Lufthansa 2000: Maintaining the Change Momentum Prepared for: Business 497a Professor Don Fujitani Section # 15663 Prepared by: Amiel Traynum Elin Ghadimian Josh Sherriff Ross Zalavsky Ryan Neal External Environment: Global: Worldwide events such as the Gulf War, followed by a recession, put a burden on the airline industry and on Lufthansa as a company. These events caused a major decrease in the amount of seats filled in the airline
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German company, Lufthansa. Lufthansa is reviewed as a case study of a major international player integrating into an ever-changing air transport market facing fierce competition. When performing the analysis, the analytical framework presented in the Sanchez and Heene textbook will be utilized and applied. More specifically, the paper will aim to clarify how Lufthansa has responded to the European integration. Finally, we will discuss and give recommendations as to how Lufthansa should adapt 1)
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Lufthansa Case Study 1. Should the Board of Lufthansa retain Heinz Ruhnau as chairman? Should Ruhnau justify his actions? No, The Chairman of Lufthansa, Heinz Ruhnau, was criticized for his handling of the company’s exposure. The Minister of Transportation in Germany (who had ultimate authority over the airline), criticized Ruhnau for hedging 50% of the exposure which resulted in 187,500,000 marks more than if the company had not covered. As a result, Ruhnau was only offered a short term renewal
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fLufthansa Case Study Herr Heinz Ruhnau decision to buy 20 airplanes from Boeing in 1985 for $500.000.000 was a mistake, so the Board of Lufthansa should fire him due to poor judgement. His strong feeling that the US exchange rate was going to drop, it wasn’t based on any evidence, so he should have postponed buying the planes until after the rate had actually dropped, in order to save company money. Regardless of the speculations that he had about the exchange rate, he should have put options
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Jan. 19, 2011 Lufthansa Case Analysis Lufthansa’s chairman, Herr Heinz Ruhnau, purchased twenty 737 jets from Boeing (U.S.) in January 1985. The agreed price of the jets was $500,000,000 payable in one year. The U.S. dollars has been rising steadily and rapidly since 1980, and was about DM3.2/$ in January 1985 (Chart 1). Chart 1- DM/$ Exchange Rate 1980-1985 Herr Ruhnau believed U.S. dollar will depreciate very soon based on its appreciation in last 5 years. That is, exchange rate between
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1) Which of Drunker's "7 tasks of tomorrow's manager" does Wolfgang Mayrhuber undertake? Are there any he doesn't undertake and should? ANSWER Manage by Objective : He is expecting operating profits of €1bn in 2008. As part of the treatment, Mr Mayrhuber acquired Swiss, the national airline, in 2005, and improved Lufthansa’s business and first class offerings with better seats and a raft of extra services, including a bespoke first-class terminal at its Frankfurt hub. As a result, premium revenues
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Case Study Analysis: Lufthansa: To Hedge or Not to Hedge… By Mathew Stubbs and Michael Homewood In January 1985, Lufthansa, a German airline company procured twenty new 737 airplanes from Boeing. Under the chairmanship of Heinz Ruhnau, a price of US$500 million was negotiated. The agreed price was payable in United States Dollars (USD) upon delivery of the aircraft in one years time, on January 1986. Since Lufthansa’s operating revenues were primarily in Deutsche Marks (DM), Ruhnau needed to determine
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Case Study Analysis: Lufthansa: To Hedge or Not to Hedge… By Mathew Stubbs and Michael Homewood In January 1985, Lufthansa, a German airline company procured twenty new 737 airplanes from Boeing. Under the chairmanship of Heinz Ruhnau, a price of US$500 million was negotiated. The agreed price was payable in United States Dollars (USD) upon delivery of the aircraft in one years time, on January 1986. Since Lufthansa’s operating revenues were primarily in Deutsche Marks (DM), Ruhnau needed to determine
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Airline Lufthansa Companies Strategic Change and Strategic Challenge for Lufthansa Introduction The biggest airline in Germany- Lufthansa is one of the leading airline companies in the world, but it suffered from the danger of bankruptcy in 1991. However, the flexible strategic change programs made it survive. Thus, the implementation and effects of those programs are obviously attractive and deserve further study. Moreover, current business environment is full of opportunities and
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Lufthansa; An analysis of SWOT and KSF’s Table of contents: 1.0 Terms of reference: 2.0 Procedure: 3.0 Findings: 3.1 SWOT: 3.1.1: Strengths: 3.1.2 Weaknesses: 3.1.3 Opportunities: 3.1.4 Threats: 3.2 KSF’s: 3.2.1 KSF by industry: 3.2.2 KSF by Organisation: 3.2.3 KSF by Customers: 4.0 Recommendation: 5.0 Conclusion: 6.0 Bibliography: 7.0 Appendix A – Critical Source Evaluation 1.0 Terms of reference: This is a 1000 word report by me analysing the Strengths,
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