A STRATEGIC MANAGEMENT CASE

Continental Airlines Inc.

SUBMITTED BY: LYRA P. HERNANDEZ SUBMITTED TO: MR. ANDREW TRINIDAD

000 daily departure throughout America. Continental Airlines grew from a small airline flying a single engine carrying 4 passenger.CONTINENTAL AIRLINES INC. it operates more than 3. Continental was one of the first to add winglets to replace standard wingtips on its aircraft that reduce the fuel consumption up to 5%. Continentals Micronesia Inc.494 employees. Along with its subsidiary. and regional flights operated by continental Express and continental connection. It serves more international destinations. Continental has 44. .

employees and stockholders PROBLEMS: Internet Issues -Continental Airline was slow to adopt in online bookings Domestic competition .VISION AND MISSION STATEMENT VISION: To be the world’s favorite airline MISSION: To be recognize as the best airline in the industry by the costumers. employees and stockholders DEVELOPED VISION AND MISSION STATEMENT VISION: To be the best and leading passenger airlines and also the world’s favorite airline MISSION: To provide a quality service to all passenger to be recognized as the best airline in the industry by the customers.

EXTERNAL AUDIT OPPORTUNITIES 1. Merger of U. International market 11. 5. Use of internet 3. THREATS Volatility of fuel prices Merger of U. 6.10 . 2.11 . 4.09 . Profitability in airline services 5.09 .08 .S. 3.S.11 . The EU-US Open Skies Treaty 4. 2. Operating regional jets 2. Global climate change as an important issue 1.04 . Use of internet 1. and American Airways Domestic competition Airlines operating under Chapter II Bankruptcy International market Use of internet EXTERNAL FACTOR EVALUATION MATRIX Key External Factor Weight Rating OPPORTUNITIES Operating regional jets Use of internet The EU-US Open Skies Treaty Profitability in airline services Global climate change as an important issue THREATS 6.15 . Airlines operating under Chapter II Bankruptcy 10.10 ____________ 1. . 4. Domestic competition 9. and American Airways 8.00 =========== 3 4 3 2 2 3 2 4 2 3 Weighted Score . Volatility of fuel prices 7. 3. 5.06 .07 .

Worst record of overbooking 2.Strong increase in gross profit 2. Mishandled baggage has have increase 5. Customer complaint 6. Having a clear and measurable goals 5. Customer complaint 6.The holder of different awards in airline category WEAKNESSES 1. Worst record of overbooking 2. Poor on –time performance 4. The first to add winglets on its aircraft 3. Poor on –time performance 4. Mishandled baggage has have increase 5. No officer is assigned to oversee international operations 3.Having a clear and measurable goals 5. The first to add winglets on its aircraft 3. The holder of different awards in airline category Weaknesses 1. Customer passenger and load factor have improved 4. No officer is assigned to oversee international operations 3. Operating cost is above the cost of low cost carrier Weighted score . Operating cost is above the cost of low cost carrier INTERNAL FACTOR EVALUATION MATRIX Key External Factor Weight Rating STRENGTH 1.INTERNAL AUDIT Strength 1. Customer passenger and load factor have improved 4. Strong increase in gross profit 2.