If we were to experience a substantial turnover in our leadership, our performance could be materially adversely impacted. If yes, it is an issue that is external to the organization.
This, in turn, makes the local economy even more difficult. What makes you stand out from the competitors. To attempt to reduce our exposure to changes in fuel prices, we periodically enter into heating and crude oil derivatives contracts, though we may not successfully manage this exposure.
For example, changes in interest rates or being overly reliant on one customer could affect business. Some examples of areas which are typically considered in internal factors are: Due to the competitive nature of the airline industry, we do not expect to be able to pass on any increases in fuel prices to our customers by increasing our fares.
Do they have a cost advantage or disadvantage. Our business is labor intensive, requiring large numbers of pilots, flight attendants, mechanics and other personnel. If one of our aircraft were to crash or be involved in an accident, we could be exposed to significant tort liability.
Who are our customers. We are involved in legal proceedings relating to antitrust matters, employment practices, environmental issues and other matters concerning our business. While we have in place, and continue to invest in, technology security initiatives and disaster recovery plans, these measures may not be adequate or implemented properly.
Although we are currently able to obtain adequate supplies of aircraft fuel, it is impossible to predict the future availability or price of aircraft fuel. Who are potential competitive entrants.
If early retirements by pilots occur at greater than historical levels in the future, this could, depending on the number of pilots who retire early, the aircraft types these pilots operate and other factors, disrupt our operations, negatively impact our revenues and increase our pension funding obligations.
People are able to be more mobile because of improved international relationships, the global war for talent, and because their technology moves with them, keeping them connected with home and work wherever they go.
For an industry, strike action could lead to a lot of problems. It is essential to get one step ahead. Our substantial indebtedness and other obligations have, and in the future could continue to, negatively impact our operations by: The extent to which you can control them differs.
In addition to the heightened level of concern regarding privacy of passenger data in the United States, certain European government agencies are initiating 6 inquiries into airline privacy practices. The SWOT analysis framework has gained widespread acceptance because of its simplicity and power in developing strategy.
What are important and potentially important markets. Airlines have no control over these changes and many have suffered economically. The hospitality industry, like many others, is affected by technological changes.
A simple example of environmental factors affecting human resource planning is the consideration of how your employees get to work safely during extreme weather; your plan may need to include the possibility of telecommuting in order to keep everything going.
Our unit costs have gone from being among the lowest of the hub-and-spoke carriers to among the highest, a result that places us at a serious competitive disadvantage.
Other laws, regulations, taxes and airport rates and charges have also been imposed from time to time that significantly increase the cost of airline operations or reduce revenues. Financial The financial risks depend on the financial structure of your business.
Only those strengths that relate to satisfying a customer need should be considered true core competencies.
While we have in place, and continue to invest in, technology security initiatives and disaster recovery plans, these measures may not be adequate or implemented properly. Each of these hub operations includes flights that gather and distribute traffic from markets in the geographic region surrounding the hub to other major cities and to other Delta hubs.
Due to the weak revenue environment, this action has negatively impacted our revenues because we have not been able to increase our fares to pass these fees on to our customers.
The internal factors basically include the inner strengths and weaknesses. External factors such as the economic situation facing the nation or the world are among the factors that those working within the industry can have no control over. The nature of costs in the airline industry include costs relative to internal airline factors and costs relative to external factors.
Accordingly, we have now concluded that we will need substantial further reductions to our cost structure in order to achieve viability.
Any individual, sustained or repeated failure of our technology could impact our customer service and result in increased costs. In general, demand for air travel is typically higher in the June and September quarters, particularly in international markets, because there is more vacation travel during these periods than during the remainder of the year.
Also, when executing this analysis it is important to understand how these elements work together. If we experience further losses of our senior management and other key employees, our operating results could be adversely affected, and we may not be able to attract and retain additional qualified management personnel.
You can use SWOT analysis to analyze your company and its environment. For identifying an appropriate strategy for a company, one has to look into its internal and external factors.
This report will critically analyse these factors regarding Ryanair and also take into consideration of future opportunities and threats which Ryanair is likely to face in current situation. External and Internal Factors Affecting General Electric Management: Theory, Practice, and Application External and Internal Factors Affecting General Electric We will use General Electric, also known as GE, to illustrate how internal and external factors affect the four functions of management.
We will explain how globalization, technology. External and Internal Factors The purpose of this paper is to compare the internal and external factors that influence a company, considering the aspects of the business process including globalization, technology, innovation, diversity, and ethics.
Effects of External Environment on Airline Industry Introduction The business environment includes a set of relationships between stakeholders or agents in the environment.
According to Coman and Ronen (), these relationships are transformed by the respective strategic decisions taken by businesses. External factors such as the economic situation facing the nation or the world are among the factors that those working within the industry can have no control over.
Over the past 50 years, civil aviation has grown dramatically. The rate of technological external environment, internal environment and the ability to add value to the service they provide. Coelho () shows there are three types of competitive advantage: differentiation, cost and Table 1 - Factors affecting the costs of airlines1.Internal and external factors affecting aviation industry