2. IU Professional Opportunities Orientation Program (Strategic Planning) About ATA Strategy Concept Strategic Planning’s Role in Business A Day in the Life

3. About ATA (Growth and Diversification) 1973J. George Mikelsons founds Ambassadair Travel Club in Indianapolis 1978Deregulation of U.S. Airlines 1982ATA begins Charter service, total revenues of $30.5M 1986ATA begins Scheduled service, total revenues of $185M 1996Strategic Planning forms, total revenues of $750M 1999Revenues exceed $1B; ATA is certified as a major carrier 2000 Projected revenues to exceed $1.3B; Placement of $2B aircraft order

4. About ATA (Corporate Structure)

5. ATA is the 11th largest U.S. airline and the number one passenger charter airline in the Western Hemisphere 1999 ACTIVITY 10,913,081,000 Revenue Passenger Miles 7,773,444 Passengers 157,481 Block Hours Flown 400+ Airports Visited 50,207 Departures 78,602,678 Miles Flown (=3,156 times around the world)AIRCRAFT 24 Boeing 727-200 Advanced 13 Boeing 757-200 Extended Range 14 Lockheed L1011-50/100 5 Lockheed L1011-500 56 EMPLOYEES 3,000 Crew Members 694 Reservationists 1,113 Airline Mechanics 1,823 Corporate Staff 6,630 About ATA (Company Profile)

6. Emergence of Fact-Based Decision Making Strategic Planning groups emergeMBA programs surgeProliferation of the PC 1990s Tom Watson, CEO of IBM estimates global computer demand to be 5 Arthur Andersen’s GLICIAC accounting computer 1950s 1970s Ascendance of strategy consultingUS firms falter in international competition Great Society educates more of the emerging workforce than at any other time in history IBM sells thousands of System/360 mainframes BCG develops framework to quantify strategy 1960s SEC begins to protect investorsFinancial performance and operating statistics publicly disclosed 1930s Engineering principles applied to organization structure and production efficiency McKinsey forms first management consulting firm 1920s US Army leads research in industrial organization and psychology Principles of Scientific Management Management defined as creating worker productivity 1910s PIMS study scientifically connects relative market share to financial performance Visicalc/Lotus 123 revolutionize investment banking 1980s

7. Customers CapabilitiesCosts Competitors Give customers what they will pay for in a way that is tough to imitate What business are we in? What do we do better than anyone else? What other customer groups will pay for our capabilities? For what will they pay how much? How many are there? How many will there be? What are our costs relative to our competitors? What are our costs relative to what our customers are willing to pay? Who are they now? What do they do better or worse than we do? Who could they be? Financial Performance Competitive Advantage = Sustainable Financial Performance Strategy is Conceptually Straightforward

8. 0% 7% 14% 123456789101112131415161718 20 Percentage of Companies Strategic Planning Profile (Group Size) Source: Corporate Strategy Board research Half of the leading strategic planning groups have six or fewer professionals... 8% 4% 12% 9% 8% 6% 2% 1% 2% 6% 9% 7% 3% 2% 3% 9% + 48% ATA 19981999 612 2000 11

9. 21% 42% 60% 36% 76% 40% 19% 20% 37% 0%50% 100% Venture Capital Knowledge Management New Business Development Internal Consulting M&A Business Unit Planning External Scanning Corporate Planning Special Projects for CEO, Board Secondary Primary Strategic Planning Profile (Responsibilities) Source: Corporate Strategy Board research …but tackle a broad range of high impact projects ATA 20% 10% 20% 19% 23% 49% 50% 13% 52% 78% 30% 10%

10. Strategic Planning Process Research Internet Libraries Proprietary databases Trade press SEC information Analysis/ Modeling Economic modeling Regression Risk Adjustment Excel Optimization Software Access Understanding Group sessions Brainstorming Hypothesis testing Communication Simplify Encapsulate Logical Story

11. Strategic Planning - Team oriented - 55 Hrs per week - 5-10% travel - Opportunity to work with other departments Strategic Planning Profile Proforma Financials FINANCE Process Diagrams, Labor Negotiations OPERATIONS Market Analysis MARKETING Database Building INFORMATION SYSTEMS

12. Seek significant value for company/shareholders Detail evolution of potential value Highlight historical information and project future developments Consider competitive picture Create detailed business plans – Income statements – Balance Sheets – Cash flows – Operating statistics A Day in the Life (Sample Strategic Planner Contribution)

13. Desire to work hard and create an immediate impact Enjoy numbers and analysis Understand goals of a particular assignment Conduct comprehensive research to build relevant database Develop rational assumptions where data not available Build economic model using data and assumptions Communicate solution – restate goals – review analysis steps – provide clear graphical representation – make recommendations – calculate economic value added How Do I Succeed?

14. Indiana University Schedule DATEEVENTTIMES 11/03On Campus Interviews6:30 pm – 8:30 pm 11/02 Information Session 12/10 thru 12/20Offers Made 7:00 pm – 8:00 pm