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Based on what the paper I will give to u and write the last two sections.Section : Strategy Selection (QSPM)Identify what you believe to be the best two strategies and complete a QSPM Matrix for your organization. Each selected strategy must be specific and fall into one of the Strategy Categories discussed in class (see Strategy Categories). Explain your reasoning for each.(Grading will be based on the formatting and accuracy of the data and the reasoning for each)Section : Conclusion and Recommendations1.Based the strategies developed in the previous section, discuss which strategy (select the best based on what you believe is the best course of action for your company).2.Describe any actual or potential Ethical Failures with each of the strategies and how these may be mitigated. Keep in mind that most of these companies operate globally.3.Write a conclusion that summarizes your findings from this analysis and discuss the feasibility of your strategy recommendation.(Grading will be based on depth, quality and originality)
20190508040726delta_airlines___3.pdf

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Section 1: Background of the Organization
Background
Delta Airlines, also often referred to as Delta, is a major American Airline. The company
originally began as a crop dusting operation called Huff-Daland Duster. This was until Collett
Woolman, one of the original directors, purchased the company in September of 1928, and
renamed it Delta Air Service. This company began operating in June of 1929 when they
started flying between Texas and Mississippi. When Delta moved its headquarters in 1941 to
Atlanta the company continued to grow due to the addition of new routes as well as the
purchasing of other airlines. Delta replaced its propeller plans with jets in the 1960’s. Later,
between 1970 and 1980, Delta began competing internationally; flying to Europe and later
across the Pacific ocean. Back in 2007, Delta experienced bankruptcy. In order to emerge, the
company merged with Northwest Airlines to create the world’s largest airline.
Vision and Mission
Delta Airlines has a vision to become the world’s most trusted airline. With that being said,
the company wants their customers to feel safe and secure while traveling their airline. On the
other hand, the company’s mission statement focuses more on company standards.
“​We—Delta’s employees, customers, and community partners together form a force for
positive local and global change, dedicated to bettering standards of living and the
environment where we and our customers live and work.” (….) Delta portrays interest in
employees, customers, shareholders, local and global environments, by promoting diversity,
superior customer service, maintaining profitability, and continually investing in the
improvement of the environment.
Core Values
Delta has something that they refer to as, “Rules of the Road” which outlines what it means
to live out their core values and leadership behaviors everyday. The list which they refer to as
their core values consists of honesty, integrity, respect, perseverance and servant leadership.
They consider some of their most important behaviors to be, “Listening closely and
communicating openly, encourage change and innovation, Promote broad employee
involvement, …” (DELTA)
Business
Delta Airlines classifies as part of the Air Transportation Industry. The Air Transportation
Industry provides transportation for passengers/cargo using aircraft. As of February 2019,
Delta offers flights to 241 different destinations, and operates 764 aircrafts with 4,804 flights
per day. The airline has eight domestic hub cities and four international hubs. Today, flying is
the safest, fastest and for some locations, the only way to get there. The company continues
to grow, and be one of highest ranked in the industry.
Competition
Delta Airlines competes with other major airlines in the U.S. Three other well-known
competitors are American Airlines, Southwest and JetBlue. American Airlines and JetBlue
offers similar prices and products as Delta, however, Southwest is the only of these airlines
that does not offer first class seating. The reason for this is because Southwest offers some of
the cheapest vacation airfare.
Strategies
Section 2: Environmental Sustainability Initiatives
At Delta, sustainability is defined as, “‘meeting the company’s financial goals of
growth and profitability over time, through innovative business practices that minimize the
environmental impacts of Delta operations and promote the health, welfare, and productivity
of the individuals and communities we employ and serve.’” (DELTA) Just a few of Delta’s
sustainable acts are being the first U.S. airline to offer carbon offsets to customer, the first
U.S. airline to begin recycling, and in 2018 Delta’s sustainability team championed the
creation of Green-Up, a resource group that establishes sustainability ambassadors
throughout the company. Delta is so committed to being a sustainable company that they
even began working with other companies to seek bigger, and better long term goals. “​Delta
is committed to and has achieved carbon-neutral growth through carbon offsetting and
fuel-saving initiatives for six consecutive years and is aligned with the International Air
Transport Association on short-, medium-, and long-term goals to improve fuel efficiency,
achieve carbon-neutral growth and reduce carbon emissions by 50 percent by 2050, compared
to 2005” (DELTA) ​Since 2005, Delta has seen a decrease in their jet fuel consumption of up
to 11%. Although the company has several sustainability acts, they also find it very important
to engage their employees and communities. They know that happy employees are a key to
success, and keep their employees in the swing of everything to come up with a long term,
sustainable goal.
Section 3: External Assessment
Political
The politicians at times may come up with political agendas that may give rise to bills that they
pass in the Congress; in that case, they make regulations that may interfere with the company’s
operations ​(Perez, 2019)​. There other political agendas that influence the way they operate when
it comes to the bureaucratic governance of the same firm.
Economic
Delta operates in an economically stable country. However, the taxes keep on fluctuating at
times the import duties leveled again the goods they import may hurt their business as the sellers
look for other alternatives to sell the good, they would have made in the American nation. The
cargo transportations, in this case, may suffer in the long run. The industry also has to deal with
the labor unions that fight for the employees right where they have to help them get the best
salaries so the airline will have to deal with the fact that they are going to be a paying more for
the employees at any particular time. This in itself would dent their income as they have to
provide funds to cater to that specific issue.
Socio-Culture
They serve a wider variety of people, so they have to make sure that they meet their cultural
needs. They take up cultural practices in the company that makes them take care of their
environment and serve their customers most desirably so that they would not annoy the people
they serve because of the choices they make that are insensitive. They make sure that they
consider the culture of their employees meeting their everyday desires.
Technological
The company at times has to change its operations to keep up with competition because that
may give them the leverage against them. Adoption of the newest technology helps the
company, in this case, to refine its operations and provide the people with the best services and
experience to make them coming back for more. They, however, have to pay the price of the
costs they have to pay when it comes to servicing and installing the same technology. They also
have to deal with the fact that they may have to train or hire the same.
Legal
The company has to deal with the discrimination laws that are in America that impact their
operations in other countries as there are people who would not use the airline because it is
American. There are laws like the antitrust and the consumer protection laws that impact the
industry and companies like Delta directly, hence they have to act on the same to save
operations.
Environmental
The company has competitors that they have to check on so that they cannot steal their
operational success or market share. They, therefore, have to know every factor that is present in
the market to give the best service for generating revenues and be among the leaders in the
airline industry ​(​Gupta, 2017,). They also have to help the community they serve as part of the
corporate social responsibility to avoid issues like legal implications leveled against them all the
time. they also have to make sure that their employees are very well taken care of therefore
retain them reducing the rate at which they have to recruit new members into the company to
serve their needs.
CPM Matrix
South west
Critical
Delta Airlines
Weight
Rating
Score
Rating
Score
Brand reputation
0.13
2
0.24
3
0.40
Product line
0.06
3
0.15
1
0.03
Market Share
0.14
1
0.30
4
0.7
Sales per worker
0.08
1
0.09
2
0.25
Customer retention
0.02
2
0.03
4
0.08
Total
.43

0.81

1.16
Success Factor
The companies selected the factors because it is the hospitality industry and they have
to make their customers satisfied; they also have to make sure that their shareholders get
value for their money. At the same time, they have a share in the market they have to protect
for more profits.
Section 4: Internal Analysis
Management
They have a head office, as well as, offices for the other refinery segment. In addition to this,
they have a joint venture that adds to the business structure. In the joint venture businesses,
they usually have a partnership with international airlines to carry out short tasks where they all
benefit then they would break their alliance after some time. They have subsidiaries such as
Monroe Energy and LLC that they also have to manage ​(​Ward, Edmondson & Matthews,
2017). Therefore, they have management in the head office that would help them in general
operation of the whole team, but they also have managers to operate all these subsidiaries, and
they report to the head office at the end of the day.
Marketing
The company has to have marketing so that it can serve its customers. This also makes them get
more revenues from the market as they compete with many airlines.
Finance
Delta has a profit margin of 6.7%, a quick ratio of 0.29, return on equity, 1.09, PE ratio. 9.65.
The profit margin, in this case, shows that they can be able to make more profits and they have
benefits to sustain it. They also can operate with less equity in this case and still give the
shareholders high returns
Operations
The airline provides services to both passengers, as well as, cargo transportation. They usually
carry out their activities in the United States, as well as, around the world. They need a working
network as they travel to many destinations within America alone, they use several airports in
New York including John F-Kennedy airport. Their operations, in this case, help to distribute
some of the traffic situations that affect a particular town. That is they help people get to
different markets around the cities. Their customer service base covers a wide range of people
Information Systems
With a system hub, the giant airline can be able to get its business and daily routine on the
check as they create a network, they can rely on all the time.
Section 5: Situation Analysis
SWOT Analysis
Company Name: Delta Airlines
Strengths
1. Airline mergers
Since 1953, Delta has been merging with both big and small airlines. When Delta merged
with Northwest Airlines they were able to grow their business to service almost all of the
world’s major travel markets, reaching 66 countries and over 375 cities.
2. Brand reputation
As of December 2018, Delta ranked number 1 for eight consecutive years in the Business
Travel News Annual Airline survey. They also were named Fortune’s top 50 Most
Admired Companies and most admired airline for the seventh time out eight years.
3. Use of technology
Delta was the first airline to implement RFID to show it is cost effective to luggage
issues. With RFID and the Delta app you are able to track your baggage and receive
update notifications straight from your smartphone.
Weaknesses
1. High cost airline
Due to the boost in low cost airlines such as Southwest, Spirit, Frontier and more.
Customers have been switching brands. These lost cost airlines have been luring
customers away from Delta making it harder to compete even with excellent service.
2. Investments
In order to remain competitive Delta has invested in unnecessary measures such as
technology and more, that has been affecting their revenue. Instead of approaching the
problem in a different way they have bid on multiple investments that have lost their
image in the USA market.
3. Large scale disruptions
Delta along with other airlines have not been able to manage natural and sometimes
unnatural disruptions. When storms are underway thousands of flights end up cancelled
resulting in a significant loss. Not only does it delay outgoing flights but also incoming,
from everything ranging from on boarding, offboarding and baggage. Flight cancellations
hinder customer reliability and service.
Opportunities
1. Loyalty Programs/Upgrades
Delta is one of the only airlines where SkyMiles do not expire. They can use their loyalty
program to create additional opportunities and benefits to bring in new customers and
new loyalty members. Building a loyalty platform for existing and incoming customers
helps remain competitive against airlines whether low cost or high cost. Attracting a new
loyalty customer is long term more effective than attracting a one time customer.
2. Capitalize on Market
With the industry growing Delta can capitalize on the domestic and international market.
With still staying true to their values Delta has the opportunity to offer lower cost
competitive fares with modifications to their inflight experiences.
3. Strategic Partnerships
Delta is able to create partnerships through their SkyTeam. If they continue to partner
with international airlines they are able to grow their brand loyalty and reputation. When
doing this they can strengthen their image as long as their partner with the right airlines. It
is also beneficial to partner with hotels and other markets in the industry to grow business
through loyalty programs.
Threats
1. International Competition
Delta has many international competitors. Although Delta often provides transportation
from a US hub to an international hub, often times internationally domestic flights have
other airlines used when flying within their own countries from hub to hub.
2. Fuel Increase
Due to the fuel increase Delta is force to increase flight prices and have fewer flights
scheduled than planned. The impact is fairly significant for Delta, its competitors and its
customers.
3. Economic Downslow
The the economy in a crippling position, many people do not have enough money for
flights. This results in less flights being purchased across the board for all airlines but
even more flights not being purchased for higher cost airlines such as Delta. Although
service is unmatched there are other airlines that are able to accomodate flyers in a more
cost efficient way.
Section 6: Strategy Analysis
Strengths
Weakness
1. Airline mergers
1. High cost airline
2. Brand reputation
2. Investments
3. Use of technology
3. Large scale disruptions
Opportunities
SO Strategies
WO Strategies
1. Loyalty
Programs/Upgrades
1. Increase customer
1. Increase payment options
engagement/satisfaction (S2, for flights and other
S3, O1, O3)
amenities. (W1, O1, O2, O3)
2. Capitalize on Market
2. Increase revenue stream
through lower fairs (S1, S2,
O2, O3)
3. Strategic Partnerships
Threats
ST Strategies
WT Strategies
1. International Competition
1. Limit third party
bookings, increase direct
bookings (S2, S3, T3)
1. Monitor the weight of
everything boarding the
flight (W1, T2, T3)
2. Fuel Increase
3. Economic Downslow
Section 7: Strategy Selection (QSPM)
Section 8: Conclusion and Recommendations

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