Chapter 1

Rationale

Education is the strictest definition would refer to the development of one’s

mind, character and skills as by instruction, study or training. It is also a

continuous process whereby an individual is progressively learning not only

through available knowledge and proven facts but also through daily life

situations (Difuntorum et. al, 2006).

After the first successful powered flight of the Wright brothers, Aviation

Education and Training began. Training appeared in the first place as a

consequence of the 1st and 2nd World War, and the necessity to prepare a

significant number of pilots (Barata and Neves, 2017). Aside from aviation

education, aircraft maintenance education around the world is also being

implemented for it is the overhaul, repair, inspection or modification of an aircraft

or aircraft component.

Although Leading Edge International Aviation Academy, Inc. is the

company studied by the researchers, it is not their first choice. The first and

second choices that the researchers had were Partas Transportation Co., Inc.

and Armscor Shooting Center (La Union) at the City of San Fernando. But,

unfortunately, Partas and Armscor were not able to approve immediately whilst

LEIAAI, on the other hand, had the time to read our proposal and approve right

on time. This gave the researchers a challenge to take LEIAAI as their company

for the research, even though it is not their first choice. The researchers decided

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to pursue LEIAAI not only because it is the only aviation school in La Union but

also because it had services that no other schools have. They offer courses that

other schools do not and the facilities that they have are those that are not

provided by other schools as well. Since not all members are familiar in the field

of aviation, the researchers took this opportunity to choose LEIAAI to learn more

about the aviation industry. Also, the researchers were intrigued with LEIAAI

because, unlike other schools, they are certified and approved to operate by the

Civil Aviation Authority of the Philippines (CAAP) and not by the Commission on

Higher Education (CHED).Another reason why the researchers chose LEIAAI for

their research is because the difficulty of operating an aviation school in an area

which is not known for such industry intrigued the researchers and had gathered

multiple problems which they have taken action through this research and these

problems include their marketing strategies, security system, and facilities. Since

LEIAAI is an aviation school which, most of the time, is known to be expensive

and high maintenance, the researchers would like to know if their marketing

strategies are enough to comply with the needed resources for the school to

increase the number of students they are aiming to acquire, if their security

system is fully under control and strictly supervised, and if their facilities are

enough to accommodate the whole company.

Although the researchers would like to study this school to know their

problems and advantages, they chose LEIAAI also because they provide quality

and extensive training programs for aspiring pilot and aircraft technicians. It

commits to provide trainings with the highest standards of technical expertise,

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professionalism, and adherence to global safety standards. The school aims to

educate people in the province about the aviation industry. But despite all the

positive information about LEIAAI, location is one of the problems that need to be

solved. LEIAAI is located at a Freeport zone which is beneficial to the company

but because many people do not usually pass by the location, they are not

exposed as much as other schools are. LEIAAI also do not allow their students to

enrol with a zero down payment. Another problem is the Aviation Maintenance

Technician (AMT), their building is not as wide as the Flying School building. The

researchers provided plausible solutions for these problems.

Objectives

The study’s general objective is to create a corporate strategy for LEIAAI,

The specific objectives are stated below:

1. To present the company’s profile;

2. To describe and examine the internal and external factors that affect the

company;

3. To present the company’s existing strategies;

4. To identify the strengths, weakness, opportunities, and threats of the

company;

5. To formulate recommendations based on the findings on the SWOT

analysis; and

6. To formulate a strategic plan for the company.

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 Research Model and Methodology

A descriptive research design is used by the researchers to comply with

the information needed for the study. The researchers observed the behaviour of

the students and the employees whether they are participatory or not and LEIAAI

is located at a place where only few people pass by which makes the school

unknown to others. Hence, solutions for this problem are formulated and

explained throughout the research. The primary research in the study is through

observation and investigation process wherein the researchers surveys,

interviews and analysis of the workplace including the facilities and historicaldata.

The secondary research includes books, articles from the internet, and other

researches.

The researchers used the Input-Process-Output (IPO) model to produce a

corporate strategy for LEIAAI. Input, process, output (IPO), is described as

putting information into the system, doing something with the information and

then displaying the results (Reference, 2018).

The internal environment shows how the company performs, what they are

committed to provide, and what they offer in the market. It shows the analysis of

the internal aspects of the company such as the Vision and Mission, its

organizational structure, organizational culture, strategies implementation, and

function. The functional analysis focused on the five aspects of the company. The

first aspect is the Marketing Management where the information gathered

regarding their product or services, place, price, and promotion are discussed.

The second aspect is the Production/Operations Management where the physical

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plant and facilities of the company are discussed. The third aspect is the Human

Resource Management. This is a discussion of the data or information gathered

regarding the employment rules and regulations, administrative guidelines, rules

and regulations, compensations, benefits, and privileges. The fourth aspect is the

Management Information System/Information Technology which is a discussion

of the company’s records regarding the employees, students, staffs, facilities, or

the company itself. The fifth and last aspect to be discussed in the internal

environment of the company is the Financial Management. This is where the

assets, liabilities, proprietorship, and financial ratio analysis of the company are

discussed.

An analysis of the company’s strengths, weaknesses, opportunities, and

threats (SWOT) is implemented by the researchers to determine the competitive

advantages and disadvantages of the company. This is one of the most helpful

strategies because the strengths will determine the competitive advantages of the

company. This shows the elements that the company has that others do not have

and how to maintain and improve them. Weaknesses, on the other hand,

represent the competitive disadvantages of the company. This can help

determine what aspects of the company should be changed or improved to

decrease the chances of losing the company’s existing and future advantages.

Opportunities are those that the company must provide to help for its

improvement. The researchers, through this study, will help them use their full

potential in order to achieve a more profitable, progressive, and in-demand

organization. The last to be analyzed in the SWOT Analysis are the threats.

These are the aspects that will trouble the company’s growth. The researchers

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will determine all the possible threats of the company and formulate numerous

solutions to avoid such threats.

A strategic plan is presented by the researchers to help the company

achieve their goals and dissolve all their critical elements within and without.

Corporate objectives are also discussed as to long-term or short-term. The grand

strategy is the overall strategy provided by the researchers to their selected

company. This shows the means to be used by the company for long-term

objectives. Functional strategies show the functional strategy matrix. This shows

an organizational plan prepared to help improve the different aspects in the

company such as the Marketing Management, Production and Operations

Management, Human Resource Management, Management Information

System/Information Technology, and the Financial Management.

Recommendations will be given by the researchers to help and inform the

company as to how and what implementations towards change and improvement

should they have.

The researchers used both qualitative and quantitative data. But

qualitative data was the method used for the majority of the study. This method of

collecting data is through a focus group where the researchers organized a

formal meeting with the Marketing Management, Production/Operations

Management, Human Resource Management, Management Information System,

and Financial Management. The researchers also conducted interviews to each

department especially in the Human Resource office, headed by Mrs. Georshiel

V. Ballano. Mrs. Ballano was the one who provided most of the data and

information needed by the researchers.

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 Shown in Figure 1 is the model or pattern used by the researchers to

create a strategic plan for LEIAAI.

Scope and Delimitation

The scope of the study deals with the current situation, development,

opportunities, constraints, and strategies implemented by the business.

This study will also focus on the internal and external factors that affect the

company’s existing corporate strategy in order for the researchers to know what

changes should be implemented and what strategies should be remained.

This study focused on the Aviation School, LEIAAI which is located at San

Fernando Airport Poro Point Freeport Zone, City of San Fernando, La Union.

Significance of the Study

The primary objective of the study entitled “Company Study of LEIAAI” is

to generate a new corporate strategy. The importance of this study is to provide

essential and consistent information about the company which will be beneficial

to the following:

To LEIAAI, this study will serve as a preview of its service for the past

years. This will give information about the strengths, weaknesses, opportunities,

and threats of the company.

To the customers, this study aims to give ideas as to how the services are

done within and without the company.

To the employees, this serves as guidance to help them understand the

different types of consumers, or environment they could possibly encounter.

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 To the local government, this research will give them information as to

what the company offers and how it affects the people and the government itself.

To the faculty, it will help them understand the industry of aviation

education. It will also help clarify their curiosity about the flow of the business and

how it differs from other schools.

To the researchers, it will serve as proof and basis on how important

businesses are in the lives of many people.

To the future researchers, this will help them understand and be

knowledgeable on how to create a research study.

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 INPUT PROCESS OUTPUT

1. Company Profile 1. Immersion

2. External Environment 2. Environmental Scanning, Strategic Plan

Competitor Analysis, and
3. Internal Environment Functional Analysis

4. Existing Corporate 3. SWOT Analysis

Strategies

Figure 1
Research Paradigm
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