Lufthansa: A Case Study

Paper Summary:

The paper discusses Lufthansa's corporate restructuring in the early 1990s that has enabled the company to respond to crises ever since. The paper provides a SWOT analysis of the Lufthansa company and discusses the company's commitment to long-term strategic cost reductions, streamlining operations and management and a reliance on alliances. The paper concludes by revealing the company's competitive advantage and growing strength.

Outline:
Introduction and History
SWOT Analysis
External Environment
Conclusion

From the Paper:

"In 1992, the German state owned, unprofitable airline Lufthansa was facing bankruptcy. Under the leadership of Heinz Ruhnau in the 1980's, the airline has increased its fleet from 120 to 275 planes. The gulf War and the recession meant the company had too much capacity to be effective. When ]iirgen Weber's became CEO in the early 1990's, he faced the challenges including privatization, and cost cutting measures to allow the company to remain competitive in a changing marketplace. Under Weber's leadership, the company responded swiftly, and the subsequent corporate restructuring allowed for a swift response to avert crisis and a commitment to economization that has enabled the company to respond to crisis ever since."

Sample of Sources Used:

• Bruch, Heike Lufthansa 2003 Energizing A Decade of Change, University of St. Gallen/Lufthansa School of Business (textbook article supplied)
• Cook, Thomas AG achieves record results in financial year 2005/2006, Jan. 2, 2007, Lufthansa Official Website, Retrieved April 25, 2007 <http://www.lufthansa-financials.de/servlet/PB/menu/1020135_l2/index.html>
• European Foundation for the Improvement of Working and Living Conditions Website. Eurofound: Pacts for employment and competitiveness: Lufthansa AG, Retrieved April 25, 2007 <www.eurofound.europa.eu/areas/industrialrelations/pecs/pecs14.htm - 54k>
• Oregon Business Plan Format for Policy Opportunities. Lufthansa Success to attract Lufthansa's Star Alliance Partner, Retrieved April 25, 2007<www.oregonbusinessplan.org/pdf/9(a)-Air%20Service%20WP%201-15-03.pdf >

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