United Airlines Analysis Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

United Airlines Analysis Case Solution

Decision

The company had suffered a lot. Because the overall industry has suffered so now it after the vaccination and bit relaxation of travel it is time for united airline to recover all the losses. In order to recover the losses the company need to focus on the flights and especially on the cargo revenue stream because it was increasing in lock-down period as well. (50% increase in cargo). Cargo had potential to recover the losses. Initially united airlines should work on increasing the revenue through travel revenue stream. Secondly united should focus on recovering the sales and generating revenues from cargo. Reduce additional cost and do not hire or reappoint the previous employees until the losses are recovered. It would be beneficial for both company and customers.

Kallet’s model

In this critical analysis I have gone through the steps of kallet’s model as after reading the recent news and articles for united airlines, I came to know about the problems which company faced due to pandemic situation. After the inspection, we have erite down all the possible factors that can need attention on the basis of vision of company.

Section- 4Vuca Impact

VUCA is acronym of volatile, uncertain, complex, and ambiguous. Volatility refers to change in the industry, uncertainty refers to the prediction of future, complex refer to the factors we need to consider and ambiguous refer to the ambiguity of concluding the things. This framework could affect our decisions in different ways, like if second wave of pandemic hits again then the uncertainty will increase and the recommendations and analysis should be reconsidered again. Our decision could be changed due to the change in these factors. If industry comes up with a change then our decisions would be affected. Basically it is defined as the challenge for leadership in the organization. VUCA need us to be more dependent on the facts and ready for the sudden changes.

Financial Analysis

We have taken the data of united airlines and foretasted the income statement and balance sheet for year 2021. The income statement shows losses in the year 2021 with -0.65 growth rate. And with 16. 32 earnings per share. The current ratio of the company for year 2021 was -6.32 and quick ratio of -6.39. The company debt ratio was 2.07 and debt to equity ratio of -5.66. And the gross margin of 0.99 and net profit margin of -0.46. Which clearly shows the volatility of the company and how it is doing.

Section-5 Conclusion

United Airlines was doing well before pandemic. After covid-19 outbreak industry faced huge financial toll and adverse effects on the revenues. United Airlines also faced the down turn and losses of up to $2 billion. The company reduced its cost and managed to recover the losses company have to make the strategies. Due to Covid-19 there is high certainty in the industry, anything could happen. The company first priority should be to recover the losses by generating revenues from cargo and increasing the travel revenues. And cutting costs. Company should focus on the safe travel strategy and make travel available for travelers.......................

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