United

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HISTORY: 

HISTORY 1920’s - United Airlines Transportation Corporation 1931 - UAL management company 1934 - Airmail Act

Financial condition: 

Financial condition Management changes and misguided forecasts Ordering too many airplanes Employee ownership July 12, 1994: plan to be largest employee owned corporation EPS and growth

Slide4: 

Industry Environment and Five Forces Evaluation throughout history Competitors New Entrants, Entry barriers Substitutes Suppliers Buyers

Slide5: 

Diversification and Integration Air Canada Buytravel.com Macro Environment Local National Global

Slide6: 

“To be recognized worldwide as the airline of choice.” Tangible resources (land buildings, plants or equipment). Intangible resources (brand names, reputation, patents and technological or marketing know-how)

Slide7: 

Intangible resources. UAL.com Downloadable Flight Timetables Flight Paging

Slide8: 

“Customer Service Best Practices” = Differentiators Mobile Chariots Gate Readers Bulls eye SkyPath Program Aircraft Scheduling Automation Project (ASAP)

Slide9: 

Organizational Culture Safety Enhanced Ground Proximity Warning System (EGPWS) Reinforcement of all cockpit doors Olympic Security Measures U.S. Air Marshals Innovation Open Communication Ownership

Current Strategy: 

Current Strategy Business-level Strategy Economy Plus Mileage Plus and with VISA Global Strategy Star Alliance Corporate Strategy Launch business-jet business

Evaluation of strategic fit with internal organization: 

Evaluation of strategic fit with internal organization United employees own over 50% of UAL The pilots alone own over 25% of UAL’s common stock

Recommendations for UAL: 

Recommendations for UAL September 11, 2001 Maintaining Competitive Advantage Customer Responsiveness Cost Reduction Security