Though the local political affairs are usually kept under control, there are numerous other issues that do not lie within the company’s hands. The perpetual rise in the fuel prices has always remained a major issue for Southwest. The unpredictable nature of the fuel prices is hugely attributed to several external factors which are usually not within the control of the company. The fuel prices are hugely driven by political agendas of the oil supplying nations and it may have varying results for the airline industry since oil is the major expenditure that an airline company has to endure in order to operate effectively and efficiently. Economic Factors The aviation industry within the United States of America has been a major contributor towards improving its country’s economy. According to a study issued by the International Air Transport Association (IATA) in May 2012, the airline industry has almost contributed $669.5 billion (4.9%) to the U.S. economy. Of this amount, almost 31% was contributed by airlines, airports and airline concerned services. The current era in which Southwest operates, fuel is presumably the main issue for not only Southwest airline but the entire aviation industry. According to the financial statements of Southwest Airlines, oil and jet fuel prices have remained at around 37% of total operating expenses both in the year 2011 and 2012 (Investor Relations, 2012). Social Factors Travelling has remained an important aspect of people normal living and with the dynamism in the economy, commuting has increased rapidly during the last four to five decades. People who usually travel from one place to another would always want to travel with low cost, high quality service. Hence it may be argued that such services are, based on their cheapness, are usually available via rail or road transport but this issue may be reduced to a greater extent since Southwest operates a low cost airline service and people would prefer it considering the low cost which it offers. Ecological Factors Environment friendliness has always remained an important feature for Southwest Airlines. The company has always focused on purchasing fleets that are both cost efficient as well as environment friendly. In a bid to prove it environment friendly nature, the company ordered the purchase of almost 150 Boeing 737 MAX aircraft which it considers to be more environment friendly than its present aircrafts (Annual Report, 2011). Southwest also uses environmentally responsible products within its aircraft fleet in order to help providing better atmosphere for its customers. In order to display its commitment towards improving the environment, the company issued its “Southwest One Report”. The report addresses several ecological issues and also provides strategies which would be adopted by the company to help reduce environmental hazards (Annual Report, 2011). Technological Factors The aviation service industry is technology intensive with an upward shift required at frequent intervals in order to remain competitive. Southwest Airlines has continuously kept up its foot on the accelerator with respect to technologically upgrading its services. The company has improved its website and its frequent flyer program in order to attract more customers. The company has also improved its fleets by providing Wi-Fi services to its
Southwest Airlines – External Environment Analysis External Environment There are a number of factors which may affect Southwest Airlines in their external environment. The external environment comprises of three major segments: remote, industry and operational…
The company has a product line that includes over 2,700 diverse items and operates in almost all the countries in the world (Deichert, 2006). The primary goal of the company is to develop soft drink concentrates and syrups to be sold to bottling companies that include the prime beverage distribution system in the world.
To make the achievability of the report’s aim feasible, a number of methods of analysis were used. Collectively, the methods of analysis can be grouped as being qualitative and quantitative. Specifically however, financial ratio trends and industry comparatives, capital spending, stock growth, credit rating service valuations, bond rating valuations among others were all catered for.
Therefore, the company focuses at their mission by extremely careful hiring of workforce who fits within the corporate culture believing that spirited workforce and fun loving bring superior customer service through their intrinsic attitudes. The employees at the company are trained to help customers and serve them genuinely with care in order to make customers happy; thus, the company philosophy is translated into stockholder and customer happiness.
Organizations determine the codes of ethics that they can set to control the internal and external interaction between its employees and other business partners who depend on it to achieve its goals. These codes of ethics are made clear by the organization management so that they can ensure that all the people are in conformity to it.
The author states that British Airways for the last two years has had to go through a list of disasters of varying magnitudes. Presiding over all this was British Airways Chief Executive Willie Walsh. It is the purpose of this case study to analyze the plans which he laid out for British Airways over the last two years.
The threat of substitutes has also been a major challenge for the company. Major bus, railway and sea network carriers are also enticing customers by offering high level services and therefore they can also be considered to be threats (Lauer, 2010). Trains and automobiles
Such importation leads to secondary measles outbreak and cases in the country. Most cases of measles are among unvaccinated citizens in the country. The threat of measles is growing as was seen in the Disneyland case. Currently, the state of