Lufthansa Airlines

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Executive Overview: Lufthansa is the largest airline in Europe in terms of passengers carried. By 2002, Lufthansa had become of the strongest airlines and top aviations groups in the world. Lufthansa had undergone a decade of fundamental change. Lufthansa was transformed from a state-owned, unprofitable national airline into one of the most profitable, privately owned aviation groups in the industry. The group turned a record loss of €350 million in 1992 into a pre-tax profit of €952 million in 2002. This financial result reflected Lufthansa’s major competitive advantage-its ability to respond rapidly, act flexibly, and withstand crises. Lufthansa proved its unique change management competence when it coped with September 11th, the…show more content…
The EU economy is expected to grow further over the next decade as more countries join the union - especially considering that the new States are usually poorer than the EU average, and hence the expected fast GDP growth will help achieve the dynamic of the united Europe. It is estimated that the Eurozone will grow around 2.6 per cent this year (2006), on a par with other industrialized nations such as the United States at 2.6% (Q2 2006) and 1.6 (Q3 2006). GDP: $12.82 trillion. (2006) GDP/capita: $18,056. Annual growth of per capita GDP: 2.8% (2006). Income of top 10%: 27.5%. Unemployment 8.8% (2006). Opportunities: 1. GDP is growing; opportunity to take advantage of that growth. 2. The EU has made doing business across borders easier with standardized currency and regulation. 3. Inflation rates are steady along with currency rates; currency exchange risk will be lower. Threats: 1. The European economy is not growing as fast as developing nations such as China. 2. The EU has a lot of power over the economy in terms of currency rates and regulations. Political/Legal Segment The European Union has evolved over time from a primarily economic union to an increasingly political one. This trend is highlighted by the increasing number of policy areas that fall within EU competence: political power has tended to shift upwards from the Member States to the EU. The European Free Trade Association (EFTA) was established on May 3,
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