Question

In: Economics

why does a hub and spoke networks make the revenue management process more complicated ?

why does a hub and spoke networks make the revenue management process more complicated ?

Solutions

Expert Solution

A hub and spoke network is a management philosophy is which big companies have decentralized businesses activities with one main office/headquarter forming the hub while other divisions connected through the main office.


Explanation:

The other divisions are referred to as spokes. The reason why revenue management becomes complicated is that, functions are not integrated since each division (spoke) has its autonomy and only connects with the main office but no other units. This leads to different reporting on performance of the units as they operate independent of other units' knowledge thus presenting different sets on information. Revenue management becomes complicated since each spoke controls separate costa centers and revenue centers as well. This can only be solved where each representative on the spokes is lifted to a hub for harmonized planning and reporting such that each division /spoke is aware of the counterpart's activities.


Related Solutions

How can TV Networks and Broadway plays use revenue management? "Revenue management is an extremely important...
How can TV Networks and Broadway plays use revenue management? "Revenue management is an extremely important concept within the hospitality industry, because it allows hotel owners to anticipate demand and optimise availability and pricing, in order to achieve the best possible financial results"
discuss the common types of networks with the required standards for management to make an informed...
discuss the common types of networks with the required standards for management to make an informed decision pls this question is banking and finance question
why does yield tend to decrease with effective revenue management? For airline industry.
why does yield tend to decrease with effective revenue management? For airline industry.
Write a C program that does the following In this part, you will write more complicated...
Write a C program that does the following In this part, you will write more complicated functions. They will require parameters and return values. The purpose is to give you experience with these components, and to show you how functions can be used to break your code down into smaller parts. You will also get some more experience with iterating through arrays.Open repl project Lab: User-Defined Functions 2. Write a program that does the following: 1.(20 pts.) Allows the user...
Why is the design of a cost system so much more complicated today than it was...
Why is the design of a cost system so much more complicated today than it was when cost accounting was in its infancy? Your initial post should be at 200-300 words, formatted and cited in current APA style with support from at least 2 academic sources.
Why is justice in healthcare more complicated than just doing what is fair?
Why is justice in healthcare more complicated than just doing what is fair?
12. List some factors that make working capital management especially complicated in a multinational corporation?  
12. List some factors that make working capital management especially complicated in a multinational corporation?  
Auditing the revenue process and Auditing the inventory management process. What is the importance?
Auditing the revenue process and Auditing the inventory management process. What is the importance?
Some transactions have complicated revenue recognition. How does the following transaction types relate to the new...
Some transactions have complicated revenue recognition. How does the following transaction types relate to the new revenue recognition rules (FASB). 1. Non-refundable up-front fees 2. Franchises Please provide examples and references.
Why does it not make sense for a function to have more than one output for...
Why does it not make sense for a function to have more than one output for the same input? Provide examples. First , define inputs and outputs ( independent and dependent variables) . Then, define ordered pairs and relations and give examples. Finally, define a function and talk about what particular type of relation is a function. Can you find a real world relation that is not a function? For example: The age of a person is the input and...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT