Watch this video about the decline of Pan Am Airlines. Disregard any of the auth

Question

Watch this video about the decline of Pan Am Airlines. Disregard any of the authors personal opinions and focus on the facts of the story.

https://www.youtube.com/watch?v=YInewzLzc78#action=share

The Decline of Pan Am...What Happened?

List, the opportunities and/or threats in your Remote Environment

1. List the remote environmental factors (please indicate the specific environment, i.e. Political legal, economic, etc.) that impacted Pan Am they had not control over?

2. Why did United, Delta and Southwest survive these same remote factors and yet were still able to survive and grow, while Pan Am went out of existence?

3. Give two example of a remoter environment factor that would have a significant impact on the company you are analyzing and why?

Explanation / Answer

Pan Am Airlines one of the biggest Airlines in the United States of America. The most important factor which was related to the economy and the demise of the airline was energy crisis of 1973. This energy crisis directly decrease the overall revenue generated by the company as the fuel prices and service prices increased. Most of the Other organisations and businesses also took a hit and taste recession. This recession directly decreased number of international flights for pan Am Airlines. Reduction in the international flight directly decrease the overall revenue generated by the company and the fuel crisis contributed economically to increase the expenses on the fuel charges which reduce the overall profit for the organisation.
As a result of the political Strike of the maintenance engineer for the airline industry was done to increase there salaries. As an and Airlines was already stressing with the energy crisis, payment of the employees took an extra load on the company which was later proven to be very disastrous.
After the airplane Regulation Act ticket prices what are the variable which directly open the gates for the smaller airline Industries to enter competition and to provide better services at lower prices. Previously the ticket prices are all the same and Pan Am Airlines were very well known for the service which was the competitive advantage for the same. After the ticket prices changed, pan Am airlines was not have much to differentiate itself from the low cost airlines which was advantage of pan am airlines in america.
Chernobyl disaster played an important role in demise of the Pan Am Airlines. chernobyl disaster directly decrease the overall revenue generated from the Atlantic airway and became the last season for the company for deciding there bankruptcy and declaring it.

United Airlines as well as delta Airlines mostly operating in the local region with the domestic low fare airplanes. This specific incident help delta airlines and United Airlines to maintain their profits and to remain competitive in the specific environment. Delta Airlines bought a part of Pan Am Airlines at very low prices as an airline was declared Bank. Best health Delta Airlines to grow a benefits to the maximum level and to increase the overall level of prophets. United Airlines bought the Caribbean part of Pan Am Airlines which was proven to be very beneficial as Pan Am Airlines directly se East chernobyl disaster as their major drawback and overall level of tourist and Traveller reduced by a large margin.

Remote environment such as the oil extraction places played an important role in bankruptcy of Pan Am Airlines. These are one of the major factors which
contributed in the demise of the organisational structure for Pan Am Airlines.

Chernobyl disaster was also one of the main factors which directly reduced the overall revenue generated from the Atlantic airway. due to Chernobyl disaster many of the frequent flyers reduce the number of flight due to the fear of the Chernobyl nuclear disaster.

Terrorist attacks involving pan Am Airlines was also one of the major reasons for the people started avoiding the airline.

All in all we can say that Pan am airline industry did nothing wrong but the conditions took them to a place of bankruptcy which was unavoidable by each and every circumstance. Most of the events were totally uncontrollable by pan Am Airlines which contributed in bankruptcy of Pan Am Airlines.

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