п»їAnalyse and evaluate tries by Air France-KLM to formulate a low-cost airline throughout Europe.
Flight is an important commercial in Euro economy, with the liberalization and deregulation of European market, it is loaded by a range of small-sized and large-sized air carriers, recently, the model of low cost carriers is widely distributed from America to Europe, the achievement attracts competition to adjust business models to enter this market. Air flow France-KLM as well attempts to consider this strategy. This essay uses PESTEL and stakeholder theory, as well as company social responsibility (CSR) concept to analyze standard environment and specific environment including clients and suppliers. Main way of doing something is Air France-KLM (FK) will need to concern CSR behavior especially including interpersonal and environmental perspective to conduct cheap strategy rather than only consider economic perspective which is immediate financial efficiency, because it could not bring a sustainable advancement for company. Furthermore, FK should have operational resilience and strategic strength under the uncertainty of dynamic environment, and integrate CSR as a organization culture that can become a competitive advantage. The overall environment research could provide reference pertaining to other companies, and analysis of stakeholder theory and CSR concept can give a guidance for sustainable development of companies.
Air France-KLM is owned by People from france airline (Air France) and Dutch flight (KLM). It is the largest aircarrier company on the globe, while the revenue is continually decreasing in Europe within recent 5 years (Market Line 2014). It is efficiently seeking a path to maintain competitive location in Euro airline industry. Two most significant competitors happen to be Ryanair and EasyJet in Europe who also operate cheap strategy which in turn learn from Southwest in ALL OF US, and they swiftly capture market share. Air France-KLM is intending to use same strategy to compete with them.
Environment is a significant signal that impacts the operation of organization. It is energetic and complicated, different elements are interrelated and interacted that take different influence for present and upcoming activities of companies. Evaluation of environment usually is definitely divided into macro-environment and micro-environment, they individually cover the overall environment and specific related environmental elements such as buyers, suppliers and regulators (Kew and Stredwick 2005).
Because Europe is situated in a low area suffering debtor crisis, new company model is inspired to stimulate the economy and transfer dangers for federal government. This composition will evaluate and talk about the low price strategy Air France-KLM can adopt, first of all, it will evaluate the general environment using PESTEL tool, and using Five Forces model and stakeholder theory even more seek the issue and factors that can help firm to succeed in a long. Especially, it is going to explain the value of corporate and business social responsibility in business operation. Finally, it is to find the opportunities and threats that company ought to notice for future success to combines different factors.
Air France-KLM is having by Surroundings France and KLM the industry Dutch flight, the connections was formed in 2004. The headquarter is located in Paris, and it obeys the French law. Subsequently, it probably is the largest airline company in terms of revenues in Europe, also over the world. Yet , the functioning profit to Air France-KLM (FK) constantly decreased by 2012 (MarketLine 2014). Atmosphere France-KLM is exploring another strategy to make it through in the competitive airline professional. As BBC reported Alexandre who is CEO of FK claimed company will take up the Low price carriers (LCCs) strategy to retrieve and support competitive placement in airline industry (Clark 2014).
Environmental research is an inevitable step to help firm identify concerns, flexibly and innovatively solve problems, likewise assist the strategist to boost the decision production process (Kew and...
References: Kew. J. and Stredwick L. (2005) Organization environment: handling in a strategic context. London, uk: The Cromwell Press
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Statista (2014) [Online] Available by http://www.statista.com/statistics/268830/unemployment-rate-in-eu-countries/ [Accessed: 15 Dec 2014]