Air France Klm Strategic Management Essay

1. Governing of Air France - KLM 4 2 Staff turnover and competitive position 5 3 Air France - KLM's mission and vision 5 4 Risks and issues 6

2.1 Industrial Life Cycle 6 2 PESTEL (External Environment) 8 3 Porter 5 Unit + 1 (Air France - KLM) 9 4 Opportunities, Threats and Major Success Factors 11

3.1 Air France, Resources and Functions 12 1.1 Core Competitiveness 13 1.2 Cost Efficiency 14 2 Value Chain and Process 16 3 Advantages and Disadvantages 18

Therefore, Air France - KLM's mission is to provide customers with high quality services that adapt to changing needs.

Air France - The overall vision of KLM is to be the world's largest and largest airline. By merging with KLM, the next step has to be to compete with major US companies like Southwest Airlines and American Airlines as they put themselves in a good position.

Despite the positive position of Air France - KLM in the European market, they are still facing severe risks and challenges in the future. The ongoing risk is a terrorist attack, which shocked the entire airline after the return of the entire aviation business in 2001. Just because their respective governments help them provide financial aid they are just afraid of flying and business customers survived. One of the main challenges is to get rid of the financial crisis without much suffering. There are many uncertainties in forecasts for 2010, as is pointed out in the forecast for 2010 in Air France, but there are indications that it is more stable. The market for low budget flights is expanding and it is also a big issue whether to compete in long-distance flights in the future.

In this chapter, we will try to give the impression of Air France's industry. 1, I will focus on

Air France KLM is the merger of Air France and KLM. Since the merger in 2004, KLM has worked closely with Air France within AIR FRANCE KLM Holdings. In terms of sales, Air France KLM is the world's largest airline partner, it also transports the most passengers and is the second largest cargo carrier in the world. Air France and KLM carry more than 71 million passengers annually. They are operating more than 594 aircraft and can fly to 236 destinations worldwide at 2,500 flights a day. Combining the two airlines' worldwide networks, we can form a vast network of two major hubs, Amsterdam Schiphol and Paris CDG. Headquartered in Amstelveen and Paris

At the beginning of the year, instead of the independent management structure of Air France and KLM, Air France - KLM introduced a new integrated business management structure based on its function. Replace the Strategy Management Committee overseeing the development of Air France and KLM from 2004 to 2007 that was managed by the Executive Committee in 2007. Members of the committee have group level responsibility and can come from Air France. Or KLM, while retaining its responsibility at the company level

Both Air France and KLM have introduced an integrated management system (IMS) covering quality, environmental management, and food safety issues. Air France is fully certified by IMS. Air France and the Royal Dutch Aviation Maintenance Business Unit use its own complementary approach and experienced staff to provide customers with unique combinations of customized service and on-line maintenance. Continued dialogue with third party airlines, and a combination of Air France and KLM, the maintenance department gains a deep understanding of the industry and its needs. Customers are also required to participate in periodic satisfaction surveys. Not only that, Air France KLM also launched an environmentally friendly solution they promoted among their customers.