American Airline SWOT Analysis

 American Airline SWOT Analysis
Introduction

The American airline is one of the largest airlines in the world. It operates in the main cities of America where its hubs are located in nine cities out of 15 big cities of US and also as an international airline. The American airline has its business strategies like direct flights to main business cities of the world. The other strategic position of this company is dominating in the home transport network. Its global trust in comparison to other airlines has placed this company in a very suitable position though competition is always acceptable (Airport-la.com, 2016). The home transport network of this company is the most important strategy that has helped in building the cornerstone of business competition (Aa.com, 2016). Once a company has been recognized and voted in to be the best locally, there are little chances of it losing customers both locally and even internationally.

The swot analysis is therefore conducted to help in determining the surrounding and available opportunities of a company to solve problems and make decisions (Berry, 2008). The business environment keeps on changing daily due to competition (Whittington & Delaney, 2010). The SWOT analysis in this company is a way of identifying threats, weakness, strengths and the weakness of the company. These tools of SWOT analysis are divided into the internal and external environment. The company's internal environments are company's strengths and its weaknesses while the external tools are the opportunities available outside for competition with other companies and the threats from the surrounding communities and other companies.

Internal Environment Elements

The internal environment of this company in composed of the human resource which is composed of the managerial system, workers, volunteers, and the business target population. Another element of the internal environment is the physical resource of the company which is defined by the building structures, the company location, equipment and its sources of income. Other elements of the internal environment of this company are its activities and planned events. The experience of the company is also an internal environment that can be used to find out and solve any problem being experienced by the company. Through the guide of SWOT analysis information of the internal environment is gathered from the main elements. When gathering the internal environment of the company which is used to identify the strengths and weakness of the company.

Strengths

The strengths of the American airline are the availability of a good number of workers, connection to the world market, and good location of its main hubs (Aa.com, 2016). Also, to the strengths, the available equipment that helps the workers conduct their allocated duties in the company and space availability for the workers are also strengths of this company. The important information about the strengths of this company is how effective are they and their contribution. Using the example of a large number of workers, they may help in maximizing the profit of the company and in another way they can create losses to the company. The company's equipment like cars and office furniture are motivator tools to the workers. The American airline as a company needs to balance on the cost of this equipment with their contributions to the company.

In the strengths of the American airline company, availability of workers and volunteers as a basic need for this company has promoted this company through improvements in its efficiency (Air Transport Research Society 2003). When a problem exists in this company, the information to be gathered in trying to solve this problem is how the workers are relating to providing teamwork. Some strengths of the American airline can be positive and at the same time have a negative impact on the company. The primary business objective of profit maximization is a key factor to consider when conducting employment for the American airline company and equipping the company.

Weaknesses

Another element of SWOT analysis in the internal environment of American Airline Company is its weaknesses. The weaknesses of this company are poor management system, lack of motivation to the workers, lack of teamwork and appropriate scheme of service for every staff in the company. Fall of shares is another weakness of the American airline as experienced in 2015 where the shares droppedby 10% (Research, 2016). The effect of any existing weakness in a company is that the company will not be in a position to maximize on the profit as targeted. The poor management system in the American airline company contributes to gaps in the cash flow of the company (Nieuwenhuizen& Erasmus, 2007). When these gaps develop, corruption is the major attack on the company which is the reason these companies record many losses. Within a given time, with these companies experiencing a lot of corruption t