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Strategic Analysis of Delta Airlines Strategic Analysis of Delta Airlines 9 September Airline This report will be discussing strategic management to a company in the airline industry.
Strategic management is analyzing the situation facing the firm, also on the foundation of analysis formulating a strategy and lastly implementing strategy. Strategic management is the identification and the description of strategies that can be used by managers so as to attain better performance which in turn will ensure competitive advantage for their organization.
The main concern of strategic management is the analysis of strategic goals, as well as the analysis of both the external and internal environment of an organization.
A strategic management directs the overall company goals, which includes multiple stakeholders, incorporates short term as well as long term objectives, and oversees the trade-offs between effectiveness and efficiency.
Having a good management strategy, an organisation is able to achieve its goals and meets its expectations. With the used use of well formulated strategies, a company will always prosper and generate great results.
Without well formulated objective goals a company or an organisation cannot exist, since every company has a reason for it existence. What is the industry that we should compete with? What formula should be used to compete in those industries? A company needs to know its immediate competitors once it starts operating.
A company should formulate a well design that will enable the company to beat all its competitors in the market and so that it can make more profits from its consumers or customers.
These questions can be useful for the organization in both domestic and international environment. Finally comes the action that must be acted upon; unless action is taken, decisions are useless. It is the actions that are taken by firms, which implement the strategy Mintzberg, Ahlstrand and Lampel, In this analysis, three major processes of strategic management processes will be discussed in a more detailed manner.
These strategic processes are strategy analysis, strategy formulation, and strategy implementation. Strategy Analysis- contains general environment analysis and competitive environment. It is the starting point of a strategic management. Strategy implementation is the process in which the management sees that all the set objectives and goals are effective and have value to the company.
It ensure that the organisation has a proper strategic controls. Strategy formulation is of how the organization is to compete in different business environment to attain competitive advantage. It gives a relation between the general and competitive environments in that weak signals in the general environment are able to become main forces for transform in the competitive environment.
In the company merged with Northwest airlines.
Once the merger was complete, Northwest Airlines and all its constituents become wholly-owned by Delta Airlines. Having a flexible nature, allows Delta to improve customer services, and in the long run be able to achieve its strategic objectives. Delta airlines have multilateral and formed alliances with other airlines.
This is beneficial since the airline is able to gain access to international airlines. By forming alliance, the airlines share codes, access to passenger lounges, promotions, airport gate and ticket counter, marketing agreement and ticket office co-location. By having heavy dependency on the market, the company is susceptible to any change that s associated with that geographical region.
The industry also has poor communication method; there is no clear link from the management to the passengers. The airline is not innovative, in that it does not come up with new ideas, what the airline does, is the same thing that is being done by other airlines.
There is an expected growth of international boarding on big careers, and smaller regions are expected to grow. This is an advantage to for Delta airline that is engaged in the air transport system, it is therefore position to capitalize on the ever increasing US region airline industry.
The growth of maintenance repair and overhaul MRO market is the other thing that gives support and opportunity for Delta airline. There is a lot of service that is offered by Delta that is from MRO, and with the growth of MRO, creates an opportunity for delta to capitalize on the industry as well as expanding its revenues and profits.
The economical crises that is global, has affected Delta airline severely. The crunch from the credit, the financial crises and the oil prices going up affect the airline industry directly. Some of the factors that influence competition are cost, events, labour and season.
These factors do not only affect competition, they also influence how the competition will be rendered. By identifying certain competitors, cost can be reduced, and firm can put more efforts on identifying the risks. For Delta airlines to be able to deal with competition, they should recognize the need to grow.
The framework allows a firm to evaluate the attraction of its business founded on the relation strength of those five forces. Given its resources, a firm is able to take a judgment as to which industries it is able to compete in most effectively and place it to decrease the opposing effect of those forces.Take help from professional essay editing and proofreading service to make your paper error-free.
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Lella Vignelli (August 13, – December 22, ) was an Italian designer who was the founder of Vignelli Associates. She had "a lifelong collaborative working relationship" with her late husband, Massimo Vignelli.
She was known to be the business arm of Vignelli Associates, and played a key role in the success of the design firm.