Cathay Pacific Catering Services: Preparing for a Different Future
Having taken the lion’s share of the local flight catering market with steady turnover derived from its parent company, Cathay Pacific Airways (CX), the primary focus of Cathay Pacific Catering Services (H.K.) Ltd. (CPCS) used to be operational excellence. Historically, CPCS had been operating with a secured customer base and business volume, and many employees were contented with working in a functional-oriented environment. Jenny Lam, General Manager of CPCS, believed that in the absence of a proactive culture, CPCS could deteriorate to the point of stagnancy and lose its edge in the fast changing and increasingly competitive market.
In August 2010, Jenny was preparing for the arrival of the new CEO. Jenny thought it was critical for her to share CPCS’s strategic plans and operational issues with the new CEO as soon as possible. Could CPCS better match its strengths to new opportunities under the leadership of the new CEO? How could CPCS convert weaknesses or threats into strengths and opportunities?
The learning objectives of the case include:
1. To analyze the effectiveness of CPCS’s strategy and business model;
2. To assess CPCS’s competitiveness in the catering industry and prepare for the cultural transformation process;
3. To explore the leadership and human resources strategies;
4. To identify problems associated with a cost center model and assess the value of pursuing a growth strategy;
5. To explore the rationale behind diversification and potential risks involved.
|Company/Organization||Cathay Pacific Catering Services (H.K.) Ltd.|
|Industry||catering, aviation and flight catering, customer service|
|Subject(s)||strategic plan, Business model, Crisis management, Cultural transformation, Leadership, Manpower resources, corporate analysis, talent recruitment and retention, business diversification, Innovation|
|Page count of the Case||31|
|Publisher||HKUST (for CICC)|