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