PESTLE Analysis of Alitalia Airline
Alitalia is regarded as an Italian national airline with its headquarters based in Rome with its main base situated at the Malpensa International Airport in Milan. This airline is reported to be serving more than one hundred airports with almost three thousand flights every week. (Alitalia, 2006) This airline was formed in the year 1946. Its operations officially started in May 1947 with its flight that ran between Turin and Rome. On the international flights, the airline started its operation in the year 1948 with its flights between the cities of Milan and South America.
Due to unavoidable circumstances, Alitalia airline has been going through some difficulties in its day-to-day activities that have slowed down the pace at which it functions.
Some of the factors that have affected its function have been the strikes of the members it has through the misunderstanding between the management and the unions. The resignation of the managing director has also been one of the political factors that have affected the daily routines of the company with many more factors that have brought both minor and major effects to the company. The government and the company both delayed tackling the crisis the Alitalia airline had. Many factors have affected Alitalia economically such as the costs at which it has been working on.
The company has had inadequate funds to purchase new aircraft. The rate of inflation has also been one of the factors. Bankruptcy has not just been a hindrance to the functions of Alitalia but also a big loss. The company needs more than just enough to be done but a lot of work to increase the workforce. With much more to be done taxation has to be reduced on the fuels so that the company will have fuel for its company and enhance its day-to-day activities. (Alitalia, 2006)
With the rapid growth of the level of technology, Alitalia airline has experienced a lot of difficulties in its routines since the costs of the increased level of technology is also very high as the days go by there has been an introduction of the micro strategy which highly deals with improvement of business intelligence software and deals with the behaviors of customers, profitability and income ranges which will also provide valuable insights and critical support to the company. The rate at which the customer performance is done will also be highly increased and improved with all the above being put into consideration.
When the use of the micro strategy will be greatly considered then the functions of the Alitalia airline will also be increased and improved. (Alitalia, 2006)
Culture is referred to as the norm, behavior, attitude, or values of a certain member, organization, or group of people to share. There have been difficulties dealing with people’s cultural differences when it comes to dealing with people since there have been communication barriers between people and many occurrences of cultural crews.
The accident that has been taking place has also been a big challenge to the activities of Alitalia since the aircraft has been falling and destroying many people’s lives around the world. The population growth also cannot be excluded from the factors that affect the functions of Alitalia and how people will have to live and plan how to make it in the future since hardships will keep increasing as time goes by if an action is not taken against all the mentioned factors. (Alitalia, 2006)
Legal factors are another factor that must be analyzed before going international. The way the company operates in terms of operating rules of law for example how Alitalia airlines Company always copes with the legal rules in Italy is more important because it avoids conflicts and will enhance the success of the organization. The company is engaged in the legal business practice of marketing airline products in various forms which is permitted by Italian laws.
Alitalia airline faced a big challenge when it lacked enough fuel for the aircraft to function the way it is supposed to thus retarding it behind. The competition from the railway transport also interfered with the functions of Alitalia airline since the cost of the airline was very high thus the railway line took advantage of that fact so there is a need for more actions to be taken to reduce the airline costs and the labor costs to make work more efficient. (Alitalia, 2006)
Environmental factors in any organization including the Alitalia airline are regarded as an aspect of business environment analysis that discloses the strengths and weaknesses that may be encountered during business transactions. The main objective of any business such as Alitalia airline is to maximize profits to give the best feasible proceeds to owners for the funds they have invested in the company.
Therefore the business organization depends on its internal aspects or components for efficient and effective operations. According to the latest research an organization should critically manage and monitor the key internal elements which include; physical facilities and equipment, financial stability, human resources, production and operations, and market capability. The above key internal elements depending on how the organization utilizes them may result in either strengths or weaknesses of an organization. This is indicated in this organization whereby its management has always been regarded to be professionals who are always aware of the marketing trends since they have been dealing with several flights.
There are many things a company does but it should always concentrate on what it can produce best. The internal analysis facilitates the formulation of a strategic plan which requires a clear understanding of the internal strengths acquired over time and any weakness that adversely impact performance. Distinctive competencies are things that give a firm an advantage over similar businesses. (Anthony, 1998)
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