Navigating Through Economic Turbulence: A Case Analysis of United Airlines
On December 4, 2002, United Airlines entered a very dark period of their history when the company announced Chapter 11 bankruptcy. The case begins with CEO Glenn Tilton on his way to Chicago to announce the specifics of the bankruptcy and meeting with the key stakeholders of the company. These stakeholders have the power to completely re-order the United Airlines business model in the days following the bankruptcy filing. They are comprised of stockholders (both individual investors and institutions), suppliers, Wall Street analytics and the creditors the company owes payments to, and United's partners in the Star Alliance of code-sharing programs. While the case study is downbeat and shows just how far out of touch the airline is with its value chain, one of the most redeeming aspects of United's situation is their strength at partnerships an alliances (Sjogren, Soderberg, 2011). The en masse adoption of low-cost airlines and a completely different business model focused on standardization over customization is pervading the airline industry and was in full motion in 2002 as well (Pereira, dos Reis, 2011).
Statement of the Problem
Of the myriad of issues in the case study, at the center of all the chaos United is dealing with is the lack of connection with their value chain. Whenever a...
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