MNG93210 Strategy and Case Analysis Assessment 2 Overview

Due Date: 9:00 am (AEST) May 21, 2018 Value: 40% (marked out of 40)

Instructions Read the short account of the US airlines industry (Assessment 2 – Background Information.pdf) and prepare a 2500-word report that addresses the following: With the aid of a clearly drawn diagram conduct a competitive forces analysis of the U.S. airline industry. What does this analysis tell you about the causes of low profitability in this industry? What are the principal advantages and disadvantages of using the five forces framework? The economic performance of the airline industry seems to be very cyclical. Why do you think this is the case? Given your analysis, what strategies do you think an airline should adopt to improve its chances of being persistently profitable?

Instructions This assessment focuses on Strategic Position. In preparing your report, you should demonstrate understanding and application of the strategic concepts that are outlined in Part I: Strategic Position of the textbook. Major elements: Environment Purpose Culture Capability Read through textbook to identify appropriate strategic concepts to apply.

Report Structure Your report must be structured as follows: Introduction (3 marks) Overview of the US airline industry (5 marks) Five forces analysis of US airline industry Diagram (2 marks) Components (8 marks) Advantages and disadvantages (5 marks) Economic performance (5 marks) Identifying strategies for airline profitability (5 marks) Discussion (5 marks) Conclusion (2 marks)

References Minimum 5 references Peer reviewed journal articles Government and corporate sources A more in-depth analysis that demonstrates wide reading will be rewarded.

Overview Introduction (3 marks) Should contain the following: Topic orientation Aim or report (provide a clear statement of purpose). What is the report about? Definition of key terms (supported by citations of peer reviewed journal articles or books, including textbook). Outline of intentions presented in order (i.e. “First,…”, “Second,…”, etc.) Overview of the US airline industry (5 marks) Historical overview (ups and downs, major events, current state, etc.) Brief PESTEL analysis (not mandatory but might be useful) that addresses the macro-environment of the industry and informs your overview.

Overview Five forces analysis of US airline industry Diagram (2 marks) Must be a diagram that represents your five forces analysis, not just a replication of Porters’ diagram. Components (8 marks) Core analysis that addresses all of the five forces and provides a rationale for your findings. Advantages and disadvantages (5 marks) A section addressing the advantages and disadvantages of Porter’s five forces tool. Economic performance (5 marks) Historical overview of economic performance. Should be clearly articulated and supported with citations/data. Identifying strategies for airline profitability (5 marks) Should look to Strategic Choices for direction as it deals with strategies. Lower level business strategy (i.e. is strategic business units). Corporate strategy. International strategy. Innovation Mergers, acquisitions and alliances.

Overview Discussion (5 marks) Conclusion (2 marks) Specifically address the primary questions of the assessment. What does this analysis tell you about the causes of low profitability in this industry? What are the principal advantages and disadvantages of using the five forces framework? The economic performance of the airline industry seems to be very cyclical. Why do you think this is the case? Given your analysis, what strategies do you think an airline should adopt to improve its chances of being persistently profitable? Conclusion (2 marks) Do not include new information here. Restate aim of report and summarise main findings. Note potential flaws in analysis. Provide some (2-3) recommendations.

END