Southwest Airline Strategic Audit

Ecole supérieure libre des sciences commerciales appliquées
(ESLSCA)

Strategic Management Paper

Southwest Airline Strategic Audit

Prepared By : Hesham Gamal El Din El Desouky Mohamed Dandash Wael Youssef

Professor : Dr. Saneya El Galaly
Group : 21-A

Table Of Contents

I. Executive Summary 5

II. SouthWest Airlines History 6

III. Current Situation 8

III.1. Current Performance 8
III.2. Strategic Posture 13
III.2.1. Mission & Vision 13
III.2.2. Objectives 14
III.2.3. Strategies 15

IV. Corporate governance 19

IV.1. Board of Directors 19
IV.2. Top Management 21
IV.3. Corporate Governance Guidelines 22
IV.4. Ownership Profile 26

V. External Environment (SWOT) 27

V.1. External Societal Environment 27
V.1.1. Economic 27
V.1.2. Technological 28
V.1.3. Political & Legal 29
V.1.4. Socioculutral & Environment 31
V.2. Task Environment 32
V.2.1. Threat of new Entrants 32
V.2.2. Bargaining power of buyers 33
V.2.3. Threat of Substitute products or services 33
V.2.4. Bargaining power of suppliers 34
V.2.5. Rivalry among competition 35
V.2.6. Relative power of unions 37
V.3. Summary of External Factors (EFAS) 38

VI. Internal Environment (SWOT) 39

VI.1. Corporate Structure 39
VI.2. Corporate Culture 41
VI.3. Corporate Resources 42
VI.3.1. Marketing 42
VI.3.2. Finance 42
VI.3.3. Human Resources Management 43
VI.3.4. Information Systems 44
VI.4. Summary of Internal Factors (IFAS) 46

VII. Analysis of Strategic Factors (SWOT) 47

VII.1. Situational Analysis 47
VII.2. Review of Mission and Vision 48

VIII. Strategic Alternatives & Recommended Strategy 49

VIII.1. Strategic Alternatives (TOWS) 49
VIII.2. Recommended Strategy 50
VIII.2.1. Corporate / Business Strategies 50
VIII.2.2. Functional Strategies 51
VIII.2.2.1. Marketing 51
VIII.2.2.2. Financials 52
VIII.2.2.3. Human Resources 52
VIII.2.2.4. Information Technology 53

IX. Implementation 54

X. Evaluation and Control 57

XI.