Chapter 3 - Minicase 2

Aeronautica Civil: Achieving Competitive Advantage in a Noncompetitive Industry

In preparation for answering the questions, review the Aeronautica Civil web site. This is a Spanish language site only.

1. Who is Aeronautica Civil competing against? What other approaches to measuring competitiveness can not-for-profit and government agencies use in measuring competitiveness?

   Aeronautica Civil is competing against air control agencies internationally, as well as other agencies within Colombia.

   Measurements of competitiveness include collection of outstanding debts, effectiveness of the systems employed, customer satisfaction, and achievement of goals like keeping billing current through rapid customer statement processing, bank account reconciliation, and regular balance sheet production.

2. Can profit-making organizations use the approach adopted by Aeronautica Civil? Why or why not?

   Certainly; these are goals that be set by all organizations.

   Organizational lethargy or lack of oversight are often impediments to improved management of resources and improved customer service.

3. What were some of the keys to success for Aeronautica Civil?

   Aeronautica Civil achieved success by implementing an ERP system, coordinating their front end and back end systems.

4. How did Aeronautica Civil measure competitive success? Specifically, compare “before” and “after” on the performance measures identified in this case.

   Prior to the implementation of the ERP system, Aeronautica Civil measured success in terms of its financial operations; after the implementation, they measured not only their tangible financial operation, but also intangibles like customer and employee satisfaction, as well as their overall image.

5. Search the Internet to find another, similar organization that is competing against itself to achieve competitive advantage.

   Examples include other government agencies, not-for-profit organizations like hospitals and social service agencies.