PROJECTIONS, NPV, COMPILATION

2

Matrices Assignment

Eric Williams

Liberty University

Dr. Robert Waldo

Busi 690: Policy and Strategy in Global Competition

July 24, 2022

Matrices Assignment

Southwest Airlines Company operates one of the world's greatest and most admired airlines. The Company is known for offering kind value and hospitality to approximately 121 airports across 11 countries in world. The Company is associated with featuring the low-fare, no-frills air service with frequent flights that mostly cover. The costs of the Company are kept down by exclusive use of the Boeing aircraft, which mostly allows for the maintenance costs and quicker time for the turnaround. The Company's headquarters is located as Dallas, Texas state. The study will focus on the analysis of the Company based on various considerations within the organization.

Mission, Objectives and Strategies

Southwest Airlines' mission statement ensures that customer service is linked to employee behavior and corporate image. The mission of the Company represents a strategy that is aimed at the leadership in terms of the experience of customers and general relations. These factors are very critical in the corporate marketing strategies that accrue the general presentation of the business (Muduli & Kaura, 2011). The mission of Southwest Airlines is the key guiding principle that shapes all the strategies the Company explores to grow. All new opportunities identified by the Company are tapped through mission statement to ensure that the goals of the Company are achieved.

The major objective of Southwest Airlines is to ensure that the people are connected to what's important in their lives through a very friendly and reliable means. Additionally, the Company offers its customers low-cost air travel to ensure that the majority of the customers gain the full trust of the Company. The Company's vision is associated with its vision, which is focused on being the world's most loved Company (Muduli & Kaura, 2011). The Company is focused on being efficient to its clients and making the best profits for the Company within the given period.

Southwest Airlines has adopted the best strategies to ensure it achieves the best competitive front against all its opponents in gaining the market. Based on the commercial Airline, the Company focuses on promoting the major strategies, which include spreading the low-fare farther and guiding the employees to form a competitive front. The Company is also keen on focusing on the future and doing the differentiation for its services to ensure that it is more established than all other airline companies.

New Mission Statement

The mission of Southwest Airlines is to access all middle-class families and small business owners. The Company is focused on achieving the ideology through the low-cost aspect and the low frills carrier. Additionally, the Company is very keen on ensuring that all those traveling short distances are incorporated for the services of the Company (Miles & Mangold, 2005). The young adults enjoy the services offered by the Company and are included as the current customers. The Company is keen to ensure all the target customers are included in the mission.

The Company offers services such as transporting people for short distances and transporting products from small businesses. The Company is always very keen on ensuring that all its customers are well serviced and can always access the best from the Company. Besides the major transportation services, the Company also offers additional services such as check-in and expedited security lines. The Company offers a variety of products to ensure that the customers experience a stress-free movement (Miles & Mangold, 2005). The Company is associated with moving the clients very enjoyable and attractive.

The major and established competitors of Southwest Airlines include Delta Airlines, American Airlines, and Frontier Airlines. Based on the revenue generation, the Company is associated with holding approximately 20% of the internal market share. Based on the studies taken on Southwest Airlines, Company is ranked 22 of the top 50 companies in the US.

Southwest Airlines believes in the sustainability of the future, where the business model will balance the shareholders, employees, customers, and other key participants in the Company's development (Miles & Mangold, 2005). The Company has recently ensured that it has developed the greatest connectivity with the world to enhance the passengers' travel experience (Mudde & Sopariwala, 2008). Additionally, the Company is keen on ensuring that it uses the technology to reduce fuel consumption by double-digit percentages compared to the older prices.

The concerns for survival in Southwest Airlines include the competition with the large airlines who pose a great challenge for the Company to survive (Miles & Mangold, 2005). The volatility of the fuel prices and the regulatory changes in commercial aviation greatly affect the Company's success. The population of the pilots is limited, an idea which affects the Company's success and profitability.

The Company believes that connecting people with what's important in their lives is critical through friendly and low-cost air travel (Mudde & Sopariwala, 2008). The Company's philosophy is also associated with its vision, which focuses on ensuring that the Company is the most loved and efficient in the world (Miles & Mangold, 2005). The major competitive advantage is to ensure that the Company employs the right people in the service of the customers. The Company also prides itself on being a people-oriented Airline and operates with approachable employees, and teamwork is widely practiced within the Company.

Southwest Airlines is very concerned with the environment by controlling carbon emissions, which affect the environment. The Company is keen on maintaining carbon-neutral growth yearly through the decade's end (Miles & Mangold, 2005). Additionally, Southwest Airlines views the employees equally by providing equal opportunities for all the employees. All the employees are provided with equal concern, respect, and a caring attitude to ensure they are motivated to achieve their best. The workers' motivation is critical since it allows the employees to perform better in their chores.

Analysis of the Existing Business Model

The Southwest Airlines business model is based on extremely efficient operations and innovative logistics solutions. The strategy is critical in focusing on the customers' experience and the Company's goals (Miles & Mangold, 2005). The Company's business model is keen on the motivation of the employees through the equal opportunities that are offered to the employees. The Company also focuses on the low-cost business model to ensure that it attracts more clients.

SWOT Matrix and Analysis of The Company

Southwest Airlines has a very strong free cash flow which aids the provision of the resources required for the development of the Company. The resources are critical in ensuring that the Company can start new projects and motivate the employees (Miles & Mangold, 2005). Additionally, the company experience reliable suppliers who provided all the role materials required in the Company in time, an idea aimed at overcoming the supply chain problems.

Strengths of The Company

The Company enjoys a strong distribution network which ensures that the products are easily accessible to customers (Cote, 2018). The main strength of the Southwest Airlines includes the low-cost business model and the point-to-point routes. The company has greatly adopted the aggressive measures to raise the liquidity over some areas. The company has added strong balance sheet to all its sources of strength to ensure it achieves the best.

Weaknesses of The Company

The Company has some weaknesses which reduce its success of the Company. One of the major weaknesses of the Company includes the profitability ratio and the net contribution, which is below average (Miles & Mangold, 2005). The company lacks the diversification because it widely depends on one revenue resource which exposes the company to catastrophic loss over time. The company over depends on the US market thus creating turmoil because of the in single market.

Opportunities of The Company

The Company is also in need of new investment technologies to aid the Company in competing in the market effectively. The Company views the new taxation policy offered as an opportunity to aid the Company's growth (Cote, 2018). Additionally, the development of the market will facilitate the growth of the Company, ensuring that the Company grows. The Company also has a great opportunity in the stable free cash flow in the bank segments.

Threats of The Company

The Company experiences a great threat in the shortage of skills and ideas, reducing its success. The company experienced volatile fuel prices because of the Corona Virus which affected the economy of the world. The pandemic led to the decline of the profits for the past 50 years since its founding.

Group map/ Strategy

Map in The Company

Profitability

Lowered Costs

Increased Revenues

On Time Flights

Lower Fares

Fast Ground Turnaround

World Class Teamwork

TOWS Analysis

Southwest Airlines is widely known for its excellent customer service and also cheap fares for the customers. The Company also experiences fewer frills, a competitive advantage since it is more than the other companies (Cote, 2018). Additionally, the Company has limited international flights, and the opportunities associated with the Company include expanding the new international locations.

PESTEL Analysis for Southwest Airlines

Southwest Airlines is greatly impacted by external factors such as economic, social, political, and technological factors. The external factors will help the Company make viable decisions regarding the expected management and strategies. The external factors guide the crafting of the market, ensure that the market considered by the organization is specific, and aid the Company's growth (Bailey et al., 2009). Strong political stability is one of the major ideas that develop the Company. A favorable tax policy is critical in developing the Company and ensuring that the Company accrues the best in the market. The moderate inflation rate affects the economic status of the fuel, thus affecting the whole Company.

Bailey, C. D., Collins, A. B., Collins, D. L., & Lambert, K. R. (2009). An analysis of Southwest Airlines: Applying the Horngren, Datar, and Foster (2006) strategic profitability analysis approach. Issues in Accounting Education, 24(4), 539–551. https://doi.org/10.2308/iace.2009.24.4.539

References

Bailey, C. D., Collins, A. B., Collins, D. L., & Lambert, K. R. (2009). An analysis of Southwest Airlines: Applying the Horngren, Datar, and Foster (2006) strategic profitability analysis approach. Issues in Accounting Education, 24(4), 539-551. https://doi.org/10.2308/iace.2009.24.4.539

Cote, R. (2018). Leadership Analysis: Southwest Airlines-Herb Kelleher, CEO. Journal of Leadership, Accountability & Ethics, 15(1). https://www.researchgate.net/publication/339629617_Leadership_Analysis_Southwest_Airlines_-_Herb_Kelleher

Miles, S. J., & Mangold, W. G. (2005). Positioning Southwest Airlines through employee branding. Business horizons, 48(6), 535-545. https://doi.org/10.1016/j.bushor.2005.04.010

Mudde, P. A., & Sopariwala, P. E. (2008). Examining Southwest Airlines' Strategic Execution: A Strategic Variance Analysis. Management Accounting Quarterly, 9(4). https://www.researchgate.net/publication/285201547_Examining_Southwest_Airlines'_strategic_execution_a_strategic_variance_analysis

Muduli, A., & Kaura, V. (2011). Southwest Airlines Success: A Case Study Analysis. BVIMR Management Edge, 4(2). https://www.researchgate.net/publication/268718329_Southwest_Airlines_Success_A_Case_Study_Analysis

Appendix

Group map/ Strategy

Map in The Company

Profitability

Lowered Costs

Increased Revenues

On Time Flights

Lower Fares

Fast Ground Turnaround

World Class Teamwork

SWOT Matrices

Strengths: The Company enjoys a strong distribution network which ensures that the products are easily accessible to customers (Cote, 2018). The main strength of the Southwest Airlines includes the low-cost business model and the point-to-point routes. The company has greatly adopted the aggressive measures to raise the liquidity over some areas. The company has added strong balance sheet to all its sources of strength to ensure it achieves the best.

Weaknesses: The Company has some weaknesses which reduce its success of the Company. One of the major weaknesses of the Company includes the profitability ratio and the net contribution, which is below average (Miles & Mangold, 2005). The company lacks the diversification because it widely depends on one revenue resource which exposes the company to catastrophic loss over time. The company over depends on the US market thus creating turmoil because of the in single market.

Opportunities: The Company is also in need of new investment technologies to aid the Company in competing in the market effectively. The Company views the new taxation policy offered as an opportunity to aid the Company's growth (Cote, 2018). Additionally, the development of the market will facilitate the growth of the Company, ensuring that the Company grows. The Company also has a great opportunity in the stable free cash flow in the bank segments.

Threats: The Company experiences a great threat in the shortage of skills and ideas, reducing its success. The company experienced volatile fuel prices because of the Corona Virus which affected the economy of the world. The pandemic led to the decline of the profits for the past 50 years since its founding.