Strategic Management Assignment

Topics: Airline, Price of petroleum, Low-cost carrier Pages: 8 (2062 words) Published: November 15, 2008
Faculty of Business and Law

Session: 2008/9

MBA: Strategic Management 1



Markets differ in a variety of ways including the degree of concentration and competitiveness, a fact which is reflected in the concept of ‘market structure’. Economists’ models link the structural characteristics of a market to the behaviour of firms in that market and subsequently to their performance. A key question therefore is how far a firm’s strategic decisions are shaped by the structure of the market in which it operates.

You are required to undertake a detailed examination of the changing nature of the long-haul transatlantic airline market. The market you are required to investigate comprises only the international passenger market (i.e. excluding the movement of goods by air) and will require you to discuss the existing market structure, examine the changing external environment and consider the emerging strategy of the airline operators in this sector.

A recent article is attached for your information; “Zoom to Gloom”, which provides one illustration of the current turbulent environment for the industry sector.

Attempt all the four tasks below and present your findings in the form of a report (3,000-4,000 words) divided into appropriate sections. Your report should also contain an Executive Summary (250 words) and a bibliography. Further details on the procedure you are required to follow are set out below. You might also find the attached article useful in providing background information on recent developments.


1.Having looked at the recent turbulent environment in the long-haul transatlantic sector, you are required to undertake a comprehensive examination of the macroeconomic business environment, using appropriate tools of analysis which will allow you to frame your examination.

(25% of marks)

2. Using appropriate economic examination, investigate the changing nature of “Market Structure” within the long haul transatlantic airline market. Draw upon market data which is available, to support your conclusions on “Market Structure” with in this industry sector. (30% of marks)

3.Given the conclusions drawn on Market Structure above, examine the level of competition within this market sector with the use of Porters 5 forces model to reinforce your explanation. (20 % of marks)

4.Discuss the strategic decisions that firms in this sector may be facing. What future strategies can firms pursue to try to secure their competitive advantage and long term survival? (25% of marks)


1. This is an individual project, leading to the production of an individual report.

2. All the data and information you need to complete this assignment is in the public domain and is easily accessible via electronic means. Please do not approach the companies for help with this project.

3. Your project should be presented in report format and should contain an Executive Summary and a Bibliography. Use of Appendices would be appropriate.

4. Your report should be a maximum of 4000 words (excluding Appendices and Bibliography).

5. Submit your report to the Graduate School Office no later than 12th of January.

6. The assessed report will be returned to you within 3 weeks. Your grade will be subject to ratification by the External Examiner and the Examination Board.

7. You are reminded of the University’s rules on plagiarism which are rigorously enforced. Please consult the student regulations and/or your programme leader for further details.

8. Please submit a disc copy with your written report and ensure you submit the assignment electronically, through the turn it in process, via the Blackboard site.

• Below is an abridged version of an article from;
• Last Updated: 30 August 2008 2:38 PM
• Source: Scotland On Sunday

From Zoom to Gloom, which budget carrier will be next?

With soaring fuel...

Bibliography: August 28, 2008 Zoom Airlines files for bankruptcy, grounds planes stung by sky-high fuel costs and cancels all flights, leaving hundreds of passengers stranded at airports.
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