Gate Gourmet Swot Analysis Commerce Essay

August 6, 2017 Commerce

I choose Gate Gourmet as an administration for usage as instance survey. It is headquartered at Zurich-Airport, Switzerland and is the universe ‘s 2nd largest air hose catering company, supplying catering services to many of the universe ‘s major air hoses, such as British Airways, Swissair, United Airlines, Delta Airlines, Virgin Atlantic and Cathay Pacific to call merely a few. The graduated table and complexness of the Gate Gourmet operations is high and it operates in planetary environment in an industry that is extremely competitory and cost sensitive. This gives an chance to measure the macro and micro environment in line with the strategic options that Gate Gourmet has.

Task1 ( B )

There are several patterns that are used for strategic planning in the industry today and the pick of these are driven by factors such as type of industry, market worlds, competitory force per unit areas, size of the concern and of class the civilization and ethical patterns of the administration. Planing skylines have now well shortened sing the dynamic nature of concern of the twenty-first century. The skylines have now become 2-3 old ages. There are nevertheless several best patterns that have emerged from what is observed across industries:

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Stretch ends are an imperative to do strategic believing more out of the box

Planing procedures are now regarded as evolving and flexible and it is to the administration ‘s recognition how rapidly it can class rectify.

With the apprehension of importance of stakeholder bargain in and back up there is an accent on communicating in the strategic program. This is an built-in portion of the quality planning in the strategic planning.

Detailed programs are now created to bind the aims to activities and results.

An administrations fight is now determined by a set interconnected nucleus competences and non by a individual nucleus competence. This has emerged from the apprehension that there are assorted organizational facets that go into constructing a competitory advantage.

In add-on to the best patterns mentioned supra, there are some theories and models that support the strategic planning:

SWOT analysis for environmental analysis

Porter ‘s 5 forces theory for environmental analysis

Strategy as an ecology to understand the competition

Balanced Scorecard attack

McKinsey ‘s 7-S theoretical account to understand how the organizational factor ‘s aid drive it ‘s operation scheme

Ansoff ‘s matrix to specify the service or merchandise scheme

BCG and McKinsey matrix to reexamine the merchandise portfolio

Value concatenation analysis as to how the administration is adding value and interacting with it ‘s ecosystem

Core Competency attack for make up one’s minding distinction attack

Top down or bottom up attack for engagement and communicating

Strategic narratives that aid in bordering and analysis of strategic options

Undertaking 1 ( C )

For Gate Gourmet to explicate it ‘s scheme, we must look the followers:

Environmental analysis and the place of Gate Gourmet relation to it ‘s environment. I would urge utilizing Porter ‘s 5 forces and SWOT as it will assist us understand both the macro and micro environment and associate it with the Gate Gourmet ‘s place in the competitory landscape.

Since the industry of inflight catering is defined mostly by operational excellence, we can utilize the 4-V analysis to understand the countries of operational excellence that can be used to distinguish, non simply to drive operational efficiency, but besides to accomplish competitory advantage.

The SWOT will besides so assist us understand the nucleus competence of Gate Gourmet and if that fits with the distinction scheme that will assist it accomplish competitory advantage.

From the nucleus competences, the balanced scored card can be used to sketch the concern aims that will assist leverage the nucleus competences and achieve competitory advantage. These aims will be defined across fiscal, client, human resources and knowledge direction facets of the administration.

Undertaking 1 ( D )

Relevant theories for the selling program for Gate Gourmet are merchandise Life rhythm direction utilizing Ansoff ‘s matrix and BCG matrix, service selling scheme and invention based selling scheme. Looking at the merchandise life rhythm of the inflight catering concern, we understand that the concern is a mature concern and hence will necessitate invention and service distinction focal point to vie.

Besides, BCG matrix will assist Gate Gourmet evaluate the services and geographicss that can be dropped from it ‘s portfolios and the 1s that need to be consolidated and invested in. Ansoff ‘s matrix will assist Gate Gourmet to make up one’s mind the invention scheme through new merchandise launch. This will assist better it ‘s use of the supply concatenation resources and the investings and therefore aid cut down it ‘s per unit costs.

Undertaking 2 ( A )

There are 2 general strategic options that are available to Gate Gourmet: Cost Leadership and Differentiation. Let us look at the comparative advantages and disadvantages:

Cost Leadership: Gate Gourmet ‘s concern drives the demand for it to be progressively efficient as its air hose clients face heightened cost force per unit areas due to the altering concern and economic scenario. It operates in a concern which is low border and progressively coming under farther squeezing. Hence Cost leading is a demand for concern in this industry in the in flight catering concern. It can non be a beginning of competitory advantage.

Differentiation: Given that efficiency focal point is a demand or a qualifying standard in the industry of Gate Gourmet, what can take to a competitory advantage is through a distinction scheme. Quality and flexibleness are countries that can assist Gate Gourmet distinguish itself to its competition. However, focal point on quality and flexibleness will take to operating expenses that can move against the cost leading demand. Therefore Gate Gourmet will besides necessitate to hold a robust operational scheme to drive the quality and flexibleness distinction with cost leading.

Undertaking 2 ( B )

The followers are Gate Gourmet ‘s cardinal stakeholders:

Employees and contractors: The scheme of flexibleness and consolidation will impact the employees as Gate Gourmet will hold to fall back to put offs for its lasting employees and expression at flexible engaging theoretical account to accommodate it ‘s operations.

Raw Material Suppliers: Gate Gourmet will hold to look at making a deeper confederation and information sharing to implement it ‘s scheme of flexibleness and quality focal point. This will go on though farther integrating of their systems and through existent clip information sharing. For cost leading, Gate Gourmet will necessitate to acquire into longer term contracts and take strategic providers that can offer it better unit monetary values.

Supply Chain/Logistics spouses: Gate Gourmet will necessitate to hold more integrating and alliance with it ‘s supply concatenation spouses to set in topographic point a quality and flexibleness scheme. It will necessitate to hold with them on standard quality patterns to guarantee consistent quality experience making the competitory advantage that Gate Gourmet is looking at.

Airlines: Flexibility and cost leading will necessitate Gate Gourmet to have information from it ‘s air hose clients in existent clip. Gate Gourmet will besides necessitate to hold

Undertaking 2 ( C )

The followers are the cardinal countries that need to be paid particular attending to by the direction squad implementing the scheme:


The communicating of the scheme, it ‘s aims and the principle behind that needs to be clearly articulated and communicated to the employees. This is required to make the appropriate bargain in from them.

The communicating besides needs to be planned to the clients of the administration to portion with them how the administration is altering for the better and alining to the market and competitory demands

The spouses of the administration besides need to be informed and aligned with the alterations so that they excessively can alter their work patterns to aline with the organizational scheme.

Administration design

The administrations construction needs to back up the new scheme and guarantee that the executing is supported by the new administration

This will besides guarantee resources are allocated expeditiously and understate the waste

Training and development

Training plans need to be implemented for the new and bing employees to shut the information and accomplishment spread required to put to death the new scheme

Investings into Systems and Integration

For close integrating with the spouses and clients of the administration systems need to be put in topographic point to back up this. The administration will necessitate to put in substructure and work patterns to set these systems in topographic point

Contractual Strategy – Serviced Based and Strategic spouses

The contractual relationships with the spouses may necessitate to be revisited and consolidated in position with the new scheme

Besides bing spouses may hold to revisit the service degrees and range of the contractual relationships.

Undertaking 2 ( D )


Administration design

Training and development

Undertaking 3

Develop vision, mission, aims and steps of these

Undertaking 3 ( A )

Vision statement articulates how the administration sees itself in the hereafter, in fact it is the long term end for the administration which it strives to accomplish. Ideally this end should be such that it can ne’er be achieved by the administration and it should function as the thrust for the administration.

A mission statement is more of a end statement for a fixed term of office of clip and is normally derived from the Vision statement. From the mission statement the organizational aims twelvemonth on twelvemonth can be derived.

Value of the administration defines the rules and moralss that the administration abides by and holds beloved. These could be targeted at making concern in a specific manner, or giving high consideration to employees and clients. These are rules that are considered to be above the concern aims and are the basicss on which the company envisions it ‘s future.

There are many ways in which these can be measured. A representative manner of making this is measuring how clients and employees believe the administration is making concern maintaining in head the vision, mission and values. Besides, employees can be interviewed to find how their single values are aligned to organizational values and if they hold the latter stopping point and allow it reflect in their working. The prevalent organizational civilization besides reflects how the vision, mission and values are absorbed by the different stakeholders of the administration.

Another manner of mensurating the effectivity is to find how the administrations public presentation direction system is aligned to the mission and ends that have been set and how these are supported by the preparation, development, mentoring and coaching in the administration.

Undertaking 3 ( B )

Gate Gourmet abides a set of trade name values and that drives it ‘s vision of it ‘s concern. The Gate group was established as a maestro trade name to reflect the turning diverseness of the concern. The forms doing up the lineation of a star in the logo typify Gate group ‘s single companies and their huge scope of capablenesss.

The points on the star represent the trade name values with which we make every attempt to function our clients:

QUALITY – We deliver best-in-class merchandises and services.

INTEGRITY – We pledge an ethical and trusty relationship.

RELIABILITY – On-time and with a clear focal point on safety.

VALUE – Optimizing value for you throughout the supply concatenation.

FLEXIBILITY – One size does non suit all. We are attuned to your demands.

PASSION – We lead through invention and inspiration.

RESPECT – We celebrate the diverseness of civilizations among our employees and clients.

RESPONSIBILITY – We strive to protect the environment and to be a good corporate citizen in our communities.

The company ‘s website gives the undermentioned information on it ‘s mission statement: “ Customers prefer us because passion radiances through everything we do. We measure our success by the success our clients bask ” . ( Refer: Source 2 )

Undertaking 3 ( C )

The administration ‘s cultural and ethical environment provides a mean for gaining it ‘s vision and mission. These are executing ingredients that it requires to achieve the vision and mission that it has set for itself. The civilization and ethical conditions are determined by how the employees and spouses of the administration have adopted and aligned with the vision, mission and scheme. It is of import to observe that without these back uping factors, even the most good crafted vision, mission and scheme can non be implemented.

The stakeholders need to aline with these and the McKinsey ‘s 7-S theoretical account reflects how these factors interact with each other and find how vision, mission and scheme get implemented.

Undertaking 3 ( D )

Gate Gourmet operations can be described as highly complex necessitating optimized efficiencies and reactivity at the same clip, where it must be able to accomplish really rigorous operational aims in an highly competitory, dynamic concern environment. Some of its operations aims are listed and evaluated below along with comparative importance of standards selected for rating, struggles with other aims and how Gate Gourmet accommodates these alterations

Driving lower costs through economic systems and processes – Due to the nature of the competition in the industry, and where clients are ever looking thrust costs lower to increase their profitableness, the cost per repast that Gate Gourmet charges to its clients would straight impact the sum of concern that it is able to bring forth from its bing and new clients.

Flexibility, reactivity to altering client demands and ability to run in an dynamic environment – Though the company has to offer really competitory pricing, it is besides really of import that the company that it is really flexible to the invariably altering client demands and is able to present the merchandise and service that are closely aligned with client outlooks. As can be seen from the instance, the concluding demand for a peculiar flight is non known boulder clay hours before the flight and even that could alter due to last infinitesimal cancellations or new engagement, due to which they have to run in a merely in clip manner, of being able to come up with bringing at the minute the client requires it.

Care of highest quality criterions – As Gate Gourmet ‘s clients are air hoses that are highly witting of offering the best to their riders and besides guaranting that they have good stigmatization as a company offering the highest quality experience, they would desire to guarantee that the nutrient that is served on their flights is of the highest criterions and that assorted procedures are followed for keeping quality and consistence. [ Critical success factors for Inflight Catering services: Singapore Airport Terminal Services ‘ patterns as direction benchmarks, Type: Article, Case survey, Author ( s ) : Zeph Yun Chang, Wee Yong Yeong, Lawrence Loh, Beginning: The TQM Magazine ; Volume: 9 Issue: 4 ; 1997 ]

Reliability and service warrant – In add-on to the above discussed factors, a really of import operational aim for the company to accomplish would be the guarantee really high dependability in the services that it provides and besides supplying really high service degrees that would guarantee its client ‘s concern work every bit swimmingly as possible. [ Critical success factors for Inflight Catering services: Singapore Airport Terminal Services ‘ patterns as direction benchmarks, Type: Article, Case survey, Author ( s ) : Zeph Yun Chang, Wee Yong Yeong, Lawrence Loh, Beginning: The TQM Magazine ; Volume: 9 Issue: 4 ; 1997 ]

Seamless communicating and working with a huge array of spouses in a planetary supply concatenation – As discussed above, the operation of the company, due to the graduated table at which it operates is really complex where it has to organize multiple facets and work with multiple spouses and clients to present the needed degree of service, it is a really of import operational aim that there is a really high sum of information sharing and close working together across the full value concatenation that would let for planned service bringing. This is once more an of import aim and is aligned with the other aims that guarantee that the company is able to present.

Undertaking 4

Explore the deductions of alterations in the general and selling environment for administrations

Undertaking 4 ( A )

Let us get down by analyzing the typology of Gate Gourmet which will so put the context for relevant aims for Gate Gourmet. This is the key to understanding operations and any spreads in their public presentation:

Volume: Clearly Gate Gourmet completes a high volume of day-to-day minutess across it ‘s supply concatenation with 534 1000 repasts a twenty-four hours worldwide, on mean 195 million every twelvemonth. It has 115 flight kitchens in 30 different states, in locations every bit diverse as Hawaii, Los Angeles, Buenos Aires, New York, Madrid, London, Bangkok, Sydney and Tokyo. Besides, it emphasises working in unison with cleaning staff, luggage animal trainers and care crews to guarantee that the aircraft are prepared rapidly for going.

Assortment: Gourmet Gate faces assortment across its air hose clients and besides within it ‘s clients due to the geographical spread of the air hose operations, the client needs differ. Making a high assortment state of affairs for Gate Gourmet. To summarize we the following drivers for assortment:

Geo disperses air hose administration

Geo dispersed terminal clients

Customizations of the terminal merchandise required based on airline/geo

Variation in demand: Gate Gourmet faces second-rate fluctuation in demand that typically emerges from the alteration in booking position of riders – which is the nature of the air hose industry. While demand fluctuation can be high during exigency state of affairss – as had been the instance during the wake of September 2001.

Visibility: The Gate Gourmet operations are non client confronting while they supply a merchandise and service that impacts the terminal client experience for their air hose clients.

Undertaking 4 ( B )

Give the 4 V analysis, we need to look at the deductions for Gate Gourmet:

High dealing volume would intend capital intensive operations for Gate Gourmet which will assist it drive high repeatability and lower it ‘s unit costs as the volumes additions and economic systems of range boot in. Gate Gourmet will besides pay attending to present specialization in it ‘s operations and allocated it ‘s resources as per the countries of specialization – these will be in footings of the geographic operation of the air hoses and the air hose itself.

High assortment in it ‘s concern would intend Gate Gourmet operations to be flexible and aimed to run into the client demands. The complexness that this introduces in the operations increases the unit costs.

Variation in demand is though mediocre, but the Gate Gourmet needs to be in touch with demand and have the ability to expect the demand fluctuations and flexibleness to provide to these demand fluctuation. Capacity redundancy may non be important as there is no regular high fluctuation in the demand. This factor besides drives the unit costs upwards.

Visibility of operations for Gate Gourmet is low for the terminal client, therefore is a hold between the production and ingestion of the merchandise of Gate Gourmet. This allows for higher standardization and staffing with resources with low contact accomplishments. This allows high staff use and centralization of production therefore driving the unit costs down.

The analysis and deductions leads us to the aims that will be cardinal for run intoing Gate Gourmet ‘s clients and stop client outlooks:

Dependence of bringing – Order Qualifying standard

Speed of response – Order Qualifying standard

Cost – Order Qualifying standard

Quality Focus – Order Winning standard

Flexibility- Order Winning standard

While the high volume and low visibleness of the operations help Gate Gourmet standardise the operations and resourcing driving down the unit costs through economic systems of range. They have besides reduced the figure flight kitchens by 10 % from 115, when the instance was published, to 97 presently and besides their day-to-day volumes have gone up by 10 % – hinting at strong economic systems of range driving their unit costs lower. While the demand for high assortment and medium fluctuation require it ‘s operations be flexible and integrate with the client demand scenario. This drives the unit costs upwards and creates a challenge for gate Gourmet in this low border and low cost concern.

Undertaking 4 ( C ) , ( D )

Administration Design:

Gate Gourmet advocates the construct that the organizational construction should reflect the nucleus processes undertaken by the concern, with a director given duty for each procedure. Under the traditional construction, if there is a job with serving a flight, no 1 director would be responsible-the mistake might lie with the buying director for non telling supplies, the equipment director for non holding the right equipment, the production director, or the transit director. So, some caterers have now organised their production units based on nucleus procedures. Gate Gourmet in Geneva ( Emad, 1997 ) identified these as Equipment Handling, Customer Management, and Goods Supply and Preparation

Speed of Response:

Gate Gourmet integrates tightly with it ‘s upstream and downstream supply concatenation spouses through transparent and existent clip information sharing through the SCALA and e-gatematrix ensuring that the same information is available to all the spouses at the same clip ; showing backward and forward integrating for making competitory advantage. They have integrated the SC spouses giving the last mile dependability to their end-customers, though they function as different organisations the information sharing twosomes so tightly and assisting them reach quickly to alterations in their environment. It has created standardised bill of fares in SCALA to guarantee consistence and repeatability in it ‘s bill of fare.

Quality Focus:

For quality Gate Gourmet ‘s planetary squad of gifted and commissioned chefs is ready to function your catering demands and present on your vision. ( Beginning: hypertext transfer protocol: // )

Gate Gourmet has instituted a entire quality direction enterprise that is aimed at instilling procedure quality than trusting on review quality. This enterprise is called Airline Catering On The Move “ Global Service Excellence ” and has been implemented internationally across it ‘s web of operations. This plan was developed through the adept support of Dr. Donald Fisher, a globally-acknowledged expert in the quality direction field. Dr. Fisher, of the Mid-South Quality Productivity Center ( MSQPC ) . Dr. Fisher has been moving as an external adviser and has been instrumental in this enterprise by conveying in his planetary experience and expertness. This confederation has been peculiarly valuable as Gate Gourmet operates in an international context every bit good. ( Beginning: hypertext transfer protocol: // )

( Beginning: Title: High circular Author ( s ) : Bettye Wells Miller Journal: Managing Service Quality )


Customer demands of Gate Gourmet are such that it needs to assemble repasts as per the specific guideline provided. Besides, the wadding and lading onto the service streetcars are as per specification. These service streetcars are loaded onto immense ice chests and into stevedore trucks to direct to the aircraft galley ‘s merely before the return off. Gate gourmet operates about 1700 of these vehicles and many of these are already equipped with chilling systems, cameras and province of the art engines to run into with the rigorous FDA ordinances and besides comply with the environmental guidelines.

Cost Focus:

Gate Gourmet besides follows aggressive HR policies to pull off its human resources and raging down based on alterations in it ‘s client demand. It besides got into brotherhood issues due to these patterns in the UK in 2005. ( Beginning: hypertext transfer protocol: // ) Gate Gourmet is besides looking at traveling from lasting employee base to flexible staffing patterns once more in an effort to be flexible and antiphonal. ( Beginning: hypertext transfer protocol: // ) It is reported to doing losingss globally and seeking to revamp its operations to remain profitable. ( Beginning: hypertext transfer protocol: // _r=1 )

Gate Gourmet is consolidating its partnerships and geting logistics companies to let it to backward integrate focusing on driving it ‘s unit operational costs lower. It is besides looking at longer term contracts with it clients to guarantee a concern volume over clip.

It is besides introducing and acquiring into new lines of concern to better use of its supply concatenation & A ; cut down it ‘s cost of operations and besides drive top line growing. Gate Gourmet has entered into an confederation with ARINC Inc. ( leader in onboard retail direction ) . They are working together to advance on board gross revenues plans for the universe ‘s air hoses and rail systems as good. This is assisting Gate Gourmet better use of it ‘s resources and cut down idle clip. ( Refer: hypertext transfer protocol: // )

Gate Gourmet has besides diversified into non-airline catering where it can utilize it ‘s bing supply concatenation to serve on-land and train riders every bit good e.g it has teamed up with Starbucks and railroads in Portugal. ( Beginning: hypertext transfer protocol: // )

( Beginning: Title: Developing new merchandises and services in flight catering Author ( s ) : Peter Jones

Journal: International Journal of Contemporary Hospitality Management )

Undertaking 5

Plan for the execution of a general or selling scheme.

Undertaking 5 ( A )

The mission and ends will assist find the concern aims that the administration needs to accomplish. Besides, timelines for accomplishing these aims can be set based on the mission and macro environmental factors of the administration.

The aims and the seasonableness can so be broken down into lower degree aims and activities with shorter timelines. Each of these activities will be assigned to persons with duties and besides resources required to finish these activities. Each of these activities will hold results outlined and linked to the cardinal public presentation indexs. These can so be established as mileposts and linked to the cardinal public presentation indexs that can be used to reexamine the mileposts and activity position.

Therefore the timetable will dwell of the undermentioned cardinal elements:

High Level aims

Low Level Aims

Low Level Activities

Estimated continuance of completion


Responsible persons and sections

Resources required to finish the activities

Desired results

KPI ‘s to be used to measure milepost position

Undertaking 5 ( B )

Undertaking 5 ( C )

While crafting a scheme, cardinal public presentation indexs can be determined at the clip of planning. A balanced scorecard typically helps find the needed KPI ‘s along the different countries of strategic importance. Besides, targeted values for these KPI ‘s can be established during the planning procedure and how these need to be re-visited with clip.

The information required for these KPI ‘s can be collected on a regular basis and published as per a pre-determined agenda. These KPI ‘s can so be compared to the mark and a root cause analysis be done for those KPI ‘s that are off the marks. Corrective action can so be after based on the root causes determined.

Undertaking 5 ( D )

Post the troubles that the client air hoses of Gate Gourmet were confronting, Gate Gourmet decided to travel with an attack of flexibleness and to be able to fit it ‘s cost construction with the altering fiscal state of affairs of it ‘s clients. It decided to pattern it ‘s workforce demand to this scheme every bit good and laid off workers in UK and US. However, there was an immediate recoil of these ballads off specially in the UK taking to major concern breaks in Heathrow airdrome taking to anchoring and hold of several flights outstanding air hoses. This had non been factored in by gate Gourmet direction and they had to travel for important harm control measures post this debacle. This indicates why Gate Gourmet should hold monitored proactively the effects of it ‘s flexible scheme.

The determination of the Coca Cola company to spread out it ‘s operations in India as ap art of it ‘s Asiatic scheme was faced with issues when it ‘s enlargement in Southern India was faced with stiff opposition from the local population and community on the damaging effects of the mills on the land H2O tabular array. This once more demonstrated the demand to the company to supervise and factor in the community facets of a scheme.


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