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.
Question One: The airline industry can be broken down into three primary segments: major airlines, regional airlines, and low-fare airlines. JetBlue Airline is a domestic airline in the United States using a combination of low cost and differentiation as its strategy. In order to know the key forces in the general and industry environment that affects its choice of strategy. Based on Porter’s Five Forces Model, the key forces directly influences are: The threat of new entrance is low. In JetBlue case, the current economy situation creates high market entry barriers, which consists extremely high fixed cost and numerous capital requirement.
In addition, airplanes re-orders were being rescheduled. Rising fuel prices consolidation - Cost pressure – resulted as there was a decline in the industry as a whole. Increasing competitive intensity – Airbus, Boeings competitor, offered the same airplanes at cheaper costs. 2. What is the e-Enabled Advantage?
Defend your choice. At that time, Boeing’s major competitor Airbus also has a big project – Airbus 380 program which has a seating capacity between 525 and 853. This is a big threaten to Boeing. Meanwhile, Boeing wants to achieve several goals with innovation approach which are reduce cost, development time, and unique characters (fuel-saving, less time needed for maintenance, new technology). Boeing want to change the rules of the way large passenger aircraft were developed through its Dreamliner program.
American Airlines’ Actions Raise Predatory Pricing Concerns Introduction As companies continually search for ways to rise above their competition, various strategies are attempted in order to excel and end up on top. One such strategy, and the topic of this case study, is that of predatory pricing. This derogatory term refers to the practice of selling products or services below cost in an attempt to force competitors out of the market by underselling them to a means where they can no longer compete (Institute of Competition Law, October 2012). The practice is referred to as predatory pricing because the ultimate goal is to eliminate the competition; even as the practicing organization provides its product at a point that is not financially sound due to being below cost. American Airlines was accused of predatory pricing business practices during 1995-1997 when competing against several low cost carriers in the Dallas, Fort Worth area, forcing the other airlines out of the market.
CASE STUDY: The macro environment of Airbus industry and the A380 Airbus began life in the l960s as a complicated joint venture supported by various European plane makers and their respective governments, led by the French.r3 It was a political project in so for as Europe feared the near-monopoly in passenger aircraft of US Boeing corporation. Airbus sow potential for o twin-engine passenger aircraft, smaller and more fuel-efficient than the large, wide-body 747 'Jumbo' that Boeing was developing. The Airbus A300 first flew in October 1912. After o slow start, demand accelerated and A300 expanded into o series of aircraft. Airbus' success forced Boeing to develop the rival 771 twinjet, yet by the early 1990s Airbus was winning as many orders for new aircraft as Boeing.
* The year of the massacre at Wounded Knee, 1890, was the year that the internal frontier was closed. The capitalist system would have to look overseas for expanding markets. The severe depression that began in 1893 strengthened an idea developing within the political and financial elite of the country: that overseas markets for American goods might relieve the problem of under consumption at home and prevent the economic crises that in the 1890s brought class war (conflict between rich and
Case Study: “Mini Case Airbus Dollar Exposure” Table of Contents INTRODUCTION......................................................................................................3 CASE STUDY ..........................................................................................................5 1) Forward Contracts………………................................................. 5 2) Economic Hedge .......……………................................................6 3) Future Spot Exchange Rate .......................................................... 7 4) Option and Money Market Hedge ............................................... 8 5) Advantages and disadvantages of hedging ….............................. 8 CONCLUSION ........................................................................................................ 12 REFERENCES ......................................................................................................... 13 Introduction During the course, we have been facing different situations where the foreign exchange market and their financial tools are the object of our analysis. Foreign Markets are very volatile and highly dependent of the income and currency of a country; therefore International and Transnational Companies face too many risks when doing business. This happens because all the different currencies that are involved in transactions; it is very important that companies are aware of their foreign currency exposure and know how to manage it. Investors and multinational corporations must manage economical risks and foreign exchange risk, including transaction exposure, economic exposure, and translation exposure. In this case we will analyze the following points in examples, therefore here we will see a brief exposure of each element: Forward Contracts- non-standardized contract between two parties to
Some security experts and the media have scrutinized and even lambasted current security measures in U.S. airports. Some of the time they are correct. In addition, the Transportation Security Administration (TSA) has grossly mismanaged its substantial budget and given many taxpayers the impression of another federal government entity rife with fraud, waste & abuse. The scrutiny from critics in regards to TSA’s apparent fiscal ineptitude have painted a picture of unnecessary security procedures and gross mismanagement. However, there is a clear path as to why the USFG should increase security measures in all U.S. airports, how those measures should be increased/what measures should be increased and how those increases can be enacted without increasing the current or future budgets.
* Summarize of the operational challenges facing global managers illustrated in your selected case. Conclusion References: Boeing vs Airbus INTRODUCTION After cooling off with the signing of the 1992 subsidy agreement, the longstanding dispute between Europe and the United States over government subsidies for the commercial jetliner industry heated up again in 2004. This time, however, the stakes were higher since both the Americans and the Europeans filed complaints at the World Trade Organization over government subsidies paid to their respective commercial jetliner companies. The dispute over subsidies has heightened trade tensions between the United States and Europe, as Airbus and Boeing spar for dominance in the highly competitive commercial aircraft Industry. Achieving and maintaining global