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Planning Simulation Mgt 330

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Management Planning Simulation for Cartwright-Porter Regional Airport

Strategic Thought was approached by Prindle Corporation to assist with strategic planning for Cartwright-Porter Regional Airport. Prindle Corporation first asked the team from Strategic Thought to develop a Vision, Mission, and Values statement to determine a future course for the airport. Next, Prindle Corporation asked Strategic Thought to determine the best use for five hundred and sixty-five acres of undeveloped land to increase profits and appeal to eco-tourism in the area. In 2010, Strategic Thought was asked to return to Cartwright-Porter Regional Airport to help them determine which Public Relation strategies would be most effective after a plane crashed in nearby Wildflower Forest National Park.

Vision, Mission, and Values

To develop a Vision, Mission, and Values statement that would best fit the future course for Cartwright-Porter Regional Airport, Strategic Thought read a consultant's report to learn about the airline industry, current environment, and details about Cartwright-Porter Regional Airport. They learned that airline revenues made up 91% of Cartwright-Porter Regional Airport's revenue. Leisure travel through the airport was 38% which had increased 15% from 2001 to 2004. The airport's daily twelve flights from five commercial carriers generated traffic of 309,087 passengers in 2004.

The SWOT analysis showed that Cartwright-Porter Regional Airport benefited from an easily accessible location. Prindle Corporation had a strong financial background and had industries in diversified areas, which would help the airport increase non-airline revenue. However, the airport was unable to handle large traffic flow with only two runways. Many of their employees were direct hires which led to large payroll costs. The airport had the opportunity to increase revenues by catering to travelers visiting Wildflower Forest National Park. Additionally, five hundred and sixty-five unused acres of surrounding land were available for development. Falling real estate prices and decreased air travel were shown as threats that may have impacted plans for the airport. Environmental protests might have also been a concern due to the nearness of Wildflower Forest National Park. Lastly, the construction of new highways might have taken traffic away from the airport.

After taking these reports into account, the team from Strategic Planning decided on a Vision, Mission, and Values statement. Cartwright-Porter Regional Airport would transform the airport into an exciting efficient, safe, and cost-competitive air transportation center in Texas. They would provide high quality aviation services and concession facilities

in a unique environment. They would stand for integrity in all their activities and strive for continuous improvement in all areas. The team believed that this was the optimal decision for Cartwright-Porter Regional Airport's future.

Land Development

Strategic Planning's next assignment was to decide how to best develop five hundred and sixty-five acres of unused land surrounding the airport to achieve their strategic goals. They referred to the VMV statement, a profile of each activity proposed, a comparison report between Cartwright-Porter Regional Airport and Peterson Regional Airport, and an airport profile. The team needed to decide which activities should be capital expenditures and what could be leased to outside companies. Their main decision was whether to use four hundred acres building a runway or an eco-amusement park.

The team decided to focus on non-airline activities by increasing parking areas by 250 spaces, building an eco-tourist hotel with 100 rooms, and developing a premium relaxation lounge. The team decided to use the eco-tourism interest from the Wildflower Forest National Park to increase airport revenue by leasing four hundred acres to develop an eco-amusement park. During the payback period in 2013, the airport was projected to see profits of around $2.4 million.

The team from Strategic Thought missed an opportunity by not building a third runway to get people to the airport. They did not look closely at the data showing that by building an additional runway, the airport could accommodate fifty-one flights by 2013. Without additional people landing at the airport, non-airline activities would not generate the desired profits.

Public Relations

In 2010, a cargo airplane that took off from Cartwright-Porter Regional Airport crashed into the Wildflower Forest National Park. A forest fire broke out and destroyed part of the park. This led to protests from both regional and national media. Prindle Corporation asked the team from Strategic Thought to return and lead damage control efforts with a budget of $600,000. They revisited the VMV statement, reviewed newspaper articles from both national and regional sources, and looked at the revenue forecast to determine what cost cutting measures would be needed to keep the airport profitable. The team decided to handle the issue at three levels: community, media, and employees.

The team felt that Cartwright-Porter Regional Airport should conduct a high profile clean up to show both financial and moral support for the National

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