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American Airline Case Study

American Airline Case Study

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This a comprehensive strategic analysis for American Airline
case analysis strategic strategy management American airline five forces PESTEL SWOT CPM opportunities threats strengths weaknesses vision mission grand matrix space matrix QSPM
This a comprehensive strategic analysis for American Airline
case analysis strategic strategy management American airline five forces PESTEL SWOT CPM opportunities threats strengths weaknesses vision mission grand matrix space matrix QSPM

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Published by: Fathi Salem Mohammed Abdullah on Jun 06, 2009
Copyright:Attribution Non-commercial

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University of JordanFaculty of BusinessStrategic Management
“American Airlines ”
Case StudyStrategic Management 
Prepared By
Fathi Salem Mohammed Abdulla
2009
37
 
Introduction
American Airlines, Inc. (AA) is a major airline of the United States. It is theworld's largest airline in passenger miles transported and passenger fleetsize; second largest, behind FedEx Express, in aircraft operated; and second behind Air France-KLM in operating revenues. A subsidiary of the AMR Corporation, the airline is headquartered in Fort Worth, Texas, adjacent tothe Dallas-Fort Worth International Airport. American operates scheduledflights throughout the United States, and flights to Canada, Latin America,the Caribbean, Europe, Japan, the People's Republic of China, and India.The Chairman, President, and CEO of AA is Gerard Arpey. In 2005, theairline flew more than 138 billion revenue passenger miles (RPM).
Vision Statement
(proposed)To become the largest airline in the world.
Mission Statement
(proposed)AMR Corporation is committed to providing every citizen of the world with thehighest quality air travel to the widest selection of destinations possible. AMR will continue to modernize its fleet while maintaining its position as the largest air carrier in the world, with a goal of becoming the most profitable airline. AMR isthe airline that treats everyone with equal care and respect, which is reflected inthe way each AMR employee is respected. AMR recognizes that its employeesare the key to the airlines success and invests in the futures and lives of itsemployees. By investing in tomorrow’s technologies and by following a strictadherence towards environmental regulations, AMR demonstrates its commitmentto the world environment.38
 
External Audit
Opportunities
1.Favorable wage negotiation climate2.Travel increasing in general3.Low interest rates4.Government backed loans5.Information technology6.New fuel efficient engines7.Partnerships with Asian Airlines
Threats
1.Increased air travel inconvenience (security related)2.Business travel declining3.Increased competition from point-to-point competitors4.Availability of pricing information5.Overcapacity in industry
Competitive Profile Matrix
 39
Critical Success FactorsWeightRatingRatingRatingRatingFinancial Position
0.101.000.101.000.102.000.204.000.40
Cost Structure
0.303.000.902.000.602.000.604.001.20
Information Technology
0.203.000.603.000.603.000.604.000.80
Partnerships
0.254.001.003.000.754.001.001.000.25
Fleet
0.153.000.454.000.602.000.303.000.45
1.003.052.652.703.10WeightedScoreWeightedScoreWeightedScoreWeightedScore

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first they change vision because last 9 year they never get good profit
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