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From Greasley, P. (2008)
Structure of your final research report
A quantitative research report should generally include the
following sections:
1. Executive summary
2. Introduction
3. Literature review
4. Methodology
5. Results and discussion
6. Conclusion
7. Appendices
8. References
The executive summary
An executive summary is an extended summary of a study
usually the last part of the report to
be written (since you need to know what you have said in order
to provide the summary), and
should include the following information:
• brief background to the research;
• purpose/aims of the study;
• methods used and the sample;
• brief conclusions outlining the importance of the study.
The role of the executive summary is to give the reader
sufficient information about the study,
the essential details, to enable them to decide if they wish to
read the full report.
The introduction
The introduction should provide a background to the research,
specify the issue that is being
addressed and review relevant previous research. The
introduction may then close by outlining
the purposes and objectives of the study, research questions,
and hypotheses.
Literature Review
In reviewing relevant literature, you must carefully structure
your findings. It may be useful to
do a chronological format where you discuss from the earliest to
the latest research, placing
your research appropriately in the chronology. Alternately, you
could write in a thematic way,
outlining the various themes that you discovered in the research
regarding the topic. Again, you
will need to state where your research fits.
From Greasley, P. (2008)
Methodology
The key to the methods section is clarity and specificity, such
that a reader could replicate the
method and procedure of your study from the information you
provide in the report. So we are
talking about a very detailed account which should cover:
1. Study design: What is the overall methodology or design of
the study? For example, is
it an experiment (with independent and dependent variables), a
questionnaire study, a
qualitative study consisting of a series of interviews or focus
groups, etc.?
2. The participants: What is the sampling frame (target sample,
e.g., all patients who
attend for counselling during one year at a general practice),
sampling method (random,
quota, all) and sample size? This may need to include
demographic information (age,
sex, ethnic background, etc.).
3. The materials: What materials were used in the study to
conduct the research and
collect data? For example, details of a questionnaire or other
outcome measures may be
provided in an appendix. If you are using a standardized
outcome measure, for example,
to measure health and quality of life, you should also provide
details of its relevance to
your particular study including details of reported reliability
and validity (reliability
refers to the consistency of the measure over time or with
different samples; validity
refers to the extent to which it measures what it is supposed to
be measuring, e.g., levels
of anxiety or depression).
4. The procedure: How was the study actually conducted? For
example, if the study
involved a questionnaire, how was it distributed to participants?
Was it posted to
participants who completed it then returned it, or was it
completed in the presence of the
researcher? (Studies have shown that the way in which a
questionnaire is administered –
self-completion, interview, etc. –can influence the responses
(Lyons et al. 1999)).
Remember, the reader should be able to replicate your
procedure based on the details
you provide in the report.
Results and Discussion
The results should be presented as simply and clearly as
possible. Make use of graphs and tables
that help to present and explain the results. Where descriptive
and inferential statistics are used
to analyze the data, you should:
• name the statistic used;
• report the statistical significance of the results obtained;
• indicate that all necessary assumptions were met (e.g., that
data were normally
distributed if using a t-test).
From Greasley, P. (2008)
It is also important for the report to have a logical structure. A
good way to do this is to pose
research questions or hypotheses which are then either
confirmed or not by the data. You can
then add words and phrases like ‘surprisingly’, ‘as expected’ or
‘as predicted’ when presenting
the results of analysis. This makes the text more interesting
than simply listing a ream of
analyses; it turns the report into a story with twists and turns.
Graphs, figures and tables should be comprehensible without
reference back to the text, so they
should be clearly numbered and headed, and fully labeled with
all units of measurement. They
should only be included where they serve to enhance
understanding of the results. Within the
text you should lead the reader through the table or figure
drawing attention to the relevant data.
The reader should not turn the page and suddenly be confronted
with a figure floating in the air:
introduce the figure in the text and then explain it.
The discussion section should also provide an interpretation and
explanation of the results
which should be related to any research questions or
hypotheses. It should also include critical
reflections on the study (e.g., design of the questionnaire,
relevance of outcome measures,
limitations for generalizing due to small sample sizes).
Conclusion
The conclusion should include general implications of the study
and suggestions or
recommendations for further research.
Appendices
These should include any instruments used – such as the
questionnaire.
References
A full list of references should be included written in line with
APA referencing system. This
shows that you have consulted the relevant literature and
acknowledged the sources of your
work. It also enables the reader to consult the work you have
cited if they wish.
Surname 1
Student’s Name:
Professor’s Name:
Course:
Date:
Part 1: Company Discussion: South Airlines
Brief Information about the Company
Southwest Airlines, one of the largest low-cost carriers in the
world, began its operations in the year 1971 by Rollin King and
Herb Kelleher (Southwest Airlines). According to the
information found on the company’s website, the two
entrepreneurs came together to do something different that other
airlines were not doing. Part of their mission was to ensure that
passengers were flown to their destinations on time and the
lowest possible prices in the market. The entrepreneurs also
knew that giving customers fun as they travelled would also
increase the capacity of the company to serve as many
customers as possible. Indeed, their intentions paid off because
Southwest Airlines not only grew fast but became one of the
most popular airlines in the United States. Currently, the
company generates an average revenue of $20 billion per year
(Southwest Airlines). From the three Boeing 737 aircrafts that
the company used to start the business, it has more than 720
fleets with flights to over 101 destinations (Southwest Airlines).
By the end of 2016, the company had a total of 53,500
employees headed by Gary Kelly as the Chairman and CEO,
Tom Nealon as the president and Mike Van de Ven as the chief
operating officer (COO). The company is headquartered in
Dallas, Texas.
Company’s Mission
“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.”
According to the mission statement, Southwest Airlines is
dedicated to giving customers the best quality services they can
have while making their journey as interesting as possible. It is
not just the promise of being flown to the destination at the
lowest prices possible but what comes with the service. In other
words, by making the services affordable and entertaining, the
company aims to win the loyalty of the consumers and increase
profitability as much as possible. This also explains why it has
been possible for the company to retain its customers as well as
the employees.
Company’s Vision
“To become the world’s most loved, most flown, and most
profitable airline.”
In line with vision statement, the company aims at increasing its
popularity among the consumers, increasing its flight schedules
and increasing the profitability. Being popular among the
consumers begins from the ability to offer specific services
meet the interest of the consumers. Apart from entertainment
and affordability, the company has to engage the customers in
various services such as environmental cleaning which may not
be profitable but contributes towards enhancing the loyalty
among the consumers. It is the increased popularity among the
consumers that may assist the company to increase its number
of flights as well as the profitability.
Company’s Values
Southwest Airlines values include the following:
Live the Southwest Way
· Warrior spirit
· Servant’s heart
· Fun-LUVing Attitude
Work the Southwest Way
· Safety and Reliability
· Friendly Customer Service
· Low Costs
Living the Southwest way include fighting like a warrior,
having a servant heart and a loving attitude. In other words, the
company promises not to disappoint the customers just like a
warrior would not do to the people he protects and a servant
would not do to a master. Protecting the interests of the
customers at all times is one of the reasons why Southwest
Airlines is ranked among the most popular airlines in the United
States. Most importantly, the promise to offer high quality
services and at the lowest prices in the market has been a major
strength that keeps driving the company forward.
Current Business Strategy
Southwest Airlines uses low-cost leadership strategy in which
the company offers the best services at the lowest possible rates
in the market. The strategy involves minimizing operating
expenses so that it does not consume a lot of the profits. Being
a publicly owned corporation, the investors expect the company
to keep them happy by giving them a good return on their
investment. In other words, the pricing strategy should be used
in such a way that it does not make consumers happy at the
expense of the investors. The low-cost strategy has been used
since the company was established in the year 1971. In fact, one
the reasons why the company was founded was to offer the
highest quality services at affordable rates.
Stakeholders
· Southwest Airlines stakeholders include the following:
· Customers: who are purchasing the air tickets and keeping the
company in business.
· Employees: who are serving the customers and the company.
· Investors: who are providing funds needed to finance the
operations of the company.
· Board of Directors: appoints the executives such as the CEO,
COO and the President to manage the company on their behalf.
· Policy Makers: defines the legal framework of the business
environment in which the company operates.
Financial Overview
In 2013, the company generated a total revenue of $17,699
which was increased to $18,605 in 2014. In 2015, the revenue
increased from $18,605 to $19,820. In other words, between the
year 2013 and the year 2015, the company increased its profit
levels by 18%. This implies that on average, the company was
capable of increasing its profitability by at list 9% per fiscal
year. For a company that is operating in such a competitive
business environment, that passes for a great or an impressive
performance. Investors are likely to commit their funds to
companies that are committed to improving their profitability.
Financial History
Southwest Airlines trades in the NYSE using the sticker symbol
LUV. Its impressive financial performance over the last five
years has seen its stock price rising from a $7.91 in April 2012
to $56.36 in March 10, 2017 (Southwest Airlines). In other
words, over the last five years, the company has impressed its
investors to a great extent. In 2013, the stock price rose from
$7.91 in April 2012 to $13.15 in April 2013. Moreover, the year
2014, 2015 and 2016 registered an even better performance
marked by $22.75, $41.79 and $47.25 respectively (Southwest
Airlines). The steady and consistent increase in the stock price
is a positive reflection of the good work that the company is
doing towards enhancing the loyalty of the consumers and
increasing profitability.
Is Debt an issue?
Debts seem to be weighing heavily on the profitability of the
company. For example, at the end of 2015 fiscal year, the
company had total current assets worth $4024 against total
current liabilities worth $7406. This implies that its current
ratio for the same fiscal year was 0.54. Any quick ration less
than 1 is an indication that the company may not have the
capacity to meet its current obligations. In other words, the
company may not have the capacity to finance its operations
efficiently. For the company to enjoy operational efficiency, it
should minimize its debts and maximize on the profits.
Legal Issues
In the month of November 2014, the federal government,
through its Federal Aviation Agency, filed a law suit in the
district courts in the state of Washington against Southwest
Airlines failing to meet the safety standards in the repair of 44
of its planes (FOX News). The law suit sought to impose a
penalty worth $12 million should the company be found guilty
of violating some of the federal regulation standards in the
repairs of the aircrafts. Southwest Airlines had hired a
contractor by the name Aviation Technical Services Inc. to
check and make repairs in its 44 planes in order to prevent the
aluminum from cracking (FOX News). Southwest Airlines
reported after the repair was complete that all the regulatory
procedures were followed as indicated in the final report
presented to the company by the contractor. However, after
inspections by the federal government agents, it was found that
the repair work that was done on the aircrafts flouted certain
regulatory standards required by the federal government
(Justice.gov). On December 21, 2015, the company agreed to
pay a total of $2.8 million in settlement to the safety violations
to which the company was found guilty (Justice.gov). Such
cases, if not handled carefully, may compromise the good
reputation of the company among the consumers as well as the
investors and limits its chances of competing favorably in the
stock markets.
SWOT Analysis
Strengths
One of the company’s main strengths has been the ability to
offer high quality services at affordable costs. The company
ensures that while on board, the passengers are fully entertained
and served with a variety of drinks and snacks of their choices
at no extra cost. In fact, one of the company’s slogans has been,
“Low Fares. Nothing to hide”, which implies that there are no
additional costs that the passengers may be compelled to pay
while inside the plain (Southwest Airlines). The provision of
high quality and services and affordability has enabled the
company to command a huge loyalty among the consumers.
Southwest Airlines is one of the most flown aircrafts in the
United States because of the huge market share that it currently
enjoys. Its low-cost strategy has also been crucial towards
increasing the company’s profitability (Southwest Airlines). For
instance, the company has developed strong partnerships with
the suppliers to ensure it acquires fuel and other products
needed during the journey at affordable costs. This implies that
even if the company charges fairly low prices, it is still capable
of maintaining its profitability. Moreover, its investment in the
research and development has enabled the company to increase
safety standards as well as the development of various ways to
minimize costs.
Weaknesses
Despite the fact that Southwest Airlines enjoy the largest share
of the United States market, it is still unable to gain such a huge
share in the global market. For example, it has not been able to
outcompete multinational companies such as Air Asia, Fly
Emirates, Turkish Airlines and Qatar Airways among others.
Apart from being unable to enjoy global competition, the
company is still facing government scrutiny over safety issues
like the one that erupted in the year 2014 and cost the company
a total of $2.8 million in compensations (Justice.gov). The
company should also focus on minimizing debts which could
have negative effects on its profitability.
Opportunities
One of the biggest opportunities that could increase profitability
in the company is the diversification into courier services.
Being one of the companies that have managed to win the
loyalty of the consumers across the United States in handling
parcels, its courier and security services may increase
profitability in the company (Southwest Airlines). Moreover,
the company spends a lot of money in contracting other security
firms to check on passengers and luggage at the various security
checkpoints.
Threats
Apart from stiff competition, terrorism is a major threat that
continues to affect the confidence of the consumers towards
boarding airplanes. The rise of terrorist organizations such as
ISIS continues to pose great threat to the airline industry
because they always target facilities with potential to cause
massive destruction such as aircrafts (Southwest Airlines).
Apart from terrorism, the airline industry has also been on the
watch against bad weather. Bad weather usually leads into
delays in the flights and could lead into huge losses if it
prevents customers from boarding planes. Besides, many
customers are always afraid of travelling during bad weather
(Southwest Airlines). If not properly checked, environmental
issues such as global warming could have serious impact on
both weather and flight schedules.
Part 2: Industry Discussion
Southwest Airlines is in the US airline industry. Some of the
trends in the company include the consumer preference towards
low-cost carriers, comfort among business travelers and
preference towards high quality services. Southwest Airlines is
the largest company in the US airline industry with a market
share of about 18% (Statista). The market share is usually
calculated by examining the available seat miles (ASM) which
shows the capacity of the company. The ASM is usually based
on the revenues that a company collects and is sometimes
referred to as the business model (Statista). Apart from the
ASM, the other factor that can also be used to measure the
market share of companies in the airline industry is the revenue
per passenger mile (RPM). The combination of the RPM and
ASM can be used to develop accurate analysis of how
companies compete in a given industry. The following is a
discussion of the list of competitors in the order of their market
share and profits over the last three years.
Competitor 1: Delta Airlines
Among the American airlines, Delta traces its history to 1924
when Duff Daland Dusters started the airlines company. From
its humble beginnings, just like Southwest Airlines, Delta has
grown from strength to strength to emerge as one of the largest
airline companies in the world (Delta Airlines). Delta operates
in at least five countries including the Brazil, Spain, China,
Germany and the United Kingdom. It also flies into other
countries in Africa and Middle East. By market share, Delta has
managed to acquire up to 17% which is only second after
Southwest Airlines. In 2013, Delta generated a total revenue
amounting to $37,773 while in 2014 and 2015 the revenue
increased to $40,362 and $40,704 respectively (Delta Airlines).
In comparison, the amount of revenue generated by Delta
Airlines over the three years is twice the amount generates by
Southwest Airlines over the same period.
Competitor 2: American Airlines
American Airline comes third with a market share of 16.6% but
in terms of revenue, the company has been doing quite well. In
2013, for instance, the company generated a total revenue of
$39,980 that was increased to $42,650 in 2014 (Phx.corporate-
ir.net). However, in 2015, the company faced a lot of challenges
in the market such as stiff competition which affected its
growth in the revenue. Nevertheless, the company still
generated an impressive $40,990 in revenue (Phx.corporate-
ir.net). Its performance over the three years almost doubles that
of Southwest Airlines over the same period.
Competitor 3: United Airlines
With an average market share of 14.7% United Airlines is
regarded as one of the largest airline companies in the United
States. However, its financial performance over the last three
years has not been quite impressive (Ir.United.com). Although
the company has not been generating losses, it seems to stagnate
at one point which may not send positive messages to the
investors. For the fiscal years 2013, 2014 and 2015, the
company generated total revenue amounting to $38,287,
$38,901 and $37,864 respectively.
Summary of the four competitors
Comparison by Market Share
Market Share (%)
Southwest Airlines
18
Delta Airlines
17
American Airlines
16.6
United Airlines
14.7
Comparison by Revenue
2015
2014
2013
Total
Southwest Airlines
19820
18605
17699
56124
Delta Airlines
40704
40362
37773
118839
American Airlines
40990
42650
39980
123620
United Airlines
37864
38901
38287
115052
Part 3: Environmental Discussion
PEST Overview
The political, economic, social and technological factors that
are likely to affect the performance of companies in the industry
include terrorism, recession, digital age and online services or
e-commerce. These factors are quite unpredictable and may lead
into either loss of revenues or increase in the profitability
depending on how they work in favor of the company (Statista).
For example, the entry of the millennials into the market may
increase revenue among the companies with adequate
preparation of how to take care of their interests.
Political
Since the attack of World Trade Center in the New York City on
September 11, 2001, there has been increasing fear among the
consumers that their safety in the aircrafts may not be
guaranteed. A lot of policies have been created to increase
security but the disappearance of the Malaysian plane without a
trace is still a challenge that many airline companies try to
overcome (Ir.United.com). It is the role of the political leaders,
therefore, to increase surveillance at the security checkpoints in
order to assure travelers that their safety is guaranteed.
Economic
Whenever there is global economic crisis, airline companies are
bound to suffer because the number of travelers is bound to
decrease. Most of the airline companies usually generate a lot of
income from business travelers (Statista). However, any global
economic crisis implies that there may be a significant decline
in the number of business travelers leading into massive losses.
Social
The entry of the millennials into the market has created certain
changes in the consumers taste and preferences. Many airline
companies have been forced to adapt to the new conditions by
increasing the level of entertainment and focusing on various
corporate social responsibilities which may be relevant to the
consumers.
Technological
The increase in the level of technology continues to pile
pressure on the airline companies to transfer most of the
services including the purchase of tickets and customers care
services in order to reduce queues at the airports. Companies
that are able to adapt quickly to the technological changes may
gain from the new trends but the slow-paced companies may
lose their customers.
Part 4: Indicators of Deeper Problems facing the company
High Debt Ratio
Consider the following figures extracted from the company’s
statement of income.
Total Assets = (Current Assets + Non-current assets) = $21,312
Total Debts = (Current liabilities + Non-current liabilities) =
$21,32
Debt ratio = total debts ÷ total assets
= $21,312 ÷ $21,312
= 1.0
A debt ratio of 1.0 implies that most of the company’s assets are
financed by debts. In this case, more than 50% of the company’s
assets are financed by debts (Southwest Airlines). In other
words, the company is highly leveraged and may not be
attractive to investors.
High Debt to Equity Ratio
Debts
Amount
Total Current Liabilities
7406
Long-term debts
2541
Deferred income taxes
2490
Construction obligation
757
Other non-current liabilities
760
Total
13954
Debt to Equity Ratio = Total Debts ÷ Shareholders’ Equity
= $13,954 ÷ $7,358
= 1.89
A debt to equity ratio of more than 1 is an indication that the
company relies heavily on external lender to finance its
operations. This may put the company at a high risk because of
high interest rates. In other words, the company is likely to
have its income reduced significantly because of the high
interest rates.
Problem Statement
In summary, the paper has determined that Southwest Airlines
has the largest market share compared to its competitors and its
revenue has been increasing steadily over the past five years.
However, the company is highly leveraged as indicated by high
debt ratio as well as high debt to equity ratio. Being highly
leveraged is not good news to the investors because they are
likely to interpret the company’s stock as highly risky. This
may prevent them from committing their funds and may also
lead to a decrease in the company’s stock prices in order to
attract investors.
Works Cited
Phx.corporate-ir.net, "American Airlines | Investor Relations |
About American Airlines". Phx.Corporate-Ir.Net, 2017,
http://phx.corporate-ir.net/phoenix.zhtml?c=117098&p=irol-
IRHome&anchorLocation=DirectURL&title=investorrelations.
Delta Airlines, "Delta Airlines SEC Filings: 2016 Annual
Report". Delta Airlines, 2017,
http://d1lge852tjjqow.cloudfront.net/CIK-
0000027904/082dbd71-0d08-4ce4-b155-3f7bb2018395.pdf.
Fox News, "Federal Government Sues Southwest Airlines Over
Plane Maintenance Issues". Fox News, 2017,
http://www.foxnews.com/politics/2014/11/04/federal-
government-sues-southwest-airlines-over-plane-maintenance-
issues.html.
Ir.united.com, "Investor Relations". Ir.United.Com, 2017,
http://ir.united.com/.
Justice.gov, "Southwest Airlines Agrees To Pay $2.8 Million To
Settle Action Alleging Federal Aviation Administration Safety
Violations". Justice.Gov, 2017,
https://www.justice.gov/opa/pr/southwest-airlines-agrees-pay-
28-million-settle-action-alleging-federal-aviation.
Southwest Airlines, "Purpose, Vision, Values, And
Mission". Southwestairlinesinvestorrelations.Com, 2017,
http://www.southwestairlinesinvestorrelations.com/our-
company/purpose-vision-values-and-mission.
Statista, "U.S. Domestic Market Share Of Leading Airlines 2015
| Statistic". Statista, 2017,
https://www.statista.com/statistics/250577/domestic-market-
share-of-leading-us-airlines/.
Comparison by Market Share (%)
Market Share (%) Southwest Airlines Delta Airlines
American Airlines United Airlines 18 17
16.600000000000001 14.7
Comparison by Revenue
Southwest Airlines 2015 2014 2013 Total 19820 18605
17699 56124 Delta Airlines 2015 2014 2013 Total
40704 40362 37773 118839 American
Airlines 2015 2014 2013 Total 40990 42650 39980
123620 United Airlines 2015 2014 2013 Total
37864 38901 38287 115052
Surname
1
Student’s Name:
Professor’s Name:
Course:
Date:
Part 1: Company Discussion
: South Airlines
Brief Information about the Company
South
west Airlines, one of the largest low
-
cost carriers in the world, began its operations
in the year 1971
by Rollin King and Herb Kelleher
(
Southwest Airlines
)
. According to the
information found on the company’s website, the two
entrepreneurs came together to do
something different that other airlines were not doing. Part of
their mission was to ensure that
passengers were flown to their destinations on time and the
lowest possible prices in the market.
The entrepreneurs also knew that giving customers fun as they
travelled would also increase the
capacity of the company to serve as many customers as possible
. Indeed, their intentions paid off
because Southwest Airlines not only grew fast but became one
of the most popular airlines in the
United States. Currently, the company generates an average
revenue of $20
billion per year
(
Southwest Airlines
)
. From the t
hree
Boeing
737 aircrafts
that the company used to start the
business, it has more than 720 fleets with fl
ights to over 101 destinations
(
Southwest Airlines
)
.
By the end of 2016, the company had a total of 53,500
employees headed by Gary Kelly as the
Chairman and CEO, Tom Nealon as the president and Mike Van
de Ven
as the chief operating
officer (COO). The company is headquartered in Dallas, Texas.
Surname 1
Student’s Name:
Professor’s Name:
Course:
Date:
Part 1: Company Discussion: South Airlines
Brief Information about the Company
Southwest Airlines, one of the largest low-cost carriers in the
world, began its operations
in the year 1971 by Rollin King and Herb Kelleher (Southwest
Airlines). According to the
information found on the company’s website, the two
entrepreneurs came together to do
something different that other airlines were not doing. Part of
their mission was to ensure that
passengers were flown to their destinations on time and the
lowest possible prices in the market.
The entrepreneurs also knew that giving customers fun as they
travelled would also increase the
capacity of the company to serve as many customers as
possible. Indeed, their intentions paid off
because Southwest Airlines not only grew fast but became one
of the most popular airlines in the
United States. Currently, the company generates an average
revenue of $20 billion per year
(Southwest Airlines). From the three Boeing 737 aircrafts that
the company used to start the
business, it has more than 720 fleets with flights to over 101
destinations (Southwest Airlines).
By the end of 2016, the company had a total of 53,500
employees headed by Gary Kelly as the
Chairman and CEO, Tom Nealon as the president and Mike Van
de Ven as the chief operating
officer (COO). The company is headquartered in Dallas, Texas.
1
BA 301—Final Paper Outline
____ EXECUTIVE SUMMARY
Write last. One page that recaps the company, the gaps,
problem, solutions and implementation.
No figures, not necessary to cite.
SITUATION ANALYSIS: Elements of homework #1. FULLY
PROPERLY CITED
Company Discussion:
____ Intro: “Company is…” size, locations, products, etc.
____ Mission. Quote, discuss.
____ Vision. Quote, discuss.
____ Values. Quote, discuss.
____ Strategy.
____ Stakeholders. List them. Do not list individual
shareholders.
____ Financial overview: 3 years revenues, profits.
____ Financial history: historical stock performance.
____ Debt.
____ Patents—only if applicable
____ Legal issues.
Industry Discussion:
____ Intro: “Blank Company is in the ______ Industry.” Trends,
up, down, prediction.
____ Competitor 1: Intro & overview. Market share compared to
your company. 3 years
revenues and profits.
____ Competitor 2: Intro & overview. Market share compared to
your company. 3 years
revenues and profits.
____ Competitor 3: Intro & overview. Market share compared to
your company. 3 years
revenues and profits.
SWOT: (In narrative form)
____ Strengths.
____ Weaknesses.
____ Opportunities.
____ Threats.
Environmental Discussion:
____ PEST: Overview of outside factors affecting the industry.
Industry trends, forecast.
____ Political factors affecting Industry.
____ Economic factors affecting Industry.
____ Social factors affecting Industry.
____ Technological factors affecting Industry.
2
PROBLEM ANALYSIS & DESCRIPTION: (Elements of
homework #2 and #3. Use two
graphs or charts in this section (Fully & properly cited))
____ 1st gap or symptom. Explain why until you can’t.
____ 2nd gap or symptom. Explain why until you can’t.
____ 3rd gap or symptom. Explain why until you can’t.
____ Two good graphs or charts, labeled, titled and properly
cited.
____ Problem Statement. 1-2 sentences.
SOUTIONS, EVALUATIONS & RECOMMENDATIONS
(Elements of Homework #4)
____ List 1st possible solution, discuss in narrative.
____ List 2nd possible solution, discuss.
____ List 3rd possible solution, discuss.
____ Weighted table or other analyzing tool showing 3
solutions
____ Select solution, discuss why you chose it.
____ Cost benefit analysis of the solution you’ve chosen.
____ Implementation Plan: discuss in 1-2 paragraphs how you
would execute your solution.
____ Success Metrics: Discuss how you would measure your
success going forward.
Table 1
Independent Variable Skewness Values – Pre-Transformation
Descriptive Statistics
Skewness
Std. Error
Listing price ($)
.567
.309
Interior floor size (sqft)
.141
.309
Land size (sqft)
2.412
.309
# bedrooms
-.257
.309
# bathrooms
-.107
.309
Year Built
-.343
.309
Walkscore
-.293
.309
Walkability 70>=1 , 70<=0
2.213
.309
Building age (years)
.343
.309
Fireplace
.511
.309
Valid N (listwise)
Table 2
Independent Variable Skewness Values – Post Transformation
Descriptive Statistics
N
Skewness
Statistic
Statistic
Std. Error
Price Log 10
60
-.125
.309
interior floor size sqft Log 10
60
-.286
.309
Land size sqft Log 10
60
1.058
.309
Bedrooms Log 10
60
-.788
.309
Bathrooms Log 10
60
-.741
.309
Year Built Log 10
60
-.356
.309
Walk score Log 10
60
-1.620
.309
Walkability Log 10
8
.
.
Building age years Log 10
60
-.393
.309
Fireplace Log 10
58
.109
.314
Valid N (list wise)
8
Statistics
LandsizesqftLog10
bedroomsLog10
bathroomsLog10
YearBuiltLog10
nteriorfloorsizesqftLog10
N
60
60
60
60
60
24
24
24
24
24
25 Q1
50 Q2
75 Q3
3.7793
.6021
.4771
3.2919
3.3907
3.8622
.6990
.6505
3.2993
3.5359
3.9651
.7782
.7782
3.3045
3.6663
Table 3
Independent Variable Skewness Values
Variable
Q1
Q3
Lower Boundary
Upper Boundary
Land size sqft Log 10
3.7793
3.9651
3.37054
4.37386
Bedrooms Log 10
.6021
.7782
0.21468
1.16562
Bathrooms Log 10
.4771
.7782
-0.18532
1.44062
Year Built Log 10
3.2919
3.3045
3.26418
3.33222
Interior floor size sqft Log 10
3.3907
3.6663
2.78438
4.27262
Note: Q1 represents the 25th percentile and Q3 represents the
75th percentile. Lower Boundary = Q1 – ((Q3-Q1) X 2.2), and
Upper Boundary = Q3 + ((Q3-Q1) X 2.2) (Hoaglin & Iglewicz,
1987)
Sample ID
Listing price
Interior floor size (sqft)
Land size (sqft)
beds
baths
Yr Built
Walkscore
Walkability 70>=1 , 70<=0
Building age
Fireplace
1
$1,119,000
1,720
4,000
5
3
1983
66
0
34
0
2
$1,359,000
2,648
4,420
7
3
1983
85
1
34
1
3
$1,388,000
1,678
4,092
3
2
1957
70
1
60
1
4
$1,498,800
2,425
7,200
3
3
1973
33
0
44
2
5
$1,499,000
2,448
9,240
4
3
1973
35
0
44
2
6
$1,499,000
2,134
6,600
3
2
1958
50
0
59
1
7
$1,589,999
2,206
4,360
3
3
1980
68
0
37
2
8
$1,598,000
1,913
12,735
3
1
1952
58
0
65
1
9
$1,650,000
2,464
6,231
4
2
1959
61
0
58
1
10
$1,660,000
2,996
7,000
4
3
1958
44
0
59
1
11
$1,668,000
2,550
8,777
6
2
1958
42
0
59
2
12
$1,680,000
2,450
4,455
5
5
1995
74
1
22
4
13
$1,799,000
3,114
7,200
6
4
1976
47
0
41
1
14
$1,978,000
2,457
7,540
5
3
1954
12
0
63
1
15
$1,980,000
3,463
7,276
5
4
2008
66
0
9
1
16
$1,980,000
1,724
9,450
2
2
1970
15
0
47
1
17
$2,088,800
2,213
7,197
4
4
1977
59
0
40
2
18
$2,089,000
3,005
4,200
5
6
2016
56
0
1
1
19
$2,098,000
3,252
4,620
7
6
2006
63
0
11
3
20
$2,098,000
3,332
4,554
6
5
2016
73
1
1
3
21
$2,188,000
3,476
6,004
7
6
2013
72
1
4
1
22
$2,188,000
3,188
6,050
5
5
1989
37
0
28
3
23
$2,188,000
3,410
27,500
6
4
1969
57
0
48
2
24
$2,248,000
3,315
4,356
7
4
2016
23
0
1
1
25
$2,248,000
3,271
8,830
5
3
1978
54
0
39
2
26
$2,298,000
2,188
8,645
3
2
1957
65
0
60
1
27
$2,298,800
3,460
4,920
6
5
2016
72
1
1
1
28
$2,298,800
3,460
4,920
6
5
2016
72
1
1
1
29
$2,298,000
2,188
8,645
3
2
1957
56
0
60
1
30
$2,338,000
2,244
10,235
3
2
1957
28
0
60
1
31
$2,388,000
4,246
5,907
7
5
2016
62
0
1
2
32
$2,480,000
5,759
18,428
5
5
1997
18
0
20
2
33
$2,488,000
4,776
7,000
8
7
2012
59
0
5
2
34
$2,538,000
4,272
6,480
6
6
2015
37
0
2
1
35
$2,588,000
4,764
7,357
6
6
2016
54
0
1
4
36
$2,598,000
4,716
7,773
6
6
2016
46
0
1
2
37
$2,688,000
2,734
12,547
4
2
1955
8
0
62
2
38
$2,698,000
2,541
7,070
5
3
1976
68
0
41
0
39
$2,738,000
5,066
7,000
7
7
2016
69
0
1
2
40
$2,788,000
3,163
9,193
3
3
2011
6
0
6
3
41
$2,798,888
4,897
6,975
8
6
2016
68
0
1
2
42
$2,799,900
4,124
6,000
6
5
1921
87
1
96
1
43
$2,880,000
4,100
7,287
6
5
1999
21
0
18
4
44
$2,889,000
5,031
8,050
7
6
2014
29
0
3
2
45
$2,900,000
4,396
7,000
6
6
2016
51
0
1
2
46
$2,988,000
5,165
8,712
7
7
2004
22
0
13
3
47
$2,998,000
2,246
13,480
4
2
1964
5
0
53
1
48
$3,088,000
5,251
7,200
6
6
2014
30
0
3
1
49
$3,380,000
4,003
23,220
3
3
1955
24
0
62
2
50
$3,388,000
5,010
8,052
6
6
2016
29
0
1
2
51
$3,398,888
3,565
20,472
5
3
1951
7
0
66
2
52
$3,480,000
4,660
13,200
6
6
2014
31
0
3
2
53
$3,495,000
4,259
6,000
6
5
2015
44
0
2
1
54
$3,648,000
4,923
7,540
7
6
2016
26
0
1
2
55
$3,688,000
5,399
8,050
6
6
2016
47
0
1
3
56
$3,788,000
4,484
7,920
5
6
2016
54
0
1
2
57
$3,960,000
4,572
34,123
5
5
1958
9
0
59
3
58
$3,988,000
3,850
22,600
7
4
1956
3
0
61
3
59
$4,388,000
4,751
15,284
4
4
1966
2
0
51
3
60
$4,588,000
5,560
10,675
5
7
2016
63
0
1
3

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From Greasley, P. (2008) Structure of your final researc.docx

  • 1. From Greasley, P. (2008) Structure of your final research report A quantitative research report should generally include the following sections: 1. Executive summary 2. Introduction 3. Literature review 4. Methodology 5. Results and discussion 6. Conclusion 7. Appendices 8. References The executive summary An executive summary is an extended summary of a study usually the last part of the report to be written (since you need to know what you have said in order
  • 2. to provide the summary), and should include the following information: • brief background to the research; • purpose/aims of the study; • methods used and the sample; • brief conclusions outlining the importance of the study. The role of the executive summary is to give the reader sufficient information about the study, the essential details, to enable them to decide if they wish to read the full report. The introduction The introduction should provide a background to the research, specify the issue that is being addressed and review relevant previous research. The introduction may then close by outlining the purposes and objectives of the study, research questions, and hypotheses. Literature Review In reviewing relevant literature, you must carefully structure your findings. It may be useful to
  • 3. do a chronological format where you discuss from the earliest to the latest research, placing your research appropriately in the chronology. Alternately, you could write in a thematic way, outlining the various themes that you discovered in the research regarding the topic. Again, you will need to state where your research fits. From Greasley, P. (2008) Methodology The key to the methods section is clarity and specificity, such that a reader could replicate the method and procedure of your study from the information you provide in the report. So we are talking about a very detailed account which should cover: 1. Study design: What is the overall methodology or design of the study? For example, is it an experiment (with independent and dependent variables), a questionnaire study, a
  • 4. qualitative study consisting of a series of interviews or focus groups, etc.? 2. The participants: What is the sampling frame (target sample, e.g., all patients who attend for counselling during one year at a general practice), sampling method (random, quota, all) and sample size? This may need to include demographic information (age, sex, ethnic background, etc.). 3. The materials: What materials were used in the study to conduct the research and collect data? For example, details of a questionnaire or other outcome measures may be provided in an appendix. If you are using a standardized outcome measure, for example, to measure health and quality of life, you should also provide details of its relevance to your particular study including details of reported reliability and validity (reliability refers to the consistency of the measure over time or with different samples; validity refers to the extent to which it measures what it is supposed to be measuring, e.g., levels of anxiety or depression).
  • 5. 4. The procedure: How was the study actually conducted? For example, if the study involved a questionnaire, how was it distributed to participants? Was it posted to participants who completed it then returned it, or was it completed in the presence of the researcher? (Studies have shown that the way in which a questionnaire is administered – self-completion, interview, etc. –can influence the responses (Lyons et al. 1999)). Remember, the reader should be able to replicate your procedure based on the details you provide in the report. Results and Discussion The results should be presented as simply and clearly as possible. Make use of graphs and tables that help to present and explain the results. Where descriptive and inferential statistics are used to analyze the data, you should: • name the statistic used; • report the statistical significance of the results obtained;
  • 6. • indicate that all necessary assumptions were met (e.g., that data were normally distributed if using a t-test). From Greasley, P. (2008) It is also important for the report to have a logical structure. A good way to do this is to pose research questions or hypotheses which are then either confirmed or not by the data. You can then add words and phrases like ‘surprisingly’, ‘as expected’ or ‘as predicted’ when presenting the results of analysis. This makes the text more interesting than simply listing a ream of analyses; it turns the report into a story with twists and turns. Graphs, figures and tables should be comprehensible without reference back to the text, so they should be clearly numbered and headed, and fully labeled with all units of measurement. They should only be included where they serve to enhance understanding of the results. Within the text you should lead the reader through the table or figure drawing attention to the relevant data.
  • 7. The reader should not turn the page and suddenly be confronted with a figure floating in the air: introduce the figure in the text and then explain it. The discussion section should also provide an interpretation and explanation of the results which should be related to any research questions or hypotheses. It should also include critical reflections on the study (e.g., design of the questionnaire, relevance of outcome measures, limitations for generalizing due to small sample sizes). Conclusion The conclusion should include general implications of the study and suggestions or recommendations for further research. Appendices These should include any instruments used – such as the questionnaire. References A full list of references should be included written in line with APA referencing system. This
  • 8. shows that you have consulted the relevant literature and acknowledged the sources of your work. It also enables the reader to consult the work you have cited if they wish. Surname 1 Student’s Name: Professor’s Name: Course: Date: Part 1: Company Discussion: South Airlines Brief Information about the Company Southwest Airlines, one of the largest low-cost carriers in the world, began its operations in the year 1971 by Rollin King and Herb Kelleher (Southwest Airlines). According to the information found on the company’s website, the two entrepreneurs came together to do something different that other airlines were not doing. Part of their mission was to ensure that passengers were flown to their destinations on time and the lowest possible prices in the market. The entrepreneurs also knew that giving customers fun as they travelled would also increase the capacity of the company to serve as many customers as possible. Indeed, their intentions paid off because Southwest Airlines not only grew fast but became one of the most popular airlines in the United States. Currently, the company generates an average revenue of $20 billion per year (Southwest Airlines). From the three Boeing 737 aircrafts that the company used to start the business, it has more than 720 fleets with flights to over 101 destinations (Southwest Airlines). By the end of 2016, the company had a total of 53,500
  • 9. employees headed by Gary Kelly as the Chairman and CEO, Tom Nealon as the president and Mike Van de Ven as the chief operating officer (COO). The company is headquartered in Dallas, Texas. Company’s Mission “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.” According to the mission statement, Southwest Airlines is dedicated to giving customers the best quality services they can have while making their journey as interesting as possible. It is not just the promise of being flown to the destination at the lowest prices possible but what comes with the service. In other words, by making the services affordable and entertaining, the company aims to win the loyalty of the consumers and increase profitability as much as possible. This also explains why it has been possible for the company to retain its customers as well as the employees. Company’s Vision “To become the world’s most loved, most flown, and most profitable airline.” In line with vision statement, the company aims at increasing its popularity among the consumers, increasing its flight schedules and increasing the profitability. Being popular among the consumers begins from the ability to offer specific services meet the interest of the consumers. Apart from entertainment and affordability, the company has to engage the customers in various services such as environmental cleaning which may not be profitable but contributes towards enhancing the loyalty among the consumers. It is the increased popularity among the consumers that may assist the company to increase its number of flights as well as the profitability. Company’s Values Southwest Airlines values include the following:
  • 10. Live the Southwest Way · Warrior spirit · Servant’s heart · Fun-LUVing Attitude Work the Southwest Way · Safety and Reliability · Friendly Customer Service · Low Costs Living the Southwest way include fighting like a warrior, having a servant heart and a loving attitude. In other words, the company promises not to disappoint the customers just like a warrior would not do to the people he protects and a servant would not do to a master. Protecting the interests of the customers at all times is one of the reasons why Southwest Airlines is ranked among the most popular airlines in the United States. Most importantly, the promise to offer high quality services and at the lowest prices in the market has been a major strength that keeps driving the company forward. Current Business Strategy Southwest Airlines uses low-cost leadership strategy in which the company offers the best services at the lowest possible rates in the market. The strategy involves minimizing operating expenses so that it does not consume a lot of the profits. Being a publicly owned corporation, the investors expect the company to keep them happy by giving them a good return on their investment. In other words, the pricing strategy should be used in such a way that it does not make consumers happy at the expense of the investors. The low-cost strategy has been used since the company was established in the year 1971. In fact, one the reasons why the company was founded was to offer the highest quality services at affordable rates. Stakeholders · Southwest Airlines stakeholders include the following: · Customers: who are purchasing the air tickets and keeping the company in business. · Employees: who are serving the customers and the company.
  • 11. · Investors: who are providing funds needed to finance the operations of the company. · Board of Directors: appoints the executives such as the CEO, COO and the President to manage the company on their behalf. · Policy Makers: defines the legal framework of the business environment in which the company operates. Financial Overview In 2013, the company generated a total revenue of $17,699 which was increased to $18,605 in 2014. In 2015, the revenue increased from $18,605 to $19,820. In other words, between the year 2013 and the year 2015, the company increased its profit levels by 18%. This implies that on average, the company was capable of increasing its profitability by at list 9% per fiscal year. For a company that is operating in such a competitive business environment, that passes for a great or an impressive performance. Investors are likely to commit their funds to companies that are committed to improving their profitability. Financial History Southwest Airlines trades in the NYSE using the sticker symbol LUV. Its impressive financial performance over the last five years has seen its stock price rising from a $7.91 in April 2012 to $56.36 in March 10, 2017 (Southwest Airlines). In other words, over the last five years, the company has impressed its investors to a great extent. In 2013, the stock price rose from $7.91 in April 2012 to $13.15 in April 2013. Moreover, the year 2014, 2015 and 2016 registered an even better performance marked by $22.75, $41.79 and $47.25 respectively (Southwest Airlines). The steady and consistent increase in the stock price is a positive reflection of the good work that the company is doing towards enhancing the loyalty of the consumers and increasing profitability. Is Debt an issue? Debts seem to be weighing heavily on the profitability of the company. For example, at the end of 2015 fiscal year, the company had total current assets worth $4024 against total current liabilities worth $7406. This implies that its current
  • 12. ratio for the same fiscal year was 0.54. Any quick ration less than 1 is an indication that the company may not have the capacity to meet its current obligations. In other words, the company may not have the capacity to finance its operations efficiently. For the company to enjoy operational efficiency, it should minimize its debts and maximize on the profits. Legal Issues In the month of November 2014, the federal government, through its Federal Aviation Agency, filed a law suit in the district courts in the state of Washington against Southwest Airlines failing to meet the safety standards in the repair of 44 of its planes (FOX News). The law suit sought to impose a penalty worth $12 million should the company be found guilty of violating some of the federal regulation standards in the repairs of the aircrafts. Southwest Airlines had hired a contractor by the name Aviation Technical Services Inc. to check and make repairs in its 44 planes in order to prevent the aluminum from cracking (FOX News). Southwest Airlines reported after the repair was complete that all the regulatory procedures were followed as indicated in the final report presented to the company by the contractor. However, after inspections by the federal government agents, it was found that the repair work that was done on the aircrafts flouted certain regulatory standards required by the federal government (Justice.gov). On December 21, 2015, the company agreed to pay a total of $2.8 million in settlement to the safety violations to which the company was found guilty (Justice.gov). Such cases, if not handled carefully, may compromise the good reputation of the company among the consumers as well as the investors and limits its chances of competing favorably in the stock markets. SWOT Analysis Strengths One of the company’s main strengths has been the ability to offer high quality services at affordable costs. The company ensures that while on board, the passengers are fully entertained
  • 13. and served with a variety of drinks and snacks of their choices at no extra cost. In fact, one of the company’s slogans has been, “Low Fares. Nothing to hide”, which implies that there are no additional costs that the passengers may be compelled to pay while inside the plain (Southwest Airlines). The provision of high quality and services and affordability has enabled the company to command a huge loyalty among the consumers. Southwest Airlines is one of the most flown aircrafts in the United States because of the huge market share that it currently enjoys. Its low-cost strategy has also been crucial towards increasing the company’s profitability (Southwest Airlines). For instance, the company has developed strong partnerships with the suppliers to ensure it acquires fuel and other products needed during the journey at affordable costs. This implies that even if the company charges fairly low prices, it is still capable of maintaining its profitability. Moreover, its investment in the research and development has enabled the company to increase safety standards as well as the development of various ways to minimize costs. Weaknesses Despite the fact that Southwest Airlines enjoy the largest share of the United States market, it is still unable to gain such a huge share in the global market. For example, it has not been able to outcompete multinational companies such as Air Asia, Fly Emirates, Turkish Airlines and Qatar Airways among others. Apart from being unable to enjoy global competition, the company is still facing government scrutiny over safety issues like the one that erupted in the year 2014 and cost the company a total of $2.8 million in compensations (Justice.gov). The company should also focus on minimizing debts which could have negative effects on its profitability. Opportunities One of the biggest opportunities that could increase profitability in the company is the diversification into courier services. Being one of the companies that have managed to win the loyalty of the consumers across the United States in handling
  • 14. parcels, its courier and security services may increase profitability in the company (Southwest Airlines). Moreover, the company spends a lot of money in contracting other security firms to check on passengers and luggage at the various security checkpoints. Threats Apart from stiff competition, terrorism is a major threat that continues to affect the confidence of the consumers towards boarding airplanes. The rise of terrorist organizations such as ISIS continues to pose great threat to the airline industry because they always target facilities with potential to cause massive destruction such as aircrafts (Southwest Airlines). Apart from terrorism, the airline industry has also been on the watch against bad weather. Bad weather usually leads into delays in the flights and could lead into huge losses if it prevents customers from boarding planes. Besides, many customers are always afraid of travelling during bad weather (Southwest Airlines). If not properly checked, environmental issues such as global warming could have serious impact on both weather and flight schedules. Part 2: Industry Discussion Southwest Airlines is in the US airline industry. Some of the trends in the company include the consumer preference towards low-cost carriers, comfort among business travelers and preference towards high quality services. Southwest Airlines is the largest company in the US airline industry with a market share of about 18% (Statista). The market share is usually calculated by examining the available seat miles (ASM) which shows the capacity of the company. The ASM is usually based on the revenues that a company collects and is sometimes referred to as the business model (Statista). Apart from the ASM, the other factor that can also be used to measure the market share of companies in the airline industry is the revenue per passenger mile (RPM). The combination of the RPM and ASM can be used to develop accurate analysis of how
  • 15. companies compete in a given industry. The following is a discussion of the list of competitors in the order of their market share and profits over the last three years. Competitor 1: Delta Airlines Among the American airlines, Delta traces its history to 1924 when Duff Daland Dusters started the airlines company. From its humble beginnings, just like Southwest Airlines, Delta has grown from strength to strength to emerge as one of the largest airline companies in the world (Delta Airlines). Delta operates in at least five countries including the Brazil, Spain, China, Germany and the United Kingdom. It also flies into other countries in Africa and Middle East. By market share, Delta has managed to acquire up to 17% which is only second after Southwest Airlines. In 2013, Delta generated a total revenue amounting to $37,773 while in 2014 and 2015 the revenue increased to $40,362 and $40,704 respectively (Delta Airlines). In comparison, the amount of revenue generated by Delta Airlines over the three years is twice the amount generates by Southwest Airlines over the same period. Competitor 2: American Airlines American Airline comes third with a market share of 16.6% but in terms of revenue, the company has been doing quite well. In 2013, for instance, the company generated a total revenue of $39,980 that was increased to $42,650 in 2014 (Phx.corporate- ir.net). However, in 2015, the company faced a lot of challenges in the market such as stiff competition which affected its growth in the revenue. Nevertheless, the company still generated an impressive $40,990 in revenue (Phx.corporate- ir.net). Its performance over the three years almost doubles that of Southwest Airlines over the same period. Competitor 3: United Airlines With an average market share of 14.7% United Airlines is regarded as one of the largest airline companies in the United States. However, its financial performance over the last three years has not been quite impressive (Ir.United.com). Although the company has not been generating losses, it seems to stagnate
  • 16. at one point which may not send positive messages to the investors. For the fiscal years 2013, 2014 and 2015, the company generated total revenue amounting to $38,287, $38,901 and $37,864 respectively. Summary of the four competitors Comparison by Market Share Market Share (%) Southwest Airlines 18 Delta Airlines 17 American Airlines 16.6 United Airlines 14.7 Comparison by Revenue 2015 2014 2013 Total Southwest Airlines 19820 18605 17699 56124 Delta Airlines 40704 40362 37773 118839 American Airlines
  • 17. 40990 42650 39980 123620 United Airlines 37864 38901 38287 115052 Part 3: Environmental Discussion PEST Overview The political, economic, social and technological factors that are likely to affect the performance of companies in the industry include terrorism, recession, digital age and online services or e-commerce. These factors are quite unpredictable and may lead into either loss of revenues or increase in the profitability depending on how they work in favor of the company (Statista). For example, the entry of the millennials into the market may increase revenue among the companies with adequate preparation of how to take care of their interests. Political Since the attack of World Trade Center in the New York City on September 11, 2001, there has been increasing fear among the consumers that their safety in the aircrafts may not be guaranteed. A lot of policies have been created to increase security but the disappearance of the Malaysian plane without a trace is still a challenge that many airline companies try to overcome (Ir.United.com). It is the role of the political leaders, therefore, to increase surveillance at the security checkpoints in order to assure travelers that their safety is guaranteed. Economic Whenever there is global economic crisis, airline companies are bound to suffer because the number of travelers is bound to decrease. Most of the airline companies usually generate a lot of
  • 18. income from business travelers (Statista). However, any global economic crisis implies that there may be a significant decline in the number of business travelers leading into massive losses. Social The entry of the millennials into the market has created certain changes in the consumers taste and preferences. Many airline companies have been forced to adapt to the new conditions by increasing the level of entertainment and focusing on various corporate social responsibilities which may be relevant to the consumers. Technological The increase in the level of technology continues to pile pressure on the airline companies to transfer most of the services including the purchase of tickets and customers care services in order to reduce queues at the airports. Companies that are able to adapt quickly to the technological changes may gain from the new trends but the slow-paced companies may lose their customers. Part 4: Indicators of Deeper Problems facing the company High Debt Ratio Consider the following figures extracted from the company’s statement of income. Total Assets = (Current Assets + Non-current assets) = $21,312 Total Debts = (Current liabilities + Non-current liabilities) = $21,32 Debt ratio = total debts ÷ total assets = $21,312 ÷ $21,312 = 1.0 A debt ratio of 1.0 implies that most of the company’s assets are financed by debts. In this case, more than 50% of the company’s assets are financed by debts (Southwest Airlines). In other words, the company is highly leveraged and may not be attractive to investors. High Debt to Equity Ratio Debts Amount
  • 19. Total Current Liabilities 7406 Long-term debts 2541 Deferred income taxes 2490 Construction obligation 757 Other non-current liabilities 760 Total 13954 Debt to Equity Ratio = Total Debts ÷ Shareholders’ Equity = $13,954 ÷ $7,358 = 1.89 A debt to equity ratio of more than 1 is an indication that the company relies heavily on external lender to finance its operations. This may put the company at a high risk because of high interest rates. In other words, the company is likely to have its income reduced significantly because of the high interest rates. Problem Statement In summary, the paper has determined that Southwest Airlines has the largest market share compared to its competitors and its revenue has been increasing steadily over the past five years. However, the company is highly leveraged as indicated by high debt ratio as well as high debt to equity ratio. Being highly leveraged is not good news to the investors because they are likely to interpret the company’s stock as highly risky. This may prevent them from committing their funds and may also lead to a decrease in the company’s stock prices in order to attract investors. Works Cited
  • 20. Phx.corporate-ir.net, "American Airlines | Investor Relations | About American Airlines". Phx.Corporate-Ir.Net, 2017, http://phx.corporate-ir.net/phoenix.zhtml?c=117098&p=irol- IRHome&anchorLocation=DirectURL&title=investorrelations. Delta Airlines, "Delta Airlines SEC Filings: 2016 Annual Report". Delta Airlines, 2017, http://d1lge852tjjqow.cloudfront.net/CIK- 0000027904/082dbd71-0d08-4ce4-b155-3f7bb2018395.pdf. Fox News, "Federal Government Sues Southwest Airlines Over Plane Maintenance Issues". Fox News, 2017, http://www.foxnews.com/politics/2014/11/04/federal- government-sues-southwest-airlines-over-plane-maintenance- issues.html. Ir.united.com, "Investor Relations". Ir.United.Com, 2017, http://ir.united.com/. Justice.gov, "Southwest Airlines Agrees To Pay $2.8 Million To Settle Action Alleging Federal Aviation Administration Safety Violations". Justice.Gov, 2017, https://www.justice.gov/opa/pr/southwest-airlines-agrees-pay- 28-million-settle-action-alleging-federal-aviation. Southwest Airlines, "Purpose, Vision, Values, And Mission". Southwestairlinesinvestorrelations.Com, 2017, http://www.southwestairlinesinvestorrelations.com/our- company/purpose-vision-values-and-mission. Statista, "U.S. Domestic Market Share Of Leading Airlines 2015 | Statistic". Statista, 2017, https://www.statista.com/statistics/250577/domestic-market- share-of-leading-us-airlines/. Comparison by Market Share (%) Market Share (%) Southwest Airlines Delta Airlines American Airlines United Airlines 18 17 16.600000000000001 14.7
  • 21. Comparison by Revenue Southwest Airlines 2015 2014 2013 Total 19820 18605 17699 56124 Delta Airlines 2015 2014 2013 Total 40704 40362 37773 118839 American Airlines 2015 2014 2013 Total 40990 42650 39980 123620 United Airlines 2015 2014 2013 Total 37864 38901 38287 115052 Surname 1 Student’s Name: Professor’s Name: Course: Date: Part 1: Company Discussion : South Airlines Brief Information about the Company South west Airlines, one of the largest low - cost carriers in the world, began its operations in the year 1971
  • 22. by Rollin King and Herb Kelleher ( Southwest Airlines ) . According to the information found on the company’s website, the two entrepreneurs came together to do something different that other airlines were not doing. Part of their mission was to ensure that passengers were flown to their destinations on time and the lowest possible prices in the market. The entrepreneurs also knew that giving customers fun as they travelled would also increase the capacity of the company to serve as many customers as possible . Indeed, their intentions paid off because Southwest Airlines not only grew fast but became one of the most popular airlines in the United States. Currently, the company generates an average revenue of $20 billion per year ( Southwest Airlines ) . From the t hree Boeing 737 aircrafts that the company used to start the business, it has more than 720 fleets with fl ights to over 101 destinations
  • 23. ( Southwest Airlines ) . By the end of 2016, the company had a total of 53,500 employees headed by Gary Kelly as the Chairman and CEO, Tom Nealon as the president and Mike Van de Ven as the chief operating officer (COO). The company is headquartered in Dallas, Texas. Surname 1 Student’s Name: Professor’s Name: Course: Date: Part 1: Company Discussion: South Airlines Brief Information about the Company Southwest Airlines, one of the largest low-cost carriers in the world, began its operations in the year 1971 by Rollin King and Herb Kelleher (Southwest Airlines). According to the information found on the company’s website, the two entrepreneurs came together to do something different that other airlines were not doing. Part of their mission was to ensure that passengers were flown to their destinations on time and the lowest possible prices in the market. The entrepreneurs also knew that giving customers fun as they travelled would also increase the capacity of the company to serve as many customers as possible. Indeed, their intentions paid off because Southwest Airlines not only grew fast but became one of the most popular airlines in the
  • 24. United States. Currently, the company generates an average revenue of $20 billion per year (Southwest Airlines). From the three Boeing 737 aircrafts that the company used to start the business, it has more than 720 fleets with flights to over 101 destinations (Southwest Airlines). By the end of 2016, the company had a total of 53,500 employees headed by Gary Kelly as the Chairman and CEO, Tom Nealon as the president and Mike Van de Ven as the chief operating officer (COO). The company is headquartered in Dallas, Texas. 1 BA 301—Final Paper Outline ____ EXECUTIVE SUMMARY Write last. One page that recaps the company, the gaps, problem, solutions and implementation. No figures, not necessary to cite. SITUATION ANALYSIS: Elements of homework #1. FULLY PROPERLY CITED Company Discussion: ____ Intro: “Company is…” size, locations, products, etc. ____ Mission. Quote, discuss. ____ Vision. Quote, discuss.
  • 25. ____ Values. Quote, discuss. ____ Strategy. ____ Stakeholders. List them. Do not list individual shareholders. ____ Financial overview: 3 years revenues, profits. ____ Financial history: historical stock performance. ____ Debt. ____ Patents—only if applicable ____ Legal issues. Industry Discussion: ____ Intro: “Blank Company is in the ______ Industry.” Trends, up, down, prediction. ____ Competitor 1: Intro & overview. Market share compared to your company. 3 years revenues and profits. ____ Competitor 2: Intro & overview. Market share compared to your company. 3 years revenues and profits. ____ Competitor 3: Intro & overview. Market share compared to your company. 3 years revenues and profits. SWOT: (In narrative form) ____ Strengths. ____ Weaknesses. ____ Opportunities. ____ Threats. Environmental Discussion: ____ PEST: Overview of outside factors affecting the industry. Industry trends, forecast. ____ Political factors affecting Industry. ____ Economic factors affecting Industry. ____ Social factors affecting Industry. ____ Technological factors affecting Industry.
  • 26. 2 PROBLEM ANALYSIS & DESCRIPTION: (Elements of homework #2 and #3. Use two graphs or charts in this section (Fully & properly cited)) ____ 1st gap or symptom. Explain why until you can’t. ____ 2nd gap or symptom. Explain why until you can’t. ____ 3rd gap or symptom. Explain why until you can’t. ____ Two good graphs or charts, labeled, titled and properly cited. ____ Problem Statement. 1-2 sentences. SOUTIONS, EVALUATIONS & RECOMMENDATIONS (Elements of Homework #4) ____ List 1st possible solution, discuss in narrative. ____ List 2nd possible solution, discuss. ____ List 3rd possible solution, discuss. ____ Weighted table or other analyzing tool showing 3 solutions ____ Select solution, discuss why you chose it. ____ Cost benefit analysis of the solution you’ve chosen. ____ Implementation Plan: discuss in 1-2 paragraphs how you would execute your solution. ____ Success Metrics: Discuss how you would measure your success going forward.
  • 27. Table 1 Independent Variable Skewness Values – Pre-Transformation Descriptive Statistics Skewness Std. Error Listing price ($) .567 .309 Interior floor size (sqft) .141 .309 Land size (sqft) 2.412 .309 # bedrooms -.257 .309 # bathrooms -.107 .309 Year Built -.343 .309 Walkscore -.293 .309 Walkability 70>=1 , 70<=0
  • 28. 2.213 .309 Building age (years) .343 .309 Fireplace .511 .309 Valid N (listwise) Table 2 Independent Variable Skewness Values – Post Transformation Descriptive Statistics N Skewness Statistic Statistic Std. Error Price Log 10 60 -.125 .309 interior floor size sqft Log 10 60 -.286 .309 Land size sqft Log 10 60 1.058 .309 Bedrooms Log 10
  • 29. 60 -.788 .309 Bathrooms Log 10 60 -.741 .309 Year Built Log 10 60 -.356 .309 Walk score Log 10 60 -1.620 .309 Walkability Log 10 8 . . Building age years Log 10 60 -.393 .309 Fireplace Log 10 58 .109 .314 Valid N (list wise) 8
  • 31. .7782 3.3045 3.6663 Table 3 Independent Variable Skewness Values Variable Q1 Q3 Lower Boundary Upper Boundary Land size sqft Log 10 3.7793 3.9651 3.37054 4.37386 Bedrooms Log 10 .6021 .7782 0.21468 1.16562 Bathrooms Log 10 .4771 .7782 -0.18532 1.44062 Year Built Log 10 3.2919 3.3045 3.26418 3.33222
  • 32. Interior floor size sqft Log 10 3.3907 3.6663 2.78438 4.27262 Note: Q1 represents the 25th percentile and Q3 represents the 75th percentile. Lower Boundary = Q1 – ((Q3-Q1) X 2.2), and Upper Boundary = Q3 + ((Q3-Q1) X 2.2) (Hoaglin & Iglewicz, 1987) Sample ID Listing price Interior floor size (sqft) Land size (sqft) beds baths Yr Built Walkscore Walkability 70>=1 , 70<=0 Building age Fireplace 1 $1,119,000 1,720 4,000 5