Case Assignment I

Flight Plans
Branson,Missouri, is in alocation not easily
accessible by air service. The city is best known for
its country music and music variety shows and
family-style attractions,also has the kind of outdoor
activities that attracted more than 8 million visitors
last year, “earning it the unofficial nickname Vegas
without the gambling.“ About 95 percent of those
visitors come by car or bus.But now there’s a new
show in town-the Branson airport. The 155 million
dollar airportwhich opened in May2009, is an
experiment that many people are watching.
The airport is generating interest from city
governments and travel industry because it’s the
nation’s first commercial airport built and
operated as a private for-profit business with
absolutely no government funding. As one expert
said, “…unpretentious little Branson Airport could
have an outsize effect if it works. It could turn what
now is a mostly regional tourist spot into a national
destination for tourist.”
Stave Peet, the airports chief executive,admits that
he had no idea where Branson was in 2000. But by
2004, he was convinced there was money to be made
flying tourists there. He says if you were ever going
to think about building aprivate commercial airport,
this would be the place to do it. How many more
visitors would come here if we made it easier and
affordable to them? It seemed like an incredible
opportunity. So using private financing,he decided to
build a new commercial airport a short distance
south of Branson popular music shows district. Both
Peet and Jeff Bourk, executive director of the
airport, continue to tackle the managerial challenges
of turning that dream into reality.
Construction work on the airport terminal and the
7,140-foot runway (which can accommodate most
narrow –body jets)went smoothly .Bourk believed
that much of that was due to minimal red
tape.Because the airport wasn’t using federal
assistance,it didn’t face the restrictions that were
accompanying taking government money which
also meant it could pick and choose the airlines it
allowed in.To attract those airlines,the airport
agreed to not allow competitors in.Also,the
airport owners kept the airlines ‘operating costs
low since airport employees do much of the work
usually done by an airlines ground
staff.Initially,the airports owners offered exclusive
contracts to AirTran and Sun Country on certain
routes to Branson.Now,Frontier Airlines and the
newly-formed Branson AirExpress have added
service.Mr.Peet emphasizes that they want the
airlines to succeed .We want to build real
service,sustainable service.’’
The airport earns money from landing fees(based on
number of passengers,not on weight),aircraft fuel
sales, a percentage of every sale at the airports
facility,and a $8.24 fee paid by the city of Branson
for each arriving passenger .To reach Peet’s goal
of 250,000 passengers a year, the airport needs only
685 passengers(five to six planeloads) aday. He
says,’ what we’re doing is going to work.’’But
first,they have to deal with some signification
turbulence. Branson city official (who have been
elected and hired since the original agreement was
signed) now say that the contract between the city
and the airport regarding the arriving passenger fee
may not even be constitutional. Airport officials
respond that, “We have a legal document and we
expect to be paid.”And Bourk maintains that
Branson benefits from every tourist that goes
through the airport.”We bring in high –quality
tourists all over the country to spend money in
Branson for a cheap price of$8.24.”
Discussion Questions
1).Using the management functions as your
guide,what challenges would Jeff Bourk face in
managing the Branson Airport?
2).Again,using the management functions,do you
think the managerial challenges jeffBourk faced
when getting the airport up and running are different
from what he faces now in actually overseeing the
airports operation?Explain.
3).What management roles would jeffBourk be
playing as he(a)negotiates new contracts with
potential airlines ,(b)works with the airport
employees in providing a high level of customer
service to arriving and departing passengers ,and
(c)resolves the contractual issues with the city of
Branson ?Be specific and explain your choices.
4).What skills would be most important to a
manager like jeffBourk?Explain your choices.
Dear all students! hint for the case, first
summarize what the case is all about in one
paragraph, then address each question
accordingly
Stay Blessed!
 Arsi University.
Department Of Management

Course title: Management concepts and practices,

(MBA-611)

Case Assignment I

Student Name: Eyob Dinku Tadesses

Submitted To: Bekele(Phd.)

November,201
5
Asella
Summery- paragraph
Mr.Jeff Bourk and his staff have encountered a turbulent time due
to the fact that their private-profit making airport challenged by the
officials of Branson city. The officials refused to pay the agreed
passengers fee for the airport, since it is acceptable demand, even it
is considered as unconstitutional. On the contract agreement it was
stated that the city of Branson administration should pay $8.24 per
passenger for the airport, however, the city officials not willing to do
so.

Q1. Jeff Bourk is facing primarily a challenge with regard to the plan,
he and his collogues made and the and the ways to attain their plan,
which is earning an income through passengers fee from the city of
Branson. Hence, the pre established organizational goals threatened by
the current situation of the airport’s income generating sachem.
He also challenged in controlling and monitoring the activities of the
airport, since earning an income is one of the major financial and
managerial activity of the airport execute every day.
Generally speaking, the effectiveness and effectiveness of the airport
might be endangered because of the current situation.

Q2.The challenges to get up and run the airport where related to

construction, which was accomplished successfully due to it was
financed privately, hence no government financing. Thus, it is logical
that, the getting up and running planning, organizing, leading and
controlling activities were successfully accomplished.
However, one of the predetermined organizational goals, which is
earning an income from passengers fee has been dimmed. This situation
may lead to minimum income, which in turn result in bankruptcy of the
company. At the end of the day, the executive director may found
himself in lack of enough fiancé for covering different operational costs.
This situation create an environment which would be very difficult for
controlling and leading the overall operation of the airport . At the end
the airport may face serious problems in meeting its customer services
and employee needs.

Q3. a) In negotiating new contracts with potential airlines, Jeff

Bourk plays the following managerial roles:

 An Informational role, monitoring, the flow of information

which are presented to the potential airlines with whom he is
dealing and also receives different kinds of information from them
and other parties. He also Disseminates, information through
letters and memos and make telephone and email communications.
At the negotiation completion he transmits the results of the
negotiation to the outside parties (like the media), as a spokes
person, representing his company.
 An interpersonal role, Mr.Bourk plays a very critical role of
liaison, by maintaining informational likes between his company
and the airlines which are making the negotiation with him. The
negotiation might be conducted through meetings, letters,
telephone calls emails etc.
 Decisional Role, Mr. Bourk plays negotiator role representing as
he tries his best to win the interest of his company dealing with
the potential airlines, which may land their passengers and planes
at the airport.
b) Works with the airport employees in providing a high level of
customer service to arriving and departing passengers,

 An interpersonal role, Leading his subordinates and motivating

them as they work to meet their customers’ needs and maximum
satisfaction.
  A decisional role, Mr. Bourk plays as an entrepreneur, by
injecting new ideas to his employees and delegating appropriate
responsibilities for the benefit of organizational effectiveness and
efficiency.
c) Resolves the contractual issues with the city of Branson

 An Informational role, making a communication as

disseminator, exchanging information through letters, memos,
telephone, emails etc. with the city’s officials about the
contractual matters of the company.
 An interpersonal role, Mr. Bourk plays a liaison role of
executive managers’ by creating an efficient link between the
inside and outside environment of the airport.
 A decisional role, a disturbance handler role Mr. Bourk plays
is very crucial in resolving any disputes those may arise during
the contractual debates with the city officials of Branson. As a
negotiator, he would well represent and stands for the
contractual issues of the airport with the city of Branson.

Q4.The managerial skills needed for mangers like Mr. Bourk are:
primarily and most importantly, are conceptual skills, since he is a top
level manger, who should see the airport, overall operation within the
company’s environment as well as with outside world. They are these
conceptual skills those could help Mr. Bourk and other higher officials
of the airport, to tackle critical issues like contractual agreements and
passengers’ fee and other issues which would be resolved through
extensive, expertly applied cognitive abilities for the overall goal
attainment of the company.
The conceptual skills also enable Mr. Bourk to see each department of
the company working efficiently by themselves and in harmony with
each other for a common goal. The conceptual skills will be so important
for decision making, resources allocation and innovation for executive
director like Mr. Brourk in ever dynamic environment like his company.
Conceptual understandings enable managers like Mr. Bourk to think
strategically, in problems identification, evaluation and solving, as it was
seen in the case of the passengers fee with the city administration of
Branson city.
The human skills are also so essential for Mr. Bourk to work with and
through people, such as the airport employees, city administration
officials and airlines executives, for common goals. With these human
skills he can motivate his subordinates, make negotiations with city
officials, airlines executives and other companies. It also these human
skills contributes a lot to work directly with employees and lead them on
the daily operational activities of the airport. In due process he could
develop between his subordinates and customers a feeling of respect,
loyalty and even affection.
In general, the conceptual skills and the human skills are the most
important skills for top level managers like Mr. Bourk to lead their
company to success.