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Topic:

Strategic Issues of Lufthansa

Essay Instructions:

You need to select two strategic issues related to Lufthansa and give each issue two Strategic Options. Develop and illustrate at least two clearly distinct strategic options available to the organization to address the identified strategic issues and assess those. Based on your assessment, recommend the best way forward. Use relevant tools if appropriate. During this process, you can use the SAFE framework to complete this assignment. These issues should preferably be related to the disadvantages currently faced by the airline. I'll provide you with some strategic analysis I did for this company. I analyzed it from two aspects: Porter's Five Forces and PESTEL. You can use these analyzes as a reference.

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STRATEGIC ISSUES OF LUFTHANSA

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Strategic Issues of Lufthansa

Strategic Issue 1: Staff Shortages

The first strategic issue Lufthansa Airlines faces is staff shortages, which have become a prominent concern for the company, leading to the regrettable cancellation of flights. The issue was identified during the Lufthansa Airline’s social analysis of the PESTLE model. This issue can be attributed to various factors, including unforeseen events that generate a surge in air travel demand or unanticipated circumstances impacting employee availability (Cornell 2020). The repercussions of flight cancellations extend beyond inconveniencing passengers, as they also have a detrimental effect on the reputation and dependability of Lufthansa Airlines. Two potential strategic alternatives are proposed to tackle the airline’s strategic issues.

Strategic Option 1: Use of Advanced Technology for Predictive Analytics with Advanced Scheduling Software

First and foremost, Lufthansa Airlines has the option to pursue an internal solution through the implementation of extensive labor management measures. This method involves the implementation of proactive initiatives to improve workforce levels and maximize the efficient use of current resources. According to Whittington et al. (2023), the company’s internal and external environmental analysis can help

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