The Airline Industry is on the move and experiences significant consolidations. Lufthanza has joined forces with Swiss and is within the Star Alliance Group. Lufthansa has assigned an international head-hunter to find an external senior manager responsible for new project development and strategy for the group. The final choice has been made on you, former Senior Vice President for Product Management at Swiss Rail.
After an initial period and orientation within the LH Group, its industry, and market conditions, you have been appointed as the Director of the recently founded “Low Cost Carrier Division” of the Group, known as “EcoFly”. EcoFly is top secret and has not yet been announced to the public. Only a Steering Committee at LH Group (including senior members of the legal and marketing departments, as well as the Board of Directors is informed about the project. In fact, the project is so new it only resembles an idea and outlook, but:
- No strategy has been formulated yet;
- No business planning has been done yet;
- No organization has been been created yet;
- No people, systems, and processes have been integrated yet;
- No aircraft have been allocated yet;
- No destinations have been defined yet;
- No marketing plans exist yet;
Since this is an ongoing project, the steering committee will continuously confront you with tasks, inquiries and ask for updates/reports. The steering committee will report to the LH Board of Directors and jointly decide on the kick-off of the project based on your recommendations. The Assignment is broken down into 4 phases. The entire submission will focus on 1. The scope, 2. the executive summary, 3. the environmental scan, and 4. the strategic planning.
Task #1-The Timeline and Project Scoping:
The first task is for you to set out the parameters of your research work and to reiterate back to the Steering Committee the timeline of the desired tasks. Timelines for deliverables are required along with the general content of the deliverable that is to be expected from you. Once agreed upon by the Steering Committee you will be held to those submission dates as the Board of Directors will scheduled meeting on those dates to review the deliverables and recommendations and to return any direction back to you for subsequent work.
Task #2-The Summary:
Your first major task will be to formulate an executive summary that lays out EcoFly’s vision, mission, and values, respecting the position of LH Group, Swiss and Star Alliance. Your findings will be forwarded/presented to the Steering Committee. If you face difficulties in keeping the timeline, you are requested to communicate any pending delays in a timely manner. All findings should be presented/visualized in a professional manner using templates and appropriate layouts.
Task #3-The Environmental Scan & Candidates:
After presenting the above material in Task 2 to the Board you have been requested to complete a synoptic strategic plan (an environmental scan of the industry) and to narrow down 3 potential acquisitions. You must provide a solid rationale for the inclusion of your 3 choices and explain why they are considered good candidates for purchase (consolidation/merger) with respect to their industry positioning, financial performance and other strategic imperatives.
Task #4-The Strategic Management Plan:
Presentation of the Strategic Management Plan. Base on the presentation of the work in Task #3 the Steering Committee has requested that you develop a strategic management plan for your first choice acquisition. The strategic plan should emphasize the McKinsey 7’S model as the framework for analysis.