SECTION-A Question-1CLO3) (10 minutes for case studying) (5 marks) Why American Airlines Developed its Own Corporate University: American Airlines decided to develop a corporate university (CU), because training was fragmented and many departments operated as cottage industries. Departments were hiring their own outside consultants, vendors, and so forth. Dr. Bill Lee, during his tenure as Director of Measurement and Performance Analysis, stated, "We found that in many departments, the local management had contracts with the same off-the-shelf course providers and were all paying premium price." Other departments were hiring consultants to provide custom programs already developed by other departments. Before the CU was developed, this money came out of the operations budget, and no one was really tracking it. . "The Cu is becoming a central clearinghouse for all material in the company, and is able to negotiate a better price with vendors and off-the-shelf providers as more and more departments come under the CU mantle says Dr. Lee, but there are still some groups that develop and provide their own training. We have reached out to them and offered to share what we have rather than trying to take them over. They have viewed that very positively and some groups have agreed to turn over their training to the CU because it is one less thing they have to manage. In many areas, such as publishing materials, we have saved thousands dollars. In the area of government compliance we have saved literally millions by providing quality programs with consistent delivery." Dr. Lee reported, "We are currently pursuing relationships with similar industries that are noncompetitive but have some of the same needs to reduce costs and maximize benefit." Based on the above mentioned case, examine and explain the advantages and disadvantages involved in organizations setting up their own corporate universities. (Advantages for 3 marks, Disadvantages for 2 marks = 5 marks) (35-50 words for each action)