Exam (elaborations)
BUS 5117 Unit 5 Written Assignment
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A guide to assignment on cost-focused strategy a case study on Ethiopian Airlines.
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University of The PeopleMBA Business Administration
BUS 5117-01 Strategic Decision Making and Management
Written Assignment – Unit 5
July 20, 2022
Choose an organization that you have not chosen so far having challenges related to cost
and provide a background of the company. Reflect on the challenges of the organization as
they relate to costs. Analyze the costs and, using specifics, develop a cost-centered business
strategy for the organization to move forward as a profitable firm. Devise a tactic to
differentiate the firm and to support the cost-focused strategy you developed. How can the
tactic be implemented within the scope of the overall strategy?
Case Study: Ethiopian Air Lines
Introduction
Ethiopian Air Lines (EAL) is the flag carrier of Ethiopia and was founded on 1945 and
commenced operation on 1946 (Ethiopian Air Lines, 2022). The airline has expanded its
operation to include 125 passenger destinations including 20 domestic destinations and 44
freighter destinations (Ethiopian Air Lines, 2022). Furthermore, the airline has secondary hubs in
Togo and Malawi. It has achieved its vision of becoming the most competitive and leading
aviation group in Africa by 2025.
Currently, Ethiopian Air Lines has been the best airline in Africa 4 years in a row and has won
Best Airlines in Africa Award more than seven consecutive times from African Airlines
Association (AFRAA) (Ethiopian Air Lines, 2022). Additionally, it's Cargo & Logistic Services
has won the ‘2019 Best Cargo Airline–Africa Award at the Air Cargo News Awards that was
held in London, UK. However, there are various challenges the airline faces including a rise in
the cost of fuel, high maintenance costs, devaluation of currency, taxation, and poor
infrastructure in many parts of Africa.
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