Chap 12 Considering New Ventures and Corporate Renewal

Chap 12 defined new ventures, initial public offerings (IPO) and corporate renewal.  When an idea is formed and an opportunity is seen then it sparks entrepreneurship (new-venture creation), meaning that a business is created from the ground up. Initial public offerings is the public sale of company stock. This generally occurs early in a firm's life cycle and is a pivotal shift from small company to established. The term corporate renewal is just that breathing life into a dismal corporation through a re-evaluation of the strategy.

With the terrorist attacks on September 11, 2001, the airline industry tailspinned out of control.  Delta Airlines took its first financial loss in six (6) years. This unexpected traumatic event almost caused an organizational failure. The economic change in the environment caused management to discuss corporate renewal.

http://www.managementsite.com/494/Organizational-Resilience-in-Times-of-Crisis.aspx

Chap 11. Organizational Structure, Systems and Processes

Chap 11 discussed how the organizational structure, systems and processes are vital to the corporate strategy and play an important role in how the strategy is implemented. The framework of an organization is structure. What is structure? It is the arrangement and division of tasks, and people within an organization. This arrangement provides an efficient way for information to flow from the gatherer of information to the decision makers in the organization. Structure provides a level of consistency for coordinating resources and information. The most firm structures are functional, multidivisional, matrix and network.

Delta Airlines is no different from other organizations where organizational structure, systems and processes are important to the implementation of the corporate strategy.  Every employee with Delta has  The utilization of the multidivisional structure gives specific functional areas such as marketing and finance specific responsibilities and tasks that mange activities that make it possible for Delta to be successful. CEO  Richard H. Anderson and President Edward H. Bastian are at the top of the multidivisional structure.

http://www.delta.com/about_delta/investor_relations/corporate_governance/board_of_directors/index.jsp

Chap.10 Studying Mergers and Acquisitions

Mergers and acquisitions sound the same but they are quite different. When the transfer of ownership occurs and a firm is bought by another company then that is called a acquisition. And when a company is consolidated with another that is called a merger. Chap 10 discussed the benefits and drawbacks of such a transaction and what is the motivation behind the deals.

On October 29, 2008, Delta Airlines merged with Northwest airlines, eliminating an industry competitor and expanding their presence worldwide. The former CEO of Delta airlines Gerald Grinstein, called this transaction "anti-competitive" and that it would "threaten the future stability of our nation's transportation industry". With the economy in a downturn and oil prices increasing combining resources would give the company capital needed for growth.

http://money.cnn.com/2008/02/20/news/companies/delta_northwest_analysis.fortune/index.htm

Chap 9. Understanding Alliances and Cooperative Strategies

Chap 9 discussed why strategic alliances are so important, and the motivation behind alliances. What is a strategic alliance?  It is a partnership in which two or more firms combine resources and capabilities with the goal of creating mutual competitive advantage. As with every relationship it has a beginning and an end, and Delta Airlines has agreed to many alliance with the intention of creating a competitive advantage within the airline industry.

"Alliances that take you farther" is the joint venture partnership created with Air France, KLM, and Alitalia. This partnership created a global network offering 250 flights daily across the Atlantic  and flights to 500 destinations within Europe. Collectively, this network creates a seamless connection when arriving and departing a Delta hub.

http://www.delta.com/planning_reservations/plan_flight/flight_partners/air_france_joint_venture/index.jsp

Chap 8. Looking at International Strategies

What is International Strategy? It defined as processes by which a firm approaches its cross-border activities and those of competitors and plans to approach them in the future.  Chap 8 discusses how global trends can lead a firm into new market opportunities and grow consumer demand. Why should we expand is a question that top management asks in regard to providing or selling their services in foreign markets.

The recent merger of Delta Airlines with Northwest airlines was part of the international strategy to expand their presence into the Asian markets and making Delta the largest commercial airline in the world. Having a global balance is what gives Delta Airlines the flexibility to overcome economic conditions internationally.

http://www.ajc.com/business/deltas-international-strategy-struggling-94932.html

Chap 7. Developing Corporate Strategy

This chapter requires companies to answer questions. If you are in the airline industry should you also be in the railroad industry? The corporate strategy deals with this issue as well as all issues affecting the overall efforts of the company. Should we diversify be entering into more than one arena or stay true to our core competencies?

While staying true to their core competencies, Delta Airlines has been able to diversify and enter into different arenas and be successful. Being an industry leader, their corporate strategy is very clear and concise. Stick with what we do best and that is provide exceptional customer service throughout the entire travel experience, offer premium in-flight amenities, and the frequent flyer rewards program. The brand Delta speaks for its self and the differentiation strategy keeps Delta Airlines on top.

Chap 6. Crafting Business Strategy for Dynamic Contexts

Chapter 6 discussed how even in dynamic competition, firms are able to develop competitive advantages.  The meaning of dynamic is constant changing of the environment where you must adapt to new situations and overcome possible obstacles. Technology is a dynamic environment that is constantly changing and if companies want to keep a competitive advantage they must respond quickly and adapt.

As Delta Airlines passengers adopt the trend of owning web-enabled smartphones, wireless computers, and with the explosion of social media, the airline is leading the way in how the industry interacts with its customers thus improving the travel experience.

http://www.flightglobal.com/articles/2011/05/24/357128/passenger-experience-in-the-spotlight-as-technology-advances.html