Business Plan

Business plan

Introduction

In 21st century, to attract entrepreneur it is important to develop effective business plan. Without proper presentation and clarity of business plan, no company can achieve its goal or secure financing. If the business plan is well defined and well presented, it could attract good investors (Abrams, 2003).

There are some factors which are involved in successful business. This factor involve business concept, have a good understanding of market, knowledge of industry trends and wealth, good focus on business and strategies, management capabilities, ability of attracting customers in all aspects, financial control, responsiveness to change and value of the company and reliability (Abrams, 2003).

(Abrams, 2003) focuses on refining business concept, a good concept adds in at least one thing to business from; it includes new technology or new service or feature; it could be an improvement of current product or service; a product or service for underserved market; incorporation of the new system or technology for enhancing product or services value; and addition of more services or products.

Current business plan adds improvement in current service or product of American Airlines. The plan is to transform American Airline by adopting a learning environment. As a result it would possibly improve processes, market share and profitability of American Airlines. In later planning, brief introduction of American Airline along with various reasons are discussed for proposing such business plan to the company.

American Airlines

American Airlines is among the largest airlines based in United States and it is owned by AMR group. American Airlines is headquartered in Texas. It extensively operates its operations in United States and Internationally. Fort Worth International Airport is the main hub of American Airline operations. Despite its size and operations, its parent company filed for bankruptcy protection according to chapter 11. This depicts various lags in the operation of such large organization.

History

In 1930, American Airlines was formed with conglomeration of 82 airlines operating at small scale. It was initially named as American Airways after conglomeration. It is to mention here that like all other airlines, American Airways earns its profit by carrying U.S. Mail (American Airlines, 2013).

In 1934, business was acquired and renamed to American Air Lines by E.L. Cord. He hired a person who worked with Donald Douglas to develop DC-3 aircrafts and his name was Cyrus Rowlett Smith. In 1936, American Air Lines was first to fly with DC-3 aircraft and for the first time in airline industry made profit solely by carrying passengers. On the other hand other carriers were still earning by carrying U.S. Mail (American Airlines, 2013).

After World War II, America Export Airlines was acquired by American Air Lines and renamed it to American Overseas Airlines and purpose behind this was to serve Europe. Later in 1950, American Air Lines sold American Overseas Airline to Pan America. However, it launched another subsidiary to Mexico named Lineas Aereas Americanas de Mexico S.A. American Airlines was the second largest company of world after merging capital in 1961. In 1959, American Airlines presented transcontinental ...