Cranfield Business Simulations
Millennium Airlines
Managing Complexity … Teamworking in a complex service business
Millennium Airlines is a rich and rewarding, and highly complex, interactive simulation designed
to encourage participants to explore not only sophisticated business challenges, but also the
nature of relationships which must be forged under stress and must remain firm as the stress
builds. It takes @yourService a step further in terms of complexity, where meeting and
exceeding expectations, delivering to customer standards and market positioning is an
important key to success. The simulation is interactive, so the decision of any one team will
impact both on the market place and on the performance of competitors.
Structure
In this simulation a number of airlines, operating
globally in a competitive environment, compete for
markets using economic and commercial levers
typical of that sector – from pricing and
promotional activities to factors that influence
quality of service, resource management – both
financial and human, the service mix offered, and
the structuring and dimensioning in terms of
available aircraft and routes.
All airlines competing in the market start from an
identical position, all having exactly the same
resources and position in the market.
The
European airlines market is 100% shared by all
competing companies; each company has an
equal market share at the start of the simulation.
All airlines operate both short and long-haul
routes and complete their product range by
offering charter flights and ancillary services - a
range of strategic choices.
The participants act as the top management team
and are responsible for all management
issues.
+44 (0)1234 754427 | k.l.valverde@cranfield.ac.uk | www.cranfield.ac.uk/som/cced
Cranfield Business Simulations
Benefits
Millenium Airlines provides exposure to many of
the challenges facing business managers, in both
commercial and behavioural terms.
The
simulation can extend over 2 or 3 days or as a
series of inter-modular decisions over a longer
period via the internet, depending on objectives,
with a pre-read advisable. Decision periods vary
between 2 and 3 hours.
The simulation also allows for the exploration of
team and individual behaviours. Observers of the
teams can see and feed back on behaviours
within the teams. This can be done within the
context of models that the organisation may
already use, such as MBTI, or by introducing
models and concepts of behaviour before the
simulation begins.
The very complexity of the simulation means that
it also fully explores the nature of interpersonal
relationships within the team environment.
Quality of
Service
Brand &
Reputation
6
24
18
2
Long Haul – Intercontinental
Short Haul – European
Charter
Service Partnerships (hotel,
car hire, etc)
Marketing
Channels
“We had to really understand our customer and
ensure the right quality of service – our people
needed to be working at their most effective.”
Customer perceived value, staffing and
training commitments
“We got a real buzz from making our own
decisions –and living with the mistakes!”
Improvement of individual and group decisionmaking skills.
“Think about putting yourself in others shoes, and
be aware of your teams’ natural style, you many
need to flex to get results.” Interpersonal skills
4 Services
WHAT?
Through efficient
management and availability of resources
HOW to attract?
Who are the
customers?
Territorial
Position
Service
Mix
Ground Staff
Asset Management Effectiveness
Aircraft
& Infrastructure
Capacity &
(LAN)
Maintenance
6 MD – 140 seats each
24 D1 – 190 seats each
7 B7 – 450 seats each
Flight
Availability
• Tourists
• Groups
• Business Travellers
• Incentive Travellers
WHY?
“We couldn’t afford to get it wrong, we just had to
get on top of operations, not only would we lose
customer confidence and future market share, but
recovery would be difficult!”
Supply-chain;
Quality of Service; Seasonality
“It really highlighted the challenges of managing
complexity – a really intense learning experience.
I have learnt that you need to look at your
business more carefully but also critically look at
the external environment, competitors and most
importantly customers.”
Market Analysis; Strategy; Efficiency vs
Flexibility; Brand/Positioning; Game Theory
HOW to match customer needs
with organisational capability?
Price &
Discounts
“We had to anticipate and plan how to deliver to
our
markets”
Market
segmentation;
Relationship marketing;
- Market Research
- Buyer Behaviour Î Journal
WHEN? - Seasonality of market demand
Start Position:
Equal financial & physical resources
Equal Market Share
It’s our simulation. But it’s your business.
+44 (0)1234 754427 | k.l.valverde@cranfield.ac.uk | www.cranfield.ac.uk/som/cced