1. The internal analysis 5 1.1 Historical overview 5
1.2 Mission, vision, goals and strategy 5
1.3 Structure 6 1.3.1 Corporate Governance and management control systems 6 1.3.2 Leadership 6 1.3.3 Culture 7 1.3.4 Structural configuration 7
2. The external analysis 8 2.1 Current situation 8 2.1.1 SWOT analysis 8 2.1.2 BCG matrix 9
2.2 In relation to the competition 9 2.2.1 Porter's Five Forces Model 9 2.2.2 Benchmark 10
2.3 The company’s image 10 2.3.1 Quality of services and products 10 2.3.2 Image as employer 10
Sources 11 Strategy The new Air France-KLM strategy is structured across five areas: Customers, Operations, People, Development and Finance. This will cover all three business sectors, namely; Passenger transport, Cargo and Maintenance. Customers: By putting the customer as a central point in their strategy and by strengthening their service culture one of the key priorities for development is achieved. Operations: Passenger safety is absolute priority. People: The success of the strategy depends on the skills of their employees. Development: AF-KLM will continue to expand its global operations to maintain its European Leadership position by expanding its partnerships. Finance: “Air France-KLM must return to profitable growth within the next few years, with an operating margin of 7% and a Return On Capital Employed (ROCE) of 8%” (AF-KLM Cargo, 2011).
1.3 Structure 1.3.1 Corporate Governance Strategic Management Committee The Air France-KLM group has a Strategic Management Committee, in which Air France and KLM are equally active. The Board of Directors The Board of Directors is a group of fifteen members who are responsible for the daily business operations. The Group Executive Committee This is a group of twelve members which meet every two weeks. In these meetings the group
