United Airlines

Only available on StudyMode
  • Download(s) : 324
  • Published : April 16, 2012
Open Document
Text Preview
Comprehensive Term Project
United Airlines

[pic]

Prepared By:

Presented to: Jeffrey R. Nystrom

Management 4500
Business Policy and Strategic Management

November 18, 2008

Table of Contents

SECTION 1: CASE STUDY1
1.1 Background / History1
1.2 Organizational Mission1
1.3 External Environment2
1.4 Internal State of Affairs4
1.5 Generic Strategy5
1.6 Long-Term Objectives5
1.7 Grand Strategies5
1.8 Short-Term Objectives6
1.9 Functional Tactics7
1.10 Strategic Execution8
1.11 Executive Bonus Compensation Plans8
1.12 Current and Historical Culture and Structure9
1.13 Strategic Controls10
1.14 Innovation and Entrepreneurship11

SECTION 2: IDENTIFICATION OF KEY STRATEGIC ISSUES12
Culture:12
Market share:12
Economy:12

SECTION 3: ANALYSIS AND EVALUATION13
3.1 External Environment13
3.2 Internal Analysis16
3.3 SWOT Analysis18
3.4 Organizational Mission18
3.5 Generic Strategy19
3.6 Long-Term Objectives20
3.7 Grand Strategies21
3.8 Short-Term Objectives22
3.9 Functional Tactics24
3.10 Strategic Execution25
3.11 Executive Bonus Compensation Plans25
3.12 Company Culture, Structure, and Leadership26
3.13 Strategic Control27
3.14 Innovation and Entrepreneurship28

SECTION 4: RECOMMENDATIONS29
4.1 External Environment – Opportunities and Threats29
4.2 Internal Environment – Strengths and Weaknesses30
4.3 Organizational Mission30
4.4 Generic Strategy31
4.5 Long-Term Objectives33
4.6 Grand Strategies33
4.7 Short-Term Objectives and Action Plans35
4.8 Strategic Execution35
4.9 Executive Bonus Compensation Plans36
4.10 Strategy Implementation37
4.11 Strategic and Operational Controls40
4.12 Innovation and Entrepreneurship42

Section 1 Appendices43
Appendix 1A - United Airlines Timeline43
Appendix 1B - Corporate Responsibility Statement45
Appendix 1C - Executive Management Changes45
Appendix 1D - Differentiated Products:46
Appendix 1E - Sharing Plan Targets47
Appendix 1F - Executive Officers:47

Section 3 Appendices49
Appendix 3A - Economic Factors49
Appendix 3B - Social Factors50
Appendix 3C - Political and Technological Factors50
Appendix 3D - Ecological Factors53
Appendix 3E - Industry Analysis53
Appendix 3F - Operating Environment and Competitive Position62 Appendix 3G - Resource Based View65
Appendix 3H - Value Chain Analysis67
Appendix 3I - Financial Analysis70
Appendix 3J - SWOT Analysis79

Reference Notes81

SECTION 1: CASE STUDY

1.1 Background / History

UAL Corporation, the holding company for United Airlines, Inc., is one of the leading passenger and cargo carriers in the world. UAL began as a mail carrier on April 06, 1926. Within a couple of years it became a leader in the airline industry thanks to its aggressive efforts to expand its domestic and international passenger services.[i] United experienced extensive growth in revenues and international services during the 1990’s by joining Star Alliance, which brought United together with numerous international airlines including Air Canada, Lufthansa, SAS and Thai Airways. This allowed the alliance members to overcome their individual inadequacies by achieving an unparalleled global partnership. [ii] Early on, United became an industry leader by working with its employees, customers, and shareholders. This was evidenced by United being one of the first airlines to offer a pension program for its employees. Despite its progressive efforts, United has faced numerous obstacles throughout its history.

The new millennium has been one of the worst and most difficult times for United. Labor issues, terrorist attacks, skyrocketing oil prices, and lack of effective management structure created major problems for United, eventually leading to its filing for...
tracking img