FINANCE PAPER

Finance Paper

Finance Paper

Strengths

Virtual Organization's strengths are centred to a large extent on their ability to create cost advantages. For example the company uses its own engineers to carry out its routine checks and repairs on its aircrafts meaning some maintenance costs are included in its staff costs.

Virtual Organization's operating costs are among the lowest of any European scheduled passenger Organization”(Virtual Organization). In fact the company focuses and try to control and reduce the four considered major costs for a passenger Organization, which include aircraft equipment, personnel productivity, customer service and airport access and handling. (Milmo, 2006, 1)

The initial company's strategy ...