Case Questions

SCANDANAVIAN AIRLIINES: THE GREEN ENERGY DECISION

1.List the argumentsfor and againstpurchasing the more expensive green engines from the point of view of 1) the director of aircraft and engine analysis, and 2) the SAS management team by completing the chart below.

Director of Aircraft

& Engine Analysis

Argumentsforpurchasing the green engines.

Argumentsagainstpurchasing the green engines.

SAS Management

Team

Argumentsforpurchasing the green engines.

Argumentsagainstpurchasing the green engines.

2.Strategic decisions are influenced by a variety of external forces (e.g. competition, industry trends and regulatory structure), as well as internal forces (e.g. corporate culture, leadership and management style). What external and internal influences were involved in SAS's decision on whether or not to purchase the green engines?

3.Based on your analysis and the information in the case study, should the SAS management team approve the purchase of the DAC engines?Explain.