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Strategic management
Strategic decision making
Strategic decision making
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This document is considered as a financial document because the financial statement provides the statement of financial position and comprehensive income, and cash flow statement and statement of changes in equity. for example, "The cash flow of the Group Lufthansa from operating activities to 3.4bn euros in the reporting year, which is 1.4bn euros, or 71.6 percent, higher than the figure registered previous year." Question two: The management group strategies consist of four strategies which are Safeguarding position as a leading aviation group, Hub airlines intent on developing quality y leadership, Profitable growth for aviation services, Profitable growth planned for Euro wings in point-to-point traffic. The safeguarding position as a leading aviation group means that this company aim to be the first one and the first choice in the field of flight for both contributors and employees and partners and customers. It also aims to moving forward and achieving progress in this field to make customer always contact with this aviation corporation, and also plays very vital and great role in the Universal aviation …show more content…
The hierarchy of fair value consists of three level, and level one is considered as the highest level. Level one is Price traded that are unmodified within the active markets for assets or liabilities which correspond to the entity so that the Commission could find them at the measurement date. The second level is an inputs with different prices from included in the first level one, where they are through which assets and liabilities are monitoring a straightforward manner and are (prices) or indirectly and is (derivatives prices). The third level is the unobservable inputs for the asset or
“To be the best airlines in whole world and providing excellent customer experience in our flights with full entertainment and loads of satisfaction.”
It has stayed relevant to the market through its propelled philosophy of relationships to generate profits in the business. Since its establishment in Monroe, Louisiana the once tiny airline has stretched to greater heights serving in 6 continents. It has also established a distinguishable name among its competitors with a reputation of leading customer services. However, even as an established venture, the company needs to maximize its profits in order to stay in business and expand in to new territories beyond its conquered boundaries. A strategic analysis was carried out by our team to establish the company’s current situation. A SWOT analysis was performed to come up with three referenced, strategic alternatives. This alternatives are meant to act as a strategic guidance to the company in order to enhance growth. The strategic recommendation provided will improve and enable the business to cope with the competitors while the implementation of the strategy section will outline the way to go about achieving these alternatives in the business setting. Lastly, we put up a discussion on the evaluation procedures and necessary controls for the
More than 37 years ago, Rollin King and Herb Kelleher got together and decided to start a different kind of airline. They began with one simple notion: If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline. And you know what? They were right. What began as a small Texas airline has grown to become one of the largest airlines in America. Today, Southwest Airlines flies over 104 million passengers a year to 64 great cities all across the country, and we do it more than 3,400 times a day.
The airline Industry in Australia is struggling to make profits, and this is seen by the market performance of Qantas Airlines. In fact, for a number of years, Qantas Airlines is struggling to make profits, and it faces a decline in the share of its market. Certainly, the airline industry in Australia is struggling to be profitable as a whole. On average, the airline companies in Australia are making about 1-3% in terms of profit. Of course, it is not only ion Australia that the airline industry is on a decline. The decline is witnessed all over the world, even in the United States, where the market is established. For instance, the average profit that American airline companies are making is 5%. This percentage profit is very low, compared
Deregulation for 16 years (1978) has resulted in an icnrease of domestic carriers from 36 in 1978 to 100 in 1985.
The Lufthansa Heist was a robbery that took place at the John F. Kennedy International Airport; the people (players) robbed five million dollars at the time of the robbery. The total amount of money robbed to todays’ date is estimated to be around eighteen million dollars and three million dollars in jewelry. The heist was planned by Jimmy Burke and carried out by a number of people. A van would be used to transport the cash and another car would accompany the van to run interference should something happen.
...leader. Certainly, it has to take into account the implications of completion from both the direct and the indirect competitors. That is why EasyJet centers on the cost management strategy and the differentiation strategy (Hanlon, 2007). Through an analysis of EasyJet Airplane company strategies and performance, it is clear that they are ambitious and strive for the best. They not only survive in an industry that is intensely competitive, as shown through the analysis by Porter's Five Forces, but also succeed in terms of offering their customers the best that they have to offer in terms of value for money. The advantage this airline gains over its oligopolistic competitors stems from flexible ticketing and complete access to all primary routes. However, in keeping airline industry, there is room for improvement and growth as the analysis using Ansoff Matrix reveals.
There are few things that are impressive about Southwest Airlines first one is how they treat the employees. For Southwest Airlines employees are first and customers are second. If the employees are treated well that will bring in happy customers. Next is that Southwest is not only with their low prices but is able to create a competitive advantage by offering a fun and humorous experience when flying. Finally another impressive fact is when Herb Kelleher’s retire from CEO position yet remained a Southwest employee till July 2014. Even after the retirement he was still active with the Southwest Airlines that reflected his enthusiasm and dedication for the
Boeing/Airbus Case Analysis Competition in the Commercial Aircraft Business. With only a few large companies across the globe (Boeing, MD, and Airbus), the commercial aircraft industry essentially exhibits the qualities of an oligopolistic competition with intense rivalry. Here is an analysis of competition in the commercial aircraft business using Porter’s Five Forces. Figure 1: Porter’s Five Forces Applied to Aircraft Industry. Barrier to entry: - High barriers to entry, to a certain extent, help understand the risks involved in operating in the aircraft industry.
Porter stated; “for an airline to succeed in the marketplace, it must have a sustainable competitive advantage” (Porter M. E., 2008). The airline industry is the highest competitive industry, and I believe a sustainable completive advantage is essential to succeed in the future of the aviation industry. The competitive advantages that an airline embrace, needs to be based on the airlines strategy and differentiation to competitors. Emirates displays how it has a strategy and how the airline gets ahead of its competitors through how unique it is.
Lufthansa, one of the world’s biggest airliners, has divisions handing maintenance, catering and air cargo. Since the World War II the airline industry has never earned its cost of capital over the business cycle (Hitt, 2010). Most of the airline companies have either filed for bankruptcy or are being bailed out by their government. Lufthansa had also gone through these tough times, but had resurfaced to become one of the worlds most profitable airline company. The company adapted a transnational strategy, seeking to achieve both global efficiency and local responsiveness. Lufthansa’s monopoly in Germany came to a halt with the creating of the European Union. All the EU member countries become one regional and therefore the European competition became, an increasingly a local competition. Lufthansa created its regional Hubs, to cater for its domestic market. But the availability of substitutes such as bullet trains and the Euro tunnel, made is necessary for Lufthansa to create short traveling time, customizations and quality standards in the region to achieve a competitive advantage. But outside the EU there are no substitute to air travels as such all the flag carriers are competing in the market, the international airline industry is a highly competitive environment. A new force has also emerged in the world of air travel, in the form of three Gulf airlines with jumbo ambitions. Within a decade Dubai’s Emirates, Qatar Airways and Eithad from Abu Dhabi have between them carried the capacity of two hundred million passengers (Micheal, 2010). The company had to go global and therefore adopted the international corporate-level strategy, where Lufthansa will ope...
Abstract Jet Blue is the U.S based airline headquartered in New York. Jet Blue airline became one of the biggest airlines after nine years of its establishment. This airline was a great success in a very short time. More than 32 million passengers use the opportunity to travel through the Jet airline every year to over 90 cities. This airline operates approximately 825 flights in a day, which proves the success of Jet Blue airline.
The statement of cash flows reports a firm’s major cash inflows and outflows for a period. This statement provides useful information about a company’s ability to generate cash from operations, maintain and expand its operating capacity, meeting its financial obligations, and pay dividends. There are three types of activities to look at in this statement, which are cash flows from operating activities, investing activities, and financial activities (3, 2005).
The marketing strategy that was envisioned by the creation of the SIA had a focus on customer needs by providing exceptional in-flight service. This required the on board flight staff to be of excellent quality. At SIA, there was a constant emphasis on training (including social training and etiquette) and customer service. Ever since, the exceptional in-flight service has become a part of the company culture and image. All of this suggests a strong product-oriented strategy, a value strategy that Treacy and Wiersema (1993) define as product leadership. Competitive advantage came from a good product; the high profitability in the 70's was helped by low labor costs in Singapore.
The Purpose of Financial Statements The financial statements of a business are used to provide information about the status of the business, set performance targets and impose restrictions on the managers of the firm as well as provide an easier method for financial planning. The financial statements consist of the Profit and Loss Account, Balance Sheet and the Cash Flow Statement. There are four areas of information, which we can collect from a company's financial statements. They are: Ÿ Profitability - This information comes from the Profit and Loss account. Were we can compare this year's profit with the previous years.