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
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Summary: Southwest Airlines has been making changes over the past few years that helped them become the largest low-cost carrier in the United States. Most other airlines have been struggling to make it through this economy‚ but Southwest has found a way to thrive. The airline has dropped their prices and eliminated fees for extras that have allowed them to fill up most flights. One cost they continue to struggle with is offsetting the increasing fuel prices. This has caused some airlines to merge
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Southwest Airlines Motivation This article that I found covers motivation at the southwest airlines (SWA). The way’s they motivate their employees could affect the way I handle and pick the jobs in my career path later in life. You know their motivation works well when their absence and tardiness are one of the lowest in the area. Southwest airlines is one of the most highly unionized airlines in the airline industry. With the employers taking charge and taking care of each employers‚ customers
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Abstract Airline companies are facing many challenges keeping their cost down and profits up. Some of the main issues are gas prices and pilots pay. CEO of Southwest Airlines‚ Gary Kelly‚ has been able to work with fuel companies to provide one of the lowest costs for gas than any other company. With his great knowledge and social personality‚ he has been a very effective leader for Southwest. The company’s core competencies is treating their customers with respect and showing them that they are
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Southwest Airlines Business Operations Southwest Airlines continues growth during challenging times with no its low price‚ no frills and good customer satisfaction‚ setting themselves apart from the competition. Organizational change is part of the culture that successfully allows Southwest Airlines to set itself apart. The airline industry is subject to external forces such as fuel prices‚ labor costs‚ passenger economic status‚ and public perception. Southwest Airlines has developed a successful
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The domestic US airline industry has been intensely competitive since it was deregulated in 1978. In a regulated environment‚ most of the cost increases were passed along to consumers under a fixed rate-of-return based pricing scheme. This allowed labor unions to acquire a lot of power and workers at the major incumbent carriers were overpaid. After deregulation‚ the incumbent carriers felt the most pain‚ and the floodgates had opened for newer more nimble carriers with lower cost structures
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1. What role has leadership played in the success of Southwest Airlines? In an era where all the major players in the U.S. airline industry experienced problems‚ only Southwest Airlines remained profitable throughout that period. This amazing and continued success is attributed to its great leader Herb Kelleher. He has been a very successful leader who knows the employees and marketplace well and can effectively take action for the success of the organization. He applies flexibly to the growth
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Southwest started its service in 1971. It becomes famous by using its pricing strategy of cheap fares backed by seriously controlling costs. The central business of Southwest is the short-haul domestic route. The airplanes of Southwest are always on time which make the customers very delighted. Southwest Airlines¡¯ used market penetration pricing strategy with low-fare‚ no frills‚ low cost service on relatively short flights. Moreover‚ it also provides benefits to customers such as simple scheduling
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Executive Summary Southwest Airlines is one of the most profitable airlines in the airline industry. During turbulent economic times Southwest has managed to continue strong revenue growth in a disastrous environment and has operated profitably for 39 consecutive years (Mintzmyer‚ 2012). Southwest Airlines has capitalized on the company’s strength of being the top low cost carrier by offering a simple and efficient business plan that prides itself on customer service. Southwest utilizes only the
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Operations Southwest Airlines operates as a major passenger airline that provides scheduled air transportation in the United States and near international markets (southwest.com). In addition‚ at December 31‚ 2016‚ South West functioned with a total of 723 Boeing‚ 737 aircraft and 101 destination in 40 states‚ the Commonwealth of Puerto Rico‚ and eight near International countries such as Mexico‚ Jamaica‚ The Bahamas‚ Aruba‚ The Dominican Republic‚ Costa Rica‚ and Cuba (Nasdaq.com). Southwest was originally
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