American Airlines Strategy Paper Essay Example for Free

American Airlines Strategy Paper Essay Currently the airline industry as a whole seems to be on the road of recovery. We, American Airlines, the fourth largest carrier recently avoided bankruptcy, but had a summer full of pressure due to ongoing union struggles and questionable executive compensation packages. After having incurred such big losses, this recovery has come about because of the government bailout and many of our large competitors’ abilities to survive the turbulence in the industry. So far, the prospects look promising. Revenue has improved across all regions of the business. Domestic unit revenue was up almost 10 percent and Latin American revenue has increased by close to 11 percent in the last quarter of 2012 compared to the same period the prior year. We are performing better than other airlines that have filed for protection and have done so without slashing capacity. In short, American is doing the right things to return to business efficiency and customer effectiveness. In order to establish a sustainable position for the future, American Airlines must adopt a three-pronged strategy moving forward. First, we should focus on low priced operations and increased marketing strategies to improve customer demand. We have to enhance customer experience and our volume of loyal customers to build a stronger presence in Airline Industry. Second, we must focus on increasing and improving the routes to cater to large customer base. Lastly, we must address the difficulties our company might face in integrating with the culture of US Airlines. Our future success is highly dependent on these two entities efficiently operating as a single organization. US Airline industry today is dominated by five major domestic carriers. United, Delta and Southwest each has more than 15 percent market share. American is fourth, with around 12 percent and US Airways is fifth with around 10 percent. Four of these five are profitable — all but American. We lost $2 billion in 2011 and $1.7 billion in the first quarter of 2012. Our emphasis in 2013 is on operational flexibility, international growth through alliance and selective network expansion, and domestic partnerships to reduce operational and balance sheet risks. American’s market differentiation is based on emphasizing and meeting the needs and expectations of high value customers (particularly large global corporates) and better alignment with the one world airline network and value proposition. Also, being the lead carrier between not only the United States and Latin America but, increasingly, the world and Latin America—connecting through Dallas, Los Angeles, or Miami. This strategy makes sense; if they can get all labor work groups on board, they should be able to make it happen. That is still the main challenge, as is competitor contestation, particularly from larger traditional rivals like Delta and United. Improve Customer Demand Lower Operational Costs American passenger division which already has 57 fewer planes in service than an year ago, should further shrink by another 57 planes this summer. This would improve operational efficiency. Current service levels include 275 cities with a fleet of over 1000 aircraft. American carries about 80 million passengers daily and receives more than 329,000 reservation calls, handles more than 293,000 pieces of luggage and flies more than 4300 flights in one typical day. In order to reduce costs further over 27000 jobs will have to be eliminated. Because of high competition in the industry, substantial price fluctuations occur related to fares. Increase value added services offered through our interactive website, AA.com. Any differentiation that convenience added capabilities offer is the center of focus. Busy hiub systems and schedule patterns need to be looked at to improve efficiency and routing effectiveness, thereby enhancing customer experience. We need to do rigorous marketing to attract more customers. Our marketing is currently focused on seasonal and business travelers and much analysis is taken in order to optimize peak travel seasons as well as frequent flier miles programs and pints systems. The Making More Room in coach program is the original marketing ploy of American to project a perception of higher passenger comfort levels. As increased advertising and intense market share is gained, we will continue to remain a key player assuming passenger demand goes up as projected. We will focus on upgraded in-flight entertainment systems, football game special fares, and buy-on board meal options to further enhance customer experience. American Airlines’ new network strategy is designed to improve profitability by offering the routes and schedules that attract and retain not only their own high value customers but also those of alliance partners, an important source of revenue through codeshare agreements and closely aligned loyalty programs. The network is the core product that works in concert with lie-flat seats, onboard amenities, and customer service. Latin America is a prominent focus, due in part to our strong presence in key hubs to Latin America such as Dallas and Miami. This is where the profits are. Passenger growth forecasts for Latin America for 2013-17 are 6 percent for Latin America North (Central America and the northern rim of South America) and 8 percent for Latin America South (southern cone countries such as Brazil and Argentina). This compares with 3.6 percent for Europe and 4.4 percent for Asia. To follow the growth markets, we must change our portfolio mix to focus more on international rather than domestic routes. This is a gradual process, moving from 38 percent international and 62 percent domestic capacity in 2013 towards a 44/56 percent balance by 2017. As we refocus more of our flying towards international opportunities, it is likely to look towards increased code-sharing with domestic carriers like Alaska Airlines, jetBlue, and others to further enhance our network in places like Los Angeles and New York City. This is likely to have initial teething problems, due to terminal colocation and product disparity issues. For instance, the business passengers that we are pursuing may be disgruntled by jetBlue’s more restrictive carry-on baggage policies or by extra time and added security checks if they are required to change terminals. Our plan is also to diversify our domestic feed by increasing the number of regional carriers with which we do business to reduce operational and balance sheet risk. Today, we primarily get a feed from our wholly-owned subsidiary, American Eagle, which has higher costs than some other regional carriers. American Eagle is going through its own restructuring to lower its costs, and it may ultimately be spun off. Merger with US Airways will result in the largest carrier in US. It would create roughly $1.2 billion in financial benefits. American Airlines Strategy Paper. (2017, Jan 20).

Typewriter Essay Example | Topics and Well Written Essays - 1750 words

Typewriter - Essay Example In private homes, people used it usually for the business correspondence with their lawyers, proprietors and other official purposes. They ruled over the business world for more than a century. Nineteenth century became the century of typewriters. There were quite many modifications within the existing machine, but they still had no replacements (Williams, 2003). The advent of the word processors in the end of nineteenth century took the place of typewriters in the western world, and many of the uses of the typewriters were replaced. The typewriters started to become obsolete but they were still very prominent in their use in some countries where the economy was not good or the advancement of technology was behind the western worlds. It is still very popularly used in some Countries in Africa and India. WHAT IS A TYPEWRITER? A typewriter is a mechanical or an electromechanical machine, it writes the characters in a very similar way as the characters are written when we use prin ters. The keyboard operated types when the keys are struck. The keys when struck produce an impression with the use of ink transfer or carbon impression on the paper (Wershler-Henry, 2007). Manufacturers who were in business became quite famous for their manufactured typewriters and made quite a lot of profit from it. The famous companies that were involved during the middle of nineteenth century in the making of typewriters were E. Remington and Sons,  IBM,  Imperial Typewriters,  Oliver Typewriter Company,  Olivetti, Royal Typewriter Company,  Smith Corona, and  Underwood Typewriter Company (Marie, 2006). The main concept and design of the typewriter is same, but due to the ever increasing demand of the typewriters there were many inventors who were working together or independently just to make the machine perfect. Many of the inventors were working in contest with each other while some were working for the increased social benefit. The innovations that were carried out on the typewriters were all incremental. Many people provided insights as to the improvement of the machine and the result was a more commercially useful instrument. It has been estimated that the number of times the innovations that have occurred are around fifty two to make it more workable and profitable for the business. Earlier ribbon was used for typing but then introduction of print ball made typing more easier (Kittler, Young and Wutz, 1999). HISTORY OF TYPEWRITERS AND THEIR EVOLUTION The first of its kind was a machine that was built by Henry Mill in 1714 (Marie, 2006). He had obtained a patent for a machine that was very much similar to the typewriter. The reviews that could be found about the machine all relate to a machine that could be used to write letters. The machine was said to be so perfect that it enabled the letters to be transcribed or printed on a sheet of paper in such a perfect and neat manner that it could be used repeatedly and the perfection in th e printed pages remained synchronous. It was a machine that was considered as a perfect solution for all the correspondence either business or commercial. It was considered as a machine that would produce quite a lot of ease in the maintenance of the public records as well. The reason it was considered as a more effective way as compared to the manual writing that was done to keep the records was because the print stayed for a longer time period (Daniell and Mortensen, 2007). The typewriter that continued to be in

Faculty of management Essay Example | Topics and Well Written Essays - 500 words

Faculty of management - Essay Example According to her, Canadian businesses have stagnant growth because they not only lack resources but they have also not enough motivation for growth. Canadian Banks have conservative notions about businesses that discourage people to be creative. She nevertheless thinks that some of the government initiatives like Canada Export Development and Sustainable development Technologies have encouraged businesses to exploit new opportunities of growth in emerging economies. I agree with Allen that businesses must innovate to compete and expand. But at the same time, government must create facilitating environment for growth. In the current environment of advancing technology and globalization, business has become highly competitive. Moreover, process of globalization has changed the dynamics of global business. Emerging markets of South East Asia, Middle East and BRIC countries offer huge potential for businesses. They are high growth markets with high income where demand for new product can be easily created (Hook, 2001). This is a very important factor that must be exploited by the business community. Growth of business contributes to the growth and development of nations. Thus, it becomes imperative that businesses must constantly make efforts to expand and grow. R&D facilities promote innovation of ideas, new product development and innovation in business processes for greater productivity. Furthermore, innovative approach and resource based strategy provide the firms with unique value creating capabilities that give them distinct advantage against their rivals. As such, they emerge as critical elem ents that facilitate businesses to compete successfully and grow even in adverse circumstances (Coombe and Georghiou, 2002). Indeed, government initiatives are major incentives for businesses to look for new opportunities and motivate them for diversifying their interests. But unless and until they are backed by conducive environment of growth,