...Case Analysis Study Approach (CASA) (Read the case a couple of times) Describe the Following for this Case Study- 1. Industry & Market: Delta is in the airline industry. It is a major economic force, both in terms of its own operations and its impacts on related industries such as aircraft manufacturing and tourism. There are few industries that create the amount and intensity of attention that airlines receive. Delta is the world’s largest airline in terms of both fleet size and scheduled passenger traffic. Delta’s major competitors are Southwest Airlines and United Airlines. 2. External Environment: (Factors beyond the control of the firm that influence its choice of direction and action, organizational structure, and internal processes) STEP Analysis: Social- Social factors and travel practices of individuals have extensive effects on the airline industry. There are individuals from a number of income classes and the airlines have to classify these people and ought to give them what they need. Technological- as clients’ wants develop in the future and there are more technological expectations the airline industry will have to be ready to meet their clients’ wants. Delta must keep up with competition and their technological advances such as online ticketing, booking, updating flight information, baggage check-in and handling of customer complaints all on the internet. Economical- Consumers tend to reduce travel if personal economic conditions are suboptimal, forcing...
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...The main cause that makes a company have to make changes is the external environment. It usually forces organizations to make changes to its mission, culture, leadership, and operating strategies. Changes in the 12 drivers bring a series of change to the overall structure. Changing anyone of the 12 “pillars” will influence the adjoining ones. But, changing the entire structure may or may not affect the entire system. These changes are influenced by the motivation of the individuals. They will impact the change to the entire organization. They all interact with each driver on the model. The Burke-Litwin Model has these basic parts that make up an overall change for a company. Change effect one part and then affect the overall performance of the model. 1. External environment: The key external cause on the organization must be identified and clearly established. 2. Mission and Strategy: The overall “vision” should be seen through the eyes of the employee. 3. Leadership: Leadership should be understood. 4. Organizational Culture: This should understand implied rules, regulations, customs, principles, and values. 5. Structure: The function based structure should be understood, such as responsibility, authority, communication, decision, making, and control structure. 6. Systems: This includes all the policies and procedures. 7. Management Practices: How the management accepts and conforms to the overall concept of the organizations strategy. ...
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...Delta Airlines Board of Directors Presentation October 18, 2013 Consultants: General Overview of Delta Airlines Strategy COMPANY’S SANDBOX High rivalry makes industry unattractive Profitability increasing, but still below cost of capital Consolidation trend has reduced rivals helping profits DELTA’S CURRENT STRATEGY Trainer refinery acquisition: using vertical integration to address Delta’s largest expense Metrics of improving flight completions, on-time arrival rate and decreasing mishandled bag to address customer satisfaction RECOMMENDATIONS • Trainer refinery: mitigate risks for success. • Customer satisfaction: domestic differentiation strategy and international best in class strategy Overview Industry Company Strategy Conclusions Review 2 The Airline Industry: At a Glance Across the Industry • Slow, but positive, global GDP growth • More financially-stable U.S. airline industry as merger integrations mature and restructured carriers emerge • U.S. carriers maintain capacity restraint with growth less than GDP • Inflationary pressures across all categories, with industry capacity discipline allowing for recovery of higher cost inputs • Corporate travel demand remains solid with corporate travel spend to increase 5% for 2014 Overview Industry Company Strategy Conclusions Review 3 Industry profitability improving, but returns still below WACC Profits have been improving in the past three years… …but...
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...Affairs This portion of the paper will include key information about Delta Air Lines, Inc. (Delta): (a) history; (b) culture; (c) important leaders over the years; (d) current products and service offerings: (e) target markets; and (f) methods of product and service delivery. History This section describes the history of Delta. The company was founded in Macon, Georgia, in 1924, as the world’s first crop-dusting service, Huff-Daland Dusters. The company moved to Monroe, Louisiana, in 1925. In 1928, field manager C. E. Woolman and two partners purchased the service and renamed it Delta Air Service after the Mississippi Delta region it served. Delta was the first international mail and passenger route on the west coast of South America. Delta operated its first passenger flights over route stretching from Dallas, Texas to Jackson, Mississippi, via Shreveport and Monroe, Louisiana. Also, Delta was awarded a US Postal Service contract in 1934 to fly from Fort Worth to Charleston via Atlanta (Hoover’s, 2011). In 1941, Delta relocated to Atlanta. Woolman became the president in 1945 and he managed the company until his death in 1966 (Delta, 2011). Delta offered its first night service in 1935, using the Stinson Model A; the first Delta aircraft with two pilots. Douglas DC-2 and DC-3 service was introduced and the introduction of flight attendants, called “stewardesses,” added to flight crews. Delta contributed to the war effort by modifying 1,000 plus aircraft, over-hauling...
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...STRATEGIC MANAGEMENT IN THE NIGERIAN OIL INDUSTRY WITHIN AN UNSTABLE ECONOMIC AND POLITICAL ENVIRONMENT AKINJIDE ODUNLAMI DECEMBER 31ST 2010 Table of Contents Introduction 3 The Oil Industry in Nigeria 3 Oil industry and the Nigerian Economy 5 Social and Environmental Impact 6 Strategy in the Nigerian Oil Industry 8 Managing External and Internal Forces 8 Assumptions 9 Key Strategic Activities 10 1. Timely Funding of the Joint Venture Cash Calls 10 2. Operational Efficiency 11 3. Cost Reduction and Leadership 11 4. Capacity Building 13 5. Facility Integrity and Innovation 14 6. Sustainable Development 14 7. Gas Utilisation 16 8. Security 16 Strategic Fit and Sustainability 17 Strategic planning and management system 17 Balanced Score Card 17 References 18 Introduction This paper considers Strategic management in the oil industry to deliver value and economic development in an economy very much dependent on crude oil revenue and with a fluctuating local currency rate against the US Dollar coupled with a volatile political climate with attendant security concerns. The industry, economy and political environment in focus here are those of Nigeria, a developing West African country. Within the context and space constraints of the Nigerian economic, political and social climate, an oil company must carefully define and manage its Corporate Strategy such...
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...Southwest is an impressive organization because it’s the most flown airline within the United States and has been consistently profitable (Northouse, 2009). Southwest is ranked 205 in the Fortune 500 and their profits in 2011 were 459 million which exceeded their 2009 profits of 363.6 million (CNNMoney, 2011) Against industry problems and business pressures-air-traffic congestion, merger of rivals, stricter government regulations regarding aircraft safety and maintenance, and mounting customer dissatisfaction with airline service, Southwest has managed to continue climbing to the top. The company strategy from day one was to be an airline that pursued a low-cost/low-price/no-frills strategy. This strategy opened their market segment to a larger portion of the U.S population and gave the company their tag line “The Freedom to Fly” (Northouse, 2009). Southwest also known as “the love airline” first took flight in 1971. Herb Kelleher, initially a lawyer retained by the airline to get it off the ground, was running the place by 1978. The airline was initially known for sexy flight attendants in hot pants to gain attention before it became the leader in low cost fares. "You can have a low-cost carrier and people still don't fly it because they don't know about it," Kelleher said. "And so, the schtick kind of fit in with getting known" (CBSNEWS, 2012). The airline now employs 34,000 people, services 64 different facilities, owns 500 planes, and is the nation’s sixth largest airline...
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...The report is done from the perspective of auditing. Multiple aspects of Virgin Blue such as strengths, weakness, opportunities and threats are analyzed in the first part. And in the second part five audit risks are identified and explained. Finally, since the appointment of new CEO, the impact of Virgin Blue is illustrated. 1. SWOT analysis * Strengths * Strong brand name and good reputation * Offering competitive fares with high quality customer service and awarded the Best Low-Cost Airline in Australia 2009 * Excellent on-time performance record * Successful loyalty program | * Weakness * Lacking experience in its new long haul business * High percentage of cancellations * Lower margin compared with competitors * Loose supervision * Unstable IT System | * Opportunities * Develop corporate travel market: market share against Qantas * International partnerships: Use Delta, Emirates partnerships to grow product offering against Qantas * Recovering global economy * Increasing immigration * Increasingly advanced technology enables airlines to provide more convenience to travelers | * Threats * Competition from domestic airlines, e.g. Qantas, etc * Upward pressure from fuel Jet fuel prices * Greater international competition: further expansion of Tiger network * Heavily reliance on internet as sales channel exposes them to risks associated with system disruption | 2. Key audit risks ...
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...busn620 all weeks assignments latest 2016 Click Link Below To Buy: http://hwcampus.com/shop/busn620-weeks-assignments-latest-2016/ BUSN620 Week 1 Assignment Title: Week 1 Due Date: End of Week 1 1. Read weekly announcement 2. Participate in the weekly forum. 3. Review weekly assignments in the syllabus. 4. Please complete the following for your week 1 written assignment: Read Case #16- BMW of North America and answer the following questions (each question a subsection): 1. What is fueling BMW's Growth? 2. How is BMW Doing in the U.S? Compare the following 3 years (2012, 2013, & 2014) in terms of annual revenue, car sales, gross margins and end year stock sales (outside research required). 3. Is the "Dream It. Build It" program a sustainable advantage in the long term? Do you see any room for further improvement? (link to other companies to add depth; i.e. Ikea, etc.) 4. Do you think customers really need "millions of combinations" for their car? Can they be happy with available standard options? What are the downsides of mass customization? 5. How does this case study link to the topics presented in Chapter 1, Chapter 2 & Chapter 3? 6. submit your responses to the Weekly Assignment Folder: Additional resources for Case Study: • https://www.youtube.com/watch?v=8Ddq6O_QAz0 • http://www.anthonymonahan.com/BMW-Dream-It-Build-It-Drive-It Post/submit homework to the assignment folder for grading. Make sure you provide substantive graduate level...
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...September 11 terrorist attack, tons of new flying rules and regulatory factors, political stability, competitive industry, * Economic: Improved purchasing power, rise in oil prices & inflation * Sociocultural: Increased entertainment level, greater customer awareness, security level of customers, bad service & lost baggage * Technological: Automated cockpit systems, introduction of animated advertisements, e-ticketing * Ecological: N/A * Legal: N/A * Five Forces * Threat of Entry: Low. Deregulation allowed easy entrance, low profit margin, hard to differentiate, high cost of capital to enter, brand image and customer loyalty important, safety and reliability important for new companies entering * Power of Suppliers: High. Only 2 suppliers, not much bargaining ability, fuel suppliers can control the price of fuel, fuel supply extremely important for JetBlue * Power of Buyers: High. Several flying options for customers, no switching cost, easy for customers to research competitors, customer incentives * Threat of Substitutes: High. A number of other airlines available, high existing barriers, bankruptcy laws allow continued operation for companies operating at a loss * Rivalry among competitors: High. Large competitors such as Delta, United Airways & American Airlines. Competition can get fierce when the industry is at a standstill. Industry very sensitive to economic cycles. Internal Analysis: ...
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...SWOT Analysis for JetBlue Proposed by: Barbara Johnson Submitted to: Professor Laurie Barnes March 21, 2015 History In February of 1999, founder David Neeleman made public his plan for a new and improved airline, “New Air”, now known as JetBlue. In April they made their first big purchase: a cool $4 billion to acquire the first 75 of their popular A320 aircraft through Airbus Industrie. Neeleman announced that his aircraft would have a TV with 24 live channels (now 37) at each seat! That was a first for the industry, as well as them being granted a lot of 75 slots at the JFK airport (“History”, 2014)! JetBlue’s website is all about showing their history in detail, a track record of proven success. JetBlue finally received their first A320 (of the 75 ordered) by the end of the first year (December 1999) and more than doubled their inventory in a few short years. In 2005, they were the first airline to receive the EMBRAER 190, another world class aircraft. After eight extremely successful years for the company, Dave Barger was named CEO and President of JetBlue on May 10th, 2007. Later that same year, in another first for the airline industry, “Complimentary in-flight e-mail and instant messaging services are introduced on aircraft BetaBlue” and then live internet streaming in 2013 (“History”, 2014)! They never stop innovating and improving; in 2014, they stepped it up even further by introducing the new “Next Generation Inflight Entertainment and Fly-Fi®”...
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...Forces * Bargaining Power of Suppliers * Bargaining Power of Buyers * Threat of New Entrants * Threat of Substitutes * Competitive Rivalry between Existing Players * Competitor Landscape * Alaska Airlines * Southwest Airlines * United Airlines * Air Canada * Key Success Factors * Internal 16-23 * Resources * Tangible * Intangible * Value Chain Analysis * Primary Activities * Secondary Activities * Capabilities * VRIN Testing * Core Competencies SWOT Analysis 24-25 * Strengths * Weaknesses * Opportunities * Threats Strategy Formulation 26-28 * Strategic Alternatives * Alternative Evaluation * Alternative Choice Strategic Alternative Implementation 29-31 * Action Items * Action Plan References 32 Strategic Profile: Company Introduction Alaska Air Group is made up of two principle subsidiaries Alaska Airlines and Horizon Airlines. Alaska operates all jet engine aircraft with average mid-range flight distance of 1,051 miles while Horizon is a short distance carrier averaging around 386 miles. Horizon also uses both turbo prop and jet engine aircraft. Alaska Airlines respectively has 115 jet engine aircraft...
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...incorporated in 1967, is a passenger airline that provides scheduled air transportation in the United States. As of December 31, 2010, the company had 548 Boeing 737 aircraft serving 69 cities in 35 states (Southwest Airlines Company profile, 2011). Key officers include: Herbert D. Kelleher – Founder and Chairman Emeritus. Colleen C. Barrett – President Emeritus. Gary C. Kelly – Chairman, President & Chief Executive Officer. The Company functions primarily on point-to-point service rather than focusing on hub and spoke service. About 78% of the passengers of the airline travel on non-stop flights and the Company predominantly serve short-haul routes with flights operating highly frequent. (Southwest Airlines Company profile, 2011) SWOT ANALYSIS: Strengths: By far the biggest strength of Southwest Airlines is the ability of the company to offer reliable low-cost prices; they are also able to maintain lower operating cost which enhances its profitability. They were the first to introduce online booking, ticket less traveling, and no reserved seating, thus making it easier to turn around flights. The teamwork and efficiency within the company’s employees is widely recognized as one of the reasons for Southwest’s high ticket sales. Weaknesses: At this time only domestic flight are being offered with no direct flight away from the United States. The airline does not offer some of the services that the other airlines offer such as, first class cabins, lounges, in-flight entertainment...
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...the 11th, the airlines are struggling to recover from all the destruction that the terrorist did to the airline industry. Customer’s confidence, high fuel prices, environmental problems, and customer service issues are just a few things that have affected the airlines popularity in the public’s eye. With all that said, how would a mutual fund investor feel about investing in an airline? The mutual funds manager is looking at United Continental Holdings, Inc. as a future investment. The mutual funds investor will being with a complete business analysis of the airline. He will investigate how well the airline is doing. He will look at their annual business reports (balance sheet, statement of cash flow, and income statement); complete a SWOT analysis showing the strengths, weakness, opportunities, and threats, global strategies and their technological advantages. After completion of those items, he will check how well the airlines operational processes and procedures are, the airline practices, and how the airlines product and services compare to their competitors. The mutual funds manager will need some background information on United Continental Holdings, Inc. In 2010, an historic merger among equals, United joined with Continental. Together the two airlines create the world’s most comprehensive global route network, including world-class international gateways to Asia and Australia, Europe, Latin America, Africa, and the Middle East with non-stop or one-stop service...
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...PART 3 GROWING THE PRIVATE SECTOR CHAPTER 17 INSTITUTIONAL ANALYSIS Institutions refer to arrangements and processes for the purposeful administration or management of a polity or the management of an entity. The importance of institutions will probably be best understood from the governance perspective. In this regard, we recall that governance is 111 primarily concerned with two inter-related issues. These are (a) existence of societal institutions for managing social relations; and (b) the degree of independence enjoyed by each institution in the performance of its assigned duties. Hence, the state of institutions along these two dimensions determines the quality of governance. Herein lies the desirability of assessing the current state of institutional setting in which ODSEEDS would be designed and implemented. For the purpose of our discussion, we have identified three major groups of stakeholders around which institutions could be appraised. These groups comprise (a) the government (public sector), (b) business (private sector); and (c) civil society (the people). These are the three primary partners (3PP) in the development process of any nation. The characteristic of each partner group in Ondo State are highlighted briefly as follows: 17.1 The Public Sector Ondo State has a seasoned executive arm of government, a legacy it inherited from the early 60s. The state’s civil service is blessed with competent technocrats and is expected to serve as...
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...tactical plan or operating decision, not a strategic plan. PTS: 1 REF: 35 OBJ: 02-1 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model Strategy 2. The marketing plan is a written document that acts as a guidebook of marketing activities for a marketing manager. ANS: T PTS: 1 REF: 36 OBJ: 02-1 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Marketing Plan 3. A firm's mission statement should answer the question, "What products do we produce best?" ANS: F Mission statements should not focus on specific product offerings but on the market or markets served. PTS: 1 REF: 37 OBJ: 02-2 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Strategy 4. A production costs analysis could be a part of a company’s SWOT analysis. ANS: T PTS: 1 REF: 38 OBJ: 02-3 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Strategy 5. Environmental scanning entails the collection and analysis of information about factors that may affect the organization as well as the identification of market opportunities and threats. ANS: T PTS: 1 REF: 39 OBJ: 02-3 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Strategy 6. To be useful, marketing objectives should meet four criteria: realistic, measurable, time-specific, and based on sales. ANS: F The four criteria for useful marketing objectives are: realistic, measurable, time-specific, and compared to a benchmark. They do not have to be based on sales. PTS: 1 REF: 39 OBJ: 02-4 TYPE: Comp TOP:...
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