A STRATEGIC

MANAGEMENT
CASE

Continental Airlines Inc.

SUBMITTED BY: LYRA P. HERNANDEZ

SUBMITTED TO: MR. ANDREW TRINIDAD

CONTINENTAL AIRLINES INC.

Continental Airlines grew from a small airline flying a single engine carrying 4
passenger. Along with its subsidiary, Continentals Micronesia Inc. and regional flights
operated by continental Express and continental connection, it operates more than 3,000
daily departure throughout America. It serves more international destinations.
Continental has 44,494 employees.

Continental was one of the first to add winglets to replace standard wingtips on its
aircraft that reduce the fuel consumption up to 5%.
 VISION AND MISSION STATEMENT

VISION:
To be the world’s favorite airline

MISSION:
To be recognize as the best airline in the industry by the costumers, employees and
stockholders

DEVELOPED VISION AND MISSION STATEMENT

VISION:
To be the best and leading passenger airlines and also the world’s favorite airline

MISSION:
To provide a quality service to all passenger to be recognized as the best airline in the
industry by the customers, employees and stockholders

PROBLEMS:
Internet Issues
-Continental Airline was slow to adopt in online bookings

Domestic competition
EXTERNAL AUDIT
OPPORTUNITIES THREATS
1. Operating regional jets 1. Volatility of fuel prices
2. Use of internet 2. Merger of U.S. and American
3. The EU-US Open Skies Treaty Airways
4. Profitability in airline services 3. Domestic competition
5. Global climate change as an 4. Airlines operating under Chapter II
important issue Bankruptcy
5. International market
6. Use of internet

EXTERNAL FACTOR EVALUATION MATRIX

Key External Factor Weight Rating Weighted
Score
OPPORTUNITIES
1. Operating regional jets .11 3
2. Use of internet .15 4
3. The EU-US Open Skies Treaty .09 3
4. Profitability in airline services .11 2
5. Global climate change as an .09 2
important issue
THREATS
6. Volatility of fuel prices .08 3
7. Merger of U.S. and American .04 2
Airways
8. Domestic competition .10 4
9. Airlines operating under .06 2
Chapter II Bankruptcy
10. International market .07 3
11. Use of internet .10
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1.00
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INTERNAL AUDIT
Strength
1. Strong increase in gross profit
2. The first to add winglets on its
aircraft
3. Customer passenger and load factor
have improved
4. Having a clear and measurable goals
5. The holder of different awards in
airline category
Weaknesses
1. Worst record of overbooking
2. No officer is assigned to oversee
international operations
3. Poor on –time performance
4. Mishandled baggage has have
increase
5. Customer complaint
6. Operating cost is above the cost of
low cost carrier

INTERNAL FACTOR EVALUATION MATRIX

Key External Factor Weight Rating Weighted
score
STRENGTH
1.Strong increase in gross profit
2. The first to add winglets on its
aircraft
3. Customer passenger and load
factor have improved
4.Having a clear and measurable
goals
5.The holder of different awards in
airline category
WEAKNESSES
1. Worst record of overbooking
2. No officer is assigned to oversee
international operations
3. Poor on –time performance
4. Mishandled baggage has have
increase
5. Customer complaint
6. Operating cost is above the cost
of low cost carrier