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Analyzing Managerial Decision: United Airlines

In: Business and Management

Submitted By sajt38
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Pages 4
Analyzing Managerial Decision: United Airlines

by
Ronald J. Sanders

HCM-540, MBOL5, Health Care Organization
Instructor: Wenyuan Teng
Saint Leo University
Distance Learning

November 10, 2013

Abstract

United Airlines is one of many airlines that look to capitalize on it’s ability to provide air service to the consumer. Like other airlines, it is challenged to be creative and profitable in a changing market. The creativity may involve creating flights or analyzing the cost associated with providing a service. This paper offers some insight on the case study of United Airlines and provides some analysis on the managerial decisions within the company. The scenario given in the case study speaks about a situation of declining profits and the costs of operating were growing. A dialogue of cost and market organization will be noted and the recommended managerial decision of; whether the airline should run a specific flight or not.

Introduction
When making a business decision, many factors should be considered. The market structures in the economy are important in seeking whether the company is reasonable to continue to operate or not. The structure of the market or characteristics of the market environment that United Airline operates in is competitive market. Competition market is an economics term that refers to firms that have no influence on market price and take it as given. (Brickley Smith & Zimmerman, 2009). For United Airlines to operate involves the use of fixed and variable costs. The variable cost for United Airlines involves fuel, the variance in passengers flying, pilots, attendants, food and other varying items. Additionally there are associated cost such as ticket agents, building rental, baggage handlers and other related costs. United Airlines was not covering the cost on flights from San Francisco to Washington, DC....

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