Stratetic Management

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Executive Summary

In this paper, the company background of Southwest Airlines is introduced, ranging

from its strengths to weaknesses. The paper also highlighted Southwest Airlines

strategy in terms of its strengths, weaknesses and key policies and operating

practices underlying Southwest Airlines' efforts to implement and execute its lowcost/

no frills strategy.

Next, the culture of Southwest Airlines is presented detailing the characteristics of

Southwest Airlines culture, importance of culture, Southwest Airlines' efforts in

nurturing its culture and problems arising in sustaining the culture due to leadership

change.

After which, the paper also critically evaluates Southwest Airlines implementation

and execution strategy and the drawbacks of the implementation strategy. Some

recommendations for the entity were also indicated.

Lastly, this paper concluded on the note that it is of utmost importance that SWA

constantly reengineer its strategy to prosper and remain competitive. Else, it risks

losing its market shares in today's competitive and volatile airline industry,

threatened by rising fuel costs and terrorist attacks.

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Table of Content

Executive Summary ................................................................................................. 2

Table of Content ....................................................................................................... 3

1 Introduction....................................................................................................... 4

1.1 The Research Problem................................................................................ 4

1.2 The Limitation of the Report......................................................................... 4

1.3 The Sources of Information Collection ......................................................... 4

1.4 The Report Organisation.............................................................................. 4

2 About Southwest Airlines................................................................................. 5

2.1 Company Background ................................................................................. 5

2.2 Strengths of Southwest Airlines ................................................................... 5

2.3 Weaknesses of Southwest Airlines .............................................................. 5

3 Key policies and operating practices of Southwest Airlines' strategy ........ 6

4 Southwest Airlines' Culture ............................................................................. 7

4.1 Characteristics of Southwest Airlines' culture .............................................. 7

4.2 Importance of Culture in Southwest Airlines ................................................ 7

4.3 Southwest Airlines' effort in nurturing its culture .......................................... 8

4.4 Problems Arising.......................................................................................... 9

5 Evaluation and Critique .................................................................................. 10

5.1 Implementation and Execution Strategy .................................................... 10

5.2 Weaknesses in Strategy Execution............................................................ 12

6 Recommendations.......................................................................................... 14

7 Conclusion....................................................................................................... 16

8 Reference List ................................................................................................. 17

9 Appendices...................................................................................................... 19

9.1 Appendix A - SWOT Analysis of Southwest Airlines ................................. 19

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1 Introduction

1.1 The Research Problem

The purpose of this report is to enable reader to have better understanding on:

* Strengths and weaknesses of Southwest Airlines' strategy,

* Southwest Airlines' culture and

* Weaknesses in the strategy execution.

1.2 The Limitation of the Report

Our research project presentation is limited due to word limit constraint. Therefore,

we limit the report to specific areas, which were considered of high importance. In

addition, working within a tight schedule is the greatest challenge for completing this

report. Other challenges include sourcing for relevant research material and using

the appropriate material to present the analyses and discussion.

1.3 The Sources of Information Collection

Research materials are gathered from Tampines Regional Library, Woodlands

Regional Library, Jurong East Regional Library