individuals to pledge toloyalty programs depending on trust levels the company has gainedfrom customers on the diverse actions it undertakes (Hazledine,2011). The large figure of individuals that have pledged to loyaltyprograms resonates to the good company reputation. As a result,Aeroplan has created diverse partnerships with a wide array oforganizations and airlines, which fly to the many destinations.

The effective management of internal operations has benefitedAeroplan. A financial analysis demonstrates improved performancebased on company operations. The earning in 2013 were $2,054,reflecting a rise from $1,437 in 2012, the same increase has beenrealized in 2014 (Proulx, 2006). The operating income has alsoincreased over the years. Aeroplan’s financial stability haspermitted it to embark on successful operations by not experiencingnegative effects from competitors. The company is capable of takingon several business actions, which allow it to improve itsoperations. In addition, Aeroplan has been capable of applyingdiverse innovations, playing a crucial function in regards toimproving growth amid diverse sectors. The company is capable offinancing research and development, which assists it to remain aheadin terms of competition within the market.

Effective internal operations management has ensured Aeroplan createsa solid reputation amid industry members. This adds value to Aeroplanas members seek services, which they link to the company that arehigh quality. In addition, Aeroplan comprises of close to 4.6 millionmembers as customers, which implies the business has been capable ofcreating a status, which has assisted in effectively managing marketoperations. The huge membership is a plus, by selling Aeroplan as onewith suitable resources for safeguarding customers’ interests. Byoffering close to 2.3 million as recompensation to customer for closeto 1.6 million flights, given to 1000 plus destinations worldwide,more individuals have become enticed to joining the company’sloyalty program, because of the many and convenient benefits(Hazledine, 2011).

Through the digital management, Aeroplan insists on technologicaladvances. Advances in technology have made it probable for thecompany to make simpler its reward procedures that add value tocustomers. Adding value resonates in more profitability and companysuccess. The company performs research in a cautious way, a move,which has made it probable to improve plans, which play a crucialfunction in the market. Aeroplan has improved the effectiveness ofits processes hence, permitting it to alter consistently with marketdemands. Aeroplan gains from the experience of employees in allsectors who ensure that under loyalty management, all loyaltyprograms are suitably determined.

Aeroplan faces a challenge in responding to the needs of all itscustomers because of a huge customer base. In addition, the hugecustomer base also implies that the clients have differing needs.There have been instances when the company’s reputation has been atstake. An illustration is the Class Action Lawsuit. Variouscustomers resorted to legal action against Aeroplan following thetermination of their flight miles renewal. The customers wereexpected to reinstate the expired miles by paying $30 and an extra$0.01 for each extra mile considered (Boer &amp Gudmundsson, 2012).The outcome was widespread dissatisfaction with company services,ruining their reputation and loss of customers.

Recommendation

Aeroplan’s strategy has been crucial in permitting the enterpriseundertake its work effectively. Regular focus on research anddevelopment in technology is necessary in ensuring consistent upgradeof operations, which adds value to clients, in turn boostingprofitability. In addition, Aeroplan needs to apply innovation inseveral sectors, associated with procedure followed in assisting tocompany add value to established operations. A skilled workforce playan important function in regards to permitting a firm enhance theservices and products provided. Aeroplan needs to work on improvingits workforce expertise. Personnel in all departments must be capableof meeting the changing industry demands, which ensures that Aeroplanprogresses to be a market leader in loyalty programs. Competency alsodraws more customers to the company because of an increasingreputation.

References

Boer, E &amp Gudmundsson, S. V. (2012). 30 years of frequent flyerprograms. Journal of Air Transport Management, 24(1), 18-24.

Fallon, N. (2014). What is corporate social responsibility. BusinessNews Daily, 1-1.

Groupe Aeroplan. (2010). Positive change through the power ofpartnerships: Corporate social responsibility 2010 annual report,1-9.

Hazledine, F. (2011). Legacy carriers flight back: pricing andproduct differentiation in modern airline marketing. Journal ofAir Transport Management, 17(2), 130-135.

Proulx, C. (2006). Aeroplan Income Fund: Aeroplan commandingloyalty initiating coverage at market performs. London: BMONesbitt Burns.

Unica Corporation. (2007). Building loyalty by transformingmarketing at Aeroplan, 1-4.