Question

Identify two critical stakeholders in the external environment that would affect the profitability of the U.S. Airline industry. Explain why they can affect the profitability and what can be done by a firm to improve the firm’s profitability (in 500 words.)

Answer 1

The two critical stakeholders in the external environment that would affect the profitability of the U.S. Airline Industry:

Government:

Value caution is additionally influenced by the value control by the government through the establishment of enactment when it is thought legitimate to capture the inflationary pattern in costs of specific items. The costs can't be fixed higher, as the government keeps a nearby watch on pricing in the private division. The clearly can practice significant command over the inner variables, while they have pretty much nothing, assuming any, power over the outside ones.

Suppliers:

Suppliers of crude materials and different merchandise can significantly affect the cost of an item. On the off chance that the cost of cotton goes up, the expansion is given by suppliers to producers. Makers, thusly, give it to shoppers.

Here and there, be that as it may, when a producer gives off an impression of being making enormous benefits on a specific item, suppliers will endeavor to make benefits by charging more for their provisions. At the end of the day, the cost of a completed item is personally connected up with the cost of the crude materials. The shortage or wealth of the crude materials likewise decides to price.