Executive Summary
The paper analyzes the implementation of a new program pioneered by Maechelle. The program aims to cancel the process of upgrading eight airstrips and embracing partnerships with the regional airports. Maechelle faces various roadblocks as she strives to implement her idea originating from both internal and external forces. She utilizes considerable leadership skills, such as negotiation and coercion, to push her agenda to other parties. Furthermore, the paper summarizes other stakeholders not captured in the case study and their role in the daily operations of Mammoth Energy Company. Besides, it justifies, supports, and criticizes the actions taken by Maechelle, the program advisor; similarly, further analysis is made on the Spreadsheet by scrutinizing statistics presented through various dimensions. Finally, the paper ends with a summative conclusion with appropriate recommendations for the future operations of Mammoth Energy Company.
Mammoth Energy Company Case Study
Maechelle Push Forward Initiatives
The new program manager develops an idea to eliminate the complete shutdown of Mammoth Energy’s airstrips. She suggested establishing a strategic alliance with the regional airport that will help offer logistics services on a contractual basis rather than upgrading Mammoth Energy’s airstrips (Almaqbal & Maltzman (2021). Therefore, based on her idea, only half of the airstrips would be upgraded and thus reduce the costs of shutdown. However, she was faced with resistance from the management, who claimed that the partnership would lead to disruptions as they had to follow regional airport schedules. Nonetheless, some management members, such as Joaenssi, the Safety, and the HR, gave strategic points to help her push the agenda. Joaenssi claimed that the regional airport had an advanced airport with adequate resources, including weather forecasting, which would be crucial to the Mammoth Energy Company.
According to the case, Maechelle is politically savvy and has adequate negotiation skills to negotiate with the local government. Besides, the new government was committed to attaining sustainability and environmental protection. Fera et al. (2020) stated that the aviation industry needed to limit the amount of waste, which would reduce maintenance costs. Therefore, with the new government’s dedication to finding greener solutions and minimizing waste in the aviation industry, Maechelle would push her agenda. The idea by Maechelle ensures that the government does not demolish existing airstrips as it would lead to environmental pollution. Hence, Mammoth Energy Company would utilize their old airstrips in case of an emergency or overcrowding in the regional airports. The new government’s idea of sustainability would help her push for her idea.
Implementation
Various hindrances will limit the implementation of Maechelle’s idea. The primary threat would arise from some stakeholders. For example, employees would be evicted, leading to loss of jobs, especially in the eight airstrips that would not be upgraded. Therefore, employees will resist the initiative as it affects them directly. Moreover, more concerns were raised about congestion at the regional airstrips, which would delay traveling. Therefore, employees and customers would not access the facility on time, affecting employees’ production and loyalty. Additionally, some members of the management would oppose her idea as it would render them jobless. For example, managers in the eight airstrips would be abandoned as the company shifts to services from regional airports. Besides, some stakeholders would argue that it would increase the company’s operations costs.
The roadblocks can be eliminated through various methods. Maechelle should involve all stakeholders in decision-making and accept diverse ideas from other stakeholders. It can be done by scheduling a meeting with the affected airstrips to discuss the merits of adopting her concept. Mallon (2017) states that financial buy-ins should be applied to affected stakeholders. Therefore, they should be assured of compensation after the loss of jobs. Maechelle should guarantee the affected individuals that they would be referred elsewhere for employment, and all of them would retain their source of income. Hence, it will ensure they accept the new decision since it would lead to a win-win situation for all parties.
Furthermore, Maechelle should focus on short-term benefits to solve the financial limitation. What if the company signs a contract of ten years with the regional airports? Then the costs of upgrading, as per the attachment provided, would be $99,424,000 while partnering with the regional airport will be $97,356,520. Therefore, it will be cost-effective as it saves 2%, which can be invested elsewhere to benefit the company. Hence, focusing on short-term gains, it would be advisable to implement her idea as upgrading is more expensive.
Moreover, upgrading eight airstrips will have benefits as it can be used as a backup to reduce congestion and attain sustainability goals. Maechelle can focus on minimizing the shutdown’s effects and ensure Mammoth Energy Company operations continuity. Therefore, after half of the airstrips are upgraded, MEC will upgrade the remaining eight airstrips and thus will gain independence of their logistics in the long run. Therefore, establishing strategic alliances with the regional airports will be contractual, which will be renewed if their airstrips are not upgraded within the specified period under the contract.
Stakeholders
The case names a few stakeholders, such as the government, partners, and employees, and how they were affected by the upcoming program. However, other stakeholders should have been addressed, and they played a crucial role in the operations of Mammoth Energy Company. The environmentalists were not discussed in the case. Environmental bodies regulated the company since it emitted wastes to the environment, such as air pollution. MEC is licensed and closely monitored by ecological bodies, and in case it doesn’t perform accordingly, it can be sued and instructed to pay for damages. Nonetheless, Mammoth Energy Company has enacted sustainability measures through renewable energy sources such as solar and wind.
Moreover, the activities of Mammoth Energy Company significantly impact the surrounding society. It provides resources such as human capital to help in the company’s daily operations. Mammoth Energy Company has a role in safeguarding the surrounding society, such as participating in community development projects and charity activities. Scandelius and Cohen (2016) claim that a business should collaborate with its stakeholders and fulfill its mandate. The company should create awareness and set an example in environmental protection to make society a conducive living place.
Similarly, Mammoth Energy Company does not operate as a monopoly in Hy-Breasal and the entire continent of Eufraszia. It faces competition from other companies in the same industry, locally and internationally. Therefore, they strive for the same market share, and thus Mammoth Energy should strive to differentiate its products and services to make it unique. It can be done through pricing or further streamlining its logistics to boost prompt delivery. Hence, the company should strive to gain a competitive advantage over other players in the same industry.
Map
While scrutinizing the map, the primary reason why Maechelle decided to stop at 8 is due to the proximity to regional airports. The eight canceled airstrips were closer to the regional airstrips and thus could easily be accessed, boosting convenience. It aimed to reduce logistics costs as regional airstrips were closed, which would facilitate transport. According to Erdener (2013), a pilot test is essential since it gauges the whole project’s effectiveness and may be instrumental in saving costs. Therefore, if Maechelle had started with fewer cancellations, it would have provided the company and its stakeholders with insight into the entire project. Moreover, it could have saved on canceling half the airstrips and avoided dire repercussions. Hence, it would be instrumental in boosting the decision-making process by availing data to be used as a basis for other cancellations.
Maechelle would have used various strategies to sell her idea. She should have used a strategic alliance narrative to push her agenda by claiming that it would only be a short time for the company to establish further plans. Therefore, stating that the cancellation would be temporary, the idea would be accepted. Besides, assuring the affected stakeholders, such as employees, that her idea would not lead to joblessness but would be aimed at creating more jobs and minimizing operations costs. Moreover, claiming that the partnership would be contractual and that the company would regain its glory, in the long run would lead to accepting her idea.
Conclusions based on Spreadsheet
From the Spreadsheet, the costs of airstrip upgrades reduce with time compared to the costs of a contract with a regional airport. In the short run, such as 5yrs, it would be prudent to sign a contract with the regional airport at $48,953,260 compared to upgrading costs of $50,227,000. However, in the long run, such as in 20 years, upgrading the airstrip would be cost-effective as it would cost $190,168,000, while a contract would cost $194,163,040. Therefore, Mammoth Energy Company should consider signing a short-term contract with regional airports before upgrading their airstrips. The costs of leasing the land remain constant at $3,000,000 per annum whether the company upgrades or signs a contract.
Since landing fees are calculated based on daily landing at $725.39 per aircraft, it would be wise to only land in regional airports when it cannot be avoided. It will significantly reduce the costs as the company will have its own upgraded airstrips to cover the landing. Moreover, the cars are parked in the regional airport at $1000 per month, which can be avoided by parking in their airstrips and only availing cars when required or minimizing the number of cars. Similarly, Mammoth Energy Company can negotiate with regional airports to provide employees with their bus transport rather than hiring the airport’s bus, which is expensive. The regional airport contract consists of unnecessary costs which can be avoided.
“The Idea Faces Pushback”
Mammoth Energy Company should negotiate with the government, especially Hy-Breasal Civil Aviation Authority. The negotiation will state why the airstrip will be unstaffed for an agreed period. Moreover, the government supports companies with sustainable products like renewable energy. To encourage other companies to adopt sustainable operations methods, the government may offer a mortgage at a lower interest. It will help Mammoth Energy Company to upgrade all its airstrips while adhering to sustainable measures with the funding provided. Furthermore, the management may sell some of its shares to the government, which will make the government an investor. The shares sold generate revenue that can be used to fund the company’s operations of upgrading its airstrips. The government can later repurchase the shares after the company stabilizes. It will aid in eradicating additional costs incurred by signing a contract with the manipulative regional airports.
Conclusion
Maechelle’s idea is feasible and should be implemented to keep Mammoth Energy Company operating. Although it would face significant resistance from stakeholders such as employees, Maechelle should hold meetings to discuss the advantage of embracing the idea. The idea of canceling eight projects helps in cost saving and helps provide information for future decision-making in case of other upgrades. Upgrading a certain percentage aligns with Mammoth Energy Company’s goals of becoming sustainable. Besides, the partnership between the company and the Hy-Breasalian government helps create a conducive sustainable environment for all society members.
References
Almaqbal M. &Maltzman R. (2021). The Case of the Mammoth Energy Company (MEC): An Upgrade to its Airstrip Infrastructure.
Erdener, C. (2013). A PILOT TEST OF BUSINESS ETHICAL DECISION MAKING IN CHINA AND MEXICO. International Journal of Business Strategy, 13(2), 77–82. https://doi.org/10.18374/ijbs-13-2.9
Fera, M., Abbate, R., Caterino, M., Manco, P., Macchiaroli, R., & Rinaldi, M. (2020). Economic and Environmental Sustainability for Aircrafts Service Life. Sustainability, 12(23), 10120. https://doi.org/10.3390/su122310120
Mallon, M. R. (2017). Getting buy-in: financial stakeholders’ commitment to strategic transformation. Management Research: Journal of the Iberoamerican Academy of Management, 15(2), 227–243. https://doi.org/10.1108/mrjiam-06-2016-0667
Scandelius, C., & Cohen, G. (2016). Achieving collaboration with diverse stakeholders—The role of strategic ambiguity in CSR communication. Journal of Business Research, 69(9), 3487–3499. https://doi.org/10.1016/j.jbusres.2016.01.037
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