Processor
Part 1.
A company’s strategy is normally examined by the financial perspective, which helps in determining whether a company will be able to contribute to its bottom line improvement. A financial perspective acts as an indication of a company’s strategic objective in a long term period, hence making the company to incorporate the outcomes that are tangible in terms of the traditional financial positions.
The financial position of a company is a key element used in defining an organization or a company’s success. This also explains how the company can generate the growth of the value of its shareholders. The leaders of an organization can follow a combination of different company growth strategies depending on the strategies available. This will help them in determining whether to increase the revenues or to cut the cost depending on the emphasis contained in the production strategy. The following are some of the common types of financial measures incorporated in a financial perspective. Cost, revenue growth, cash flow, profit margins and the net operating income.
Over the past years, the Delta airline company has been able to increase its revenues from 32.7 billion dollars to 33.9 billion dollars. It is impressive that the company was able to cut the average percentage of the cost of goods sold, the income tax expenses and the unusual expenses. The reduction of these expenses helped the company in growing from one billion dollar to 10.5 billion dollars in the year 2010 to 2013.
The company operates more than 5000 flights per day and it has a human resource and a working force of more than 80000 people. The company grew as a result of its marketing strategy which enabled it to create and expand its routes to different parts of the globe. It also acquired new jets as parts of its marketing strategy. The company’s logo also played a key role in the marketing of the airline. Delta airlines have also integrated with other organization that helps them in combining their websites and the reservation system such as the northwest airline company.
Part 2
Delta airline Inc.
The company is one of the biggest airline service providers in the world which offers both transportation of cargos and people around the planet. Delta air line Inc. offers more than 5000 flights per day all over the globe.
Vision statement
The vision statement for the company indicates that the company has the vision for the future , the near future.
Mission statement
The company has created a mission statement which explains how the company’s employees and the airline intend to become the “force of global good”. The company’s mission is to better the living standards and the environment of the customers.
Objectives of improving the company’s financial position.
The company should try and reduce on the operating expenses through the introduction of services that are cheap and of good quality. In the year ending on 31st December 2013 the company’s operating expenses summed up to 4.781 billion dollars. DeltaCompany should also try to increase its volume of goods sold so as to enable it to increase the company’s revenue which is currently standing at 37.773 billion dollars.
Some of the metric measures that the company should undertake is to reduce their interest on expenses as it has been doing since its one of the major ways of increasing the company’s net profit. Delta Company should also come up with ways of scrubbing off the expenses incurred by the unusual items from 271 million dollars in the last financial year as this cost is attributed to the decrease in the level of profit the company realizes after the deduction of other expenses and tax.
If the company puts the above metric measure in place, the company’s revenue is expected to rise up to 38.5 billion dollars. As a result of increase in the total amount of revenues generated from the sales revenue and other revenues. As a result of increase in the revenues generated and a reduction of the cost of goods sold and the operating expenses, the company’s net income is likely to increase to up to 11.05 billion dollars for the fiscal year ending December 31st 2014.
One other way that the Delta Company can do to increase its net profit income is by increasing its market strategies, increasing the number of its operations and the destinations that the company will be offering its services. Even though the company is one of the few companies that offer its services all over the continents, the company should try to venture into offering its services to local destinations. This idea will help them to make a good foundation for the company hence making them stable. Delta air lineInc. Should also increase the number of their air bus and purchase the planes that consume less fuel. This will be economical for the company since it will cut down the operating expenses of the company thus increasing the company’s net income.
