Business Course Assignment
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Air Canada and Canadian Tire are some of the examples of business corporations in Toronto, Canada. Air Canada Corporation is the largest airline as well as the flag carrier of Canada. The airlines areas of concern are the provision of charter and scheduled air transport for cargo and passengers to over 178 worldwide destinations. Moreover, Air Canada is the ninth largest world passenger airlines. On the other hand, Canadian Tire Corporation is amongst the 60 largest Canada’s publicly traded corporations. The firm basically majors in the operation of a network of businesses that are inter-related mostly engaged in petroleum, apparel and hard goods retailing as well as automotive and financial services provision.
Air Canada airline has witnessed significant changes since the1987 deregulation. Consequently, freedom of market entry and exit has altered immeasurably the way price charges and service offerings are done by the airline. Since then, the managers’ tasks have been more difficult in terms of absorbing changes in market conditions. Therefore, the marketplace is such that air carriers are either penalized or rewarded following their responses towards supply and demand vagaries. Fortunately, majority of the deregulation adjustment costs are already incurred as well as the 1990-91 recession experiences which serve as an instructional basis is for airline managers. The above expositions encompass the recent merging trends with regional affiliates, alliance forging with global carriers as well as the vertically integrated computerized reservation services. Moreover, the review of cost structures for airlines, air networks and fare determination has also taken place. Most importantly, the start-up cost is influenced by a variety of factors. For instance, aircraft size is a major cost varying factor whereby the cost per seat for a small aircraft is more than that of large aircrafts. In addition, flight distances also vary cost meaning as the distance of flight increases, so does the mean cost per mile decline. The extent of complexity in the Canadian Airline industry is determined by the competitiveness factor. Thus, the demand side produces most of the advantages as far as the negligible scale economies are concerned. In line with the above, consumers have their preferences tilted towards large airlines and are willing to be charged premiums for the services offered by these airlines. Moreover, since the deregulation of the airline industry, pricing strategies undertaken by Air Canada Corporation have become the most pertinent success factors. Thus, in this breadth, Air Canada appears to outperform the entire Canadian airline industry by approximately five percentages in terms of RPK yield evaluation. The productivity of the corporation is further boosted by the good pay given to its employees as compared to the other employees in the entire state of Canada.
On the other hand, the Canadian Tire Corporation was started by two brothers Alfred Jackson and John W. in the year 1922. The two invested their 1800 Canadian dollars combined savings in a depot for auto parts as well as a service garage for automobiles in Toronto. The corporation by then had a small stock of replacement and repair inventory comprising of automobile fluids, batteries and tires. Shortly after the shop’s opening, the two brothers experienced a scenario that could have resulted to a major setback: the traffic routing bridge past the garage was closed for repairs. Therefore, to reign over the impeding catastrophe, the brothers resulted to the conversion into an overnight parking facility of the garage. Moreover, this resulted to the entire moving of the operation to an ideal location in early 1923. At the new shop, the inclusion of gas pumps and retail goods occurred. The new outlet was such a great success thus, encouraging the brothers establish another retail store. Majority of the corporation’s initial gains were attributable to the marketing suaveness of Alfred Jackson.
This suaveness was through the free travel maps offerings in the promotional flyers of the company. The maps were very paramount in that as at that time, they were rare and greatly valued by the customers. In the next place, Canadian Tire Corporation offers its employees a magnitude of career opportunities that are rewarding as well as challenging. More precisely, the Corporation’s productivity emanates from its fostering of accountability and performance cultures. This has ensured the growth and success of the company through its strict upholding of innovative thinking and diversity values. Of importance is the corporation’s adherence to the welfare of its employees through many incentives. These incentives are in the form of rewards given to the employees such as unique benefit mix ranging from profit sharing, flexible health schemes all the way to store discounts. The corporation has the responsibility of ensuring that its employees feel as passionate owners of the company. Through this initiative, the corporation is placed better in building its good reputation all over Canada.
The greatest advantage of the two corporations in Toronto, Canada is that they place limited liabilities upon their stockholders. This is so because these corporations are legal entities separate from the stockholders in terms of their operations; thus, covering the owners against the corporation’s liabilities and debts. On the other hand, double taxation is the major disadvantage of the two corporations. This is due to the first taxation of the corporations’ income, and the second taxation of the shareholders income. The other most common disadvantage is the complexity the corporations face during their formation with respect to legal procedures and rules. In conclusion, Air Canada and Canadian Tire Corporations have been of utmost importance especially to the Toronto community. This is through the employment opportunities they offer to the Canadian people. Moreover, the state’s economic growth has been on the rise due to the economic activities undertaken by the corporations.
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