Lufthansa strategy essay

Cashflow The offices are positioned in Deutz, Cologne and main operations are based in Frankfurt. The transport volume was about 1.

Lufthansa strategy essay

This amount will be received by Lufthansa to compensate for the negative shareholder value. All in all, this means for Lufthansa that it can acquire AUA at a relatively cheap price.

Lufthansa strategy essay

After the merger and the restructuring, AUA will be making profits again and therefore contribute to Lufthansa earnings. Already in the past, Deutsche Lufthansa and Austrian Airlines have maintained a close and successful cooperation within the Star Alliance Group. As they have been working together very closely over the past years, they have a common understanding of the set of rules within the Star Alliance Group and furthermore they have already established and oriented their dayto-day business in an efficient logistical and communicative way.

It is true, that there could be a risk of a cultural clash when integrating AUA in LH, but both companies seem to have a very similar cultural culture.

First of all, both are operating in the same business area, the airline business. Furthermore, both do have a similar national culture as the employees are residents of neighboring states that share the same mother language.

It is true, that both could have different working styles as AUA was a mainly public company with the Federal Republic of Austria as core shareholder and LH a private profit seeking one.

There would be higher sales potential and an improvement of procurement conditions. The economies of scale were estimated to be EUR 80m that are additional to the synergies of the already existing partnership of both companies.

Lufthansa Essays: Examples, Topics, Titles, & Outlines

The synergies can be subdivided into: Poor strategic decisions were carried out, just as the oversized and unprofitable flight network. With Lufthansa and its profit seeking strategy and its management expertise, unnecessary costs can be cut down and redundant workforce be laid off, and the flight network could be adjusted to the actual demand.

Austrian Airlines will remain largely responsible for its financial performance and the quality of its products. The company will be managed as a profit center in Lufthansa Group. AUA will remain a broadly independent airline with its head office in Austria, its own brand, fleet and crew. Furthermore, Austrian air traffic infrastructure will also remain to a great extent, taking into consideration the needs of Vienna as a business location.Lufthansa Analysis; Lufthansa Analysis.

9 September ) cost leadership and 2.) Differentiation. Lufthansa’s competitive strategy is based on cost-leadership. After being privatized, they realized the pressure of competitiveness, so they focused more on the strategically cost effective even more.

ESSAY SAMPLE written strictly. Lufthansa Strategy Essay Sample. Human Resource Management is one of crucial internal factors. If Lufthansa wants to perform in a global way successfully, they have, firstly, to alter their HR strategy along with different cultures or retain some of their own culture and history.

Lufthansa Analysis; Lufthansa Analysis. 9 September ) cost leadership and 2.) Differentiation. Lufthansa’s competitive strategy is based on cost-leadership. After being privatized, they realized the pressure of competitiveness, so they focused more on the strategically cost effective even more.

ESSAY SAMPLE written strictly.

Group strategy - Corporate Facts - Lufthansa Group

Jun 08,  · Words: Length: 26 Pages Document Type: Essay Paper #: Lufthansa Structure and Governance. Performance and Competition. Five-force analysis. Lufthansa is one of the oldest and most successful commercial airlines in the world, . Lufthansa finished essay. MARKETING PLAN Concerning Lufthansa marketing strategy in my opinion it would be interesting to mention that in the year Airline Strategy Awards judges praised Lufthansa‟s ability to create sub brands in different market segments without cannibalizing its .

INTERNAL. Human Resource Management is one of crucial internal factors. If Lufthansa wants to perform in a global way successfully, they have, firstly, to alter their HR strategy along with different cultures or retain some of their own culture and history.3/5(1).

Lufthansa Strategy | Essay Example