Competitive Position of Air Canada, Competitive Environment, and Core Competencies - Case Study Example

Integrated Assignment Phase II Name: Tutor: Course: Date: Table of Contents Organizational or Corporate Culture 2 Organizational Performance 4 Competitive Position of Air Canada 4 Organizational Structure 6 Competitive Environment and core competencies 8 Internal Resources and Capabilities 8 Current Strategy 11 Strategic Challenges 11 Conclusion 12 References 14 Online References 16 Appendices 18 Reflective Learning 18 Introduction The fall and rise of Air Canada remains the last two years, one of the most compelling business stories. Currently, the company faces a better potential future after the outcome of court protection in 2003. It experienced a reduced wage bill, hugely reduced debt, a reduction in the plane type numbers of its fleet. There are considerable assets boding well for its future given the position in the global Star Alliance and strategic perspective of the international network. The frequent flyer program of Air Canada’s is pegged on marketing. Air Canada has a great identity and image in Canada and abroad and so are the fans of WestJet and CanJet. However, Aeroplan is a natural choice for those traveling for frequent business trips, overseas business class under wide range of destinations. So for their strong position in Canada it is Air Canada’s to lose (Gillen et al. 2008). The reputation of the company had been tainted by lost baggage, but focus has been on technology and better quality. On overall, the business has won on customer experience such as check in and out of terminals, simpler fare structures, 24 hour a day over the internet ticket purchase and more destinations for business travelers. The business model arena does not describe the gap between Air Canada and WestJet since the former has competitive edge on the essential points of human contact such as ground service staff, flight attendants and pilots. Recent Air Canada flights exhibit truly excellent service, neck-in-neck competition with WestJet and a consistent delivery of excellent service experience. The edge is no longer a renewed business model, fares, market routes, lower operation cost or the ‘right’ assortment of planes. There is a looming uncertainty of massive layoffs, management and union negotiations on wages alongside other concessions (Goldstein, 2003). The legacy and heritage of Air Canada still remains in the old fashioned Canadian government bureaucracy. However, as business model Air Canada takes to periphery, focus on the customer will be the tipping point for the airline. Organizational or Corporate Culture Excellent performance is a result of good corporate, hence, an organization’s success is driven by a strong corporate culture. Corporate cultures form the backbone of a companies’ profitability as evidenced in the airline industry such as Southwest Airlines, WestJet Airlines and Deutsche Lufthansa Group AG. Don Bell in 2006 commented that culture drives safety, productivity and performance. James Parker Former CEO Southwest in 2008 suggested that motivated and dedicated employees achieve higher percentage of revenues through the lowest overall cost structure when compared to employee compensation. A highly dedicated and motivated team represents superlative quality service. Entrepreneurship and collaboration defines corporate culture and its value concepts given the atmosphere of transparency, diversity and trust (Moody's, 2002). Deutsche Lufthansa Group AG believes that a strong company is the one bound by love and not fear. Ultimately, corporate culture sets the tone for every action and provides the foundation. Over the past, Air Canada management consistently fostered an atmosphere of low morale and distrust and demonstrated a lack of respect for professional pilots. These current issues will be addressed by a binding arbitration, but fails to foster a culture of mutual respect and cooperation or rebuild professional relationships. Air Canada’s toxic atmosphere is likely to persist and hampers other efforts of airline improvement mainly uninspiring financial performance (Tretheway, 2010). Air Canada labor climate is poisonous and it is more than image and identity. The company is being urged to make big changes in its management culture given that the current approach is not working. The company seems to be rewarding poor performance as its senior executives continue to have their compensation increased by double-digit rates despite negative returns and consistent losses to shareholders. In the last three years, Air Canada’s top five executives compensation increased 45%, despite a ten-fold increase in 2011 as opposed to 2010 and net loss three year Total Shareholder Return of negative 33.8 percent (Statistics Canada, 2011). Total Shareholder Return of Air Canada was a stark contrast to airlines known for promote excellent corporate cultures and also among the lowest in the airline industry. For example, in March 2012, the CEO of the company got a ‘retention’ bonus of $5.0 million or the three year presence in the job. It ignored good corporate governance practices and was not linked to any performance measure (Oum & Tretheway, 2007). There is no justification for this reward, hence, accountability is required. The corporate culture is distressed and its performance is destroying shareholder value. In the company’s interests, it is time for sweeping change if benefits are to be extended to the key stakeholders such as partners, Canadian public, governments, shareholders, creditors and employees. Organizational Performance In the 1987-19990 periods passenger traffic volume of Air Canada grew steadily before a decline in the 1990-91 recessions. Air Canada's traffic volume recovered slightly in year 1992 better than that of 1987. Growth of operating costs in the 1987-91 period, not surprisingly, outpaced that of revenues (Statistics Canada, 2011). The operating profit in 1991 became a loss of $200 million from $94 million in 1987. Air Canada discounted ticket prices in response to these poor market conditions on the specific routes yielding a 6.3 percent reduction in its RPKs (average yield per revenue passenger km). The available seat kilometers (ASKs) reduced in 1991to 32 billion which forced the closure of reservation offices in Halifax, St. John's, Edmonton and Calgary (Statistics Canada, 2011). The performance was very poor that if forced a lay-off of more than 2,500 employees. In 1992, loss reduced to $197 million from operations. Most of the assets were primarily due to debt financing in which the total long-term debt at the end of the same year amounted to $3.6 billion. Currently, the net worth of Air Canada is 47.2 percent lower than twenty years ago. Competitive Position of Air Canada Cost structures and market environment of the Canadian airline industry is unique and evidenced by the duopoly of scheduled services. It also competes with other regional charter services contributing to the emergence of both vertical and horizontal integrated structure such as tourist agent services and computer reservation (Consumer and Corporate Affairs Canada, 1992). Their integrated structure works through mergers with specialized local and regional air carriers as well as strategic alliances with foreign air carriers. Fares are strategic, more complex, and a lot efficient as opposed to the time under regulation. First in relation to each other, the competitive positions of Canada Air airline companies has for key aspects such as networks; productivities and efficiencies factor costs, financial risks corporate and shareholder efficiencies. i) Airline Networks The main advantages stemming from size arise from economies of scale owing to the negligible demand side of the industry. For prior stated reasons, consumers are willing to pay a premium and prefer large airlines for their services. An important competitiveness consideration depends on the size of the airline. With respect to the indicator, Canadian lies between 80-90 percent of Air Canada size, 81 percent in terms of passengers carried and 93 percent in RPKs and 87 percent in RTKs (Statistics Canada, 2011). Air Canada in 1991 provided scheduled services to 31 foreign and 17 domestic destinations. Only 41 destinations are currently operational despite network rationalization which has brought a decline in economies of traffic density and depressed demand. ii) Factor Productivities and Efficiencies The pricing strategies since deregulation were pursued by airlines becoming crucial success factors. In this respect, in terms of yield per RPK, it appears that Air Canada has outperformed other Canadian airlines by more than 5 percent when evaluated in the last five years. However, its operating costs per ASK and operating margins have always remain high compared to the other airlines. For example, Air Canada's workers measured on ASKs and RTKs per employee based on physical output variables are 30 percent less productive than Canadian airline. Air Canada's workers have better yield per RPK, in operating revenue per employee, with other airline employees receiving less pay (ICAO Statistical Yearbook, 1992). The overall operating expenses of the airline consist of 30 percent labour costs. An airline with tighter control of labour costs greater operating margin and largely explains the low cost of operation per ASK. Air Canada has adequate capital and capacity to meet fuel costs. Air Canada’s passenger load factor is 5 percent and fixed asset turnover rates of 12 percent making it efficient in terms of its capital costs. Jet fuel has been maintained at a 3 percent lower price than Canadian and Westjet. The fleet of Air Canada is about 6 percent more fuel efficient with regard to fuel consumption per RTM. The difference in operating costs arises from labour costs brought about by dissimilar corporate philosophies of the corporations since deregulation. Some airlines like PWA opted for decentralized cost control and management even after initially choosing to undertake, in each of its regional feeder airlines, a minority ownership position. Air Canada opted to directly manage its feeder airlines by taking majority positions from the outset in its affiliates. The PWA organizational structure in controlling operating costs is superior. In the end, Air Canada learns that it is not the operating margin that determines corporate success but the bottom line. Air Canada has more wisely deployed its fixed assets to make bigger profit margin on sales. The company outperformed its Canadian competitors in a paradoxical reversal of corporate fortunes. The fixed asset turnover rates were remarkable (Air Canada 2011: Annual Report). The firm in has benefited from economies of traffic density than competition. Canadian airline after acquiring Wardair Inc. was forced into significant domestic route network restructuring after deregulation. After investing in regional feeder airlines a company like PWA acquired majority control in the event of network rationalization. iii) Corporate and Shareholder Efficiencies The total asset turnover rate has defined in terms of corporate efficiency, is the ratio of net income and capitalization of the firm. Air Canada carrier has fared well and so are the other airlines. The recession of 2009 and the fluctuation in jet fuel prices have dampened stability of airline efficiency. The introduction of the Goods and Services Tax increased passenger costs (Mitchell, 2001). iv) Canadian Air Carrier Competitiveness In comparing Air Canada and American airline companies, the analyses provide interesting results in which the operating costs per output variable in terms of number of passengers, RPK, RTK and labour costs. They are determined by employee productivity and wage rates which predict a more efficient air carrier.  A more efficient airline company in the end like Air Canada benefits from more economies of traffic density, larger network, and wisely deploys its fleet more (Ministerial Task Force on International Air Policy, 1992). Organizational Structure The CEO and President of Air Canada Robert Milton, led a functional and excellent managerial leadership. In 2003 he implemented the sale of Air Canada’s loyalty program owing to a controversial restructuring program. Eventually, the regional carrier, maintenance division (Jazz) was also sold. The most profitable arms were sold and the proceeds were returned to ACE shareholders. The airline was in need of future growth investment. The unexpected changes rendered the company vulnerable losing market share to its national rival, Westjet, in a highly competitive industry. Visionary leaders direct their orientation to the future while managerial ones focus on the past. The ability to influence followers is the principal tool for achieving goals. They easily understand what is to be achieved and influence used to create a shared vision (Mitchell, 2001). Air Canada leadership has relied on own values, investing network of relationships and people to ensure the organizational viability. The structure articulates a compelling vision, energizes and empowers followers to move towards this achievement. This kind of formal structures of Air Canada created few constraints during decision making and shaping their vision based on their sense of identity, values and beliefs. Air Canada desire long-term growth and viability as well as short-term financial stability. Visionary leadership and managerial styles exhibited achieves these goals (Moody's, 2002). The visionary leader in charge and the managerial leader are willing to listen to each other and require that they trust each other implicitly. Managerial and visionary leadership styles cannot reside in one person but occupy two ends of a single continuum. With these different mindsets, few individuals handling the paradoxical nature of visionary and managerial leadership enable implementation of structures or routines. It constrains and discourages strategic leadership if the organization does not provide protection and autonomy. Leaders without interference envision a future and implement growth strategies (Mitchell, 2001). Air Canada structure has managerial leaders who impose rigid financial controls. Visionary leaders need protection from the in the organization to pursue strategic controls. Developing and finding strategic leaders has many difficulties associated and worth the effort. An organization pursuing sustained wealth creation has no safer alternative for its stakeholders. Continuous learning, competency development, creativity and innovation are necessary growth elements for strategic leadership (Goldstein, 2003). Air Canada without compromising its financial health needs to initiate and facilitate development. Skilled and competent workforces are hard to find and train. They remain valuable individuals and rare to organizations. Succession programs and leader-development try and remove obstacles. Competitive Environment and core competencies Air Canada’s top competitors are traditional carriers such as WestJet, cargo carrier, Transat and Cathay Pacific. In the international tourism industry, a vertical integration strategy is employed by Transat making it a successful airline leader (Transat: 2011 Annual Report). Industry seasonality and lack of alliances weakens operations despite the strength in cost management and distribution. Cathay Pacific has focused on a sustainable air travel in Asia/Pacific growth with future emphasis (Cathay Pacific: 2012 Annual Report). The capabilities are creation of One World alliances and ability to offer excellent customer service abilities. In the cargo transportation segment, WestJet, has focused on partnerships with future plans and profitable growth with emphasis on environmental friendliness. The company believes that past success can be replicated in future. This can only happen through enthusiastic customer service and low cost fares. It acknowledges lack of premium services despite a trademark of its services. Internal Resources and Capabilities Tangible and intangible resources define Air Canada. Physical resource include; 89 Airbus narrow-body aircraft, 56 Airbus wide-body and Boeing aircraft, 60 Embraer regional jets and a mainline fleet of 205 aircraft. Other components are spare parts and aircraft fuel. Air Canada financial resource are interest rate swaps, shares jump after pension extension, fuel derivatives and share forward contracts. Air Canada’s slogan and logo are some of the technological trademark resource. Human Resource as an intangible resource is quite weak given that employee relations remain stressful. HR represents 8,600 mechanics and ground crew. The company has been very innovative, generating quick ideas that transform into products like mobile booking apps (Western Transportation Advisory Council, 2002). The airline is reputed for quality and reliability, but declining owing to cost cutting. The firm boasts effective logistic management techniques, consumer service controls and meeting customer expectations. They have an information system using Advanced Passenger Information Systems (APIS) that customers check their flight status online. The company readily obtains customer data, promotes deals by social media and traditional outlets, and price-matching on the same routes. Its excellent customer service is linked to an organizational structure with reduced cost and efficient design. Being highly innovative, it has transformed technological ideas into services and products (Borenstein, 1992). For example, lie-down beds first offered by Air Canada. Its core competencies are longstanding brand, airline’s marketing and management. Air Canada has brought in a surgeon to evaluate its new brands such as Tango, Jazz and Zip. The recommendations are changing everything from markets, prices, technology to costs. The company also uses six-sigma in its multiple businesses hence driving a $100M of cost out. The international carrier is expected to return to profitability in two quarters through branding and process reengineering. Full-service airline have challenges such as unions and government, non-functional fare structures, redundant travel agents and computer reservations. Some leisure passengers use the lounges of business passengers and do not need the frequencies thus finding interlining as unnecessary (Borenstein, 1992). Air Canada sees these new practices in reengineering the airline into a different enterprise, immediately transformation, flexible approach to strategic planning and no need for luxury of waiting several years. Technology and entrepreneurship have to be combined to transform the Air Canada business model. Four prong strategies are; distribution and technology, branding and market segmentation, dramatic redesign and cost reduction and exploitation of auxiliary business. Internet has immensely lowered costs with Air Canada paying $1.5million for distribution, credit cards and travel agents (Tretheway, 2010). The company has moved from a partial to a player on the Internet. Much has been developed marketing to sales with IT and product planning. Some products were developed over 7 weeks while cross-functional teams designed Tango. Customers are currently handled over the Internet moving Air Canada from 7 to 18 percent. Consumers move depending on their needs such as fewer fare fences, lower fares and no frills. There is need to recognize, and shift to reality, customer self-service as well as frequency and lounges where needed (Air Canada, 1991). Full-service Air Canada serves the long-haul and medium routes with Air Canada Jetz specific to sports teams and rock groups given their premium service. Five regional airlines have combined under Air Canada Jazz to form its own management becoming one of largest regional airlines. Tango is an airline within an airline using low-cost approach of a no-frills. It offers simple online booking; no interlining and over 80 percent of fares are economy done over the Internet. Unit costs have been brought down by 25 percent. The launch of Zip has provided low cost options, separate labour agreement, short-haul routes, own management and expansion of additional markets (Tretheway, 2010). Exploitation of ancillary businesses is the third prong where Air Canada and Aeroplan Services were undervalued to create standalone businesses. Aeroplan alone more than 6million members and positioned to become independent. They are currently pursuing an aggressive growth strategy in credit card segments, entertainment and travel. They are also expanding into e-commerce and new consumer categories. Air Canada Technical Services is expected to be a bottom line contributor after transformation as a standalone profit center. Orbitz has attracted more than 1million visitors, leveraged customer base and offered low air fares, car rental companies and hotels. Their philosophy is a tailored marketing approach, technology and management. Through technology, there is a dramatic cost reduction and innovation, safety, customer service and security, IT as a part of strategy and support of the right investments (Tretheway, 2001). The company outsourced IT operations to IBM, optimizing on innovations such wireless technology. There is also electronic toolbox for line mechanics and mobile agent for express check-in. Employees are expected without plunging into them to understand the business case of new technologies. Many passengers are now acquainted with electronic ticketing, 50 percent express check-in time and a 10percent employee productivity improvement. Costs have been significantly reduced. Air Canada believes it will be a more durable airline and cannot wait for the economic upturn following the transformation. There is a 50 percent gap where no frills airlines operate at 25 percent of cost of traditional airlines (Cassese, 2012).  Tango operates 25 percent below traditional airlines and has the opportunity for productivity, reduced costs and change in distribution costs. The inspiration behind going Tango is that full service model does not work. People do not want frills, visit lounges and link to other airlines. Air Canada infrastructure is superior, learn from mistakes and makes use of learning experiments such as internet technologies. Corporate culture has changed over the past 18 months experiencing turbulence in combining cultures after acquiring CP (Deloitte, 2012). Working on measurements has improved core competencies. Destina has goodwill of many employees but in conflict with travel agents. Air Canada places greater value on travel agents booking on Tango. However, it is too expensive and not accessible on the worldwide booking system. Long-term retention of business customers may work through cannibalization. Tango in the mode of experimentation. They have been painted and reconfigured a handful of aircraft. In summer of 2013, it made 100 flights per day representing 20 percent of total travel. Zip is about experimentation need to focus, be consistent and measure objectively. The U.S. market has set up separate business units and maintenance work undertaken by foreign carriers. Jet Blue is done by Air Canada outside core airline business and penetration (Mitchell, 2001). Brand loyalty should be measured in external groups, perceived value issue, share and revenue. Make changes over time by asking questions of customers feel value from a brand and recommendation to other brands. Wonderful travel experience also accrues to external groups for customer satisfaction. Current Strategy While increasing productivity, Air Canada has pursued a business strategy that improves cost structure and revenue performance. The objective of increasing cash flow and operating earnings makes an effort to generating incremental revenues, focus on business travelers, leverage its international strengths. They also emphasize on transforming its corporate culture, reducing costs, entrepreneurship, accountability and with an emphasis on leadership. Air Canada reflects on world geographic advantage by adopting an international powerhouse strategy (Air Canada: 2011 Annual Report). The hub is situated for global crossroads used by passengers crossing the Pacific and Atlantic. Strategic Challenges i) Maintain Cost Control Air Canada while offering the lower fares, operate productively and develop cost effective contracts with its suppliers. In the past three years, the airline has experienced negative profits due to issues of cost controls. The challenge for Air Canada is to invest in environmental sustainability plans and cost cutting techniques similar to that of its competitors (PressTv, 2013). ii) Increase Efficiency Air Canada to be the lowest price carrier, needs to develop strategies of improving the value chain efficiency and activities directed at cutting costs. Management and marketing activities is a focus that contributes to success of Air Canada. iii) Manage Risks of Uncertain Interest Rate and Fuel Price A proper strategy of risk management is in cost control to improve efficiency. This is challenging and important for Air Canada. The ability of Air Canada to offer low prices is affected by the continuous increase in fuel prices. The uncertainty of interest rates largely affects the debt repayment and interest expense. iv) Maintain Market Shares Air Canada has more than 80 percent of market shares in aviation business of Canada thus cannot relax their vigilance (Air Canada: 2011 Annual Report). Air Canada needs innovation in the aviation field and keeps abreast the latest technology. It will be competitive than other airline company if it strengthens its research and development. v) Improving Financial Performance Air Canada’s financial performance when compared to its primary competitor WestJet lost $249million in 2011 despite holding more than 80 percent market shares in Canada. On the other hand, WestJet in 2011made a profit of $148 million (Air Canada: 2011 Annual Report). In their future operation making positive number on their income statement is the first thing needed to be done. Conclusion Air Canada in the present competitive setting has created and maintained long-term relationships and also leveraged and understood the lifetime value of a customer. The customer and other stakeholders in market leadership are paramount to the organization. Competitive edge comes with relentless advances in technology, seeking to recruit skilled and competent workforce and rendering customer friendly products and services (PWA Corporation, 2001). Services and products with shorter life cycles have diminished customer appeal. This report has argued that Air Canada and other airline companies are required anticipate customer needs on a continuous basis and not only to improve, but also innovate their services and products. Air Canada highlighted that to maintain long-term relationship with their customers; they have to conceive and implement new ways of excellent customer service and demonstrate ability to think for the customer (History of Air Canada, 2012). Moreover, in developing and maintaining customer relationships, Air Canada needs the partnership and assistance of their respective stakeholders such as distributors, suppliers and employees. References Air Canada. (1991). Annual Report, 1989 and 1991. Borenstein, S. (1992). The Evolution of U.S. Airline Competition. Journal of Economic Perspectives, Vol. 6, No. 2, p. 45-73. Consumer and Corporate Affairs Canada. (1992). Predatory Pricing Enforcement Guidelines. Director of Investigation and Research, Competition Act. Gillen, D.W., W.T. Stanbury & M.W. Tretheway. (2008). Duopoly in Canada's Airline Industry: Consequences and Policy Issues." Canadian Public Policy, Vol. XIV, p. 15-31. Goldstein, J.L. (2003). Single Firm Predatory Pricing in Antitrust Law: The Rose Acre Recoupment Test and the Search for an Appropriate Judicial Standard." Columbia Law Review, Vol. 91, p. 1757-1792. ICAO Statistical Yearbook. (1992). Civil Aviation Statistics of the World, 1989, 1990, 1991. Ministerial Task Force on International Air Policy (1992). International Air Transportation: Competition and Regulation, Vol. I, 1991. Mitchell, D. (2001). Canadian Air Transportation Services: A Quantitative Evaluation. Report prepared for the Ministerial Task Force on International Air Policy. Moody's. (2002). Transportation Manual 2002, 2002. National Transportation Agency of Canada. (2001). Annual Review 2001. Government of Canada, Ottawa, 2002. Oum, T. & M. Tretheway. (2007). Monopoly Versus Duopoly in Canada's Industry: Policy Alternatives and Consequences. Unpublished Manuscript. PWA Corporation. (2001). Annual Report, 1999 and 2001. Statistics Canada. (2011). Catalogue 51-206. Canadian Civil Aviation, various years. Tretheway, M.W. (2001). The Characteristics of Modern Post-Deregulation Air Transport. Report prepared for the Ministerial Task Force on International Air Policy. Tretheway, M.W. (2010). Globalization of the Airline Industry and Implications for Canada. The Logistics and Transportation Review, Vol. 26, No. 4, December 2010, p. 357-367. Western Transportation Advisory Council. (2002). Canada's Air Industry: Developments and Issues since 1986. Westac Monitor. Online References Air Canada. (2012). About Air Canada. Retrieved from http://www.aircanada.com/en/about/index.html Air Canada. (2010). 2010 Annual Report Retrieved from http://www.aircanada.com/en/about/investor/documents/2010_ar.pdf Air Canada.(2011). 2011 Annual Report Retrieved from http://www.aircanada.com/en/about/investor/documents/2010_ar.pdf Cathay Pacific. (2012). 2012 Annual Report. Retrieved from http://downloads.cathaypacific.com/cx/investor/annualreports/2011_annual-report_en.pdf Cassese., M. (2012). Air Canada flights returning to normal after illegal strike. Retrieved from http://www.thestar.com/business/2012/04/14/air_canada_flights_returning_to_normal_after_illegal_strike.html Deloitte. (July, 2012). Corporate Income Tax Rates Retrieved from http://www.deloitte.com/assets/Dcom-Canada/Local%20Assets/Documents/Tax/EN/2012/ca_en_tax_Corporate_income_tax_rates_2009_2013_072012.pdf History of Air Canada (2012). About Air Canada. Retrieved from http://www.aircanada.com/en/about/index.html PressTv. (February, 2013). Oil Prices Hit New High after Israeli Attack on Syria Research Center. Retrieved from http://www.presstv.ir/detail/2013/02/01/286667/oil-rises-after-israeli-attack-on-syria/ Statistics Canada. (February, 2012). 2011 Census: Population and dwelling counts . Retrieved from http://www.statcan.gc.ca/daily-quotidien/120208/dq120208a-eng.html Appendices Reflective Learning The insightful study on the organizational design, core competencies, culture and competitive position of Air Canada has helped to perceive a company has a growing entity full of challenges. The beginning of this study with respect to the analyses in Phase I have taught me the challenges and success of well established companies. I have learned that companies require the right mix of products, pricing, promotions and distribution to succeed. This phase has further deepened my understanding in that other stakeholders such as suppliers, employees and customers play a great role in loyalty and long-term relationship with the company. I feel that competitors have a role to play too in keeping the market competitive, efficient and customer friendly. I learned that with many firms being customer oriented, they can improve on customer service and increase the stake in the market share. My team has been instrumental and vibrant in undertaking this group study. Our team started through the first stage of forming in which each member had the desire of acceptance. We felt we need to avoid conflict and focus on team organization. We were busy learning more on one another, taking the scope of tasks and appropriate approaches. I observed that my team members were in their best behavior while my two mature members began to model the appropriate behavior. We moved to storming stage where we learnt to be tolerant and content with unpleasant behavior of some members. We observed that it was important to be tolerant and patient so as not to lower our motivational levels. Our supervisor was more accessible but his concern was more on professionalism and guidance on decision making. However, some team members were not able to quickly resolve conflicts hence delaying the opportunity of sharing views and opinions. Norming stage was easier as all of us had a single goal of completing the work on Assignment Phase Two. We had to make sacrifices as individuals and assume responsibility for the team to succeed in its goals. However, we noted that some members were not able to share controversial ideas as they were focused in preventing conflict. Our team went past performing stage by functioning as a unit. We could get the job done quickly due to knowledge and motivation. We felt we were competent, working with minimal supervision and autonomous. Our supervisors were also participating and reacted to changing circumstances. Our team did not turn to storming since there was no change in leadership hence, no one to challenge team dynamics and existing norms. I realized that our team was united and focused on delivering content since each one performed their roles quite well. We were able to resolve any individual differences and always reminded all to stay focused on goals. We had a good mix of both female and male members making the discussions more lively and healthy. On member was designated to be writing notes and reminding members on the objectives of each meeting. Where a member was feeling burdened we could easily consider a relief. Despite the few challenges, our team became successful in bonding and delivering the required exercise in time and quality. I feel that future teams should take time to form and assess each member’s capability to belong and cherish teamwork. I suggest that teams should be able to persist through most of the Tuckman’s stages of group development by drawing on the successes of senior team members and also those with great team experience. Trivial differences can be forfeited for the sake of the common good and team success. Read More