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Discuss the following issues related to American Airlines’ situation in 2013.

  1. Performance: How has the company performed over the last several years in terms of revenues, profitability, and market share?
  2. Strategic Posture
    a. Mission: What is the company’s vision/mission statement?
    b. Objectives: What are the corporate, business, and functional objectives? Are they consistent with each other and with the mission?
    c. Strategies: What strategies has the company employed in order to be able to meet these objectives? Are these strategies consistent with each other and with the overall mission?
  3. Corporate Governance
    a. Directors: Who are the directors? Are they internal or external? What do they contribute to the corporation in terms of knowledge, skills, and background?
    b. Top Management: What persons or groups constitute top management? How suited is the management team to the achievement of corporate objectives?
  4. Porter Analysis: Perform an in-depth analysis of the firm’s task environment using Porter’s Approach to Industry Analysis. Analyze the importance and impact of the following five (5) forces.
    a. Threat of New Entrants
    b. Bargaining Power of Buyers
    c. Bargaining Power of Suppliers
    d. Rivalry Among Competing Firms
    e. Threat of Substitute Products or Services
  5. Other Characteristics: Describe at least three (3) other industry characteristics that you think are important and that affect the performance of firms in this industry.
  6. Opportunities: Discuss at least five (5) opportunities available to the firm based on the industry analysis.
  7. Threats: Discuss at least five (5) threats facing the firm based on the industry analysis.
  8. External Factors Analysis Summary: Develop an External Factors Analysis Summary (EFAS Table) for American Airlines listing the five (5) opportunities and five (5) threats described above. Discuss why you consider these external factors to be important.

Part C Internal Analysis

  1. Core Competencies
    a. Description: Describe at least two (2) core competencies that the firm possesses or can develop.
    b. Distinctiveness: Are these distinctive competencies? Explain.
  2. Competitive Position
    a. Current Position: What is the firm’s current competitive position? Discuss.
    b. Competitive Advantage: Does the firm possess a significant competitive advantage over other firms in the industry? Explain.
    c. Sustainability: Can the firm sustain its competitive advantage over the long term? Explain.
  3. Strengths: Discuss at least five (5) strengths of the firm based on the competitive analysis.
  4. Weaknesses: Describe at least five (5) weaknesses of the firm based on the competitive analysis.
  5. Internal Factors Analysis Summary: Develop an Internal Factors Analysis Summary (IFAS Table) for American Airlines listing the five (5) strengths and five (5) weaknesses described above. Discuss why you consider these internal factors to be important.

Part D Analysis of Strategic Factors (SWOT)

  1. Situational Analysis: What are the most important internal and external strategic factors (Strengths, Weaknesses, Opportunities, and Threats) that strongly affect the company’s present and future performance? List 12 strategic factors (3 each of the opportunities, threats, strengths, and

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