Describe the Strategic Context and Performance Standards of an Organization

Strategic Context and Performance Standards: a case of American Airlines
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Strategic Context and Performance Standards: a case of American Airlines
Introduction
Famously known as AA, the American Airlines Incorporated is among the major airlines in the USA. The airlines headquarters is placed at Fort Worth, Texas. It operates both international and local flights with flights such as in North America, Europe, the Caribbean, Asia Pacific and South America. In spite of the name, American Airlines is however, not owned by the government, but it is a private commercial entity. In 2011, the company filed for protection against bankruptcy, and this saw the then chairman Arpey Gerald step down and Thomas W. Horton was appointed in his place (Crenshaw, 2006). I was specifically interested in studying the strategic context and performance standards of this firm. My evaluation spanned from the time the company president Thomas W. Horton took over from Gerald Arpey as the company chairman. I got an opportunity to interview the human resource director concerning various issues of strategic context and performance; here are the excerpts and observations.
Are the projects within American Airlines being managed from a strategic perspective?
The Interview with the human resource director revealed that AA is managed from a strategic perspective. This is because, since emerging from bankruptcy the airline has been able to compete effectively with others in the market. One factor that has led to this aspect is the minimized cost structures. In other words, the lower cost advantages for American Airlines have given it an edge over others. This strategy employed by AA can be termed as cost leadership strategy. The management ensures that operations are carried out at the lowest possible cost. This will in turn set the services and or products at a low cost in relation to the competitors and therefor...