Strategic Management Report: Airlines Industry Performance Analysis

This report analyzes the management of the airlines industry, focusing on the internal and external environments that impact operational efficiency. It discusses the importance of strategic management, the influence of factors like political, social, and economic elements, and the role of internal workplace culture. The report examines the significance of unique resources and capabilities, including financial, physical, and reputational assets, in achieving strategic competitiveness. It emphasizes the need for strategic leaders to prioritize customer focus, differentiation, and effective pricing models to enhance customer satisfaction and drive business success. The analysis also highlights the importance of innovation and technology in improving customer service and operational efficiency within the airlines industry. The report uses arguments of professors and references scholarly sources.

Running head: MANAGEMENT
Public administration
Name of the student:
Name of the university:
Author note:

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Question 1
The environment of the organization, both internal and external, is the cornerstone
towards enhancing the efficiency in the operations of the brands like airlines industry.
According to Hitt, Ireland and Hoskisson, (2012), political, social, economic, legal,
technological and environmental factors contributes in detecting the external forces
regulating the operations. On the contrary, Rothaermel, (2017) states that internal
environment reflects the workplace culture of the industry, which reflects the approach
towards serving the clients and customers. Businesses are processed from the internal to the
external environment for providing proper shape to the raw materials. In this context, labour
productivity is emphasized for generating scientific management, which enhances the
productivity, guarantying success.
According to the arguments of Professor A, external environment is the cornerstone,
evoking strategic management. In case of the airlines industry, consolidation has resulted in
poor performance. Typical evidence of this lies in the negative instances of bankruptcy in
case of the operations of Continental and United. Primary competition accompanied the
attempts to reduce the mistakes in terms of the customer complaints. Taking a cue from the
arguments of the professor, it can be said that diversifying the options in the travel packages
can be effective in terms of earning above average returns from the customers. Apart from
this, O'brien, (2019) is of the view that cost benefit analysis needs to be conducted for the
loyalty programs.
Question 2
Based on the opinions and suggestions, made by the Professor B, it is clearly
understood that the organisation’s unique resources and capabilities have been linked to the
strategic competitiveness within the industry. The resources and capabilities of the

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organization have helped in managing coordinated actions while at the same time, exploit the
core competencies and opportunities required to gain competitive advantage in business. This
has not only ensured value creation, but also has enabled management of commitment
decisions along with achievement of strategic competencies and skills required to achieve the
strategic competitiveness within the airlines industry effectively as well (Hitt, Ireland &
Hoskisson, 2012). The unique resources include the financial resources and capabilities such
as the working capital, funds available and also the money in the form of revenue generated.
The physical resources include the plants, machineries, equipment, geographic locations
where the company wants to travel to and also the trademarks, patents and copyrights, all of
which, represent the brand identity. The reputation resources also are considered as unique
resources because the airlines company has made sure to emphasize on the sustainability
management through protection of environment and benefiting community at large (Fyliuk,
2013). According to Professor B’s opinions, it could be clearly understood that all these
resources are not only responsible for facilitating the business performance and efficiency,
but also has helped the companies within the airlines industry to reach new heights and attain
success in terms of higher profit level achieved and attainment of strategic competitiveness
too.
Question 3
Most importantly, as it is a hospitality and travels sector, it is always important for the
strategic leaders of the organisation to make sure that the company remains customer focused
and can score quite high in terms of the flights reaching on time and delivering extensive
services for raising the level of satisfaction among the clients. The strategic leaders must
focus on differentiation, as it was already mentioned in the case study that the industry lacked
differentiation as almost every airlines company delivered similar kinds of services and at the
same prices even. Thus, the strategic leaders must identify the sources of income at first and

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then master the pricing models and frameworks properly so as to make customers influenced
towards the purchase of that specific airlines services too (Bhawsar & Chattopadhyay, 2015).
This would also help the company to manage supplies based on the demands and
expectations in the marketplace, furthermore, ensure generating higher revenue and
achievement of competitiveness in business as well. To create more convenience and
promote innovation, the strategic leaders should also focus on introducing the self-service
and technology for making sure that the customers could easily check in without needing any
help from others, furthermore, allow the company to leverage the technologies that are
automated and could offer better customer related information, data and analytics too (Hitt,
Ireland & Hoskisson, 2012).

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References
Bhawsar, P., & Chattopadhyay, U. (2015). Competitiveness: review, reflections and
directions. Global Business Review, 16(4), 665-679.
Fyliuk, G. (2013). PROBLEMS AND WAY OF INCREASE OF UKRAINIAN
COMPANIES’COMPETITIVENESS UNDER GLOBALIZATION. Bulletin of Taras
Shevchenko National University of Kyiv. Economics.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2012). Strategic management cases:
competitiveness and globalization. Cengage Learning.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2012). Strategic management cases:
competitiveness and globalization. Cengage Learning.
O'brien, J. (2019). Category management in purchasing: a strategic approach to maximize
business profitability. Kogan Page Publishers.
Rothaermel, F. T. (2017). Strategic management. New York, NY: McGraw-Hill Education.