Organizational Impact Paper

Organizational Impact Paper
University of Phoenix
Cathy M. Espy–Cook
OI/361
Innovation, Design, and Creativity for a Competitive Advantage
John Fleharty
December 6, 2010
The impact that innovation has on an organization is significant. Defining what innovation,
creativity, and design are to and organization and the impact it can have on an organization. When
an organization looks at innovation the company should be looking for a new way to do something.
To expect change in innovation cannot be avoided in this changing and competitive world of
business, changes will always be necessary to stay competitive. The three organizations I have
chosen are Southwest Airlines, IBM ... Show more content on Helpwriting.net ...
Furthermore, as the country has faced some rough economic times especially is the airlines industry
Southwest has managed to remain at the top in sales, customer service, lower fares, and on time
arrivals. Southwest has purchased newer aircraft and aviation technology to improve performance
and reduce overhead cost.
Motorola was born on September 25, 1928 by Brothers Paul and Joseph Galvin the original name of
the company was Galvin manufacturing Corporation in Chicago, Illinois. Motorola has been
committed to innovation in communicates and electronics for the past 82 years. Their impact has
been enormous. The company has been a solid innovator in the area of mobile communications.
Motorola innovative impact has led to untapped opportunities all over the world. With the broad
range of expertise in engineering and technology the company has certainly become and innovative
leader. "So the company also takes the advantages of the new technology innovation in order to
improve the efficiency and quality of the products. By utilizing the efficiency of the workforce, the
company can posses the highest quality products and control over the 45% industry all over the
world" (Brainmass, 2008, pg. 1).
In Motorola's case the external factors are important in their innovative impact, their opportunities
and threats can depend upon the external strategy that is in place. These factors can change in
accordance with the change business

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Analysis Of The Incident Of Aircraft Boeing 737
1) INTRODUCTION This assignment will be discuss, analyse and critical evaluate on the incident
of aircraft Boeing 737–400 with flight registration number G–OBMM near Daventry on 23
February 1995. This assignment will be base on the report of Air Accident Investigation Branch
(AAIB), Department of Transport with report number 3/96 (EW/C95/2/3). This aircraft incident has
been choose because of the report provided by AAIB was clear with the sequences of incident,
information of the aircraft operator and the Authority, complete with clear finding and factors that
lead to incident also provide with 15 safety recommendations to prevent this type of incident occur
again in the future. In this assignment also, the SHELL Model which is a ... Show more content on
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But, even though these limitations were detected by CAA UK, CAA still grants the authority under
EASA Part 145– Approved Aircraft Maintenance Organization to the company to operate aircraft
maintenance activities. 4) EVENTS THAT CONTRIBUTE TO THE INCIDENT AND ANALYSE
ALL THOSE EVENTS USING SHELL MODEL. 4.1) General There are several events that
contributed to this incidents occurring. Some of them are related in the form of chain events for
instance the second event occur because of the effect from the first event and the third event occur
because of the effect from second event and so on until the incident occur. By using SHELL Model,
base on the Aircraft Accident Report 3/96 which was provided and presented by Air Accidents
Investigation Branch, Department of Transport, under the report title of "Report on the Incident to
Boeing 737–400, G–OBMM near Davontry on 23 February 1995, the analysis of the contribution
events to the incident can be reveal and the appropriate recommendations from competence
authority was been made to ensure the same incident will not occur in the future. 4.2) First event –
unaware of Quality Assurance department According to the incident investigation report, one of the
chain event that contributed to the B–OBMM incident was unapproved procedures to carried out

Southwest Airlines Case Analysis
Southwest Airlines: A Case Analysis
ORGANIZATIONAL ANALYSIS
It is evident that the greatest strength that Southwest Airlines has is its financial stability. As known
in the US airline industry, Southwest is one of those airlines who are consistently earning profits
despite the problems the industry is facing. With such stability, the corporation is able to make
decisions and adjust policies, which other heavily burdened airlines may not be able to imitate.
Having a low amount of cost in their operations is one of the contributing factors in Southwest
Airlines' financial success. Such low cost model of the corporation is brought about by an effective
strategy. Southwest uses only one type of aircraft – the fuel–efficient Boeing 737. ... Show more
content on Helpwriting.net ...
The company can spread their wings to new territories and purchase more planes to extend their
capacity and cater more customers. This would be very beneficial for Southwest because the
company will be able to extend its services to a larger market that is in need of their traveling
services.
It is quite known that the airline industry has very high barriers to entry. This means it is somehow
difficult for new companies to enter such industry. Aside from the fact that there are already so
many established airlines that have good names and reputations, the vulnerability of the industry to
economic cycles somehow add difficulty for new entrants. Such vulnerability means that if the
economy is doing well, more people will have the money to pay plane tickets and travel. But if the
economy is not doing well, then people will have less money to fly and will use more cost effective
means of transportation. This difficulty for new entrants to penetrate the industry is an opportunity
for Southwest to minimize the likelihood of additional competition, thereby sustaining its current
share in the market. They may now focus more on their current competitors for market share rather
than worrying much about others entering the industry.
Having been very successful in their operations, Southwest Airlines is surely a target of competitors'
focus. And by that, other airlines may begin copying Southwest 's

Two Differences And The Characteristics Of Business...
1) There are several characteristics that make business communication a form of problem solving.
Within business, there are a lot of "moving pieces" with employers being assigned different tasks
that are all part running a business successfully. Without being able to communicate well with one
another, then the issues or tasks would not be coordinated correctly. Like other problem–solving
activities, business communication helps close the gap between a situation and a solution. As a goal
focused enterprise, business is all about solving problems, and so, therefore, is business
communications. 2) Before becoming a stay at home mother, I worked for a flight school in San
Diego. Every day was comprised of external operational and internal operation communication
since I was a Client Relations Manager and usually the first face our clients would see. A few
examples of external communication would be when I spoke with our clients in regards to their
scheduling and accounts this then would turn into internal communication when I would relate the
information to my co–workers (the flight instructors) and the president of our company. Another
example would be whenever we would post on Facebook our public post would be external
communication because it would be reaching others that are not within the current business
structure, but when I would plan the advertisement through our marketing/Facebook technician this
would be considered internal communications. 3) The

Analysis Of The Deutsche Lufthansa Group
1.1 Lufthansa Group
Business activities
The Lufthansa Group (LG) is a global aviation group with around 540 subsidiaries and equity
investments. In the 2014 financial year it was organised into five operating segments: Passenger
Airline Group, Logistics, MRO, Catering and, up to the end of 2014, IT Services.
(Lufhansagroup.com) Each segment occupies a leading position in its respective market.
Organisation
In terms of Management and Superviosry structures, Deutsche Lufthansa AG (DL) is a typical
German Company. Company Mangement and strategic direction vest with The Executive Board. In
doing so, the aim is to increase Company value sustainably. The Executive Board is appointed,
supervised and advised by The Supervisory Board. The parent and ... Show more content on
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There are three standards commonly used namely Rule–of–Thumb measures, Past Performance and
Industry norms.
To gain insight into which company the investor should invest in, he must look beyond the
individual numbers to the relationship between the numbers and their chain from one period to
another. (Needles, 12th Edition)
The four tools of financial analysis are intended to show these relationships and changes. They
setout here in under and applied to each of Lufthansa and Ryanair.
2.31 Tools of Financial Analysis
2.311 Horizontal Analysis
Horizontal analysis gives insight into year–to–year changes in which the previous year is compared
to the current year and computed in both currency and percentage. The percentage of the change
relates to the size of the change to the currency amounts involved. (Needles, 12th edition)
The percentage change is computed as follows :
Comparative Year Amount – Base Year Amount
Percentage Change = 100 X Base Year Amount*
*1st year considered in any set of data (Needles, 12th

Turnaround at Southwest Airlines
Introduction
Southwest Airlines is one of the largest domestic carriers in the United States, with over 3400 flights
every day from 64 domestic destinations. Since 2011, Southwest Airlines is the airline that "carries
the most domestic passengers of any US airline" ("Scheduled passengers carried", 2011). The major
factor that contributes to the success of Southwest Airlines and makes it different from the other
airlines is its approach in designing and managing the processes.
Measuring capacity and utilization at Southwest Airlines
Southwest Airlines uses the unified system to measure its capacity. The measure for capacity of an
airline is the available seat mile (ASM), which refers to the number of seats in an airplane,
multiplied ... Show more content on Helpwriting.net ...
The turn–around time can be prolonged due to weather delays, security delays or technical
difficulties. The weather is a factor that the airline cannot control, but the delay can be predicted and
prevented with alternative flight plans. Southwest airlines can experience security delays like any
other airlines and the company has little influence on this factor. On the other hand, the technical
problems can be divided on the ones that can be controlled by the company, and on technical delays
caused by the national aviation system. The company can work on prevention of the technical types
of delays with different technological improvements and employee trainings. The objective for the
company is to have the capability to adapt its schedule to these factors and reduce their impact on
the company's utilization.
Achieving the goals of Southwest Airlines
The company assesses its performance from different external and internal evaluations. The
Department of Transportation is an external evaluator that compares the performance of the
competitors in the airline market in different operations, like on time departures, lost luggage, etc.
Also the company makes internal targets for different operations and has an established appraisal
system for the employees that achieve the targets. They identify different goals for different sections
of

Southwest Airlines Performance And Profitability 3 Essay
SOUTHWEST AIRLINES PERFORMANCE AND PROFITABILITY 3
Introduction
Based on the U.S. Department of Transportation's most recent data, Southwest Airlines is the nation
's largest carrier regarding originating domestic passengers abroad. Transporting the most passengers
in the U.S and serving 78 of the top 100 domestic airports. Department of
Transportation O&D survey ended on December 31, 2015, and served for the twelve months prior,
measured the amount of passengers aboard the SWA. This achievement is the result of proper
planning of airline fleet, routes, mission scheduling and personnel management.
Performance
According to the Revenue Passenger Miles, Southwest Airlines was ranked seventh largest out of all
the United States Airlines. Southwest has a profit for the 25 th year straight, and a record annual
profit for the sixth consecutive year. The Company strategy and point–to–point service preferences
actions save time and money while the company is growing the operational network and this allows
the company to dominate the short haul segment of the airline industry.To continue, company's
domination amongst others with the low–fare market, SWA will continue to grow with the list of
city destinations, and increase the service in those towns.
They are already increasing the number of actual aircraft that are being in use. Southwest
Airlines operates the largest fleet in the world, which the company is buying from Boeing
manufactory, and has a commitment to a single kind of

Ryanair Case Study
1. Ryan air's success can be attributed to a few factors. First would be its 'Ever–decreasing costs'
mantra, providing low cost, low fares and no frills carrier strategy while achieving operating
efficiency and satisfying its customers which gives it a competitive advantage and cost leadership. It
targets price sensitive customers and offers them the cheapest short haul service among all its
competitors in the market. Ryanair gives much focus on keeping costs low and is constantly
examining every area of its operation to implement cost reductions. The initiatives taken to keep
costs low include:
Using Boeing 737 planes to have a fleet commonality in order to minimize staff trainings and
aircraft maintenance costs.
Web check–in facility that not only was loved by passengers but also helped Ryanair in reducing
staff and printing costs.
Point to point routes to avoid transfer costs of passengers.
Less airport charges by choosing secondary airports that were less congested and away from the city
centres and were looking to increase customer traffic.
Secondly, Ryanair keeps growing as a budget airline by focusing on growth, expansion and
operational efficiency as it keeps adding new bases, routes and aircrafts and disposing older and less
efficient planes. Initially after 1996, Ryanair did not pay out dividends on its shares instead retained
those earnings to grow the operations and services of the company till 2010 when the company had
achieved a reasonably profitable

Southwest Airlines Expanded Beyond The Border Essay
WHY SOUTHWEST AIRLINES EXPANDED BEYOND THE BORDER Southwest Airlines,
while an incredibly successful business, eventually made the decision to make the dive into the
international market. This decision was made on a variety of factors such as opportunity, overfares,
diversifying, and Southwest Airline 's own flattening growth on the domestic front. In the world of
business it 's a dog eat dog world. Competition is fierce and a lot of the time opportunities need to be
created as opposed to be taken advantage of. Southwest Airlines managed to do both of these at the
same time due the type of business they run as a value added business. Southwest Airlines took their
business and its low cost strategy to make opportunities. One such opportunity that is referenced
comes from an article written on Travelskills.com called 'Southwest Airlines adds new Mexico
flights from Bay Area ' quotes the Port of Oakland 's aviation director Bryan Francis, "said that Los
Cabos, in particular, 'is the most requested international destination from the East Bay and North
Bay that does not have a non–stop option. '". Southwest Airline 's has seized upon this request and
has sought out government approval to fly between Oakland and Los Cabos. This is not an
opportunity that was created by Southwest Airlines, but an opportunity which was created by the
lapse in coverage by the rest of the airlines who fly from those airports. This is the exact type of
lapse that creates opportunities for

Southwest Airline's Low Cost Fare Structure And Customer...
Introduction
Southwest Airline's low–cost fare structure and customer service has been its primary core–
competency and has enabled the airline to maintain its market share while sustaining its competitive
advantage over its rivals for over 40 years. This internal analysis will provide a review of the
strengths and weaknesses of events that occur within the firm along with a financial analysis
assessment and recommendation for future decisions.
Strengths and Weaknesses
Southwest's business model is dependent upon labor as approximately 83% of the company's
employees are represented by labor unions. This makes the firm particularly exposed in the event of
labor–related issues. The Company's success is also dependent upon attracting and retaining
qualified personnel. In the future, it may be necessary for Southwest to increase existing levels of
compensation to retain its human capital. Currently, salaries, wages, and benefits represented
approximately 41% of the company's operating expenses for the year ended December 31, 2015. In
terms of operating expenses, fuel and oil comprised 23% of the airline 's totals in 2015. Southwest
Airlines had first unhedged its 2015 fuel consumption however, later in the year as crude prices
increased, new hedging positions were added in response to expectations of increased fuel prices in
the future. If the oil prices, in fact, rise later in 2016 the airline will see a decrease in its operating
expense and an increase in capacity and

Southwest Airlines Case Study
BibliographyKernin, Roger A. and Peterson, Robert A. Strategic Marketing Problems: Cases and
Comments. 11th Edition.
Southwest AirlinesSouthwest Airlines employees came together in late January 1995 for their
weekly Tuesday meeting. A main topic of discussion was the competitions between Southwest
airlines and "Continental Lite" and "Shuttle By United". As they were beginning the meeting a staff
member advised the team of two changes "Shuttle By United" made to its service and pricing. First
was the discontinuation of service for the Oakland–Ontario, California market. Second, the one–way
walk–up first class and coach fairs had been increased by $10.00. The focus of that Tuesday meeting
was set aside and the attention focused on what to ... Show more content on Helpwriting.net ...
Finally, Southwest flew only Boeing 737 jets in coach. Due to all of these combined operations,
Southwest's cost per seat was the lowest among major U.S. carriers.
Southwest focused on creative marketing techniques to differentiate itself from other carriers.
Service, convenience and price were represented in the marketing effort.
Southwest was also focused on its people. The relationships with the employees were very important
to Southwest and that is why it was listed as one of the top ten companies to work for.
Southwest achieved record revenue and income levels in 1994 but their net income fell 47 percent.
These results were due to a few factors such as an acquisition, competitors' use of fare sales and the
airline–within–an–airline initiatives launched by Continental and United.
RecommendationsAfter all of these facts about Southwest Airlines and the airline industry in
general I came to an answer about how Southwest should respond to the changes of United Airlines.
I believe Southwest should continue with its present price and service strategy. I do not believe any
changes should be made. Southwest will continue to achieve revenue do to its low prices and its
excellent customer service.
Southwest Airlines should continue to service its local customers on non–stop flights. When I fly
short distances there are three main things that I look for in a flight: cheap, non–stop and friendly
employees. Southwest Airline

Westjet Research Paper
WestJet
Westjet Airline
WestJet Airline was founded in 1996 by Clive Beddoe and a team WestJet airlines were started with
the philosophy that just because you pay less doesn't mean you should get less.
Clive Beddoe and team started their journey with three aircraft fly to five destinations and 220
friendly WestJetters – a journey that would help them become a company of more than 8,800
passionate WestJetters flying one of the youngest fleets of Boeing 737 Next–Generation aircraft to
more than 80 destinations in North America, Central America and the Caribbean.
Culture
"Customer care" is what WestJet Airlines says in their ads. WestJet entire corporate culture has been
built around caring for their customers, by providing a great ... Show more content on
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They are using TV, Social Media, Internet to get popular and known in people. They also launch
many advertising campaign and introduces their different promotional offer to the customers.
WestJet company is on both twitter and facebook and they make sure that the always keep new
information posted up there too.
Place:
As mentioned above Westjet WestJet offers high quality customer service, WestJet offers flights to
over 30 cities in North America, including some of the cheapest airfares to destinations such as
Hamilton, Calgary, Toronto, Montreal, Winnipeg, Edmonton, Calgary, Vancouver and more. WestJet
has recently expanded its service into the
United States and now offers bargain flights to Florida, Hawaii, Los Angeles, Las Vegas, Phoenix,
New York, and more. WestJet Airlines also offers low cost flights to the Caribbean, with bargain
pricing to Punta Cana, St. Lucia, Puerto Vallarta, Nassau, and Puerto Plata. Below pictures shows
the different places westjet airlines travel to:
Corporate Social Responsibility at WestJet Airlines
Environmental commitment
WestJet commitment is to make planet Earth a better place to live is part of their responsible growth.
Greener in the air
Burning aviation fuel releases greenhouse gases, such as carbon dioxide (CO2), into the atmosphere.

WestJet greenhouse gas environmental policy statement is focused on core principles: * Invest in
fuel–efficient jet aircraft. * Invest in technology and procedures that

Alaska Airlines : The Success Of Other Low Cost
Moreover, as Alaska Airlines entered the 1990's, the success of other low cost airlines
required continual improvement and a renewed focus on customer service and value.
Consequently, Alaska Airlines endeavored to keep its competitive edge and continue to grow,
expanding across the lower 48 and to Hawaii during the 2000's. Also, harking back to Mac
McGee's fleet of 7 identical aircraft in an effort to streamline service and support, the 2000's
saw the push toward an all–bowing 737 fleet (Alaska Airlines history: Mac McGee).
Transitioning to a single aircraft fleet has yielded immense savings through commonality of parts
and processes across maintenance requirements, as well as reduced training requirements for
ALASKAAIRLINES PORTFOLIO REVIEW
pilots, aircrew and ground personnel (Alaska Airlines: History by decade). Furthermore,
6
continuing growth and innovation over the past decade has seen Alaska airlines guide the
industry in technology with an industry leading mobile application, electronic publications for
pilots, and new next generation aircraft acquisitions to carry the airline proudly into the next 75
years of service (Alaska Airlines: History by decade).
Financial performance and economic standing
Overview
Financially, Alaska Airlines is a strong performer in the modern airline marketplace,

having come a long way from its storied Alaskan bush plane roots. Today, Alaska Airlines is the
7th largest US air carrier and is

Southwest A Success Story Of Organizational Change
Southwest a Success Story in Organizational Change
Why is it that when organizations announce upcoming changes to their employees they are rarely
excited about it? You do not see them jovially discussing what is going to happen next, and/or how
these changes are going to make their organization better. No, none of this is happening. Most of
them are worried and wondering how these changes will affect them, and what their roles are going
to be. This mindset makes organizational change difficult. Society in general just does not like
change, nor are they comfortable with it.
Therefore, when an organization can successfully implement change, people notice and researchers
want to study them. They do this so they can formulate a change theory and teach it to other
organizations that are experiencing the same situation(s). One company that has continually
evolved, made changes, and has been successful at it is Southwest Airlines. How have Southwest
Airlines been so successful, what was their core strategy, and what part has their differentiation
strategy played in their success?
Air Southwest was incorporated on "March 15, 1967" (1966 to 1971, 2016), at a time when "price
competition from interstate competitors was ferocious" (Heskett & Sasser, 2013, p. 3). However,
Rollin King one of Southwest original founders had an idea that would shake things up. While
having a couple of drinks with his friend Herb Kelleher, he scribbled is point–to–point triangular
service idea

Westjet Is The Largest Canadian Air Carrier
WestJet mission is to enrich the lives of each and every customer who uses their service, by
providing excellent hospitality service with a very safe environment in an affordable price
WestJet vision is "By 2016, WestJet will be one of the five most successful international airlines in
the world providing our guests with a friendly and caring experience that will change air travel
forever (Saretsky, 2012). ''
Values
WestJet give priory for the safety of its customer, they are committed to it. They are very focused on
being passionate and positive in what they are doing. They are grateful for their people and guest.
They are into a culture of fun loving, friendly and caring. They align the interest of the WestJetters
with interests of the company. They developed a philosophy of keeping their commitments and try
to be honest and open (Saretsky, 2012).
Background and Overview
WestJet is one of the fastest growing airlines in the world and also highly preferred by local people
in Canada. WestJet is the second largest Canadian air carrier. Its beginning was humble – with five
destinations with 225 employees with 3 used Boeing 737–200 in Feb 29, 1996. In July 1999 WestJet
completed its initial public offering of 2.5 million common shares which was the turning point of
WestJet's future developments. In December 1999, WestJet announced that they are extending their
successful low–fare airline across Canada. During March and June 2000, the company added
services to Eastern

Boeing 737 Research Paper
How many football players does it take to pull a Boeing 737? Actually, it only takes one, a
comedian, and two teams of volunteers. On Tuesday, Seahawks quarterback, and Alaska Airlines
Chief Football Officer, Russel Wilson, went up against The Soup's comedian, Joel McHale, in a
competition to pull a Boeing 737 twenty–five feet – by hand, for the Strong Against Cancer
campaign. Think of it as timed tug–o–war against a plane. Both celebrities headed up teams
comprised of Alaska and Horizon Airlines engineers and maintenance employees, as well as a group
of lucky winners from a local Facebook contest. Whoever's team pulled the ninety thousand pound
aircraft across twenty–five feet the fastest was declared winner. It was no surprise that

Essay Southwest Airlines
Sin Ho Man
20052982
MGMT 3110 L1
Case Report: Southwest Airlines
What is SWA's competitive strategy? What does it take to execute the competitive strategy?
The SWA has adopted 'Cost Leadership' as its competitive advantage. And it has achieved low cost
through numerous ways.
To commence with, the Southwest workforce routinely turn around an aircraft in only 15 minutes
and its gates are manned by a single agent and have a ground crew of six or fewer, which are much
lower than other airlines. In other words, the SWA needs less employees to handle its flight but each
employee can serve more customers, compared with other airlines.
Also, SWA emphasized point–to–point routes and the use of less congested airports in order to
improve ... Show more content on Helpwriting.net ...
With the aid of these characteristics, SWA can easily understand what kind of people it is search for.
As a result, the suitability and the ease of adapting to the new environment of the new employees
could be enhanced.
In the aspect of training, as culture is an important element in the competitive strategy of SWA.
Hence, all the training in Southwest University has an emphasis on teamwork and team building.
Particularly in training those new hires, activities are designed to get new employees enthused and
excited while introducing them the history, principles, values, mission and culture of the SWA.
Also, Front–line Forum is also held for senior individuals discuss how the company is doing and
how it was changed. By investigating the question "Have we delivered what we have promised
about the culture and spirit to employees", remedial actions can be taken to keep the culture
alive.Sin Ho Man
20052982
3. How serious is the competitive threat from Continental and United? Please explain.
What issues should Ann raise at the meeting? What would be your recommendations?
The competitive threat from Continental and United is not serious. Both airlines intended to imitate
SWA of its position and practices, Continental Airlines launches Continental Lite to concentrate on
short–haul, low fare flights whilst United Airlines begins its similar branch called 'The Shuttle'.
However, these two competitors cannot successfully

Prep Question
CASES IN FINANCIAL STRATEGY
Professor J. Schallheim
FOR CASE BRIEFS: The answers to the following preparatory questions are not necessary or
sufficient for your Case Briefs. Rather, the questions are to serve as a guide for your group
discussion of the cases and a help to getting started on each case. Your final solution the case and
recommendations should not necessarily be limited to the answers to these question or the
assumptions in the case.
FOR INDVIDUAL ASSIGNMENTS: For individual assignments, you must answer the questions
labeled "Memo."
Individual Memo for Rapid Repair Auto Parts
Rapid Repair's profitability appears good but their cash balance has shrunk. Write a report that
provides a financial analysis ... Show more content on Helpwriting.net ...
How many shares will CPK be likely to repurchase under these scenarios?
4. What capital structure policy for CPK would you recommend?
Preparatory Questions for Aloha Hawaiian Airlines
1. A spreadsheet with the lease or buy NPV analysis has been given to you.
2. Should Aloha Hawaiian Airlines purchase or lease the Boeing 737 aircraft? Why or why not?
Preparatory Questions for AMG, Inc. & Forsythe Solutions
1. Should you recommend leasing or purchasing the PCs? Why?
2. Why are the debt rates different for hardware and software leased over the same term?
3. Qualitatively explain if you should choose a rolling or coterminous lease and why?

4. Which is more advantageous, quarterly or monthly takedowns? Explain qualitatively and
quantitatively.
5. If you decide on leasing, which payment schedule and lease–line are most appropriate and why?
6. How much would Forsythe make on the AMG deal?
7. What are the key takeaways to remember when determining future lease versus buy decisions of
this magnitude?
Preparatory Questions for Crocs, Inc.
1. Which of the comparable companies appears to be a good match to Crocs at the time of the case?
Which would be a good match in five years? Use these multiples to provide additional estimates of
the value of Crocs (in other words, calculate a value for Crocs using a current multiple and calculate
a

Southwest Airlines Culture
Southwest Airlines
Southwest Airlines has earned many impressive attributes over the years. The first would be the rise
from a small market airline in Texas to becoming a top airline in the United States. During the
1970s, Southwest overcame legal troubles when Braniff and Texas International attempted to put the
company out of business by way of harassment. In 2016 Southwest Airlines is larger than both
previously mentioned companies. Another impressive aspect of Southwest is the personality and
positive attitude former CEO Herb Kelleher brought in the 1980s. He was unlike most upper
management professionals, being known for wearing Hawaiian shirts, pranking his workers, and
once arm wrestling an executive for the use of a slogan. Also, Kelleher ... Show more content on
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First, the company needed to increase their prices. Although the airline wanted to strive for the
cheapest prices, if they would have implemented a bagging fee, they could have generated more
revenue. Instead of charging a large fee like the other airlines, they could have charged a $10 fee and
advertised for the cheapest baggage fees. Also, they could have increased their fee for internet
connectivity. People would probably be willing to pay more than eight dollars a device, especially if
their flight was longer. A small increase in prices would help the company with profits, but they
would also still be competing with their low prices. Another element to consider is that the airline
had many ideas and plans that were supposed to happen during 2014 and the future. Making sure
that the fleets and systems are continuing to be modernized and updated throughout the years is very
important in both staying competitive and operating at a low cost. Lastly, Southwest needs to better
utilize making projections. For example, the Rapid Rewards program exceeded management's
expectation and if there were better projections, then the company could have better prepared for the
large number of redemptions. If they were prepared for a larger number, then they could have made
some rewards cost more to lower the number of free ticket

Essay on Southwest Airlines
Introduction
By October 2002, Southwest Airlines had apparently weathered the initial crisis to the airline
industry that resulted from the September 11, 2001 ("9/11") terrorist attacks. Most of the large
national carriers had experienced huge losses in demand, profitability and market share, while in
contrast Southwest's low–fare operations had thrived, even in the face of declining earnings. Yet,
only a year after the attacks, Southwest and the industry in general faced still unknown future
changes to its operating environment. There was already a new dynamic of security becoming a
priority consideration, and new governmental directives and taxes meant to ensure and maintain that
security. This new security dynamic had already ... Show more content on Helpwriting.net ...
Internal Analysis
Southwest's Strengths
Southwest's main strategy is providing a differentiated product to airline industry customers. It does
this by offering a low–cost, high–convenience, customer–friendly service to its main focus group,
the business traveler. Southwest's business model has proven to be highly successful in providing
the company a distinct competitive advantage over its competitors. Southwest's business model is
based on several key activities that form the basis for its long–term and operational strategies.
Southwest has a long–standing policy of conservative growth. This policy limits annual growth in
aircraft capacity to between 10% and 15%, and annual station growth to two or three cities, in spite
of expansion opportunities. The financial side of the policy is a low debt–to–equity ratio that
reduces costs and increases market value. As a result the company has maintained a strong balance
sheet, as evidenced by thirty consecutive years of profitability.
Southwest has a strong organization, built on charismatic leadership, a small yet experienced
executive management team infused with Southwest values and culture, and excellent employee
relationships. Management was informal, and decision–making was on a cross–functional

History Of Southwest Airlines ' Operations Management
History of Southwest Airlines' Operations Management Founded in 1971, Southwest Airlines is a
low cost carrier that last year celebrated 41 consecutive years of profitability by posting record
earnings in 2014 (PRNewswire, 2014). While its main competitive advantage is being able to
provide service at a lower cost than other airlines, it also is able to differentiate itself from
competitors through excellent customer service and through response in the form of rapid airport
turn–around times and a larger number of flight options than its competitors. There are two main
constants that have been critical to its success. From a corporate culture standpoint, the company
values and empowers employees at all levels, creating a favorable labor relations climate. From an
operations standpoint, the company has maintained the same strategic focus in four key areas that
have kept the profits rolling in despite external upheavals, such as spikes in fuel prices, mega–
mergers that solidified competition, and even the financial meltdown of 2008 and the 9/11 terrorist
attacks, which saw drastic cutbacks in both business and leisure discretionary travel (Mutzabaugh,
2014). This paper will provide an overview of the company's operating philosophy and explain how
those four key areas relate to its overall strategy. Background Southwest began in 1971 with three
planes serving only three cities in Texas, Dallas, Houston, and San Antonio. Those three planes were
Boeing 737s, and they were one of

How Did Southwest Airlines Fly In Texas
Southwest Airlines which was incorporated in Texas was founded by Rollin King and Herb Kelleher
in 1966. Moreover, in 1971, Southwest began customer service, with three Boeing 737 aircraft that
serviced three Texas cities: Dallas, Houston, and San Antonio and 25 employees. However, King
and Kelleher's start–up did not come easy being that a few Texas based airlines such as Braniff,
Trans–Texas, and Continental Airlines initiated a legal battle to keep Southwest on the ground.
Thus, in late 1970, the decision to allow Southwest Airlines to fly in Texas became final when
Kelleher argued his company's case and eventually prevailed in the Texas Supreme court. As of
2012 Southwest Airlines had:
 About 46,000 employees
 606 Boeing 737s
 88 Boeing 717s that were from the AirTran deal
 Carried 109,000,000 passengers
 Served 97 cities
 Flown >1,284,800 trips
Furthermore, a few of Southwest's values are, but are not limited to:
 Short hauls (less than 500 miles)
 Low fares
 Providing exceptional customer service far beyond the norm, known as "Positively Outrageous
Service"
 Providing intense company communication, camaraderie, and fair treatment not only between
employees but also between employees and customers
 Employees having ... Show more content on Helpwriting.net ...
Thus, Before the merging of AirTran, Southwest's main objectives consisted of various business
strategies. For example, Southwest Airlines first strategy focused on point–to–point routes because it
eliminated the need for connections, resulted in more direct routes, reduced delays and overall travel
time. Southwest Airlines lands at small airports to steer clear of the congestion, to achieve high asset
utilization, and to provide maximum convenience for passengers. In addition, Southwest has a
workforce that is motivated in providing quick aircraft

Jetblue Airlines Summary of Case
Barger, previously president and COO of JetBlue, was named the airline's CEO.
JetBlue's board promoted Barger to the CEO role in the wake of a highly publicized operational
crisis in February that led to the cancellation of over 1,100 JetBlue flights and adversely affected the
travel plans of thousands of passengers. Though numerous interviews and meetings during the past
day allowed Barger to outline his vision for the airline, he realized that he needed to move quickly in
implementing that vision to maintain the confidence of customers, employees, and shareholders.
Just a few miles outside Barger's window was John Fitzgerald Kennedy (JFK) Airport, where
JetBlue began operations as a low–cost carrier (LCC) in 2000 and, by the ... Show more content on
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Attracting passengers who would have otherwise traveled by car or bus, Southwest was able to
maintain high levels of plane utilization, thereby keeping its operating costs low enough to support
its discounted fares.
A key component of Southwest's ability to manage costs was its reliance on a single type of plane–
the Boeing 737. * Over time, Southwest's ground and flight personnel became very familiar with the
737; this decreased the airline's average turnaround time between landing a plane and putting it back
into the air. * This efficiency, combined with the shrewd use of fuel hedges, buoyed Southwest's
profits.
* Attempts by competitors to mimic Southwest's LCC model typically were unsuccessful, as
demonstrated by the infamous rise and fall of no–frills People Express Airlines during the 1980s and
the short–lived attempts of several major airlines–including Continental Airlines, Delta Air Lines,
and United Airlines–to create LCC subsidiaries during the 1990s.
By 2006, Southwest was firmly established as the only consistently profitable airline in an industry
rocked by deregulation, fare wars, overcapacity, and the terrorist attacks of September 11, 2001.
Specifically, Southwest was the only airline in America to show a profit for each year since 1973 up
to 2005.
After September 11, the airline industry

Southwest Airlines : Business Planning And Operational...
Every successful company must have some reasons on its behind. There is no exception to the
Southwest Airlines. To analyze this great carrier company we need to dig deeper on its core value
and the best practice Southwest Airlines has done.
Their first core value is keeping their employees happy. Because only employees with nice attitude
can provide best service to customers and keep company benefit. According to this, Southwest
Airlines' practice is their operating structure. The organization of Southwest Airlines is more likely
as an upside–down pyramid. The upper management is at the bottom and supports the front line
employees. Front line employees are given great attention by the management and play a major role
in the yearly business planning and operational budgeting. The company does not stress much on
structure. Instead, employees are encouraged to think freely without constraints such as titles or
official mandates. This whole structure is created by the co–founder Herb Kellehe and employees
will feel respected and valued when management decisions are made by everyone in the
organization, not just the head executives.
The 35,000 Employees of Southwest Airlines are the assets of this Company. Southwest Airlines
cultivates their employees by providing them with a stable work environment with equal
opportunity for learning and personal growth Creativity and innovation are encouraged for
improving the effectiveness of Southwest Airlines. Here in Southwest Airlines,

Ryanair Leadership Strategy Report
Leading in a Complex World
Strategy Report
Strategic Recommendations (one page)
Ryanair has been one of the Britain's best low cost airlines for around 25 years since being
established in 1985 by the Ryan family. Ryanair have always aimed to show their customers their
statistics and monthly reports;
"Ryanair believe that any worthwhile passenger service commitment must involve a commitment on
both pricing and punctuality, that 's why Ryanair is committed to publishing Customer Service
Statistics each month and these confirm that Ryanair is No. 1 for Customer Service with unbeatable
prices and punctuality. [ (Ryanair, About us, 2010) ]
Although according to the figures Ryanair is the "World's favourite" low cost airline, in the ... Show
more content on Helpwriting.net ...
Ground support, catering and luggage equipment is constant and consistent. | Environmentally
Friendly: | Modern fuel efficient aircraft and high seat occupancy, resulting in the lowest emissions
per passenger mile ratios compared to other carriers. "Ryanair has minimised and continues to
reduce fuel burn and CO2 emissions per passenger kilometre. This has been achieved through the
combination of: numerous fuel saving measures (including the use of the latest aircraft and engine
technology, e.g., winglets); and commercial measures aimed at maximising passenger numbers per
flight in order to spread the fuel use and CO2 emissions over the greatest number of passengers
(efficient seat configuration and high load factors)." (Ryanair, Europes Greenest Airline, 2006) |
Weaknesses | Weakness | Evidence / argument | Bad Press: | As a company Ryanair has had its fair
share of bad press in the past few years. It has received bad press in many instances. Ryanair are
regularly criticised for all the hidden extra charges, such as £5 online check in fee per flight and a £5
per flight credit card fee. This can result in a £20 addition per person to advertised price for a return
journey. Ryanair also receive a lot of bad press due to their chief executive, Michael O'Leary
because he comes across as rather arrogant in press interviews and television documentaries. "Mr O
'Leary has never

Essay on Alaska Airlines Social Responsibility Project
| Alaska AirlinesStrategic Corporate Social Responsibility Project | | | | Company Report 5/3/2012 | | |
ALASKAAIRLINES
Strategic Corporate Social Responsibility Project
Mission Statement:
The mission and vision of Alaska Airlines is that employees share an uncommon blend of integrity,
professionalism, caring, resourcefulness, and spirit. Every day they strive to bring these values to
life through behaviors and deeds that go above and beyond the ordinary. They call it "North of
Expected" and Alaska spirit in action.
Vision Statement:
Stay in closer touch with all the customers–with new technology to quickly tailor communications,
marketing promotions and operations in ways that build strong, long–term ... Show more content on
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During 1997, Alaska Airlines was the 10th largest US airline carrying over 12 million passengers a
year.
2000–s – The airline began buying new 737–700 and 900. The transition to the new Boeing 737
fleet meant great fuel saving and other efficiencies and respect to environment. On February 16,
2012, Alaska Airlines' CEO, Bill Ayer, announced that he would be retiring. He became the airline's
CEO in 2002 and has been credited for reducing costs and keeping the airline profitable without
going through bankruptcy. The airline's president Brad Tilden will officially become the new CEO
on May 15, 2012.
Product/ Services
Flights: The Alaska Airlines goal is to always provide safe, reliable transportation for a reasonable
price, along with the caring, friendly and professional service. Alaska Airlines has proven itself as a
leader in North American travel. Every year Airlines extend their network by adding new flights.
They began new service from San Jose to Palm Springs, CA, from Seattle to Kansas City, MO and
from Portland, OR to Long Beach, CA. In April 2012 opened new nonstop flight from California to
Hawaii. Alaska Airlines serves 96 destinations; it has 571 daily departures in the United States,
Mexico and Canada. Major regions/ Average daily departures
Lower 48 States 295
Alaska 97
Hawaii 22

Canada 5
Mexico 13
During The Flight:

Southwest Airlines Competition
According to Wikipedia, an online encyclopedia, Southwest Airlines is currently the third largest
airline in the world, measured by the number of passengers carried. Total number of passengers that
were carried in the year 2005 amounted to 77.7 million. They are behind American Airlines and
Delta Air Lines. After the tragic September 11th incident, Southwest airlines remains as one of the
only major airlines that are still profitable. After the September 11th attacks, Southwest Airline's 6
biggest competitors grounded 240 planes and laid off 70,000 people. Southwest kept every single
person and plane flying. In fact, they have been so successful, even other airlines have started to
copy their practices. One of the biggest reasons ... Show more content on Helpwriting.net ...
This posed a great threat to Southwest Airlines. Raising money to build such a railway proved
difficult for Texas TGV Corporation. Southwest Airlines created legal barriers that halted the plan
with the help of lobbyists. The state of Texas eventually decided that the company had not lived up
to its promises and stopped the production. The opposition had then been crushed and no longer
posed a problem to Southwest Airlines. In April, 2006, Southwest Airlines has announced their plans
for expansion into the Washington Dulles International Airport. Their plan is to compete with the
other budget carriers there such as Jetblue and AirTran Airways. United Airlines, one of the bigger
airlines, will also be one of their competitors. Many believe that this move by Southwest Airlines
was a defensive move after they saw other budget carriers start to take the passengers. They're trying
to stop other budget carriers from expanding or starting up. Southwest airlines generally avoided the
larger and more congested hub airports but they have gotten more aggressive in their competition
with the larger airlines in recent years. Within the last two years, Southwest Airlines has started at
hubs in both Pittsburgh and Philadelphia. Both hubs are also served by US

What Is Southwest Airlines Case Study
Recommendation
Over the years Southwest Airlines has steadily grew, but their growth has been highly controlled.
This highly controlled growth has allowed them to avoid the trap of growing beyond their means.
With the acquisition of AirTran Air, it accelerated Southwest Airlines' entry into the international
markets. As we hold a large investment in Southwest Airlines, I believe this merger with AirTran Air
will not affect the strategy and culture of Southwest Airlines. Southwest Airlines' strategy and
culture has a history of being successful as well as creating large profits for the company and its
stakeholders. I do see Southwest Airlines maintaining their laser like focus on their basic strategy,
but it will take time to fully transition Southwest Airlines' strategy and culture to AirTran Air. With
this said we should retain our investment in Southwest Airlines as the company has been
consistently profitable for decades and has weathered hardships such as, the September 11 terrorist
attacks, and the 2008–2009 recession. While making my decision to retain our investment in
Southwest Airlines I analyzed Southwest Airlines' performance in the U.S airline industry, as well as
looked at Southwest's operations, strategy/culture. The advantages to my recommendation of
retaining our investment in Southwest Airlines is that our company could see high returns for our
customers and shareholders. In addition, our investment in Southwest Airlines could increase in size,
which would

Southwest Airline Has Changed The Company Or Foreseeable...
It seems if current CEO Gary Kelly continues the same path that Herb Kelleher put in motion that
there should be no major setbacks to the company or foreseeable problems. Southwest's Strategies
Goals Met On October, 2016 Southwest Airline has scheduled flights to 98 destinations in 41 states,
Puerto Rico, Mexico, Central American and the Caribbean. Southwest has done an "A" rated job of
implementing and following the initial company strategy, and a phenomenal job of growing and
sustaining through highly competitive market demands. Southwest's key strategies are to be low–
cost, no frills strategy to provide low–cost transportation that is affordable especially for families.
The low fares and free baggage caters to families to be able to travel with baggage without hidden
fees. However, one area of the business that may have faltered is Southwest's original frequent fliers
– their business clients. CEO Kelly may need to consider business class flights to regain lost
customers and strengthen this area of their market. Southwest was first to initiate special fare
promotions when reservations were weak through their online reservations, therefore Southwest
runs promotions to fill up available seats on the plane. This has become a more common practice
industry wide. Most Crucial It is this writer's belief and evidence shows that two of the most crucial
areas of the strategy is the employee/employer relationship and the point to point model of
operation. Southwest does not

Advantages Of Low Cost Strategy
My first and most important goal in undertaking this research assignment is to source, dissect and
analyse the low cost strategy model of Ryanair and how they succeed in using this strategy.
Ryanair, founded in 1985 by a man named Christopher Ryan has grown significantly throughout the
years. It has grown to be the largest airline in Europe in terms of numbers of passengers. This is of
course, down to their low cost strategy. Ryanair's strategy is in no doubt a low cost strategy and in
my opinion, if Ryanair could have the chance to fly passengers for free at a profit they certainly
would! However, this low cost strategy does come at a price. Ryanair are a cheap and efficient but
most certainly no frills airline. Their consumer market ... Show more content on Helpwriting.net ...
The development of Ryanair's low cost strategy comes down to Michael O'Leary. O'Leary was
persistent in implementing the low cost model of Southwest Airlines and set out a long term goal for
Ryanair to achieve. His philosophy was and remains to be, " reduce cost in all operations, eliminate
non–value added operations and provide the lowest possible air fare to the customer". His use of
standardization was vital in achieving the low cost strategy. Providing a basic uniform routine for
the workers minimised work time and kept the cost downto a minimum allowing them to offer lower
prices. The success of Michael O'Leary's low cost strategy can clearly be seen in the statement,
"Ryanair are the leading carrier in Europe with every increasing profits."
Ryanair's low cost strategy has indeed grown overtime to develop into the worlds most successful
and one of the most sought after models for organisational success. Wise use of Porters 5–Forces
Analysis can show use that Ryanair's low cost airline is indeed

SWOT Analysis: Southwest Airlines External And Internal...
Based on our analysis of Southwest Airlines' external and internal environment, we can now
construct a general idea of the company's overall situation. The next step is to assess whether the
company is in the right position to pursue opportunities and defend threats. We are going to use
SWOT analysis to evaluate the company's internal Strength, Weakness, its outside opportunities and
threats. And therefor use it as a basis of business strategies.
4.1.1 Best low–fare airlines
Southwest's low–cost strategy which have various cost reductions help the company pass on the
benefits to the end consumer in the form of lower fares. The lower fares help the company gather
higher demand for its tickets. The high demand also helps the company save money ... Show more
content on Helpwriting.net ...
4.4 Threats
4.4.1 Oil price
The price of fuel will affect the cost of Southwest and influence the needs of customers, if costs are
too high, it is difficult for Southwest to keep its low–cost strategy.
4.4.2 Competitors like Jet Blue
Over the years well consolidated and financially based rivals of Southwest, like Frontier, and Jet
Blue among others, had come up with several plots to outdo Southwest at its own game.
Furthermore, some routes are not cost effective for Southwest Airlines, due to the near monopoly
that other rival airlines have over these routes.
4.4.3 Law regulations
If government limited the flights of Southwest or there are new regulations issued, it could be a big
problem for Southwest.
4.4.4 Terrorist attacks
Terrorist threats causing less people to be willing to fly, people will afraid to travel by plane such as
a recession of air travel because of 9.11 in 2001.
4.4.5 Recession – decrease in air travel
With other vehicles increased these years like high–speed rail, light rail train being popular and
more bridges and roads built between cities and countries, people prefer to take other transports to

Colombia And Us Relationship Case Study
Colombia and US Relationship
The United States is Colombia's biggest trade partner. The U.S. and Colombia Trade Promotion
Agreement, which began in 2012, was put in place to increase investment, remove tariffs and other
barriers to U.S. exports, increase trade, and promote economic growth in both the U.S. and
Colombia. The major U.S. exports to Colombia are oil, machinery, agricultural products, and
organic chemicals. The main U.S. imports from Colombia are crude oil, gold, coffee, and cut
flowers. About 250 U.S. businesses have operations in Colombia. The United States' direct
investment in Colombia is mainly focused in the mining and manufacturing sectors.
The two countries are also parties to seven international environmental ... Show more content on
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This significantly lowers costs, as fuel accounts for 11% of the overhead costs for our airline.
♣ We have and will continue to source all the same planes from our current supplier, Boeing. We
will enter an ACMI (Aircraft, Crew, Maintenance, and Insurance) lease with Boeing, in which they
will provide flight deck, cabin attendants and maintenance crews, salaries included, as well as the
responsibility of maintenance and insurances for the planes. This will significantly reduce the cost of
training and maintenance.
♣ We will use the Boeing 737 MAX. These aircrafts are to be launched in 2017. They are expected
to have the lowest operating unit costs in the single–aisle segment with the capability of reducing
fuel burn and carbon dioxide emissions by an additional 13%. (ago, et al., "Market Realist", 2016)
♣ To maintain low fuel costs, we will be partnering with Petroecuador, the fuel supplier in the
neighboring country of Ecuador. Ecuador's fuel costs are among the top ten lowest fuel costs
internationally.
Cabin Service
♣ Unlike our competitors, we offer leg–room and snacks free of charge. We also offer basic Wi–Fi.
♣ In–plane advertising and merchandise sales (duty–free, phone cards, etc.) will increase our profit
margin.
Airports
♣ We will use a smaller airport which is typically less congested. This allows more trips and aircraft
use as ground times and

Southwest Airlines History
Southwest Airlines original name was Air Southwest in 1967 in Dallas, Texas, before the change of
the name to Southwest Airlines in 1971. They were faced with battles due to legal issues with Dallas
and Love field, because of the Wright Amendment, but the come to an agreement to allow 4 states to
connect to Texas. Southwest bought 129 new planes, because of the expansion of the company
growth, which currently have 141 planes that enhance the growth of the company because of shorter
flights (Gimbel, 2005). Southwest was started in 1971, by Rollin King and Herb Kelleher, which
released it first flight from Dallas Love Field that is located in Houston and San Antonio Texas. The
passengers look for an airline services that can get them to their destination at a cheap price.
Majority of the passenger are looking for an airline service that will eliminate layovers and multiple
stops as possible. ... Show more content on Helpwriting.net ...
The Boeing 737 was flown by Southwest Airlines, which was exciting for the company, to be the
first to fly that size plane. In 1973, Southwest Airlines was one of the first companies to offer profit
sharing to their employees; they were also the first to offer online access and a website of the
company to the customers. Southwest made sure that they would keep their customers returning to
them, therefore they made sure that they eliminate the middle person, which allowed the customers
to book directly through the

Boeing 737 : The Best Selling Jet Airliner
The Boeing 737 is the best–selling jet airliner in the history of aviation. The following report will
look in depth at the company Boeing itself and its roots, the planning and production of the 737
series of aircraft, the progression of the aircraft and its upgrades, the aviation human factors and
airport planning factors considered during production, the next generation upgrades the aircraft has
seen, and an overall evaluation of the aircraft systems involved when referring to the Boeing 737
aircraft. The airframe, power plant, hydraulic, pneumatic, anti–icing systems, communications,
flight controls, winglets, flight instruments, seating possibilities, specifications, load capacity,
efficiency, reliability, range, production and sales, and the future of the 737 will all be discussed and
analyzed to show why and how the Boeing 737 became the world's most popular jet airliner to date.
.
The Boeing Company was founded by two men, William Boeing and George Conrad Westervelt.
William (Bill) Boeing was born in Detroit, Michigan and attended Yale without finishing as he
joined his father's lumber business in Seattle, Washington. Following a questionable ride in 1915
aboard a less than stable aircraft Bill Boeing set his mind on the idea that he could build a better
airplane than the ones available at the time. He recruited his friend Naval Officer George Conrad
Westervelt and they began their project. They called it the B&W (Boeing and Westervelt). The
rudimentary

Southwest Airlines Case Analysis Paper
Southwest Airlines is one of the most successful airlines in America today. Although it was
established much later than other airlines, the airline experienced numerous challenges, which
negatively affected its performance. Established in 1967, Southwest Airlines could not operate for
four years. They had a rough start following legal battles that derailed the start of their operation.
Since the beginning of their regular operation in 1971, this airline has had the most consistent
profitable record in the world. Their success highly depended on the management's decision to
embrace advanced management and operational strategies. Over the years, the airline has come up
with various measures that have made them the leading carriers in the United States (Gittell, 2003).
Several other companies in the world have since adopted their model of operation to increase their
productivity. Their flexibility and willingness to try new methods has transformed the airline into the
most popular airline in America today.
Their initial technique was to reduce the fares charged for air transport by approximately 60%
compared to other airlines. Interstate charges were regulated by the Civil Aeronautics Board making
it impossible for the company to change their fares between different states. They therefore came up
with brilliant intrastate routes that allowed them to lower their prices without the interference from
the Civil Aeronautics Board. Their decision was challenged in court but the

Airline Industry : Southwest Airlines
According to IBISWorld Global, worldwide travel and passenger numbers are expected to grow due
to changes in the demographic and economic environments, such as declining unemployment rates
and rising income levels. Therefore, airline companies such as Southwest Airlines differentiate their
brands from competitors by proactively creating value for customers. Since 2001, the airline
industry has experienced greater costs due to the failing economy, volatile prices for fuel, and
increased global competition. In order to combat these environmental factors, Southwest Airlines
keeps airfare costs lower than those of competitors, focuses on fuel–efficient technology, and
expands its services into other countries.
In a time period with a weak ... Show more content on Helpwriting.net ...
In order to combat volatile oil prices, Southwest focuses on fuel–efficient technology. According to
EbscoHost, the prices of crude oil and refined products have fluctuated widely due to many factors
that are beyond the control of companies like Southwest Airlines. In 2013 and 2012, jet fuel and oil
represented about 35% and 37% of Southwest Airlines ' operating expenses, which comprised the
largest expense incurred by the company in both years. Unfortunately, any inability to obtain jet fuel
at competitive prices would severely harm Southwest Airlines ' financially. Although the company
cannot control the supplier costs, it utilizes strategic positioning in its marketing strategy through
technological upgrades and fleet modernization. Southwest Airlines focuses on fuel–efficient
technology by replacing its older Boeing 737 planes with larger and more fuel–efficient planes that
can travel greater distances such as the Boeing 737–800. Although technological upgrades in the
industry have slowed in the airline industry, Southwest Airlines continues to focus on fuel–efficient
technology and cost–reduction machinery. Since the search for more fuel–efficient technology helps
the company market their brand as promoting environmental sustainability, customers are more
likely to identify with the firm, ultimately giving Southwest Airlines a competitive advantage.
Southwest Airlines takes advantage of the increasing trend of global competition by expanding its

Southwest Airline Case Analysis
Southwest Airline's Strategies:
Southwest Airline's successful strategy consists of three complementary qualities which are focus,
divergence and compelling tagline. This short–haul airline believes that by focusing on friendly
service, speed and frequent point–to–point departures, its low pricing is able to compete against car
transportation. While other competitors try to delight customers by investing in meals, airport
lounges and seating selections, Southwest chooses to eliminate or reduces investments in these
industry's competitive factors. As a result, Southwest's low prices are unbeatable making them the
preferred airline in the industry. With a divergence element in Southwest's strategy, it is able to
innovate and stand apart ... Show more content on Helpwriting.net ...
The first source of competitive advantage is its low price tickets. After the terrorist attacks in Sept
2001 where most of the airlines were making losses due to a decline in air travelers, Southwest was
still in a good shape due to its low cost model. Most of the travelers are willing to give up comfort
such as in–flight entertainment and fancy seats for a cheaper ticket. Secondly, cost advantage for
Southwest plays a huge part in its competitive advantage. Only Boeing 737s are used and only
coach seats are offered. This leads to the competency of Southwest's crews on 737 which helps to
achieve faster turnaround time on the ground. Company' cost of training, maintenance and inventory
decreased significantly as well. The third competitive advantage is the cultural values that are
instilled in Southwest's organization. Employees are placed first and are armed with tremendous
information that assists in understanding the company's mission, customers and competition. Happy
employees lead to satisfied customers through excellent customer services.
Southwest Airline's Strategic Issues:
While Southwest's excellent strategy should be applauded, there are a few strategic issues that can
weaken its position in the face of various potential challenges. The first strategic issue lies in the
challenge of preserving cultural values with Southwest's growth. This Southwest culture was
designed to work in a small

Southwest Airlines
Iqra University Gulshan Campus
M. Phil: Strategic HRM
Presentation Topic: Southwest Airlines: A Case Study Linking Employee Needs Satisfaction and
Organizational Capabilities to Competitive Advantage written by Roger Hallowell
Reference: Human Resource Management, 1996, Vol. 35(4), p. 513–534
Presented by: M. Shahnawaz Adil
Dated: Tuesday, March 01, 2011
Course Facilitator: Mr. Ahsan Durrani
Abstract (as written by Roger Hallowell):
This article analyzes the sources of Southwest Airlines' competitive advantage using an integrative
approach, employing economic analysis tools to illustrate the roles of commitment and
organizational capabilities in delivering competitive advantage at Southwest. A framework is
presented ... Show more content on Helpwriting.net ...
We will go in with 10 or 12. That eats up a lot of airplanes and capacity, so you cannot open a lot of
cities. You hit them with everything you've got in one or two places instead of trying to fight them
everywhere'. 16. SWA's low–fare, high–frequency, point–to–point service was received very well in
the western markets, including New Mexico, Arizona, Nevada, and California. As of early 1991, the
Company had 48 percent of its system capacity, as expressed in available seat–miles (ASMs), in this
geographic region. This region contained 11 cities, including El Paso, and was the focus of SWA's
expansion activities during the late 1980s. Service was initiated in Oakland in 1989 and in Burbank
and Reno in 1990. Despite fierce competition in these markets, SWA was successful with its formula
of low fares and frequent flights. 17. During 1990, SWA acquired more gate facilities at Oakland,
nearly doubling the capacity for future Oakland flight operations. 18. In 1991, Phoenix (ranked 3rd)
and Las Vegas (ranked 4th) in SWA's system in terms of originating customer boardings. The
Company management felt this region should continue to provide expansion opportunities in the
future (ibid). 19. The Heartland was SWA's most mature region. From its original 'Texas Triangle' –
San Antonio, Dallas, and Houston – SWA became a dominant force in short–haul, point–to–point
travel to the destination it serves. As of early 1991, the company captured a 60 percent

Organizational Impact Paper

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