AIRLINE SWOT ANALYSIS

In 2013, Southwest Airlines acquired AirTran Airlines, continuing a trend of airline takeovers and mergers evident in recent years. Despite increasing demand in travel for both business and pleasure, this industry continues to struggle to be profitable. The airline industry (like many others) has problems with public relations and perceptions, as well as simply being profitable. An airline must uncover which aspects of business are causing problems or challenging performance. A strategic analysis can help identify future steps to take to improve the airline.As you complete the assessment, you may find it helpful to consider the questions below. You are encouraged to discuss them with a fellow learner, a work associate, an interested friend, or a member of the business community, in order to deepen your understanding of the topics.Why has the airline industry seemed so volatile in recent years?How have fuel issues impacted the industry?What social issues are impacting air travel and profitability?For this assessment, assume the airline you chose in Assessment 1 has just made you president. As the new president, develop a brief business strategy and report for the airline that includes the following:New mission and vision statements consistent with the changes you plan to recommend for the airline.Communications plan for announcing your presidency and your plan for the airline’s future.Action plan to take your airline into the future.Create an organized and well-written report for the airline’s stakeholders that includes the following subheadings and content:IntroductionBriefly introduce the airline and the situation leading up to you being made president. Assume that you have been brought in to improve profitability and long-term success for the airline. Provide a paragraph or two overviewing the current situation with the airline (from your SWOT analysis) and introducing yourself as president.Purpose and MissionDescribe the new purpose and mission for the airline.First review the airline’s current mission and vision. Then, explain what you will change and why. Support your changes to the mission statement with actual facts from business literature in the field.Write a new formal mission and vision statement.Communications PlanDescribe how you will communicate your new presidency and your future direction for the airline to the existing employees and the press.Objectives and GoalsAny airline is concerned with safely getting people from one point to another and doing so in a way that is profitable. Detail how your airline plans to accomplish this. Begin by listing your financial goals. For example, you might want to increase profitability by a certain percentage. Explain how you plan to do that (for example, spending less on staff training or food service, or leasing planes rather than buying them). Identify at least four specific financial goals, all geared toward increasing profitability through bringing in revenue or reducing expenses. Describe the rationale behind your goals.Consider the market standing, productivity, facilities, stockholders (if applicable), worker performance, profitability, innovation, and social responsibility.Action PlanCreate an action plan for achieving the four goals that you set. Considering what you learned in the SWOT analysis you completed in Assessment 1, include items such as intended markets (stay where you are or move, and why), hiring and training, and technology.For each goal, explain which strategy you will use, the time it will take to assess the results, and your exit strategy if the plan does not work. For example, if you decide to increase revenue by generating more customers through a fare sale, explain how you will advertise the fare, how much of a reduction it will be, how you expect it to impact your profits, and so on.Include, when applicable, items such as communications, employee relations, route planning, public relations, advertising, and use of the Internet.Methods of Control and FeedbackDescribe how you will assess meeting your goals and how you will go about making changes as necessary. Remember that setting a goal is only valuable if you take steps to achieve it and then measure your success. Consider how you will measure success of each goal. For example, if you choose to add food service, consider how you will know whether this has been successful or not. Financials will not answer this question, but what will? Customer surveys? Staff feedback? How many tickets you sell after the announcement is made?Additional RequirementsWritten communication: Written communication is free of errors that detract from the overall message.APA formatting:Resources and citations are formatted according to APA (6th edition) style and formatting.Number of resources: Include a minimum of three resources.Length of paper: 8–10 typed, double-spaced pages.Font and font size:Times New Roman, 12 point.Must address:Develop a mission and vision statement for an organization.Develop a communication plan for an organization.Develop an action plan for an organization.Develop a strategy and detailed plan for an organization.Describe the business strategy and plan in a written report.