United Airlines

23407 WordsApr 11, 201294 Pages
Comprehensive Term Project United Airlines [pic] Prepared By: Presented to: Jeffrey R. Nystrom Management 4500 Business Policy and Strategic Management November 18, 2008 Table of Contents SECTION 1: CASE STUDY 1 1.1 Background / History 1 1.2 Organizational Mission 1 1.3 External Environment 2 1.4 Internal State of Affairs 4 1.5 Generic Strategy 5 1.6 Long-Term Objectives 5 1.7 Grand Strategies 5 1.8 Short-Term Objectives 6 1.9 Functional Tactics 7 1.10 Strategic Execution 8 1.11 Executive Bonus Compensation Plans 8 1.12 Current and Historical Culture and Structure 9 1.13 Strategic Controls 10 1.14 Innovation and Entrepreneurship 11 SECTION…show more content…
Currently 51.8% of United’s income is generated through its international fleet, and 48.2% is generated within the domestic market.[iv] United Airlines is headquartered in Elk Grove Township, Chicago and operates 3,568 daily departures from 31 countries, which includes 225 domestic and international cities. The firm’s main hubs are located in Los Angeles, San Francisco, Denver, Chicago, and Washington, D.C. Recently, United has shifted its focus to business class and first class passengers. Characteristics of these two target groups include: booking flights on short notice, traveling on weekdays, paying full fare, and opting for the premium class. These travelers place less importance on price and tend to purchase based on service, schedule, mileage awards, food, seat comfort, ease of connections, direct airport services, and relative distance to connecting flights.[v] While United has not specifically identified its mission statement, their web site includes a corporate responsibility statement which outlines United’s key philosophies, values and goals. In this statement, United identifies four major stakeholders: employees, customers, partners, and the communities its serves. The company states that it has responsibility to each of these stakeholder groups by making four major commitments to each of these stakeholder groups in terms of environmental and social responsibility.[vi] See appendix 1B
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