Strategic Plan for Company "Finnair"
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I have chosen to write about Finnish company Finnair, which operates in the airline industry as a passenger carrier as well as transports cargo and offers traveling services.
Long term objectives (LTO) can be defined as performance goals of company, which are planned to be achieved over next five to seven years. LTOs usually include improvement in organization’s competitive advantage, profitability, expansion and growth of the company.
Based on internal and external analysis three most important areas nowadays for Finnair would be productivity, competition and public responsibility. During the crisis airline industry is experiencing significant decrease in profits as passenger numbers and fares continue to go down. It is not about profits during the crisis but about the survival of the company. Last year Finnair was experiencing net loss. So it is very important for Finnair to cut costs and improve efficiency of the service. By 2015 Finnair will decrease costs in the employment are by 20%.
So far Finnair has been the biggest airline company in Finland, providing domestic flights and flights to many destinations in Europe, as well as to North America and Asia. Number of customers is not increasing in industry, so the good way how to improve market share would be to get customers from competitors. Finnair will add twelve new destinations in Europe-Asia traffic where it already offers the fastest, most eco-efficient and most convenient connections to Asia's large hubs from European cities which do not offer direct flights by year 2015.
Airline companies are doing well to the society by providing fast and convenient way to travel around world, but also they do damage the environment and carries high risks of harmful accidents. It also consumes natural resources, weakens air quality, generates noise and produces waste. …
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