The management is in disarray since it cannot possibly determine the source of the problem. The company that had a capital base of more than three million dollars and over two hundred employees has now shrunk to about five jumbo jets and other smaller jets with monthly revenue of six million dollars down from the previous eleven million monthly incomes. The current revenue cannot comfortably sustain the operations of the industry a fact that has resulted in the company retrenching some of its employees. The hospitality industry has a number of challenges and requires an extremely vigilant and dynamic management to process and effect policies that counter the challenges. Some of these challenges include understanding the market. Stakeholder analysis According to Slattery (2008), no business exists in a vacuum. Before setting up a business, one must have an effective understanding of the market and the entire community. Operations in the hospitality industry have a number of smaller communities that must integrate for the business to succeed. The management requires a fundamental understanding of all these communities and effective operational policies that incorporates all of them. These communities are the global community, the industry community, business community and the local community. The global community determines the scope of the business, by understanding the global community in the hospitality industry, the Alitalia airlines will determine the global destinations that have a sizable customer base and the new global destinations to introduce to make the business relevant to the market (Painter, 2012). By understanding the industry community, Alitalia airline stays conscious of its competitions. In analyzing the competition, the manager determines the weaknesses of the current existing companies and majors on their weaknesses to introduce unique products that complement the weaknesses thus grabbing the market from the previous owners. The industry also reveals the stratification of the current market. Through this, the management formulates products that target every segment of the market thus maximizing sales through an increased presence. Understanding the business community is one of the most important determiners of the success of the market. This includes having an effective human resource management. Operations in the hospitality industry rely on the human resource, the employees of the companies require effective management to ensure that there is an efficient flow of information and optimum service delivery to the customers resulting in satisfaction. The management must determine cost-effective ways of hiring the human resource and keeping them highly motivated. Alitalia is currently retrenching its employees a clear indication of the human resource management flaws (Lane, 2005).