Question

American Airlines Chapter 11 reorganization plan filed in 2012 involved the company reducing operating expenses by $2 billion while increasing revenues by $1 billion. The company's strategy to increase revenues included expanding the number of international flights and destinations and increasing daily departures for its five largest markets by 20 percent. The company also intended to upgrade its fleet by spending $2 billion to purchase new aircraft and refurbish the first-class cabins for planes not replaced. A final component of the restructuring plan included a merger with US Airways to create a global airline with more than 56,700 daily flights to 336 destinations in 56 countries. The merger was expected to produce cost savings from synergies of more than $1 billion and result in a stronger airline capable of paying creditors and rewarding employees and shareholders. Explain why the strategic initiatives at various organizational levels and functions require tight coordination to achieve the results desired by American Airlines.

Answer 1

answer-

The vision statement is essential that a company come up with a vision and mission statement. And also have a strategic plan for the business to make sure they reach the above average returns. They also have to have a Strategic management plan which is the process of defining the purpose and pursuits of an organization and the methods for achieving them. The company can begin in this order to achieve the results desired by the American airlines.  Mission- why does the organization exist?  Business Strategy - how to gain and sustain a competitive advantage for a single line of business  Vision -where does the organization want to be in the future?  Strategy Formulation-what is the plan of how and when to achieve the goals and objectives?

Company objectives need to be to be broken into performance targets for each of the organizations separate businesses. Employees within various functional areas and operating levels will be guided much better by narrow objectives relating directly to their departmental activities than broad organizational- level goals