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I. The Internal Environment
? Strengths:
¡´ Good reputation from customers in the Great Lakes region, which will help to establish future clientele.
¡´ Good network: Has interline ticketing and baggage arrangements with major carriers.
¡´ Increased sophistication in equipment has increased dependability.
? Weaknesses:
¡´ High employee turnover
¡´ Low organization morale
¡´ Lack of training and educational programs for employees
¡´ Lack of organizational culture
¡´ Weak employee incentives (employees are paid below the market) which results in a lack of ownership from employees.
¡´ Poor aircraft choices, not taking advantage of some markets widely open for opportunities (unserved markets).
¡´ Aircraft maintenance are not properly maintained resulting in unreliable aircraft
¡´ Cash problems are exacerbated by overhead costs.
¡´ Ineffective organizational design
¡´ Weak management leadership and expertise
II. a. The External Environment
? Opportunities
¡´ With a small organizational structure, changes are easily to be made.
¡´ Technological breakthroughs can increase safety and equipment efficiency.
¡´ With expansion, there will be a larger choice of aircraft to choose from, which will enable the new luxury market to easily obtain new aircraft
.
¡´ Unserved markets provide Elite airline with an opportunity to enter into a luxury market.
¡´ Deregulation of fares and routes allow airlines to compete for customers by creating com ...