Contents Introduction 2 Mission Statement 4 Vision Statement 4 External Assessment 5 External Factor Matrix 9 External Factor Matrix Table 1 10 Competitive Profile Matrix 12 Competitive Profile Matrix Table 2 13 Financial Ratio Analysis 14 UAL: Financial Ratios Table 3 15 United Continental Airlines VS Delta Airlines Table 4 19 UAL VS Airlines Industry Average Table 5 20 Internal Factor Evaluation Matrix 22 Internal Factor Evaluation Matrix Table 6 23 SWOT Matrix Table7 24 Quantitative Strategic Planning Matrix 25 QSPM Table 8 26 Strategy and Long term Objective 27 Annual Objective 28 Recommended Objectives Table 9 30 Pro-Forma Financial Statement 31 Estimated Costs for recommended Strategy and Objectives Table 10 33 Estimated Income statement Table 11 33 Estimated Balance sheet Table12 34 Strategy Implementation, Review and Evaluation 35 References 37 Introduction Case analysis as of 2013, this case analysis will be focuses on external and internal assessment including financial ratios of United Continental Holding, Inc. The purposes of this analysis are identify company’s strengths and weaknesses and became high quality airlines. United Continental Holding Inc. is a product of the merger of two airlines: United Airlines and Continental Airlines. The Company provides air transportation services, cargo, and also sells fuel, as well as offers catering, ground handling, and maintenance services for third parties. The Operator headquarter is located at Chicago, Illinois. The merger made in 2010 and changed the name to United Continental also listed on the New York Stock Exchange under the UAL symbol. This newly formed; United Continental Airlines is the worlds’ leading airline industry (“United”, 2013). UAL is offering 373 destinations all around the world serving 62 different counties with 145 international distensions. In 2012, 140 million passengers were flying with UAL. The company uses major hub airports in the United States; San Francisco, Chicago, Cleveland, Denver, Houston, Los Angeles, Newark, Washington Dulles, and Guam. The company offers a Mileage Plus program which is the world’s most rewarding loyalty program that provides premier access to airport service and premier club lounges located in 38airports (“United”,2013). United Airlines Background United Airlines originated from the Varney Air Lines in 1926 (Fredricks, 2010). By 1990, Boeing Air Transport, National Air Transport Pacific Air Transport Capital Airlines and Pan American World Airways merged into United Airlines (United Airlines, 2013). The terrorist’s attacked on September 11, 2001; two of the four airplanes hijacked and crashed by al-Qaeda members were United Airlines aircraft. After the terrorist’s attacked airlines industry into downtime with the economic crisis, and increasing oil prices. UAL lost US$2.14 billion in 2001 (Donnelly, 2003). Continental Airlines Background Continental Airlines, founded in 1934. During the WWII, 1940s' and 50's, Continental Airlines expand fleet of aircraft and profits through participated in World War II by providing air transportation to the military. In 1983, Continental filed bankruptcy with loss of $218,000,000. In 2010, Continental and United announced their intent to merge (Continental Airlines, 2013). Mission Statement Existing Mission Statement: “The airline will be focused on being the airline customers want to fly, the airline employees want to work for, and the airline shareholders want to invest in” (“United”, 2013) Proposed Mission Statement United Continental Holding Inc. provides high quality air transportation to global travelers, offering the world’s most rewarding loyalty program for industry leading frequent flyer. Our company is socially and environmentally responsible to travelers by using new and fuel efficient fleet aircraft order book among US network carrier. United Continental Holding Inc. is most comprehensive global route network we committed delivers leading customer service, meaningful profitability and sustainable long-term value for our shareholders. Vision Statement Existing Vision Statement - “To create the world’s leading airline” (“United”,2013). Proposed Vision Statement - “To become the world’s leading airline.” External Assessment Economic When there is high rate in unemployment, it will affect the airline industry as much as any other industries. According to Labor Force Statistics from the Current Population Survey, unemployment at a higher rate 7.8%, from the year 2008 in the United States (Databases, Tables & Calculators by Subject, 2013). High employment rate will cause the net loss for airlines because customers are unable to afford air transportation and vacations. Also the increase on oil price is a most important threat for airline industry. According to IBIS World Industry Report, “The Air Transport Association estimates that for every dollar increase in the price of jet fuel, the US ai