TITLE OF ASSIGNMENT CRAFTING AND EXECUTING STRATEGY STUENT MOHAMMAD HOSSAIN INSTRUCTOR DR. RHONDA POLAK COURSE TITLE STRATEGIC MANAGEMENT –BUS 599 DATE: - OCTOBER 16, 2011 Discuss the trends in the U.S. airline industry and how these trends might impact a company’s strategy. Trends in the US airline industry have an impact the performance and strategies of the airlines. As a result, the Jet Blue has struggled to survive. The trends of U.S. airlines industries are discussed as follows: (1) Increased crude oil pricing: fluctuations crude oil price lead to passenger fees for revenue generation, This dramatic price increase caused airlines to struggle to offset the cost of fuel. Presently, gas prices have dropped.
In his New York Times article, “Air Travelers’ Woes Likely to Worsen This Year,” Jeff Bailey talks about Unites States’ Airline companies deciding to reduce growth to offset fuel prices. Every time people fly somewhere, they get very disturbed and anxious because of the gigantic crowds in the airports. They always think they will miss the flight due to not dropping off their baggage on time, or miss the connecting flight, because they have to go through extra security and the lines are enormous. It would seem just right for companies to grow, increase the number of flights to lower the crowding in all the airports. However, major airline companies are actually doing the complete opposite, and are reducing domestic capacity this year, in order to increase fare prices.
The cost minimisation strategy employed by British airways during the recession proved to be an influential choice. It forced BA to be sensitive and cautious about cost and the passengers' volume has been cut down in terms of business and tour travellers. The industry competition is getting fiercer as by the joining of the lower cost airliners which indicates BA has to master the value creation process, or the value chain, with business perspective and cautious. In addition, the cares on the stakeholders in each stage of the business should be paid attention to, or it may leads to the negative impact to BA such as the staff strike took place in January 2007, which gives BA's brand image a big shock. These cuts the company has to make resulted in employee dissatisfaction.
They also included a share of the costs associated with running the hubs at two airports, such as ticket agents, building charges, baggage handlers, gate charges, etc. Suppose that the revenue collected on the typical United flight from San Francisco to Washington does not cover these costs. Does this fact imply that United should discontinue these flights? Explain. Based on the book when there are competitive markets such as airlines, a company certainly needs to look at costs and revenue very closely.
One company that have adopted a cost minimisation strategy is Ryanair. Ryanair were forced into adopting this strategy due to two main reasons; the EU recession and higher oil prices. In order to cost minimise Ryanair chose to cut capacity by grounding 80 of their 270 planes, leaving only 190 available for operation, by doing this it allowed them to fill their operating planes easier as the demand for a seat on a plane had increased, due to less planes flying. Ryanair were also faced with the huge problem of the increase in oil costs and therefore needed a way of increasing their prices without losing a high proportion of customers to competitors. Ryanair were successful in doing this because of their option to cut their capacity and ground 80 planes.
The steps used in goal setting are outlined from the text and sorted in their order of importance. Their relation to successful emergency management is described in context as part the definition of productivity in a working program. Goal Setting and Emergency Management Sagging productivity is a major problem in the United States as well as in many other countries. From the attention given to the problem in the news media, declining growth in productivity is clearly of great concern to managers, economists, and political leaders, as well as to many citizens. Certainly, this attention is warranted; sagging productivity adds to inflation, which, in turn, degrades quality of life.
Crimes such as there are always unacceptable do to the creation of uncertainty in the markets. The fear is bad for business in the United States and in the world as a whole. Many investors’ lost substantial amounts of money due to the scandals. The Sarbanes-Oxley now places a tighter regulation and control on the reporting of a company’s financial reports while holding those within the company accountable with criminal charges. With all the modifications and changes that are now being enforces, business investments into public companies in the United States is
Unemployment Unemployment has become a part bigger part of our economy over the years. The great recession that lasted from 2007-2009 contributed a higher rate of unemployment after the collapse of some of our highest financial institutions. It has impacted our economy a lot stronger than during the other financial crises. House values went down, and no one could afford to pay for their mortgages after they lost their jobs. Some stores experienced lower sales and started to close down their stores which led to even more unemployment.
The dramatic economic downturn in the world economy that hurt so many workers starting in 2008 only accelerated a decades-long trend toward more precarious jobs and the unstable hours, low wages, minimal benefits and insecurity that this work means for so many, as led decline in union membership and activities. First is the emergence of an increasingly competitive business environment, in which firms have
The Great Depression changed and effected Americans and the economy. Millions of Americans lost their jobs and homes. The economy went though a lot of failure of meeting financial obligation in banking and in trading. Because of this Europe and many other nations were set back from many of our abilities to help with their broken economies as well.The unemployment in the Depression was very scary. The Depression started with the market crash of 1929.