1.0 Chapter 1. American Airline: Overview and History.
1.1 Organization and subsidiaries.
The American Airline is the major United States Airline. It is a subsidiary of AMR Corporation. The airlines headquarters is located in Fort Worth, in Texas City. The airlines provide transport services to both domestic and international citizens. The airline is being renown for its services, which are of high quality and efficient. The main routes followed by airlines include the following; South America, Europe, the Caribbean, as well as pacific or Asia. The Airline accounts for 85 percent of traffic as well as 83 percent of landing fees. Therefore, it is the largest airline hub. The airline travels to more other destination hubs than the number in which other airlines travelling into the hub. The airline has several subsidiaries, which operate under its brand name. The brand name of the organization is America Airline with symbols AA. These subsidiaries are such as Sky West Airlines, and Express Jet Airlines. The subsidiaries provide airline services to domestic travels within the state. They make the travel of goods and citizens effective and efficient and makes the transportation in the State of high standards. The corporation, which is a subsidiary of AMR, operates under the American Eagle brand. Its services are ranked highest in the world. Due to its location and size, the most of transport services to the designated location are carried by the airline.
1.2 Organization historical perspectives.
The historical background of the airlines can be narrated from the year 1930. The airline was formed from the conglomeration of 82 small airlines in the United States back in the period. This was done through several mergers and acquisition. The main motive for the conglomeration was to provide an efficient service that will reach every customer in the state. This was meant to make the travel in the state more swiftly than before and to enhance international travel relation. This promoted to the growth of the company to its current position and size. The brand name American Airways was used by several independent brand carriers. For instance, the brand name was used by Universal Aviation in the Midwest of America, Southern Air fast express in the west of the states, Thompson Aeronautical services and Southern Air Transport among others. The Universal Aviation was renown as trans-continental airline in the year 1929. The airline was the United State mail carrier as was the case in all airlines in all countries in those earlier periods. From the historical backgrounds, the airline has developed in its size due to the incorporation of various development strategies. The mission of the airline which is to provide an efficient and affordable airline has made the corporation thrive well in its services.
1.3 Corporation scope and its product.
Every company in operation, to operate to achieve its objectives and target. As in the case of American Airlines, it is the corporation scope to provide an efficient and effective service to every person travelling with its airplanes. The scope clause of the company is meant to provide quality services to both the users of the airplane and its pilot. This was from the fact that historically, there has been a scope paradigm between the company and the pilots. The paradigm made the company change its scope clause and ensured that it catered for every stakeholder in the corporation. The scope of American Airline is mainly concerned with two areas, which includes the regional flying and code sharing. The regional flying is mainly concerned with the size of the regional airplanes which were 50 seats in size. Due to market competition, the corporation has changed the scope to include other regional airplanes. This has been an opportunity for the company to venture to internal markets and provide its services. Code sharing is mainly concerned with air travel between the American Airline and other Airline networks. The scope of the company is meant to create an awareness of its products, which includes travel services to the entire world. The development of these two scopes has made the corporation efficient and effective in its travel services.
1.4 Market distribution.
2.0 Chapter 2. Leadership and Management.
2.1 Leadership and management structure of the corporation.
Leadership traits or attributes influence the nature of operating in any organization. They work hand in hand with the management strategies developed by the management team. The corporation success is a blend of these two attributes. The management structure of the corporation is effective in its role. It is implemented through the following procedures. These are practices that make its corporate structure strong. The board members are elected on an annual basis. This makes the corporation to manage and evaluate the performance of its management team. The election of its board members is done by the shareholders of the corporation. The board members including all standing committees are expected to act independently. This is an exception of the Chief Executive Officer, Mr Thomas Horton. This helps in the reduction of personal interest or bias in the performance of the duties and responsibilities assigned. The directors are selected by the presiding board. In the case where a board member has withheld votes, the person should tender his resignation for a consideration by the board. The management structure has enabled the organization to have smooth running of activities. The services provided by the organization are complex and requires key management and leadership traits for their provision. The airline adopts a democratic leadership style. The shareholders and other stakeholder are allowed to make contributions during the decision making process. This has created a cohesive environment between the board members and the entire stakeholders. In combination with the management traits, the airline operation is efficient. The board members include; the Chief Executive Officer, Mr Thomas Horton, Mr John W Bachmann, a senior partner of the airline, Stephen M Bennett, chairman of the board, Dr Judith Rodin, president the Rockefeller foundations among others.
2.2 Evaluation of Corporation leaders.
The corporate leaders influence the performance of activities in any organization since they act as followers of the workers. Their traits and relationship with employees has a direct impact on the working condition of any organization. The leadership of American Airlines is evaluated as follows; The corporate leaders act independently thus free from personal bias or influence. This mode of leadership has enabled the organization performance to improve. This is from the fact that the management of any organization influences the performance of its roles. All the leaders of American Airline devote their effort in ensuring that both the corporation and users of its services welfare is met. This has made the cohesion between the board members and stakeholders more strong. According to Wiliam Mitchell, the managing director, leadership planning and performance, American Airlines, the leadership approach adopted, has lead to faster growth of the corporation services. The corporation had adopted an informal leadership style from the year 2001, but this mode of leadership changed in the year 2007. The leaders of the corporation are both workers oriented and company oriented. They strive to achieve a mutual benefit to the organization and all stakeholders. This is recommendable in any organization.
2.3 Corporate Vision.
The vision statement of the corporation is to be the fastest, most reliable, successful regional airline in the world for its customers, shareholders and employees. The vision statement describes the code of conduct of the corporation. It acts as a framework of performing activities of the corporation. The corporation considers the welfare of employees, customers and shareholders. The vision statement is a guideline in which all stakeholders of the organization are striving to achieve. The corporation focuses to achieve this vision through the development of the following strategies; the corporation is linking its services to all global partners in various regions. This will be achieved through refocusing on its five cornerstone markets in United State. The corporation is solidifying its relationship with all partners. This has enabled the corporation to expand its services in the various encroaching market, in the world. Also, the corporation is focusing on the introduction of innovative products and services that will improve the quality of services and perceived as a premier airline in the world by its customers. These objectives are the specific goals that the corporation is striving to achieve, as per the vision statement
2.3 Leadership approach by the corporation.
According to William, the leadership planning and development manager, the organization has developed an assess system that is used to bring a change in the leadership traits of the corporation. The corporation has been faced with many leadership problems, which had resulted from the perception of directors and workers. Specifically, the leadership of the corporation is situation based. The selection of leaders is made to meet the current and future needs of the corporation. This was the main contributing factor for the change of leadership style of the corporation. The organization considers the need to invest in people. It recognizes the fact that, the value of the organization is raised if the welfare of all workers and society at large is improved. This has made the organization accept that leadership approaches determine the performance level of its activities. The corporation has developed an impressive long term leadership system that focuses on the situation ahead of the corporation and need to be performed by the corporation. The leadership has increased the partnership power within the organization. This has contributed to the growth of the corporation.
2.4 Nature of corporate leadership.
3.0 Chapter 3. Effects of current Issues to the corporation
3.1 Current issues that may affect the future of the corporation.
In the recent world, many developments are encroaching. These developments are in terms of technological changes. New methods of airline operations are adopted. If the corporation will take active measures to match with the changing world, there are high chances that the corporation will lose its premier level. The level of competition in the provision of services is on a rising trend. Other airline networks are developing measures and strategies to improve their services. This forms a threat to the American airlines. The airline should initiate methods of research and developments so as to match the current needs with its services. It is required that, for any corporation to remain profitable in the future, effective and efficient strategies of gaining market power require to be developed. It is recommendable that the corporation has a conducive environment for its workers. This is in terms of job security and remuneration. Due to economic changes in the world, new motivation methods need to be adopted. This will make the corporation retain its workers thus retain its human resource. There are other forces that are outside the corporate control. These are prevailing economic conditions in the world. These conditions re influencing the depreciation of the value of some products and services in the world.
The main economic change is the general increase in the price level, which in economic terms is known as inflation. The corporation should develop effective measures that will be able to reduce the effect of this economic problem. The future of the organization is, therefore, determined by the measures and adopted by the organization now. The decision currently taken will influence the nature and performance of the corporation. This is the responsibility of corporate management team.
References
Lussier, R. N., & Achua, C. F. ( 2009). Leadership: Theory, Application, & Skill Development. New York: Cengage Learning.
Rogers, E. M. (2010). Diffusion of Innovations, 4th Edition (4, illustrated Ed.). New York: Simon and Schuster.
Rolow, A. L. ( 2008). The Plane Truth From An American Airlines Flight Attendant. New York: iUniverse.
Szurovy, G. (2003). Classic American Airlines (illustrated ed.). New York: Zenith Imprint.
Yosef, E. B. (2005). The Evolution of the US Airline Industry: Theory, Strategy and Policy (illustrated Ed.). New York: Springer.
