Strategic Business Management Case Analysis.

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Case Analysis

INTRODUCTION

You’ve already examined several cases from the text. Your

course project will require a careful reading of Case 20—

Southwest Airlines in 2010: Culture, Values, and Operating

Practices, on pages C-276–C309.

Southwest Airlines has become the market-share leader in

domestic air travel in the United States. This quirky but

scrappy airline started small and now transports more

passengers from U.S. airports to U.S. destinations than any

other airline. Their market symbol is (LUV). They’ve emphasized

a low cost, low price, and no frills strategy that has worked

well for them. In May 2011, Southwest acquired AirTran

Holdings, Inc., the parent of AirTran Airways. This was a major

acquisition for Southwest and presents some management

challenges for its continuing success. Is it possible that

Southwest will continue to achieve the success to which it’s

accustomed while integrating AirTran into its organization?

PROCEDURE

Read through Case 20—Southwest Airlines in 2010: Culture,

Values, and Operating Practices, on pages C-276–C309 of

your textbook.

Carefully go through all chapters covered in your course and

analyze the Southwest Airlines case within the frameworks

available. In addition to the case material in the textbook,

review the video for Case 20 available on the My Courses

page of your student homepage. Because this situation is

fluid, there’s no correct or incorrect answer; what’s important

is your application of course materials and the process of your

analysis. Begin with a SWOT analysis, in which strengths

include the firm’s market share and weaknesses include the

firm’s cost trends. Feel free to review the many business

articles on Southwest, the stock chat message boards (for

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sentiment), and any source of information you feel is helpful.

Remember to provide citations for any material from which

you quote verbatim.

Your paper should provide answers to the following questions:

1. Is there anything that you find particularly impressive

about Southwest Airlines? Provide at least four examples.

2. What grade would you give Southwest management for

the job it has done in crafting the company’s strategy? What

is it that you like or dislike about the strategy? Does

Southwest have a winning strategy? Explain your answers.

3. What are the key policies, procedures, operating practices,

and core values underlying Southwest’s efforts to imple-

ment and execute its low-cost/no frills strategy?

4. What are the key elements of Southwest’s culture? Is

Southwest a strong-culture company? Why or why not?

What problems do you foresee that Gary Kelly has in sus-

taining the culture now that Herb Kelleher, the company’s

spiritual leader, has departed?

5. What grade would you give Southwest management for the

job it has done in implementing and executing the com-

pany’s strategy? Which of Southwest’s strategy execution

approaches and operating practices do you believe have been

most crucial in accounting for the success that Southwest

has enjoyed in executing its strategy? Are there any policies,

procedures, and operating approaches at Southwest of

which you disapprove or that aren’t working well?

6. What weaknesses or problems do you see at Southwest

Airlines as of mid 2010?

7. Does the AirTran acquisition make good strategic sense

for Southwest?

8. What strategic issues and problems must Gary Kelly and

Southwest executives address as they proceed to close the

deal with the AirTran acquisition and contemplate how

best to integrate AirTran’s operations and AirTran’s

employees into Southwest?

9. What recommendations would you make to Gary Kelly

and Southwest executives as the company heads into the

next year?

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Writing Guidelines

1. Type your submission, double-spaced, in a standard print

font, size 12. Use a standard document format with 1-inch

margins. (Do not use any fancy or cursive fonts.) Your

paper should be written in Microsoft Word or a Word-

compatible program.

2. Include the following information at the top of your paper:

a. Name and complete mailing address

b. Student number

c. Course title and number (Strategic Business

Management, BUS 425)

d. Research project number (50064100)

3. Read the assignment carefully and answer each question.

4. Be specific. Limit your submission to the questions

asked and issues mentioned.

5. Proofread your work carefully. Check for correct spelling,

grammar, punctuation, and capitalization.

Grading Criteria

The following is a breakdown of how your project will be graded:

1. Content 80%

2. Written communication 10%

3. Format 10%

Here’s a brief explanation of each of these criteria:

Content

The student

■ Provides clear answers to the assigned questions

■ Addresses the questions in complete sentences, not just

simple yes or no statements

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■ Provides a clear analysis of the assigned topic and

presents reasonable conclusions with appropriate

supporting information

■ Supports his or her opinions by citing appropriate

information using either APA or MLA format

■ Stays focused on the assigned issues

■ Writes in his or her own words and uses quotation marks

to indicate direct quotations

Written Communication

The student

■ Answers each question in a complete paragraph that

includes an introductory sentence, at least four sentences

of explanation, and a concluding sentence

■ Uses correct grammar, spelling, punctuation, and

sentence structure

■ Uses logical thinking in presenting his or her arguments

■ Provides clear organization (for example, uses words

like first, however, on the other hand, and so on, since,

consequently, next, and when)

■ Makes sure the paper contains no typographical errors

Format

The paper is double-spaced and typed in font size 12. It

includes the student’s

■ Name and complete mailing address

■ Student number

■ Course title and number (Strategic Business

Management, BUS 425)

■ Research project number (50064100)

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Submitting Your Assignment

Follow this procedure to submit your assignment online:

1. On your computer, save a revised and corrected version

of your assignment.

2. Go to http://www.pennfoster.edu and log on as a student.

3. Go to My Courses.

4. Click on Take Exam next to the lesson you’re working on.

5. Enter your e-mail address in the box provided. (Note:

This information is required for online submission.)

6. Attach your file or files as follows:

a. Click on the Browse box.

b. Locate the file you wish to attach.

c. Double-click on the file.

d. Click on Upload File.

7. Click on Submit Files.

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NOTES