Analysis of Aafes and Its Relevance to the Future of the Army and Air Force

This study is a comprehensive analysis of the current posture and strategic efforts of the Army and Air Force Exchange Service (AAFES), and evaluates the strategic relevancy and strategic value of AAFES. Strategic relevancy is the distinctive ability to meet the full spectrum of customer requirements and needs. Strategic value is the worth of the service and goods provided relative to both quantifiable and unquantifiable variables in the context of the operating environment and global market place. This report outlines the history, organization, charter, and operating parameters of the military exchange system. A detailed study of the administration, financial performance, and business operating environment forms the primary basis for analysis in determining the strategic relevancy and value of AAFES in the context of the competitive environment against commercial retail competitors. This study also includes an outline of the MWR activities and the Army and Air Force, and an analysis of the MWR dividend provided by AAFES operating revenue.