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Macro-Environment of Southwest Airlines (Revised Text)
Economic Environment: encompasses all factors that have a direct effect on GDP, unemployment, inflation, interest rates, and exchange rates (Gimbert 48). The most fundamental are; fuel prices, and the effect of economic cycles. Economic downturns brought about by such factors as the 2007 financial crisis and the September 2011 tragedy drive airline customers across the U.S. To cut down on personal expenditure. The company, as a result, faces lower levels of air ticket demand, although the levels of customer expectations remain unchanged.
World fuel prices are quite unstable. Southwest Airlines largely depends on fuel; as a matter of fact, fuel costs account for almost half of Airline companies' operational expenses. An increase in the price of fuel impacts negatively on profitability; the company may not consider raising its air fares, so as to protect its excellent-service-at-low-cost reputation.
Political and Legal...
Government action, through the Federal Aviation Administration (FAA) has significant influence on Southwest Airline's core operations (TSHA). The 1979 Wright Amendment, for instance, prevented the airline from carrying out non-stop plane service from Dallas Love Field (TSHA). A law expected to take effect in 2014 seeks to repeal the Wright Amendment, after which non-stop flights will be legal, and the company will be forced to change strategy (TSHA).
Southwest Airlines is subject to aviation taxes and is affected by changes such as the imposition of additional taxes, changes in the amounts charged for airport passenger facility, and the enactment of new regulation regarding labor, consumer and environmental standards made to the FAA reauthorization legislation by Congress (TSHA). Southwest Airlines operates under the regulatory jurisdiction of the DOT, and has to comply with its consumer…
Following the 9/11 tragedy in 2001, Congress adopted legislation aimed at tightening security and preventing a reoccurrence of the same. To this end, Southwest Airlines has to comply with the provisions of the Aviation Security Act, which require airlines to, among other things, train their crew on the handling of security matters, thoroughly screen all passengers, and maintain an adequate number of federal air marshals aboard flights (TSHA). Southwest Airlines, moreover, has to operate in compliance with the stringent security-enhancement rules set by the TSA, including carryon luggage requirements and the payment of the Aviation Security Infrastructure Fee (TSHA). Recent years have seen numerous modifications made to these rules; a factor that makes it difficult for the company to predict the effects of such changes in the short-term and in the long-term (TSHA).
Social Factors: Southwest Airlines attaches high value to its customers and strives to offer them the best services at the most affordable rates (Southwest Cares Report 1). Its commitment to customer service is depicted in the comprehensive plan in which its mission statement; "Dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and Company spirit," is embodied (Southwest Cares Report 1). Flyer programs are a common strategy for ensuring customer loyalty in the domestic airline market. Southwest Airlines operates a rapid reward program, in which customers are awarded points, using which they could earn free trips (Southwest Cares Report 1).
Southwest Airlines has, as most of its competitors struggle, shown consistency with regard to union relations. With a unionized employee percentage of approximately 90%, and deregulation making
Moreover, considering that the country has a tradition in consuming cereal products due to its agricultural background and preoccupation for healthy lifestyle, the technology adopted by a market entrant should also allow for flexibility in terms of receipts or changing health requirements from both the customer and the authorities. Political (legal) General food safety requirements refer to the health and hygiene of the food handlers, their food handling skills and knowledge, the
The best alternative is to divert Microsoft resources from copycatting an attempt a better, bolder form of technology to rival these competitors. Resistance to change Dropping out of the Internet search engine and downloadable music markets until a real, innovative change can be offered may be met with resistance from marketing staff, who wish to establish Microsoft as a continual player in these areas. But if Microsoft does not release a
Macro-Environment Socio-cultural and demographics Demand for green products Legislation Economic environment Technology Business Level Strategy Protection from the Five Forces Threat of New Entrants Competition Substitutes Supplier Power Competition The building of relationships Business partners/transactions Strategic management Improved value chain Inbound logistics Manufacturing operations Outbound logistics The sales and marketing techniques The virtual value chain The macroeconomic environment of any enterprise is indeed a very vital thing to all the operations of the enterprise. This is brought about by the fact that both the present and the future operations of the business
They must comply with the legislation imposed in their country, as well as that in other countries where they operate. Also, in terms of international operations, fashion designers must act in accordance with the regulations imposed by the international regulators, such as the World Trade Organization. Microenvironemnt - Luella works with a team of talented specialists who are devoted to supporting the company reach its objectives in both creations, sales
Macro and Micro Environment in Management Planning is an important function of management. It is an act of formulating a program for a definitive course of action. The management defines a goal and puts forward its strategies to accomplish the objectives defined. STEPS IN THE PLANNING PROCESS For an organization to begin its planning, it needs to evaluate and assess whether it is ready. An organization need to realize where it is standing
Macro-economic Indicators of Performance and How Recent Changes in Indicators Have Affected Performance of Organization To grow and profit despite a ruthless recession, PetSmart follows and consults certain macroeconomic indicators that regulate and direct its objectives and performance. One of these is the Consumer confidence Index (CCI) . The CCI helps PetSmart gauge spending patterns of the market and assess how the economy is growing in general and if it is predicted