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A STRATEGIC MANAGEMENT CASE

A STRATEGIC MANAGEMENT CASE Continental Airlines Inc. SUBMITTED BY: LYRA P. HERNANDEZ SUBMITTED TO: MR. ANDREW

Continental Airlines Inc.

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

CONTINENTAL AIRLINES INC.

Continental Airlines grew from a small airline flying a single engine carrying 4 passenger. Along with its subsidiary, Continentals Micronesia Inc. and regional flights operated by continental Express and continental connection, it operates more than 3,000 daily departure throughout America. It serves more international destinations. Continental has 44,494 employees.

Continental was one of the first to add winglets to replace standard wingtips on its aircraft that reduce the fuel consumption up to 5%.

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, 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

EXTERNAL AUDIT

OPPORTUNITIES

THREATS

  • 1. Operating regional jets

  • 1. Volatility of fuel prices

  • 2. Use of internet

  • 2. Merger of U.S. and American

  • 3. The EU-US Open Skies Treaty

Airways

  • 4. Profitability in airline services

  • 3. Domestic competition

  • 5. Global climate change as an important issue

  • 4. Airlines operating under Chapter II Bankruptcy

  • 5. International market

  • 6. Use of internet

EXTERNAL FACTOR EVALUATION MATRIX

Key External Factor

Weight

Rating

Weighted

Score

OPPORTUNITIES

     
  • 1. Operating regional jets

.11

3

  • 2. Use of internet

.15

4

  • 3. The EU-US Open Skies Treaty

.09

3

  • 4. Profitability in airline services

.11

2

  • 5. Global climate change as an important issue THREATS

.09

2

  • 6. Volatility of fuel prices

.08

3

  • 7. Merger of U.S. and American Airways

.04

2

  • 8. Domestic competition

.10

4

  • 9. Airlines operating under Chapter II Bankruptcy

.06

2

  • 10. International market

.07

3

  • 11. Use of internet

.10

____________

1.00

===========

INTERNAL AUDIT

Strength

 

Weaknesses

  • 1. Strong increase in gross profit

 
  • 1. Worst record of overbooking

  • 2. The first to add winglets on its aircraft

  • 2. No officer is assigned to oversee international operations

  • 3. Customer passenger and load factor

  • 3. Poor on –time performance

have improved

  • 4. Mishandled baggage has have

  • 4. Having a clear and measurable goals

increase

  • 5. The holder of different awards in

  • 5. Customer complaint

airline category

  • 6. Operating cost is above the cost of low cost carrier

INTERNAL FACTOR EVALUATION MATRIX

Key External Factor

Weight

Rating

Weighted

 

score

STRENGTH 1.Strong increase in gross profit

     
  • 2. The first to add winglets on its

aircraft

  • 3. Customer passenger and load

factor have improved 4.Having a clear and measurable goals 5.The holder of different awards in airline category WEAKNESSES

  • 1. Worst record of overbooking

  • 2. No officer is assigned to oversee international operations

  • 3. Poor on –time performance

  • 4. Mishandled baggage has have increase

  • 5. Customer complaint

  • 6. Operating cost is above the cost of low cost carrier