ENVIRONMENTAL ANALYSIS

Environmental Analysis

Environmental Analysis

Introduction

Airline is a multifaceted business. It absorbs most important capital necessities for aircraft, watch by government system, limitations and state policy, cutthroat reaction from additional tourist move and entailing high stage of expertise to function and manage. Airline is confronting increasing globalization, elevating fuel prices, intense repair & upholding cost, mounting labor costs, increasing competition and requirements for higher service stages and greater suppleness.

This report aims to establish the context of the European airline environment and assess the impact of managing change in a business organization by analyzing the following (McGraw, 2002, 12-16):

In order to analyze the impact of managing change, an initial analysis is undertaken to ascertain the state of the European airline environment. Consequently, an assessment is then made of the current state of the organization after change has taken place. The objective of this assignment is to analyze the practises and to outline British Airway's approach to managing change in its organization (Forsyth, 1997, 54-59). This issue assumes a particular relevance in an increasingly competitive environment in the service industry.

The approach to this assignment is analytical and looks for evidences to sustain the proposed arguments and ideas. Information comes from secondary sources such as newspapers articles, specialised magazines, books on airline management and marketing and management issues, reports and research from the major marketing research providers and professional bodies, companies' annual reports and information (Markoff, 2005, 45-51).

The report is divided in two parts. The first part analyzes the strategic approach to the market and the corporate culture of the airline. The second part focuses on how they manage change, with particular emphasis on factors for success or failure of the change.

Strategic Analysis

Until Southwest chooses to widened its operation domestically and expand its activity internationally, Southwest Airlines is being prudent by keeping short flights. Currently, over one-hundred cities are waiting for Southwest Airlines to bring their business and create jobs in their locations. It would be very beneficial for Southwest Airlines to take this opportunity to expand while it is available because it will take the company to whole other level which will be reflected by a significant growth. It would also be astute to network and make agreements or contracts with larger carriers to share and maximize profit. The company should do it as soon as possible because competitors would jump on such an opportunity to expand. Evolving into a bigger corporation should be an easy step as Southwest Airlines has already succeeded with his low price ticket strategy driving out its competitors of business and taking over their market share.

Since Southwest Airlines' on-line ticketing system generates up to fifty percent of the company's revenue, a committee should be permanently appointed to audit and improve this asset. Booking a flight on-line costs Southwest Airlines one dollar per ticket while booking a flight via a travel agent costs on average ten dollars per ticket. Updating the Southwest Airlines website and enhancing this type of technology is necessary to lower operation costs and to ...