Statistics and Problem-Solving in Business

Essay by tiernyUniversity, Master'sA+, March 2006

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Commercial air travel is a competitive industry that requires business managers to effectively collect, organize, analyze, and interpret industry and market statistical data on a continuous basis. Airlines today are constantly faced with business problems relating to maintaining a constant situational awareness on industry trends and activities. Increasing the speed of interpretation of these industry trends and activities is at the heart of many airlines corporate management strategies. Business managers in the airline industry are constantly faced with having to adapt to new market dynamics and, as such, are constantly faced with adjusting pricing and negotiating strategies in order to stay competitive. By analyzing quantitative and qualitative industry statistics, in a timely and efficient manner, airlines can make better-informed business decisions that will positively impact company profits. This paper will discuss these business related problems in the airline industry and discuss how Continental Airlines has effectively implemented research strategies which analyze quantitative and qualitative market statistics, in a timely way, to counter these business challenges.

As a result, the company has improved cost savings measures and improved company profits.

Problem Description

Today, business managers in the airline industry attempt to interpret quantitative and qualitative industry statistical data in an effort to make better-informed business decisions. Managers in the airline industry face very common business related problems. These problems include having to maintain a constant awareness of the global and regional trends in the industry, identifying potential future market opportunities, the need for benchmarking standards of performance, the need to effectively leverage service advantages, and finally the need to adapt purchasing, planning, and negotiating strategies that are affected by consumer and market trends. Continental Airlines has recently implemented a research strategy that focuses on collecting and interpreting trend and market statistical data in a timely way in an attempt to...