Dr. Wade C. Ferguson
Sr. Seminar in Business Administration - Business Administration Capstone BUS 499-020016*201002
Friday, December 18, 2009
1. What type of international strategy has the company chosen, and what means has it used to expand internationally? The type of international strategy that has been chosen by Lufthansa involves four phases, where the first three results to a global strategy and the final phase is a strategy monitoring system (2006). The first phase is project definition and mobilization, wherein the company reviews its project definition, builds up a common understanding, and prepares all players for the forthcoming project. The second phase is strategic plan formulation, where the company analyzes its internal and external environment, develops its vision and mission statements, and formulates corporate goals and objectives. Its findings are then summarized in the corporate strategic plan, while the implementation plan outlines ways of realizing the future global strategy. The next phase is the strategic planning and implementation, where the company translates the strategic plan into departmental plans, designs organizational structures in line with corporate strategy, and defines resource requirements. In addition, a departmental communication plan is drawn up, outlining ways of publicizing the corporate strategy and securing employee buy-in (2006). These three phases build Lufthansa’s global strategy, and are responsible for the company’s aviation success. In line with this, Lufthansa has made major efforts to improve their international competitiveness, which include a series of sustained cost reduction, restructuring measures, and a focus on the core business of passenger airlines. In addition, the company’s focus is on growth efforts in sustaining increase in company value, through using the Cash-Value-Added (CVA) concept, which brought financial improvement and sustenance to the...
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