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Conduct a strategic audit on LATAM Airlines in order to propose creative strategies to enhance its long-term success within a changing environment: Strategic Change Audit Assignment, UK
|University||University of Chichester(UoC)|
|Subject||Strategic Change Audit|
Strategic Change Management Assignment
● Conduct a strategic audit on LATAM Airlines in order to propose creative strategies to enhance its long-term success within a changing environment.
Once you have completed your introduction, you are then required to identify LATAM current strategic objectives. Provide a brief overview of the key headline points, identifying the airline’s objectives. Remember that this needs to be brief and specific with key headline points rather than a lengthy description of the airline, its background and history.
In order to complete the strategic audit, you are required to explore both the internal and external environments of the airlines.
- You are required to audit the internal environment using the Value Chain model. Value chain analysis involves the adoption of a systematic approach in the analysis of competitive advantage. The framework makes a distinction between primary and support business activities and identifies the sources of competitive advantage for each activity. Please make sure you include both the primary activities (inbound logistics, operations, and outbound logistics, marketing, sales and service) along with support activities (firm infrastructure, human resources, technology development, procurement) within your discussion
- Inbound logistics may include items such as the timely delivery of a fleet of aircraft, catering products and a wide range of other on-board The Operations stage of the business involves preparing goods and services to be sold to customers. Outbound logistics may include the efficient handling of baggage at the point of destination and utilising an advanced information and communication system for the airlines. Marketing and sales may include items such as print and media advertising, sales promotions, events and experiences, public relations and direct marketing of the airline. Generally, post-sale services involve installation of the product, handling complaints regarding the products and services etc. Conclude this section with the airline’s strengths and weaknesses.
You are then required to audit the airline’s external environment. The external environment divides into operating environment and macro environment.
- The Competitive analysis should be completed using Porter’s five forces. Please only use the 2 forces (threat of new entrants and bargaining power of customers) out of Under threat of new entrants, you may want to consider items such as rise of low cost carriers and alternative options that will absorb the market share of these airlines. Under bargaining power of customers, you may want to consider how each airline configures their seats based on passenger demand / expectations and moreover passenger types such as first, business, premium economy and economy.
- To complete your industry analysis, consider airline alliances, code share agreements, partnerships and customer perceptions and rating which change or shape the airline.
- Under market analysis, investigate where LATAM market come from and market trends (could contain current market trends and market opportunities such as Gen Z travel).
- Once you have completed all three sections of competitive, industry and market analysis of the operating environment, conclude this section by identifying micro-opportunities and threats of the given airlines.
- The next part of the external audit is the macro This should be audited using the PESTEL model (2 forces only). Under political forces you may want to consider Middle Eastern and global political forces. Sociocultural forces could be items such as cultural preferences, social organisation, ethics and values.
You are then able to conclude this section with macro opportunities and threats for these airlines.
Now that you have completed the full internal and external audit of the airline and identified the given airlines strengths, weaknesses, opportunities and threats, you are in a position to comment on LATAM’s current strategic position. You can do this by identifying the current position of the airline within the regional and global aviation market and commenting on suitability, acceptability, feasibility and sustainability of LATAM current strategy. You can also explain what key strengths, weaknesses, opportunities and threats influence the airline’s present position. Don’t forget to consider where the gaps are in their current direction in relation to the current strategic objectives you identified at the beginning
Now that you have analysed the current situation, you are required to formulate two new different strategies for LATAM that have not been seen before. In order to do this you will need to use a number of strategic management tools to see what should and should not be continued.
- Firstly, you will need to work out what the current portfolio of products and services for LATAM are using the BCG matrix to do this – you need to say which of them are Stars, Cows, Dogs and Question Marks, displaying what of the current portfolio should be invested, developed or discontinued.
- Next, you will need to state your two new future strategies for LATAM and discuss where they are on the TOWS model – what strength/weakness are they satisfying and what opportunity/threat are they utilising. You will also use the Ansoff Growth Matrix to discuss whether they are appealing to existing or new markets with existing or new products.
Once your two new strategies have been discussed, you will then need to decide upon a singular strategy for LATAM to take forward. You will decide which strategy is the strongest and why you have chosen to use this. You need to consider how this fits in with their current strategy and how this fixes a problem that the airline has. You need to work out the desired state for the airline and how they are going to close the gap from where they are now to where they will be in the future designing a number of goals to implement the strategy successfully.
You should avoid unsubstantiated comments. Always make sure your comments and discussions are supported by valid references. References should be provided within (in-text) the body of your report as well as an alphabetically ordered (A-Z) reference list at the end of the report.
Consider planning your report structure (headings and subheadings) and what you are going to include before you start writing. This could help you cover all the required areas more logically making it easy for the reader to navigate through your work and follow your points. Please proofread your work for spelling, grammar, sentence structure etc. as these minor issues collectively could affect the overall quality of your writing and in turn reflect in the mark awarded.
To ensure that the structure of the text is solid, the paragraphs also have to be well structured. A paragraph typically consists of three elements: a topic sentence, supporting sentences and a concluding sentence. PEEL (point, evidence, explanation, link) structure maybe useful if you need help with this.
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