The internal analysis
Mission, vision, goals and strategy
Corporate Governance and management control systems
The external analysis
In relation to the competition
Porter's Five Forces Model
The company’s image
Quality of services and products
Image as employer
Air France-KLM structure and main subsidiaries
BCG matrix and Porter's Five Forces Model
The Air France-KLM Group is one of the biggest airline companies in the world. AF-KLM Cargo is, within this group, a business unit focused on freight. The past few years, AF-KLM Cargo managed to integrate its activities and teams, through this ‘integration’, the process of “rightsizing” the organisation has begun. In the current economic environment “rightsizing” the organization becomes more important if an organization wants to be more profitable than their competition. Effective rightsizing focuses on creating success and avoids the dangerous downward momentum that can come from poorly planned downsizing.
This is, however, complex to achieve. This is the main reason why AF-KLM Cargo asked us, advisory team Resultancy Group, to help them with finding a solution to this problem.
It’s important, when looking at different solution, to have a clear picture of the organisation and the problem itself. This Quick Scan helps us to form this clear picture and problem. In this report we took a closer look at Air-France KLM as a group and at the separate division: AF-KLM Cargo.
The Quick Scan is divided into two parts, which are ‘The internal analysis’ and ‘The external analysis’. In the first part the focus will lay on the organisation itself, questions like “What past issues are important for the future?”, “What does the company want?” and “How is the company organized?” will be answered here. The second chapter describes the main situation of AF-KLM and how AF-KLM is doing in relation to the competition. The SWOT analysis and the BCG matrix are some useful models that we used to clarify certain problems. Finally, the company’s image will be discussed at the end of the second part.
Concluding, to make sure that we were all finding information and working towards the same goal we came up with the following problem definition: The company is too decentralized, which leads to higher costs than necessary.
The internal analysis
In this paragraph a timeline of the most important developments and issues of the past will be shown. These events have made the Air France-KLM group and its division AF-KLM Cargo into the type of organization it is nowadays.
In this year KLM was set up to serve the Netherlands and its colonies. 1933
In October 1933 Air France was formed from a merger of Air Orient, Air Union, the S.G.T.A (Société Générale de Transport Aérien), the C.I.D.N.A. (Compagnie Internationale de Navigation Aérienne) and the Compagnie Générale Aéropostale. 1958
Martinair was founded in 1958 by aviation pioneer Martin Schröder and was at that time called “Martin’s Air Charter”. 2004
Air France and KLM Royal Dutch Airlines have become one airline Group with two airlines (Paris-Charles de Gaulle and Amsterdam-Schiphol) and three businesses (Passenger Business, Cargo and Engineering & Maintenance). 2005
In 2005 a new frequent flyer program (Flying Blue) was introduced by Air France-KLM. It was the first time in history that two airlines had...
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