Case Study Assignment with 3 Finding Of Fact: Delta (Case Study Sample)
Based on the Case Study Number 27 “Delta Airlines 2012: Navigating an Uncertain Environment”, answer the following question:
You have been hired as a strategic management consultant by Delta Airlines. What specific recommendations would you make to the senior management team in the development of their strategic management plans with the issues facing their company? Be specific and provide logical justifications.
You need not write a synopsis, or identify the resources, capabilities, and core competencies. You should, however, understand what their resources, capabilities, and core competencies are.
Using the findings of fact format, discuss, in detail, any recommendations you may have. You are required to submit THREE FULLY JUSTIFIED FINDINGS OF FACT.
You must remain within the confines of the case study (including end of case references) and do not current research on Delta.
Case study preparation requirements:
Findings of Fact
Findings of fact are strategic issues discussed in the case studies and usually identify potential problem areas for the firm. Additionally, these strategic issues are facing the firm's strategic managers at the end of the case's time frame. Strategic problem statements. Each case study paper/presentation will identify three findings of fact. Usually the findings of fact are one to two sentences each in length.
Recommendations are directly tied to the findings of fact. For each finding of fact, a thorough, justified, recommendation must be provided. How are you going to rectify the strategic problems that you have identified and why. Additionally, this section should also include an implementation discussion. General statements and blanket conceptual recommendations that are not fully justified with the facts of the case, are not acceptable. The recommendations/justifications section of the paper should be one-two pages each in length.
You must remain within the confines of the case study data. You cannot research the firms we analyze and re-import this data into your submissions. The reason for this is that a case study is a snapshot of the firm and you are analyzing the firm within this time frame; therefore, researching the firm's current strategic position may cause you to recommend strategic actions that may not be supported by the case data.
Case Study with 3 Finding Of Fact: Delta
Case Study with 3 Finding Of Fact: Delta
Fact Finding 1: The unpredictability of the fuel prices that can either soar higher or plummet while posing significant impacts on the company’s operating cost.
Fuel prices have always been unpredictable and whenever there are changes companies are affected. Before 2005, the cost of crude oil was less than $60 per barrel. However, the fears of recession led to a steady increase, and by June 2008, the cost per barrel was $154.38. The above resulted in massive increases in the operating costs of Airlines and other companies that rely heavily on fuel. At Delta, for example, the total operating expense increased, and it was mainly driven by a $2.9 million surge in expenditures incurred on fuel.
Fuel has always had a significant influence on the operating costs as well as operating income of major Airlines. Whenever the world suffers from an increase in fuel prices, airlines often experience surges in operational costs, and this negatively impacts the profits. However, it is important to note that this is an industry wide problem and not unique to Delta. Conversely, by finding ways to limit or reduce the company’s expenditure on fuel, the management can help to grow the profits of the airline. Organizations often decide to cut cost by reducing their workforce, and while this could work, steady increases in the prices of fuel can render this approach futile.
The direct interpretation is that when oil prices go down, airlines will experience huge profits. However, airfares are also expected to be low, and this increases demand which means that capacity will have to be increased. Problems exist whether the oil prices are high or low. To help deal with the unpredictability of oil prices, the company can employ the following recommendations:
* Use oil futures. Oil futures are essentially contracts that are between trading parties where one party agrees to buy and sell a particular asset at a specified date but at a price that is agreed upon today. The unpredictability of oil prices is a big problem for the entire airline industry and can emanate from political strife, wars, and also weather. Essentially the danger here is that an organization could be staring at its closure or bankruptcy without knowing it. However, Delta can make use of oil futures to help secure its profits as well as maintain its operating cost to a certain percentage. This requires a competent ...
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