BUS 490 – Business Policy
Strayer University – Sand Lake
November 8, 2012
Preparing a comprehensive case analysis, part 1
This paper is the first part in preparing a comprehensive case analysis for U.S. Airways. How this particular company could possibly take advantage of some external opportunities, along with a strategy that could address some possible threats will be discussed. A competitive Profile Matrix will be constructed and will include some major competitors of U.S. Airways along with a few success factors that may be critical for this company to succeed. Finally, an External Factor Evaluation Matrix will be constructed from the PESTEL framework to help summarize and evaluate the current business situation of U.S. Airways while assessing opportunities and threats the company may be facing.
All-American Airways began in 1939 as the first airmail service, changing names several times – due to buy outs and mergers – until February 27, 1979 when US Airways was born (Going Green, 2012). They filed for Chapter 11 bankruptcy in August 2002 and without halting operations they not only turned things around and pulled themselves out of bankruptcy in 2003 (Gallagher, 2003), they also reported a net profit of $240 million in 2010. The Dallas Ft. Worth (DFW) airport is currently the third busiest airport in the world (Fegan, 2012) and fly’s to more than 200 locations worldwide - 210 to be exact.
U.S. Airways does not have an official mission statement – at least not known to the public. However, their Dallas Fort Worth Airport’s mission reads: DFW International Airport will provide our customers outstanding facilities and services, expanding global access and economic benefits to those we serve (Fegan, 2012). This company has come a long way since its beginning and has proven high levels of corporate responsibility pertaining to the environment, its employees and communities. Existing objectives and strategies
One aspect of U.S. Airways’ objectives is to maintain a high level of corporate responsibility by protecting and preserving the environment, and conserving natural resources. The strategy in which this is accomplished is through waste reduction. Since 2006 all maintenance reports and machinery checks have been done electronically. This
allows them to recycle on average thirty tons of paper annually in the maintenance department alone (Going Green, 2012). US Airways sends their aluminum, waste oils, scrap metals and other materials from ground and equipment maintenance to recycling centers. Over 5,200 gallons of oil was recycled for aircraft maintenance in 2010 for the Phoenix location alone. Their objective is to help minimize the negative impact on the environment and help preserve the earth. They also give back to the community; this is done in a wide variety of ways. In 2007 they partnered with Honor Flight – a not for profit organization whose sole purpose is to honor veterans for their commitment, service, and sacrifice – and fly veterans to Washington, D.C. free of charge (US Airways, 2012). Other objectives for US Airways are to minimize cancellations and costs, maximize on-time arrival performance, and reserve passenger connections. Creating customer satisfaction, delivering operational excellence, fostering employee engagement, and remaining cost competitive are also on the list of objectives to be accomplished (Fegan, 2012). They continuously provide training, education, and the opportunity for career development. They also strive to make sure the workforce is healthy, inclusive, engaged and diverse through the implementation of programs such as, health and wellness, comprehensive communication, and Total Rewards programs. Strategy for an external opportunity / potential threat
New technology is one external opportunity that U.S. Airways can take advantage of. Strategies...