Consider the Macroenvironment Facing a Large, International Airline Headquartered in the United

question 7

Essay

Consider the macroenvironment facing a large, international airline headquartered in the United States (such as American or United). Give at least three examples of important trends or events from each of the five segments of the airline's macroenvironment (macroeconomic, technological, demographic, social, political, and legal), and explain whether each represents a threat or an opportunity for the firm.

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Definitions:

ROE

Return on Equity; a measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Debt to Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

Fixed Costs

Expenses that remain constant for a given period of time, regardless of the level of production or output.

Variable Costs

Costs that change in proportion to the level of goods or services a business produces or sale, such as materials and labor.