Case Analysis of Strategic Management (A Study on Southwest Airlines)

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CASE ANAYLSIS OF
STRATEGIC MANAGEMENT
(A Study on Southwest Airlines)

STUDENT NAME 1
Introduction
Strategic management refers to the formulation of planning, analysis, monitoring and
assessment required by the firm to meet specific objectives and goals. The paper has
focussed on the southwest airline of United states which one of the leading airlines. In
addition, the main focus has been given over the environment where the firm conducts its
operation. Moreover, it includes a competitive situation as well as strategies of the firm.
Furthermore, it has focussed over the financial results and identification of specific issues
associated with the firm. The paper has also concentrated over recommendations which are
essential for solving the problems of the firm.

STUDENT NAME 2
1. An assessment of the current situation of the firm.
1.1 The environment overview of Southwest Airlines and the industry
Southwest Airlines, which was founded in 1967, belongs to the airline industry of the
United States. There are several updates of the current environment in the industry, which are
affecting the business of the organization. Economic, technological, and social-cultural forces
are considered as the environmental factors of the industry. The economically weak growth
can affect the business model of Southwest Airlines. It lowers the purchasing power of the
airline industry. In this way, the industry cannot buy newer products to develop their product.
Southwest Airlines is well known for its low-cost airline; the provides higher capacity and
frequency flights to maintain a sustainable profit (Alamdari and Fagan 377) .
In the United States, there several technological issues that have been solved in the
current time. Technologies must be developed in order to create the best quality airline
service in the industry. Southwest airlines have invested a lot to enhance their technologies to
deal with the external factors which can affect the business. As the airline industry has to
work in international areas, so it is the prime responsibilities for them to get familiar with the
different situation of various countries. Macro-environmental factors are changing daily in
the current world. The industry has to update their work culture to develop the best service
around the globe to sustain in the problematic world environment. Southwest Airlines have
taken multiple initiatives to optimize the cost management of the organization (Basu 22).