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Write a 4–6-paragraph analysis of SOUTHWEST AIRLINES internal environments, as w

ID: 383459 • Letter: W

Question

Write a 4–6-paragraph analysis of SOUTHWEST AIRLINES internal environments, as well as the interrelationships among its internal businesses.

Internal Environment: analyze SOUTHWEST AIRLINES internal environment for the conditions and factors that influence its activities and choices, including its business strategies. The internal environment includes:

Human resources—staff, volunteers, board members, target population.

Physical resources—location, building, equipment, funding for resources (grants, funding agencies, other sources of income).

Activities and processes—programs run, systems employed.

Past experiences—building blocks for learning and success, reputation in the community.

Explanation / Answer

SWA operates on short haul, high frequency, low cost strategy and has been highly profitable in spite of being a low cost carrier. Also another very remarkable part of SWA’s strategy is to not partner with any other airline. Next the internal environment factors are as mentioned below.

Human resources—staff, volunteers, board members, target population.

SWA always treats its’ people as a family and maintains a sense of camaraderie between team members. They hire people who are the right fit culturally rather than focusing on skillskets only. They focus a lot on team building, Cross-training activities, recognition and internal promotions.

They provide pension through profit sharing and more than 80% unionized labor force but labor relations have always been very coordinal.SWA Pilots have their own union and are not affiliated to Airline pilots association.

Physical resources—location, building, equipment, funding for resources (grants, funding agencies, other sources of income).

SWA sells the travel tickets directly and do not rely on travel agents, hence even the travel agents have to connect with the airlines to book the tickets for their customers. SWA uses a point-to-point model rather than hub-and-spoke which means they operate direct non-stop flights between locations rather than connecting flights. SWA operates to almost 100 destinations in 40 states in US and 10 additional countries. SWA owns/lease only one type of aircraft Boeing-737 and has a fleet size of approx 700 aircrafts and 201 orders in pipeline

Activities and processes—programs run, systems employed.

SWA believes and maintains a fun filled environment with all employees deeply attached to their jobs.

Right from their hiring to the employees’ retirement, SWA maintains a very coordinal work environment for all the employees to flourish. They maintain processes and ambience similar for customrs by focusing on impeccable operations with a warm smile. SWA has a very generous frequent flyer reward points program which coaxes people to travel again.

Past experiences—building blocks for learning and success, reputation in the community.

SWA commands a great respect amongst the travelling community and has an impeccable record in passenger safety in addition to its’ extreme focus on customer service. Also the costs have always been kept low irrespective of the economic conditions by focusing on the same internally.

All these internal factors when work in synergy provides SWA the competitive advantage that is difficult to be replicated by other airlines. It becomes a part of DNA of the airlines and thus helps them to bat the cut-throat competition.

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