Business analysis questions. Business & Marketing Coursework

Business Questions
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Question 1
Understanding the relationship between societal circumstances, pricing strategies and new product services is important for any business professional. It allows him to have a better understanding of how to adapt to specific situations that increases the risks for his business. During this pandemic, one of the most high risks industries is the airline industry. The unilateral imposition of various governmental regulations have made it difficult to schedule regular flights and even realize profits. In line with this, I believe that one of the best ways for airline companies to realize profits in the short-term is to decrease its operating costs. On the one hand, a decrease in operating costs would reduce its risks of failure and bankruptcy in the short-term. Although removing all kinds of operational costs are impossible for an airline company, limiting it in a highly volatile period would reduce its losses. On the other hand, airline industries could also focus on hedging for fuel prices and offering future flight contracts for a discount for both the medium- and long-term. First, hedging fuel prices during a period of instability would be risky but profitable if the current COVID-19 vaccination efforts would continue. One of the main reasons for the unilateral imposition of travel bans by the government is the fluctuations and sudden increase in COVID-19 cases. Thus, these future fuel contracts would allow the airline company to buy fuel at low prices in the present, and use the same for the same value in the future....