...FINANCIAL ANALYSIS: Southwest Airlines EXECUTIVE SUMMARY: Southwest Airlines (NYSE: LUV), a major US airline, established in 1967, based out of Dallas, Texas principally operates a point-to-point rather than a hub-and-spoke service. Southwest is the nation's largest carrier in terms of originating domestic passengers boarded, boarding in excess of 100 million passengers each year. The airline also operates the largest fleet of Boeing aircraft in the world. 2013 was Southwest’s 41st consecutive profitable year earning $754 million in net income. Using a model of selecting the most profitable point-to-point routes and operating them efficiently and with great customer service, Southwest has been able to sustain solid growth year after year. Currently the airline serves 93 destinations in 40 states, the District of Columbia, the Commonwealth of Puerto Rico, and five near-international countries, producing annual revenues of over $17.7 billion dollars. As Southwest continues expanding, including the ongoing integration of AirTran’s operations, it is important that they maintain the low cost structure that has made them so successful in the past. As larger and more congested destinations are added to Southwest’s routes, they must focus on customer service as the on-time arrivals and other metrics may be impacted, and they cannot afford to lose market share. Furthermore, if Southwest is to remain profitable, they must adapt AirTran to the point-to-point strategy. Additionally...
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...Southwest Airlines SWOT Analysis Beresford Doherty February 16, 2009 The Mission Statement 1 The mission statement of Southwest Airlines declares that it is "dedicated to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit." And to its employees, Southwest Airlines pledges a commitment "to provide our Employees a stable work environment with equal opportunity to learn and for personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude with the organization that they are expected to share externally with every Southwest Customer" [1]. Southwest Airlines is a principal supplier of air transportation in the United States for the conveyance of passengers for business and leisure purposes. In accordance with its mission statement, Southwest Airlines has recognized the importance of customer service and has trained its employees to conform, in accordance with responsible awareness of their customers and their needs. Southwest Airlines Co is arguable the most efficient, best performing domestic airline in the United States today. Based on 3 criteria’s from the Federal Aviation Administration (FAA) they are the enforcement of regulations and standards related to the manufacture, operation, certification and maintenance of aircraft. Southwest...
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...Paper MGT/498 November 26, 2013 Environmental Scan Environmental scanning is an essential element in monitoring and analyzing trends that can affect an organization. A tool used as a part of environmental scanning is the SWOT analysis which pinpoints the Strengths, Weaknesses, Opportunities and Threats of an organization. This paper will present a SWOT analysis of three companies from three different industries, Starbucks Coffee, southwest Airlines and Wendy’s Old Fashion Hamburgers. In addition to the SWOT analysis there will be information regarding the company’s competitive advantage, strategies used, how value is created by each company along with the measurements guidelines used to verify strategic measurements SWOT Analysis: Starbucks Coffee, Southwest Airlines & Wendy’s Starbucks Coffee, Southwest Airlines, and Wendy’s operate in three different industries, something each company has in common is utilizing as a tool the internal and external environments based on the SWOT analysis. Starbucks Coffee began as a single store in Seattle; now, the number one coffee chain in the world located in over 62 countries with 18,000 stores. In order for Starbucks to have its current success and continued success a SWOT analysis breaks down the favorable and unfavorable factors to determine the appropriate strategy to stay on top in the premiere coffee industry. The Strengths of Starbucks Coffee to name a few are the experience the customers have with...
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...The Airline Industry: A Strategic Overview of Southwest Airlines Terra Thompson Ohio Dominican University Running head: SOUTHWEST AIRLINES 1 The Airline Industry: A Strategic Overview of Southwest Airlines Terra Thompson Ohio Dominican University SOUTHWEST AIRLINES The Airline Industry: A Strategic Overview of Southwest Airlines Table of Contents 2 The History of Southwest Airlines ................................................................................................. 3 Target Market and Business Model ................................................................................................ 3 Current Product............................................................................................................................... 4 Southwest’s Culture ........................................................................................................................ 5 Mission Statement .......................................................................................................................... 5 Mission and Corporate Culture....................................................................................................... 6 Employees and the Mission ............................................................................................................ 7 The Importance of the Mission Statement and Corporate Vision................................................... 7 Strategic Analysis .................
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...South West Airlines The Mission of Southwest Airlines The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit ("The mission of," 2012). Southwest’s Strengths Southwest started out as a small airline only servicing three cities, Dallas, Houston and San Antonio, but my, how times have changed for this company. Southwest has flourished mainly because they have been able to get such a tight reign over their costs and by marketing low domestic fares, becoming well known in the industry for being a low cost carrier ("History of southwest," ) ("Marketing mix," 2012). With almost 3100 flights carried per day, according to the number of passengers, Southwest has been termed the largest airline in the world. Southwest offers a diverse fleet of 547 Boeing 737 aircrafts, which has made Southwest the third largest fleet for carrying passengers in the world ("Marketing mix," 2012) Southwest also maximizes its bookings through web site services. It also gives customers the option to change reservations without paying any additional costs. Giving options to passengers is a strength that will play out well for them in the future as the demand for customer options increase ("Marketing mix," 2012). Overall, Southwest Airlines has an abundance of strengths. They have a very good safety record, employees are encouraged to use their sense of humor, their flights...
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...Introduction Southwest Airlines is a major airlines company which provides air transportation to the people in U.S. It is headquartered in Dallas, Texas, and employs 34,901 people. It was co-founded in March 16, 1967 as Southwest Co. by Rollin King and Herb Kelleher initially named Air Southwest until changing the name to Southwest Airlines in early 1971 (matthew, n.d.). The main objectives of the firm was to attract the passengers by providing convenient schedules, taking people to their destination on time, and charging fees compatible with their automobile. Their target market is the business travelers and price- sensitive leisure travelers. There are a number of strategies of the company. The company is known among the top market leaders by following the low-cost differentiation strategy. Their tagline “Freedom to Fly” gives them another advantage. They provide fare promotions to stimulate ticket sales on flights. Passengers do not have to pay for their bags. In addition to that, there are special benefit programs like frequent flyer program giving rewards like Standard Rewards which include a free round trip if the passengers earn 16 credits in 24 months. Similarly another reward like Companion Passes gives the passengers a free round trip if they earn 100 credits in 12 months. (Hadi, 2012) Furthermore, they plan to expand to new geographical markets and adding flights to those areas where their rivals are cutting back services. There is huge competition in the airline business...
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...Failure of a merger or acquisition to achieve financial or strategic objectives is often blamed on a clash of cultures between combining entities (Marks, 2011). The purpose of this paper is to address the HR ramifications of the Southwest Airlines merger and the unique responsibility of the strategic and administrative functions of Human Resources. This paper will also provide an analytical approach to the Southwest merger by conducting a SWOT analysis, analyzing culture and policies, recommendations, recruitment methods, and the organization’s total rewards. SWOT Analysis from an HR Perspective A SWOT analysis examines the strengths, weaknesses, opportunities, and threats of an organization. The SWOT breakdown helps HR professionals work towards implementing programs and policies that help sustain the competitive advantage in recruitment methods, work culture and total rewards. Based on the outlined SWOT analysis, the HR professionals at Southwest Airlines can recognize areas of improvement and opportunities as well as areas that lack competitive...
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... I want to analyze such companies as Southwest Airlines and Jet Blue Air. In order to analyze these companies, it is necessary to start with what are the company aims, what is important to it, what it wants to achieve, and who the groups are. All this valuable information is reflected in the company’s mission and vision statement. Thus, let’s take a closer look at mission and vision statements of Southwest Airlines and Jet Blue Air. According to the Southwest Airlines Annual Report (2013), “The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.” Moreover, the company has expanded mission statement, “We are committed to quality service for the everyday person. Southwest provides air transportation to cities all around the United States. We fly the most luxurious planes on the market with the latest technology money can buy. We competitively provide the lowest airfare price in search for the greatest advantage in today’s busy world. We provide the highest standards of safety for all our customers while still offering a reasonable price. A portion of our proceeds is donated to various charities throughout the United States. Since our first flight in 1971, our employees have been the vital asset in making Southwest the most recognized airline today.”(Southwest Airlines Annual Report, 2013). I think that the Southwest Airlines clearly...
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...31365103 A SouthWest Airlines SWOT Analysis A Southwest airlines SWOT analysis Let's look at the the mission of Southwest Airlines first.Southwest is dedicated to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. After 38 years of service, Southwest Airlines, is the USA's leading low-fare carrier, continues to differentiate itself from other airlines--offering a reliable product with exemplary Customer Service. It achieves low cost by flying from/to less popular and expensive city airports in the USA. It uses one aircraft type and so gains efficiency as variety promotes inefficiency. Southwest is the most productive airline in the sky and offers Customers a comfortable travelling experience. It offers a very comfortable ride with all premium leather seats and plenty of legroom with a young all Boeing 737 fleet. Let do a SWOT analysis on this airline First detail their strengths STRENGTHS * Best low-fare carrier by standardisation of fleet * Flexible even though unionized - can still negotiate flexible work hours * Maximises use of Internet for booking * Great staff relationships - looks after it's staff * Top class service Now their weaknesses WEAKNESSES * Conservative growth tactics - also a strength! * Flexible even though unionized - can still negotiate flexible work hours * Being copied by other airlines * Limited to 60 plus cities * Operates mainly...
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...hrmn 400 | ASSIGNMENT 4 FINAL ASSESSMENT | Southwest Airlines Case Study | | Temony McNeil | 3/9/2014 | | Introduction Southwest Airlines is a very aggressive company striving to increase its competitive advantage in the market without compromising the core values that have been set to differentiate itself from its competitors. It’s only by keeping the values of working hard, having fun, and treating everyone with respect that Southwest Airlines and its affiliates will continue to be an award winning organization. Southwest Airlines has been known to create a synergy between the multitude of personalities and behaviors which make up its workforce. Southwest has benefited from its successes by being able to acquire other airlines. The acquisition of new businesses will allow the Southwest group the opportunity to extend its services globally. Currently, due to limited resources and lack of saturation Southwest Airlines does not have a great market share in international flights. Southwest strives to increase its competitive advantage in the industry by increasing its market share of international flights. In order to do so, Southwest Airlines has recently acquired Air Tram Airways with goals of pursing other acquisition opportunities in the near future. Southwest Airlines must assess the organizational design since the process of aligning objectives can significantly impact its competitive advantage. (McGee & Molloy, 2014) This paper will attempt to detail...
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...Southwest Strategically Robert E. Woodward Embry Riddle Aeronautical University Abstract The following document will discuss and analyze how Southwest Airlines has become an industry leader in the air carrier business. How has Southwest Airlines adapted after the attacks on the Twin Towers of New York and the Pentagon on September 11, 2001. Where is the company headed in the future? Recommendations after a SWOT analysis will be made on how Southwest could remain one of the dominant leaders in the airline business. Southwest Airlines Corporate Stategy I. INTRODUCTION A. Executive Summary 1. Summary statement of the problem: Where did Southwest Airlines begin and how do they stay competitive in the air carrier industry since the attacks on America the morning of September 11, 2001. 2. Summary statement of the recommended solution: Southwest can stay competitive by reshaping its rewards program and trying to increase its customer loyalty. B. The Situation Southwest Airlines began business in 1971 offering flights between Houston, Dallas and San Antonio Texas. Now Southwest Airlines operates in more than 35 states. It offers shorter flights than other air carriers; that average less than 1.7 hours. Most of Southwest’s flights are non-stop. Southwest Airlines customer focused attitude helps them to become the leader in US flights, according to the bureau of transportation statistics (docstoc). On September 11, 2001, terrorist attacks shut down...
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...company indicating the most significant environmental threats and discuss how the company should respond to each threat to ensure that the impact to the business is minimal. The significant success for any organization is strategic planning. To develop a successful plan would require the organization to have a comprehensive understanding of their current environment. Environmental scanning is used to establish the focus of the strategic plan. To conduct an environmental scan external and internal information should be evaluated. A SWOT analysis will focus on the strengths, weaknesses, threats, and opportunities. We will discuss the most signification environmental threats for Southwest Airlines. There are many environmental factors that could influence the performance of the company, Southwest Airlines, which provides low-cost air travel and service. This student will discuss two environmental threats pertaining to Southwest Airlines. Two environmental factors that have a major impact on how businesses operate are: economic factors and regulations. September 11, 2001 terrorist attack on the World Trade Center was a moment in history that effected Nation and the U.S. economy. Most importantly the airline industry was threatened by the aftermath of the economy. “The events of September 11 have had some of their worst economic effects on the airline industry, leading to a dramatic fall-off in passenger demand and substantially higher costs” (Gowrisankaran, 2002)...
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...Revolution in the Sky Introduction Southwest Airlines: Southwest Airlines was originally incorporated to serve three cities in Texas as Air Southwest on March 15, 1967, by Rollin King and Herb Kelleher. It is an American low-cost airline based in Dallas, Texas, with its largest focus city at Las Vegas' McCarran International Airport. It is the largest airline in the United States by number of passengers carried domestically per year and (as of December 31, 2007) also the largest airline in the world by number of passengers carried. As of July 12, 2008, Southwest operates approximately 3,500 flights daily. Indian Aviation: Air Deccan, the first low cost airline of India was founded by Captain G. R. Gopinath and its first flight was launched on 23 August 2003 from Bangalore to Hubli. Air Deccan is a business unit of Deccan Aviation, India’s largest private helicopter charter company, which pioneered helicopter tourism in India. Air Deccan is India’s first low cost, no frill airline, which was launched on strength of simple dream that every Indian to fly atleast once in his/her lifetime. In October 2007, Air Deccan as a planned makeover after the acquisition was renamed as Deccan with is tagline "The Choice is Simple" based on its previous famous tag line 'Simplifly'. The old logo of hands has been replaced by the Kingfisher logo and the font of Kingfisher is also being used. Strategy for Success Southwest Airline: As the first commercial...
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...Southwest identified an opportunity within Texas for short distance air service between Houston, Dallas-Fort Worth and San Antonio. These Texas cities were often referred to as one single market area, although they were some of the fasted growing in the nation. Southwest recognized that Pacific Southwest Airlines had a similar business plan in California servicing Los Angeles to San Francisco, so they took this similar concept, and set their goals to provide quick, reliable service that local passengers sought to utilize. Within this Texas market included two other airlines, Braniff and TI. Both did not originally specialize in short distance air travel, and most short distance flights started at a larger location such as New York and traveled through the Texas cities as a multiple stop trip. Southwest’s choice to enter the market initiated a quick process to implement their strategy. Within 4 months, they would implement a marketing strategy and begin servicing the area. The problem with the Texas market was as soon as Southwest implanted a strategy and promotion, Braniff and TI would closely follow and form a very similar strategy. Southwest’s third phase of their advertising campaign led to Braniff once again matching the promotion that they are offering, and Southwest’s response to Braniff’s move would help establish southwest as a successful company. Within the Texas market, Southwest has created many strengths that will help set them apart from the current brand...
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...Southwest Airlines provides short haul, high frequency, point-to-point, low-fare services to and from 58 cities across the United States. The company is known for its low-cost fares and superior customer service in the airline industry. The company was started in 1971 with a motto still lived by today, "If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline." This motto has been effective for the company because they recently reported their 58th straight quarterly profit. SWOT Analysis The SWOT analysis describes the internal strengths and weaknesses, opportunities and threats of a company. The strengths of Southwest include its market leadership, its low-cost business model, and its strong financial performance. Weaknesses are the poor short-term liquidity situation, having only one established alliance, and the declining passenger revenue yields. Opportunities for the company include its new services, the new code-sharing agreement with ATA Airlines, and the overall positive outlook for the airline industry. Threats to Southwest include the increasing jet fuel costs, uncertainty in demand, and an increase in competition. Corporate and Business-level Strategies Southwest's corporate level is to focus on obtaining more of the low-fare market of the airline industry rather than to enter into other aspects of the airline industry...
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