A 25 page paper discussing conditions current in late 2006 for the purpose of determining strategy for the future at Southwest Airlines. The paper uses several quantitative tools to arrive at recommendations for the future. Included in these are an external factor evaluation matrix; competitive profile matrix; internal factor evaluation matrix; a SWOT analysis; and a quantitative strategic planning matrix (QSPM). Financial projections for the chosen strategy follows. Bottom-line recommendation is for Southwest to participate in codeshare arrangements but make no other changes to its operations or culture. Alliances are beneficial, but any more than a partnership only for codesharing should be full acquisition of another airline to ensure that the new entity is managed according to Southwest philosophy and principles. Bibliography lists 10 sources in 54 footnotes.
Name of Research Paper File: CC6_KSairSWAmatr.rtf
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of its founding in 1971, cofounder and former CEO Herb Kelleher devoted much of his management energies into fending off the efforts of what he referred to as the "gang
of seven" to put Southwest Airlines out of business - or at least out of their markets. Over a period of three decades there have been many instances demonstrating
that things are not always fair; now it appears that those preceding situations collectively constituted a drill for Southwests present predicament. From the beginning, Southwest has been rabid about
controlling costs and providing superlative customer service. It has been those qualities that have raised Southwest from being a small regional independent to leading the industry in numbers of
passenger boardings; it has been those qualities that have prevented Southwest from joining most of its competitors in operating from bankruptcy protection. In
2006, Southwest still has not experienced a losing quarter and still has not laid off an employee. How much longer it can make this claim becomes less certain with
each passing quarter, as bankruptcy-protected airlines gain steep concessions from trustees, suppliers, unions and employees while Southwest continues with business as usual. The
paper recommends several strategies for the future, but the first recommendation is for change in Southwests mission statement. The current statement addresses needs of the company and employees; the
proposed change specifically addresses customers as well. The paper uses several quantitative tools to arrive at recommendations for the future. Included in
these are an external factor evaluation matrix; competitive profile matrix; internal factor evaluation matrix; a SWOT analysis; and a quantitative strategic planning matrix (QSPM).
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