United Air: Airline Strategic Plan Decision Log Quarter 4 Report

This report presents the decision log for United Air's strategic plan during Quarter 4. It details major changes in the company's strategy, focusing on improving turnover and net profit, addressing decreasing profits and share prices. The log outlines key issues discussed, including flight operations and administrative expenses. It highlights significant decisions, such as maintaining discounted fares, adjusting marketing budgets, and refining training and maintenance levels. The report also includes financial ratio analysis, comparing the company's performance against industry standards, and summarizes the airline's actions to navigate challenges and achieve its objectives within the airline simulation game.

Decision log
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Contents
Decision log table............................................................................................................................3
State any major change in your overall strategy (e.g., long-term objectives) and how it differs
from the original..........................................................................................................................3
State the major issues and/or problems to be discussed at the meeting.......................................3
List each MAJOR decision or change in previous operating policy you are going to make this
quarter and give the rationale behind the decision......................................................................4
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Decision log table
Decision Quarter: 4
Company: United Air
State any major change in your overall strategy (e.g., long-term objectives) and how it differs
from the original.
From the previous outcome of quarter 3 this has been seen that the managers are taking
into consideration the discounting factor for the airlines. This has been seen that the fare has
been brought to 31cents so as to promote companies sales turnover. In this quarter the company
has not decided to change the fleet or has not changed the number of seats. The company’s main
focus is on the improving the turnover so that they are able to increase the net profit. As this are
decreasing in each quarter. The company has changed their decision of providing inflight
magazines and has reverted it. Also the company has given zero budget for cargo marketing
budget. This shows that the company needs to close down the cargo business. The company is
providing the quality training to the worker so as to increase their employee’s skills and
competence. Hence the budget is increased to $750. While the company has changed he
maintenance level to level 2 so as to keep the plane clean. The cost of aircraft per quarter is at
$2,500 for maintenance and cleaning. The company has decide to perform a social responsibility
area to political causes and decide the budget for this to $800. While the decision to Air
ambulance service has been taken back and the company has decided to turn the offer down.
State the major issues and/or problems to be discussed at the meeting
In this quarter the company faced the main issues that the company is not able to increase
its profits and it was surging year by year. Also the price of shares were constantly decreasing
which was the main cause of concern for the company to achieve its target. The main cause of
concern for the company was to flight operations expenses. These are the expenses which are
hampering the earning of the company the most. Also the administrative expenses are effecting
the profits of the company as the company is not able to decrease their extra expenses which are
and due to which the profits are decreasing.
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List each MAJOR decision or change in previous operating policy you are going to make this
quarter and give the rationale behind the decision
The management of the company took various decisions which helped them in achieving the
objective increasing the profits. However it was not able to achieve this. Company maintained
the decision of waiving the shareholders dividend as the company was not able to come in the
green figure of profits. The main decision of the company was to change the fair of the company
to the discounted rate as this helped them to increase the turnover and the number of passenger
as required by them.
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