Q3 - OE_Strengths
What do you see as Delta’s particular strengths?
"It's the free cash flow. Looking at it from a financial perspective. They're a leader in their industry. They have high corporate customer participation. The corporate customer is the profitable customer for them, and they have a good share of that market. They've got strong free cash flow generation. They've got their debt under control. They're good stewards of capital in terms of really protecting the shareholder and they're not capricious with their spending on capital and new aircraft and that kind of thing."
Q4 - OE_Weaknesses
What do you see as Delta’s particular weaknesses?
"They can control only a certain amount of their destiny. They're good at controlling what they can control. But the industry, there's a perception that it's a highly cyclical industry and people in this industry don't have the best capital management skills. They overspend going into a downturn. And they can't control the consumer demand a lot of time. They can't control what happens in the world. But consolidation in the industry has helped quite a bit and the division of slots at the airports. And ownership of certain hubs allows for a better industry structure."
Q6 - OE_StrategyElements
Based on
…show more content…
In some respects they're comparing themselves to Home Depot because Frank Blake was on the Board of Home Depot and now he's on the Board of Delta. He's the champion for taking free cash flow and increasing the dividend, and this growth in the dividend and shareholder buybacks is the template that Home Depot kind of did for a long time here. And now he's trying to implement this from the Board at Delta. Home Depot would be one. You could throw out one of the better industrial company. People also talk about the railroads as well, and basically the consolidation in the industry. There's a corollary to the airlines as to the railroad
Delta Airlines in a major American airline company headquartered in Atlanta, Georgia, United States. The company was founded on May 30, 1924. They operate as an extensive domestic and international network. Delta currently operates a fleet of more than 700 aircraft and they employ approximately 80,000 people. In 2011 they were the world’s largest airline in terms of fleet size. Delta Airlines is a very successful company. Part of what makes them so successful is expansion, making good decisions in route selection and hubs location, being service oriented, having a strong operation management, being reactive in terms of prices, and offering low fares.
Delta airline uses merger so as to be able to expend its business. In 2008 the company merged with Northwest airlines. It operates in Europe, North America and Asia/Pacific regions. Once the merger was complete, Northwest Airlines and all its constituents become wholly-owned by Delta Airlines. The merger saw to it that Delta Airlines started operating in the Northwest for FY 2008. In the period of two month that is from October of 2008 the time the merger was completed to December of 2008, the company had increased it revenues to $2 billion. Having a flexible nature, allows Delta to improve customer services, and in the long run be able to achieve its strategic objectives.
While Frontier and Delta are both popular choices of airlines for Americans, Delta has become more of a household name because of their friendlier service, more comfortable cabins, and their limited extras fees. Frontier airline still is a worthy competitor by being cheaper, but they also have many added on fees for things that are free with Delta. Overall, Delta knows how to take better care of their customers and make sure everyone is satisfied.
For my news report I turned to the website Prnewsonline.com and I supplemented my research with information from the BET website. These websites were incredibly helpful in my research gathering process. I feel that these sources were reliable and for the most part unbiased news sources in which I could gather accurate and relevant information to my issue.
Finally, in the strengths category, Delta has a strong market posture. Delta is an established leader in the airline carrier commerce. Deltas brand image is complemented by the multiple prestigious awards in its portfolio, for example, Travel + Leisure's Social Media in Travel & Tourism Award (SMITTYS) for ‘Best Single Social Media Promotion for a US Airline’ for its ‘Behind-The-Scenes: Your Bag’s Journey On Delta’ video in 2012. Other key awards received in the 2012 include the ‘Top Tech-Friendly U.S. Airline’ by PC World Magazine, and was awarded Gold DC Ad Club’s ADDY Award for the Delta app, Windows version (World Market,
Strengths - Most profitable steel company in the U.S., highly productive, non-union workforce, technological/innovation leader in the industry, decentralized management structure, financial strength
Delta Airlines is the largest airline carrier on the Atlantic Coast. In terms of scheduled passengers carried they were world’s largest airline with 277.6 billion in 2013. Also the second largest
The Delta airlines serve more than 170 million customers each year.the survey conducted by Business travel news annually the delta airlines came No.1 for four continues years.
C.E. Woolman, the first leader of Delta Air Lines, believed that the company should take care of its employees so that, in return they would take care of customers. At the root of this care included effectively communicating with his teams and empowering them to make the right decisions. As Debra Nelson and James Quick reference in Organizational Behavior: Science, the Real World, and You, (2013, p. 283) “…communication, especially between managers and employees, is a critical foundation for effective performance in organizations…this is especially critical when leaders are articulating vision and achieving buy-in from employees.” The buy-in that Woolman received from his employees stemmed from his intentional engagement with them and expectation to provide the best customer service in the airline industry. Throughout its history, Delta has deliberately engaged its employees and has modeled a human resource management (HRM) system, which is the “term increasingly used to refer to the philosophy, policies, procedures, and practices related to the management of an organization’s employees” (Sims, 2002, p. 2). The HRM system at Delta has impacted its organizational structure, corporate communications, and shared decision making.
This report provides an examinaion of the current structure, performance, stragergy and management of Delta Airlines, along with an industry analysis of the airline industry. The report uses current and past financial and statistical data for the company along with other up to date material to determine Delta's current market position and future potential.
The company I chose to research is Delta which is in the airlines industry. Delta is one of the world’s largest global airlines that assist more than 160 million travelers get to destinations around the world. The company started in 1924 as a small aerial crop dusting operation known as Huff Daland Dusters. In 1929 Delta had its first passenger flights that went from Dallas, Texas to Jackson, Mississippi. This flight was taken on an airplane that carried 5 passengers and 1 pilot. Delta has been offering its service to customers for 85 years. For four consecutive years, Delta has been ranked No. 1 in the Business Travel News Annual Airline survey. This is a huge accomplishment because it is a first for any airline. It is important
From the humble financial portfolio as a crop dusting outfit in the mid twentieth century, to the multi-billion dollar portfolio of a major airline in the twenty first century, Delta Air Lines has risen as a successful business. The airline industry is directly affected by outside economic conditions and is also cyclical in nature. These factors make it very difficult for airlines to make predictions to stay financially afloat. Delta has ridden the bumpy path of the last twenty years and managed to survive. In the past twenty years there has been many events that
Another strong point is their management and corporate governance. On top of everything we find Elon Musk who is renewed around the world for its genius and entrepreneurship. Musk leads a team of the best minds in the field. Employees believe in the company and higher management personnel gets stocks.
2. Why have all of the low-cost subsidiaries of full-service airlines, including Delta Express, failed?
This paper will review the case study of Delta Airlines which was suffering like all its competitors with rising fuel costs which averaged anywhere between 30 to 50 percent of its total operating costs. This paper will answer six questions which will help identify what the company did to handle the high cost of fuel. The questions that I will answer will include the following.