When balancing the cash flow, the inflow is compared to the outflow whereby when the outflow exceeds the inflow, the company experiences a loss.
In the strengths of the American airline company, availability of workers and volunteers as a basic need for this company has promoted this company through improvements in its efficiency Air Transport Research Society Corruption in the American Airline Company as a weakness facing the entire company is a source of losses in the company.
The airline carries more than six thousand flights in a day. Once a company has been recognized and voted in to be the best locally, there are little chances of it losing customers both locally and even internationally.
Taking advantage of these opportunities will overcome the problems and retain customer loyalty. Example of these services is maintaining airline hygiene Alpert, The company has to devise a plan to overcome the high fuel costs shortly.
Strengths The strengths of the American airline are the availability of a good number of workers, connection to the world market, and good location of its main hubs Aa.
This is an excellent opportunity for development. And of course, the company has to devise a plan to overcome the labor union problems which are increasing day by day. When a company experiences a lot of losses, the shareholders, and the willing donors pull away their supports to the business.
The headquarters of the company are in Fort Worth. In the American airline the strength of availability of good cash flow should be used to capture the opportunity a good market growth. The opportunities existing in the American airline company are the rise in the market growth, positive business perception and uniform business activities " Council of Faculties Business Meeting, July 16,Kissimmee, FL", Other elements of the internal environment of this company are its activities and planned events.
The most important skill to fight competition is by having affordable prices and offering better services. When services are suitable for the customer, there is a will to pay more for the transport.
The opportunities available for the American airline company are therefore positive to predict a good prosperity of the company. Having in mind that the American airline company is facing stiff competition from other airlines both domestic and from other countries, there is a need for cooperation in by the workers.
The strength of good cash flow is also effective in capturing the growth in technology by ensuring equipment is replaced and system updated as per the current technology. The change in the technology is also a factor to be considered in the external environment of the company.
The experience of the company is also an internal environment that can be used to find out and solve any problem being experienced by the company. To maintain a capital source that is used to run the entire business, it is the mandate of the management to ensure there is a full trust from the shareholders by avoiding losses and going bankrupt Finance.
Lack of motivation and appropriate scheme of service for the workers contributes to reluctance. Another strategic plan recommended for the company is to ensure upgrades of technology are done immediately by upgrading its systems Abrams, Other threats being faced by the American airline company are terrorist attacks, hostile countries and lack of hospitality from enemy countries due to power differences Levine-Weinberg, The Threats There are a few major threats to the company.
The swot analysis is therefore conducted to help in determining the surrounding and available opportunities of a company to solve problems and make decisions Berry, The weaknesses of this company are poor management system, lack of motivation to the workers, lack of teamwork and appropriate scheme of service for every staff in the company.
Using the example of a large number of workers, they may help in maximizing the profit of the company and in another way they can create losses to the company. On the business threats like the hike in this case of the American airline company, hike in the fuel market is a demanding factor that the management system should increase the price also by a certain percentage Drucker, Another factor to consider on the available opportunities for the American airline company is the timing of these opportunities.
This can be done by having more airline hubs in other countries where air transport is in great demand. The company should increase the number of international flights too.
One of the strength that can help in fighting the weaknesses of the company is a connection to the world market. The strength of the business is the main element that can be used to rate the future stability of the business. The company has a strong market share and a versatile and a diverse portfolio.
The American Airlines should focus on the opportunities to get rid of the weaknesses. The American airline has its business strategies like direct flights to main business cities of the world. The American airline as a company needs to balance on the cost of this equipment with their contributions to the company.
When gathering the internal environment of the company which is used to identify the strengths and weakness of the company. Hiking the price is again will lead to losing of customers from the excuse of high prices.
Hospitality in the services provided through good relationship among the workers will contribute to a better rating of the company by the customers.SWOT ANALYSIS The SWOT analysis is an assessment of the organization's internal resources and abilities and the external environment's opportunities and threats.
In order to identify a strategic niche that the organization might exploit, it is needed to analyze the SWOT of Garuda Indonesia. American Airline SWOT Analysis. Within a given time, with these companies experiencing a lot of corruption they are ending up recording a bankruptcy state.
Lack of motivation and appropriate scheme of service for the workers contributes to reluctance.
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