Overview: In this second milestone assignment for the final project you will continue your analysis of the economic problem presented in the case study on your selected company (Microsoft Heinz or American Airlines). Using the information gathered in the problem statement you must now frame your companys problem within the context of the appropriate market structure conducting mathematical and/or statistical calculations that will identify significant trends and relationships to facilitate demand forecasting and potential impacts on profits. Keeping in mind that your audience of corporate decision makers may not be experts in economic theory and data analysis you must seek to present your information in an easily accessible and understandable way.
Prompt: To complete the second step of this final project you will submit a theoretical and quantitative analysis that links the problem statement to the relevant economic factors at play. Depending on your companys unique problem you may look to answer questions such as the following:
Are customer preferences changing?
Is there a shift in demand?
Is there a change in technology?
To answer these questions include a discussion of demand and its likely elasticity an application of marginal analysis and costs in your statement
Identify and illustrate these trends and relationships using mathematical principles. This will involve use of the proper algebraic regression and other quantitative methods to generate scatterplots of your data highlighting trend lines and outliers as appropriate. You may find it useful to review these mathematical techniques using the following tutorials:
Describing Relationships in Quantitative Data (Khan Academy)
Video: Regression Line Example (9:26) (Khan Academy)
To complete your submission categorize which market structure (pure competition monopolistic competition oligopoly or pure monopoly) applies to your company. Describe this market structure. How does it affect the problem you are researching?
Remember that these tasks draw not only upon your quantitative and data analysis/interpretation skills but also upon your communication skills. How might you go about presenting your findings to the companys decision makers? Describe how you will present your information in a way that will be understandable to laypeople and will convince them of the merit of your processes (and ultimately your recommendations).
As a managerial economics student and professional you are encouraged to use your own experience understanding and knowledge of business and industry structure to drive your analysis. Specifically the following critical elements must be addressed:
Research: In this section you will apply economic theory and quantitative analysis to your research topic.
A. Describe the relationship between the economic factors you identified and the presented issue.
B. Using mathematical concepts illustrate the relationships between economic factors and the issue.
C. Describe the market structure of your organizations industry.
D. Determine how the market structure of the industry influences the issue. Support your response with relevant examples from the case
Guidelines for Submission: This milestone assignment should be written in essay format and submitted as a Microsoft Word document. The submission should be 4 to 6 pages in length (including the initial problem statement) with double spacing 12-point Times New Roman font and one-inch margins. You should use current APA style guidelines for your citations and reference list. Note that at least five outside information sources are required overall for this project although you might find that more are necessary to satisfy the requirements of the final presentation.
As necessary copy and paste any data analysis and/or graphics from Excel into your Word document for submission. You may include your original Excel documents as supplementary material if you believe this will strengthen your contribution.
AboutAmericanAirlines Inc. Founded in 1930AmericanAirlines formerlyAmericanAirways Inc. was the result of the consolidation of more than 80 smallairlinesinto the Aviation Corporation. TodayAmericanAirlinesis one of the largestairlinesin the world.AmericanAirlinesAmericanEagle and the AmericanConnection carrier serve 260 airports in more than 50 countries and territories with on average more than 3500 daily flights.Americans network covers points throughout NorthAmerica the Caribbean LatinAmerica Europe and the Pacific.Americanhas five major cornerstone markets: New York Los Angeles Dallas/Fort Worth Chicago and Miami where its network resources are concentrated and connect some of the largest U.S. population centers for business travelers. The combined network fleet numbers more than 900 aircrafts. On an average dayAmericanAirlinesandAmericanEagle welcome almost 300000 customers onto their aircraft help book flights and answer questions for 110000 customers who call their reservation centers deliver 250000 checked bags to their final destination and load and transport more than 2.7 million pounds of cargo.
The Business Challenge
AmericanAirlinesand its associated companies have been winning accolades such as the 2011 WorldAirlineAwards for exemplary customer service and this remains a key mandate for theairline. A stellar mobility strategy is vital for AA to maintain these soaring standards.AmericanAirlinesuses a wide variety of mobile devices depending on the needs of the specific work group running on the best available cellular carrier orAmericanAirlinesdedicated Wi-Fi network. Mobile applications include Bag Scanning/Aircraft Load and Balance Finalization Driver Information on Routings Flight Information for Baggage Carts and are also used by Fleet Service Clerks responsible for transportation of luggage and freight Lost or Misrouted Bag Tracking Cargo Warehouse Freight Location TrackingAirportAgent Customer Assistance and Dynamic Manning. Prior to implementation of SOTI MobiControl individual business areas or their service providers wrote custom deployment software and lockdown security as part of the application. This was very expensive and beyond pushing new software to devices this provided no remote management capability and was generally ineffective for Mobile Device Management. InitiallyAmericanlooked to MobiControl to fulfill requirements for the Application Management and Remote Control capabilities for remote field troubleshooting training and software issues that could be solved remotely. The initial deployment allowed the Development and Help Desks to remotely solve end-user issues (training) and specific software issues that could be not be managed otherwise.
SOTI MobiControl was recommended toAmericanAirlinesby Stratix Corporation as a tactical solution to Mobile Device Management for theAirportServices Division. As mobile requirements and product suites have grownAmericanhas subsequently looked at MobileIron AirWatch and Afaria.AmericansAirportServices division initially set up MobiControl in a lab environment at its headquarters. Following some pilot deployments of the applications mentioned above the Cargo Division saw the successAirportServices was having and took the next step which was deploying MobiControl in a production data center on a Virtual Machine. These deployments were supported by SOTI over the phone and went very smoothly. In addition to the original requirements the Cargo division used MobiControl to help gauge and manage Battery usage on the devices. They have also implemented a scripting tool that drives test cases through the remote control feature that greatly aids in testing and debugging in the Development Cycle. Prior to the deploymentAmericanhad 500 mobile devices in the field but today 4000 devices are managed by MobiControl and AA has plans to deploy thousands more
AmericanAirlinesis very satisfied with MobiControl. Because of the operational nature of anairline MobiControls easy to use management console fitsAmericans requirements.Americanhas been able to easily implement customized role-based usage of the Management Console for Business Unit SMEs Developers Help Desk Deployment and Administration roles. Additionally they are starting to implement platforms beyond Windows (Android Apple) and support consumer grade devices and looking forward to implementing the Web-based console. Based on saving on individual development lower hardware costs help desk function the ROI across the organization is easily in the tens of millions of dollars.Americans mobile help desk the Stratix Service Center estimates 90 to 95 percent of the tickets created can be solved over the phone with MobiConto
As mobility has grownAmericans organization has grown with it. There is now an Enterprise Mobility Solutions department that looks at Mobile Services Management from a holistic approach. This is from device evaluation purchase staging carrier billing common software services (VPN Active Directory) and Mobile Device Management. Up to now MDM has purely been looked at an operational device level.Americanis actively planning for a BYOD (Bring Your Own Device) environment is looking to utilize MobiControl to help manage enforce policy and the security of the AA network. AA currently has the MobiControl deployment server and database positioned in one physical datacenter with clients distributed across everyairportthatAmericanAirlinesorAmericanEagle serves domestically as well as select international locations. Growth plans include installation of additional deployment servers geographically dispersed to provide better business continuity in event of a data center disaster.