Strategic Management

1. write a report (3,000 words) containing a comparative strategic analysis of two companies’ (Air France/KLM and United Airlines) following the guidelines outlined below. (75%)

Executive Summary [10%] – This must be a short 150-200 word summary stating
a) The aim of the report
b) What were the KEY FINDINGS
c) What strategy would you recommend each company pursue

Section One – Introduction [10%]: Introduce the two companies you are researching, explain the main products/services they provide and markets they operate within, as well their missions, visions and CSR stances.

Section Two – External Industry Environment [15%] Analyse the key factors impacting on (a ) the stability of the external environment and (b) industry attractiveness –using appropriate macro/meso tools.

Section Three – Internal environment [15%] – Analyse the firms’ internal strengths and weaknesses using appropriate micro tools.
Section Four– Financial analysis [15%]Analyse the two firms’ financial positions based on the following SIX ratios
TWO Horizontal: percentage change in sales and operating profit
FOUR Vertical operating profit margin, return on capital employed, current ratio, debt gearing.

Section Five – Conclusions and Recommendations [10%]:
(a) Conclude by providing a SPACE analysis to summarise the strategic position of each organisation. AND
(b) Make recommendations for strategies EACH company should consider adopting to become more competitive given current challenges in the external environment and their access to internal strengths.

2. Appendix One – Personal Reflection [25%] – This section (1,000 words) should outline the secondary research you undertook to gather information on the companies and sectors and reflect on how any gaps in available information have impacted on your report findings and conclusions. You should also discuss (a) which sections of your report you feel are strongest and (b) any concerns you have about limitations or weaknesses in your report relating to the application of strategic management concepts and models.


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