Case 3-1 : Southwest Airlines Corporation Ringkasan Kasus : Pada Januari 2005‚ hasil akhir tahun yang dihasilkan oleh Southwest Airlines Corporation (Southwest) mencapai 32 tahun dengan profitabilitas berturut-turut. Southwest merupakan perusahaan yang bergerak dibisnis pelayanan transportasi udara yang didirikan di Texas pada 18 Juni 1971‚ dengan semakin berkembang usahanya‚ armada pesawat yang dimiliki juga semakin banyak dengan total pada tahun 2004 memiliki 417 pesawat Boeing 737 dan menyediakan
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for the Southwest Airlines (LUV NYSE symbol) : Various financial ratios are used by managers and investors to analyze company’s financial health. In this section we describe return on equity analysis to measure the Southwest’s performance. ROE is viewed as one of the most important financial ratios. It is used in an effort to evaluate management’s ability to monitor and control expenses and to earn a profit on resources committed to the business. Three levels of ROE ratios assess Southwest Airlines’
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Southwest Airlines Case Study 1. Southwest Airlines was successful for many reasons‚ including low airfare cost‚ “quick turns” ‚ and “spider web” system. But‚ probably most important was their Corporate Culture of putting their employees first and really taking care of them. Southwest believes by doing this makes their employees happy and in turn‚ they will take care of them….. and ultimately that means repeat business. 2. Southwest’s quick turns allowed for them to have twice the industry
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Airline Industry Report Word Count:770 Introduction The airline industry delivers global mobility. They are fastest and most safe transport modes that other industry cannot compete with. It widers social and economic benefits. Size of the industry From the above figures‚ airline industry is one of the fastest growing economic sectors over the last 40 years (2.5 billion in 2011).It achieved ten folded expansion in travel volumes and a 14 times expansion in freight.The current market value
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success of Southwest Airlines? 2. How significant is the 10 to 15 minutes turnaround time of Southwest’s aircraft in terms of savings in investment and utilization of its aircraft compared to competitors? 3. What challenges is Southwest facing in the future and how should they meet those challenges? 4. What should their business and operations strategy be for the future? 5. Has Gary Kelly‚ the new Southwest CEO since 2004‚ been able to maintain the profitability of Southwest Airlines while insuring
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What are the sources of Southwest Airlines’ competitive advantages? There were three keystones to Southwest Airlines’ competitive advantage. The first lied in its employees and how they were managed. Secondly‚ the firm sought to identify major threats and opportunities in their competitors‚ and assess how Southwest could improve and capitalize on markets where their competition failed. And the final significant success factor was the company’s cost structure. Former CEO‚ Herb Kelleher‚ was
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of alliances has also occurred in the Airline industry; this report discussed how these alliances gain economies of scales and synergies. The deregulation of the airline industry has open doors to more competition sand to further agreements such as the “open skies”‚ these agreements allows airlines to serve consumers more efficiently by offering extensive domestic‚ continental and intercontinental service networks. Through the formation of alliances‚ airlines have created economies of scale through
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On-Boarding Approach Southwest Airline There are a few companies out there that truly understand the importance of On-boarding. Southwest airline has taken an approach that resonates with all employees new and old. Their understanding of human culture and how people absorb information is vital to their process. Human beings are emotional creatures‚ thus learning from this they have produced an effective on-boarding procedure. Stimulating a positive emotion has been the Idea behind a successful
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–The US Airline Industry Group 7 Eugenio、Peter、Violet 1 Assess the overall financial performance of the US airline industry during the past 20 years. The financial performance of the US airline industry has been somewhat of a roller-coaster‚ the industry has seen its structure change more than once. It being regulated and deregulated over the years. Many investors would agree that putting one´s money into the airline industry is a risky business. The woes of US airline industry during 21
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Southwest Airlines Case Analysis Problem As a fledgling operation‚ how does a startup company compete within an established market in terms of price‚ performance and promotion Issues On February 1‚ 1973 Braniff airlines announced a half-price “Get Acquainted Sale” on all flights between Dallas and Houston. This was Southwest Airlines most profitable route. Southwest had to decide how to respond to Braniff Airlines move. Southwest Airlines is a startup business * They faced barriers to
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