Air National is the biggest Europe airline company and in 1990’s the company managed to make profit and to be very productive through the efforts of that time CEO Bradley Smith.Bradley Smith tried to keep AN a competitive air line company in the market but was privatised by Britain’s Conservative government. However in 2000 the company reported $ 93 million a pre-tax loss which forced new CEO Clive Warren to overtake a significant change in Air National and to take a strategic approach to the business and to adopt an empowering –development approach to HRM.AN is affected from internal and external factors which will help us to analyse company’s business.The internal factors include strengths, weaknesses, opportunities and treads known as SWOT analyses.Aslo we will be looking at the external factors which are social,economic,political,technological,international,legal and environmental known as SEPTILE. Strengths
Air National is the best airline in the world and had resources and government intervention which led them to huge revenue. Weakness
The weakness which Air National suffered from is when in 1980’s the low cost strategy was applied but failed and that led to 7% of passenger slum contributed with a pre-tax loss of $ 93 million.AN had a cost reduction policy and between 1996 and 2000 the company applied nearly 25% reduction in the work force.Job cuts were made of voluntary severance and reassignment to other department.The requirements to sustain and improve performance while reducing the number of employees was a challenge for the management of AN which provoked conflicts. Opportunities
GoJet’s failure to succeed in the airline market was an opportunity for AN to gain more profit and more customer demand. Threads
In 2002 a new discount airline company start operating in the air line services and led to a costly battle between AN,HopJet and Tango Airlines.The reason why senior management has to...