Strategic Risk Swot Analysis

Concept

Enterprise risk is a broad definition which refers to any risks in the process of the production and operating activities in all aspects. It involves the process of production, such as purchasing, sale, produce and the management of the operation, like planning, decision making or organizations. Enterprise risk would be happened in accidental with randomness, it is hard to predicted. The types of risk are variable due to the different scope, nature and forms, it could be changed by internal and external elements of the company as well.

Strategy risk is a kind of comprehensive risk which could affect the direction of the development, corporate culture, the resources allocation, information and other factors which are relative to the benefit of the corporate. It could be divided by the source and composition as operation, asset damage, competitive and goodwill risks. Strategy risk has an important impact on assessing the profitability of the corporate and market competitiveness. Uncertainty in the strategy risk is inevitable, however, the company could control or reduce the impact of such uncertainties by intervening in the random events.

SWOT Analysis

Strength

In the early stage of the acquisition, in order to alleviate the economic losses caused by the loss of customers during the window, New Eastern Shuttle launched its own special services. For example, opening the game reward system to customers, high quality and highly practical prizes help the Eastern Shuttle to recover most of the lost customers.

The Eastern Shuttle has opened up a new market. Although leisure marketing accounts for only a small part of the aviation market, it still belongs to the development field and has great potential value (Penzer, 1989). At the same time, Trump is able to clearly understand that our airline's main customer base is business people who can provide more sophisticated meals instead of regular fast food.

Enterprise risk management aims to identify, assess and manage the company's main risks, and the advantages of acquiring Eastern Airlines can reduce the company's risk (Gates, 2006). As far as airlines are concerned, the replacement of managers can greatly enhance the enthusiasm of employees.

Weakness

According to a report by Harvard Business School (1997), low operational efficiency and high internal conflicts have not been effectively resolved during the acquisition period compared to other airlines. Second, the lack of the old management model of Eastern Airlines itself has led to a decline in the trust of most customers. In the third aspect, due to government intervention, the market share of Eastern Airlines declined, and the emergence of the oil crisis led to an increase in flight costs, and the negative impact of inflation complicates the aviation

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