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Part 1: Review Questions

  1. What is an SBU? Describe an SBU found in the airlines industry. One example is Virgin Airlines. Identify another.
  2. A well-thought-out mission statement guides an organization’s managers as to which market opportunities to pursue and which fall outside the firm’s strategic domain. Explain why this is true. Defend your answer with examples.
  3. List the Five Forces of Michael Porter’s theory and apply to an airline that you are familiar with. Provide a rationale and then create a diagram showing each of the five forces in your analysis. 
  4. Understanding market opportunity is about more than just understanding customers, competitors, and the environmental context. Do you agree or disagree with this statement? Defend your answer. Provide examples where appropriate. 

Part 2: Company Level Competencies in the Airlines Industry

Based upon the Chapter 2 (Mullins and Walker, 2013) readings, choose an airline that you are familiar with and analyze the company-level competencies primarily responsible for generating the benefits and value that customers receive from its various product offerings.


Write your answer in at  least two paragraphs . In your answer, include why you chose these competencies.

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