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Failed International Business: Swiss Air ( Germany)

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Submitted By EAAgboola
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Knorr, A., & Arndt, A. (2003). Swissair’s Collapse - an Economic Analysis. Materialien des Wissenschafts schwerpunktes: Globalisierung der Weltwirtschaft, Bd. 28, September 2003. Bremen
This article discusses the failure of Swissair by analyzing the financials of the company prior to the year 2001 when the company became grounded. It begins by giving the company’s profile and its history from establishment in 1931. The paper highlights the company’s successes and gives a table that shows the gradual increase in the number of fleet, employees, revenue, cities served, and the break-even load factor from 1931 to 2000.
The paper goes ahead to explain the reasons why the company failed to consider the alliance strategy that was commonly used by similar companies as well as elaborating other principal causes of failure such as government interference and uncritical media coverage, A five year financial review of the company is provided beginning 1996 to the year 2000 showing how the operating revenue increased while the EBIT and profits decreased and finally led to losses.

Mileski, J., & Nwabueze, U. (2008). The Challenge of effective governance: a case study of Swissair. Journal of Corporate Governance, 8, 5, 583-594
This article begins by giving a brief history of Swissair Company making note of its initial successes and good management practices. It then explores the best managerial practices that are crucial for the success of any business, laying emphasis on the precepts of effective corporate governance and their impact on businesses. The paper then explores the corporate governance practices that were common in the Swissair Company comparing them to the best corporate governance practices before clearly exposing the failures in corporate governance that led to the grounding of the company. This paper is important because it gives explicit corporate

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