C/B/341. Business Environment: Lufthansa Airline

This paper is in 5 parts: an analysis of Lufthansa and the industry in which it operates; followed by an analysis of Government intervention and policies and the macro policies being applied to the German economy. The paper concludes with a discussion of the impact of the Euro. Porters five forces were used to analyse the industry; it has found that the industry is subject to intense competition and new entrants being able to overcome the barriers to entry. Lufthansa is seen to be one of the most successful airline groups and looks to continue to grow. The German economy has been hampered in recent years by the restrictive employment practices and high taxes to support the generous welfare system. This has been further exacerbated by the unification of the country and the subsequent high levels of unemployment, especially in the East of the Country. The introduction of the Euro and the control of members debts are helping Germany to overcome its economic difficulties and looks to be entering into a period of better economic activity and growth.