Airline Midterm Strategic Audit Report Outline – Due November 11th The following is an outline for your midterm audit. Complete each section in the order I have presented it below. Be sure to include the headings in the papers you hand in to me. Be sure to include a title page for your Strategic Audit with your company name, number, and logo as well as the names of all group members. Audits missing complete and accurate title pages will lose 10 points of their grade. I. Introduction: Include a short paragraph stating where you wanted your company to be by now (end Q5) and where you are now. (worth up to 5 points) II. Corporate governance · Top management – explain to me how you are now organized now that you know how to “play” the game. At first, you may have assigned each other roles that were not the best for each of your skills. At this point, you should step back, look at what each actually does, and reassess your roles and titles (if necessary). (worth up to 5 points) III. In the next section explain the threats and opportunities in the external environmental for the airline industry and YOUR airline at the end of Q5. DO NOT JUST REPEAT WHAT YOU INCLUDED IN YOUR INITIAL STRATEGIC PLAN AS THE INDUSTRY HAS CHANGED AND NOW IS COMPRISED OF THE COMPANIES IN YOUR CLASS! Information about what to look at to determine threats and opportunities mainly comes from Chapter 4 and class discussions. (worth up to 10 points) · Separate societal (macro) and task (industry) level opportunities and threats that you perceive for your airline. · DO NOT just repeat the same threats and opportunities you listed for your Initial Strategic Plan unless you can confirm that they still exist. IV. In this fourth section, explain your company’s internal environmental assessment (S, W), which includes your airline’s current strengths and weaknesses. Be sure to carefully assess how your company is doing now in all of the following dimensions. See Chapter 5 for guidance on what areas in your company to assess. (worth up to 10 points) · Your corporate structure—is your current structure helping or hurting your airline? · Corporate culture –what is the culture (style) of the airline you have developed since Q1, and is it helping you succeed? · Functional strengths and weaknesses which areas are strong for your airline, and where do you have weaknesses? V. What is your airline’s mission statement? If you have changed it since the Initial Strategic Plan, tell me what they both are, and explain why you made the change. (worth up to 5 points) VI. In this sixth section, list your management teams’ three objectives for Q1-Q5 and explain whether or not you achieved them and why/why not. Use concrete data to do so. If the Q1-Q5 objectives you included in your Initial Strategic Plan were not measurable or quantifiable, then rewrite them so that you can complete this section accurately. (worth up to 10 points for analysis of each objective.

1. Airline Midterm Strategic Audit Report Outline – Due
November 11th
The following is an outline for your midterm audit. Complete
each section in the order I have presented it below. Be sure to
include the headings in the papers you hand in to me. Be sure to
include a title page for your Strategic Audit with your company
name, number, and logo as well as the names of all group
members. Audits missing complete and accurate title pages will
lose 10 points of their grade.
I. Introduction: Include a short paragraph stating where you
wanted your company to be by now (end Q5) and where you are
now. (worth up to 5 points)
II. Corporate governance
· Top management – explain to me how you are now organized
now that you know how to “play” the game. At first, you may
have assigned each other roles that were not the best for each of
your skills. At this point, you should step back, look at what
each actually does, and reassess your roles and titles (if
necessary). (worth up to 5 points)
III. In the next section explain the threats and opportunities in
the external environmental for the airline industry and YOUR
airline at the end of Q5. DO NOT JUST REPEAT WHAT YOU
INCLUDED IN YOUR INITIAL STRATEGIC PLAN AS THE
INDUSTRY HAS CHANGED AND NOW IS COMPRISED OF
THE COMPANIES IN YOUR CLASS! Information about what
to look at to determine threats and opportunities mainly comes
from Chapter 4 and class discussions. (worth up to 10 points)
· Separate societal (macro) and task (industry) level
opportunities and threats that you perceive for your airline.
· DO NOT just repeat the same threats and opportunities you

2. listed for your Initial Strategic Plan unless you can confirm that
they still exist.
IV. In this fourth section, explain your company’s internal
environmental assessment (S, W), which includes your airline’s
current strengths and weaknesses. Be sure to carefully assess
how your company is doing now in all of the following
dimensions. See Chapter 5 for guidance on what areas in your
company to assess. (worth up to 10 points)
· Your corporate structure—is your current structure helping or
hurting your airline?
· Corporate culture –what is the culture (style) of the airline
you have developed since Q1, and is it helping you succeed?
· Functional strengths and weaknesses which areas are strong
for your airline, and where do you have weaknesses?
V. What is your airline’s mission statement? If you have
changed it since the Initial Strategic Plan, tell me what they
both are, and explain why you made the change. (worth up to 5
points)
VI. In this sixth section, list your management teams’ three
objectives for Q1-Q5 and explain whether or not you achieved
them and why/why not. Use concrete data to do so. If the Q1-
Q5 objectives you included in your Initial Strategic Plan were
not measurable or quantifiable, then rewrite them so that you
can complete this section accurately. (worth up to 10 points for
analysis of each objectives)
· Include a line or bar graph for each objective, showing what
your results have been for each of the first 5 quarters. (If you
have information for all the other teams, you may include it in
the graphs.)
· For each objective, explain the reasons for your performance.
VII. In the seventh section, list your management team’s three
objectives for Q6-10, and include 3 strategies you will employ
for each objective. You may change your objectives from Q1-5
or the data you will use to evaluate your performance
(measures). Use the same format given for your company’s
Initial Strategic Plan. (worth up to 10 points for each set of

3. objectives plus supporting strategies)
· State how you will measure performance for each of your
objectives. (This means, what data from your quarterly results
will you analyze for each objective?)
· State the name and title of the member of your management
team who is responsible for tracking this data.
VIII. What are your policies? Are these the same policies you
had for Q1-Q5? (worth up to 5 points)
Occhio AIR
Company 4
Alexandros Vassiliou
Mazen Alenazi
Zachary Exposito
Abdul Almuqati
Section I- Company’s Management Team:
CEO - Alex Vassiliou
· Major decision making and locking in management’s decisions

4. · Communication with management team
· Keeping everyone motivated and on track with company’s
mission and strategy
· Making sure that every assignment is completed in time and
with high quality
· Assisting management team with drawing outcomes from
various reports
· Setting meeting agendas
· Representing the company to the rest of the world (class)
· Talking to press (if needed)
· Overlooking everyday operations
· Leading the team to successful and solid results at the end of
the each quarter
Chief Operating Officer (COO)- Abdul Almuqati
· Follow and help form strategic plans
· Operate under the company’s mission and vision
· Maintain high quality service
· Enforce quality controls
· Customer service standards
· Resolve and stay on top of customer service issues
· Make sure that all departments of operations are ran smoothly
· Keep close communication with all management team and
follow adjacent way of operating
· Always try to remain within budget set by CFO and the whole
team
· Assist CEO with everyday decisions
Chief Financial Officer (CFO)- Zachary Exposito
· Reporting accurate and timely historical financial information
· Quarterly financial reporting to all officers in the company
· Advise on all investment strategies taking into account risk
and liquidity
· Oversee and monitor the capital structure of the company
including all debt and equity allocation
· Maximize efficiency and capitalization
· Economic strategizing and forecasting
· Approve and oversee all acquisitions and financial

5. adjustments (expenses, loans etc.)
· Approve, disapprove all financial delicious (advertising,
expansion, promotional items, etc.)
· Minimize loss, cut costs, and maximize profits
· Work closely with COO on all strategic and tactical matters as
they relate to budget management, cost benefit analysis,
forecasting needs and the securing of new funding
· Keep CEO updated about the company’s financial standings
Chief Marketing Officer (CMO)- Mazen Alenazi
· Constantly researching and analyzing the current market
· Form the company’s pricing policy to remain competitive
· Analyze customers, target market, potential customers, and
competitors
· Understanding current and potential customers
· Designing the company’s advertising campaign
· Building company’s image
· Design graphics, visuals etc
· Communicating value
· Attracting new business
· Response modeling
· Marketing ROI optimization
Chief Human Resource Officer (CHRO)- Alex Vassiliou
· Set the company’s hiring policies
· Recruit and design and an HR team
· Attract talent to the company
· Design and create training and growth opportunities for
employees
· Suggest employee salaries, benefits, perks and more
· Communicate with all employees to gain understanding of
their levels of satisfaction in the firm
· Build company culture
· Organize quarterly and yearly events to maximize bonding,
team sprit and company culture

6. Section II- Threats & Opportunities in the External
Environment:
Societal (macro)
· Opportunities
· Natural: Unlimited fuel supply
· Economic environment is stable
· Cash is available
· Our company has a lot of depth in terms of financing
· Inflation is low
· Prices are stable
· People ages 18-70 tend to fly
· Life expectancy is growing
· Americans tend to live long lives
· Level of education
· People are becoming much more educated and aware. Thus
better connected and eager to travel
· Fragment of industry
· Threats
· Natural: fuel cost is variable
· Cannot have a fixed price for gas at all times-
· Winter weather threats
· Storms, hurricanes, unstable weather
· Employees: strike, unionize
· Cheap to own a car
Task (Industry)
· Porter’s Five Force model
· Potential Entrants
· Our market is open to everyone, but due to mainly the huge
financial commitment associated with starting and entering the
airline industry, potential entrants cannot be considered as a

7. major threat. This reality an opportunity for Occhio AIR.
· Buyers
· This group of individuals and/or companies considered as
buyers or better consumers may be a threat to our company.
Since the airline industry is a service oriented industry, in
which we are selling our service/ product, we are dependent on
the buyers to support us. Since there are numerous airlines to
choose from, their power is pretty strong driving for more
competition, which ultimately may be viewed as a threat.
· Substitutes
· In our case cars, public transport, trains and any other way of
moving from place to place may be considered as a substitute
for our service. The threat here is very faint, because there are
no signs of public transport of any sort available to the public.
The major threat is owning a car, which most Americans do, but
it is in our own hand to control it. If our company can offer
quality service, for a competitive price, and with flexible
timetables then cars may not be considered a threat.
· Suppliers
· In our market, suppliers do not have a significant role. The
prices for aircrafts is already pre-set by the simulation, while
there is no control over gas prices either. So in general
suppliers cannot have an active role in the market.
· Other Stakeholders
· Base on the case it is unknown if there are any unions present,
or government regulations which may present an opportunity or
a threat. If such situations arise then the playing field may be
unleveled and opportunities or threat respectively, may come
up.
Section III- Strengths & Weaknesses of Occhio AIR:
Corporate Structure
· Strengths
· Management team is highly skilled, motivated and energetic
· Strong and deep financial leverage
· Fresh staffing and human resource strategy
· Company vision and corporate culture is changing

8. · Weaknesses
· Very little experience in the airline industry
· C-level executives are fairly new to such a venture
· Weak company culture
· High employee turnover so far
· Low motivation
Corporate Culture
· We have in hand a company with strong basis, especially
financially, great potentials to grow but with a very ugly vision,
operation and overall culture. What we want to do with the new
Occhio AIR, formerly know as MCA, is to create a hip, clean
and customer oriented airline, which will provide amazing
service to its customers at a value for money price. We will try
to change the overall brand identity to fit this new vision and
we seek to achieve a close to 100% customer satisfaction. MCA
was a low-class, simple and basic airline company, which
provided mediocre service to its customers. Occhio AIR want to
change that and elevate the customer experience by providing
world-class service, amazing hospitality and even luxurious
amenities when possible at a very competitive price.
Functional Strengths and Weaknesses
· Strengths
· Money is available
· Simple organizational structure
· Existing customers
· FAA regulations
· safe way to travel.
· All competitors have 3 aircrafts .
· Airline staff is highly trained from pilots ,flight attendants to
mechanics and ground staff.
· Establish different levels of service and make associated
pricing decisions.
· Lease and purchase aircraft options.
· Weaknesses

9. · No website
· Customer service
· We cannot manipulate decisions regarding customer service,
since it is mostly given by the simulation
· Still at a very young, maturing state
· Marketing
Section IV- Occhio AIR Mission Statement:
· Occhio AIR is a hip, clean and customer oriented airline,
which provides amazing service to its customers at a value for
money price. Operated and staffed with young professionals,
with high expertise and knowledge in their fields, Occhio AIR
is always energetic and very customer driven. As an active
member of the fast paced and highly competitive airline
industry, we are here to change some of the classic practices
and innovate to provide consumers the best possible product.
We seek to achieve a close to 100% customer satisfaction and
elevate customer experience by providing world-class service,
amazing hospitality and even luxurious amenities when possible
at a very competitive price. Occhio AIR, “Simply Fly”.
Section V- Management Team’s Top Objectives:
· Grow overall sales to reach 85% of seat capacity
· Strategies to achieve this
· New upgraded and more spacious fleet: Replace old aircrafts
with new ones in Q1
· New routes Q1
· Sales executives: Hire 2 in Q1 and hire a team of 5 by the end
of Q5
· Better service
· Bathroom on board
· Snacks and beverages included with ticket
· Pair and sell online and with travel agents
· To Increase shareholder value by more than 10%
· Strategies to achieve this
· Maintain corporate stability by managing company financials
on a daily basis. Q1 and on
· Keep overhead low

10. · Increase performance and efficiency
· Purchase assets for growth
· Keep cost low for consumers
· To increase revenue by 10% by the end of the third quarter
· Strategies to achieve this
· Keep our service as luxurious as costing allows as
· Offer good prices, with a lot of value to the consumer
· Keep our aircrafts clean and fresh
· Add more routes and times
· Try to meet even the most demanding customer’s needs
Section VI- How to measure Management Team’s Top
Objectives:
Objective 1:
· In order to measure the performance towards achieving this
objective our top management will have to closely analyze
various statements at the end of each quarter. Our COO, CFO
and CMO will have to closely work together to track quarterly
profits, market research, passenger to capacity ratios and tickets
sold on a monthly basis and of course by each quarter. The COO
will be mainly responsible to maintain high standards of
cleanliness, customer satisfaction and overall smooth operations
in regards with our airline, while the CMO will be responsible
to promote, attract and create more business for us. At the same
time our CHRO will need to staff and train our sales people to
enhance and push our marketing plan, while the CFO will keep
track of the profit and loss statement to make sure what we can
afford to give to the customer and how far we could go with
promotion, staffing, advertising etc.
Objective 2:
· We will measure our objectives through several ways and
steps. Finance is one of the most important departments
considering we have to measure all risk and take into account
all expenses and overheard. Without proper financials and
management the company will not be profitable and liability
will outweigh assets. After each quarter the CFO and his
department will be generating financials for gross profits, net

11. profits, degree of operation, capital structure, ROE, & ROA.
Reporting all data is essential for all officers of the company.
Information should be updated monthly with an end of the
quarter report. Each individual officer should develop a
progress report for each quarter to present to the company. The
CFO will prepare financial and performance statement; the
CMO will prepare a report for all current marketing strategies,
expenses, performance of marketing strategies and future
marketing strategies; the COO should report all progress as
well. In this manner, we can run the company much more
efficiently and maximize profits. We can also determine what
future decisions to make financially and managerially.
· Example of financial report;
A.
Gross Profit Margins
2011
2010
3,095,385 - 2,991,451/3,095385
3,074,022-2,949,655/3,074,022
3.40%
4.04%

12. Objective 3
· This objective falls mostly under the COO and CHRO’s
supervision. These executives will have to track closely all
returns and expenses at the end of each quarter and on a more
regular basis, as much as once a week. To reach and maintain
high customer satisfaction standard the COO should establish an
excellent customer service team with the help of human
resource department and the CHRO, which will try to attract
and hire amazing individuals. At the same time the top
management should closely monitor what competitors are doing
or not doing with their customers, and adopt practices that seem
successful. As a customer-driven company we should seek to
remain on top of our game at all time, and create an awareness
for our world-class customer service.
Section VII- Two Policies the Management Team Created:
· Pricing Policy
· As a management team we decided that our pricing policy
would fall under an overall value for money culture. We charge
relatively cheap for the service and quality we offer, always
remaining positive profit margins. Some routes which we want
to attract more traffic, are also on a three month sale, offering
consumers an even cheaper ticket for the same outstanding
service. This is the first and most valued policy we created,
which will be our guideline through the years.
· Dividend Pay Policy
· As most companies we have stockholders which we deeply
value and respect. To show them our gratitude and dedication,
we decided as a management team to pay dividends quarterly to
all stockholders, if we remain at a profitable state. This
dividend pay includes a bonus for all of our employees as well,
which all get some performance measure bonus. This is done to
show them as well our appreciation and gratitude, for their help

13. and input.
1
1
Occhio AIR
Company 4
Alexandros Vassiliou
Mazen Alenazi
Zachary Exposito
Abdul Almuqati