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 actors: federal, state and local regulations have…...
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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 control parameters for receipt, storage, processing, display, packaging, transportation, disposal and recall of food. Food safety is considered essential and the standards are even higher for vulnerable persons or persons with special nutrition needs (e.g. diabetes). Therefore, the required investment in food safety measures and maintenance in proper conditions of a production facility is substantial, such a business being not only costly, but also bureaucratic. Because the consumer's safety being considered essential, the authorities tend to over-control all activities in…...
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Reference list:
Australian Bureau of Statistics (ABS). 2009. More de Facto Relationships, Women Still do Most Housework, More Energy use at Home. ABS (Media Release) - Australian Social Trends: www.abs.gov.au
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 new offering to counteract its first-moving rivals Google and Apple, rather than produce imitations, it will only create an impression in the midst of consumers that Microsoft can no longer compete with its rivals as an innovator, only as a market follower. To meet resistance within the organization, Microsoft must create a clear vision and message that it is a leader, and has always been a leader in its industry, never a follower.
orks Cited
Microsoft rolls-out corporate search tool." CNN: Technology.…...
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Works Cited
Microsoft rolls-out corporate search tool." CNN: Technology. AP Wire. 17 May 17, 2006. [22 May 2006]
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 are dependent on the surrounding business environment. Harley Davidson has continued to embrace the changes that happen around its operations in order to ensure both sustainability and profitability. The modern global motorcycle manufacturing sector is characterized by stiff competition. It is therefore very essential for all the manufactures to critically assess their strengths and weaknesses and thereafter identify the opportunities to exploit in order to gain competitive advantage. esearch and Development (&D) and innovation in the manufacturing process mark the…...
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References
Satadru Bagchi, S & Dhali, S (2009).resource-based strategy project.Hero Honda Motors limited
The macro environment refers to the external factors that can affect a business or organization on a larger scale. These factors are generally uncontrollable and can include economic, social, political, technological, environmental, and legal influences. Understanding and analyzing the macro environment is crucial for businesses to thrive and remain competitive in the market.
One example of the macro environment is the economic factors, such as inflation rates, interest rates, and economic growth. These factors can have a significant impact on a company's operations, pricing strategies, and overall performance.
Another example is the social factors, including demographics, cultural norms, and lifestyle trends. These factors can influence consumer behavior and preferences, which can in turn affect a company's marketing strategies and product offerings.
Political factors, such as government regulations, trade policies, and stability, also play a crucial role in shaping the…...
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References
Swanson, A. (2018). Trump’s Trade War With China Is Officially Underway. The New York Times.
Burn-Murdoch, J., and Giles, C. (2019). Brexit: the Economic Implications. Financial Times.
Schwab, K., and Zahidi, S. (2020). The Global Competitiveness Report. World Economic Forum.
Amadeo, K. (2019). How the Great Recession Affected the Economy. The Balance.
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 objectives and public relations. Momentarily, the designer is undergoing a process of updating its website in order to further improve its relations with the stakeholders, vital for successes (Jefkins and Yadin, 1998). The limitations of Luella come from the fact that the designer is still in the beginning of its operations and does not benefit from having a reputable and strong brand.
eferences
Jefkins, F., Yadin, D., 1998, Public elations, 5th Edition, Financial Times Management
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 POCESS
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 and what it wishes to accomplish. They need to assess this by an analytical study of their recent history, their strengths and weaknesses. The organization can also set up a planning committee and hand this job over to them. In any case the organization or a planning committee will need to recognize specific issues that should be addressed to in the planning process.
An important thing to consider here is that enunciated visions comes from those who have a stake in…...
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REFERENCES:
Baxmann, M., Spatial Consensus-building Through Access to Web-based GIS:
Burby, R.J. et al., 1998. Improving Compliance with Regulations: Choices and Outcomes for Local Government. Journal of the American Planning Association. Volume: 64. Issue: 3. Page Number: 324+.
Technological forces -- numerous technological advancements have been made that allow the organizations to increase their operational efficiency, market coverage, quality of products and services, all to lead in superior levels of profitability.
Legal characteristics -- the business legislation is continually modifying, often implying additional costs for the companies, which have to spend increased time and resources to understand and comply with the new regulations; examples could include new laws regarding fiscal pressure or advertising regulations.
Environmental features -- there is a growing focus on environmental concerns and a real trend in both society as well as legislation to deliver environmentally-friendly products and services. Ways in which these concerns could affect West End include financial pressure to purchase more energy-efficient technologies or to use organic commodities in their manufacturing processes.
eference:
Website of the London West End, http://www.westendlondon.com / last accessed on May 26, 2009...
This model is much more conservative, and thus tends to try to avoid government interaction within the system. Here, the research suggests that it "stresses the connectedness of the monetary flows" (Hannes, 2012, p 4).As such, it keeps its leakages from separating and floating out of the system, as well as providing for more inside injections that do not rely so much on outside systems, as in the case with an open model system. The model is most concerned with savings and investment in order to keep leakages from spilling out of the model system, as in the case with the open system. In this system, borrowers take credit and invest it back into the system, therefore adding elements of credit into the system as an injection. In this regard, savings is seen as an injection, not a leakage like in the open systems model. Thus, "the closed model…...
Competitors are a special category of eBay's microenvironment's components. EBay's most important direct competitors are Amazon Inc., Google Inc., and Yahoo Inc. The companies are quite similar, they have similar sizes and number of employees, or quarterly revenues growth level. However, there is little threat of new entrants on the market, as eBay is at a very high level that is very hard to be attained by smaller new entrants, requiring substantial initial costs that are not available for smaller companies trying to enter on this market. However, eBay may have to deal with such issues in the Asian region, where the company is not as strong as it is in the United States.
EBay's macro-environment is consisted of the demographic, economic, technological, cultural, political, institutional, and natural environment. The economic environment is the most important one, for both the United States and the Asian region. Unlike the Asian unstable economic…...
Business Organisations Environments Exist
Business Organizations Environments
Organisations have changed their normal horizon of working and they have transformed their general perspective to work. In the current era strategies have been transformed and effectiveness prevails in the international business arena. This paper would solely focus on the aspects of internal and external environments within the organisation and how these environments affect the general procedures of an organisation in the longer run. The evaluation of this paper is based on several questions and these questions are answered below in detail.
Internal pressures in an organisation and quite critical and complex. At times they can change the entire scenario of a worker and they have the tendency to either bring laurels for the company or they can also tarnish the career of an individual. That is the reason why all these aspects should be kept in mind when an individual is working on all…...
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References
Davis, P. & Desai, A., 2000. Mode Of International Entry: An Isomorphism Perspective.. Journal of International Business Studies, Volume 4, pp. 3-28.
Business environment consists of numerous factors and forces that impact the business organizations' ability to operate competitively and profitably in their industry. These forces exist at both micro and macro levels and require the business organizations to show quick response to the uncertainties and complexities which may arise in the business environment from time to time (Cadle, Paul, & Yeates 2010). These forces impact each and every aspect of the business operations like marketing decisions, segmentation, targeting, and positioning strategies, consumers' buying behavior, marketing or promotional activities, and others (Lamb, Hair, & McDaniel 2012). This paper presents a report on the marketing analysis of Nike, Inc. -- a well-recognized brand in the clothing, sportswear, and footwear manufacturing industry of the world. The major sections include; impacts of micro and macro environments on Nike's marketing decisions, the segmentation criteria which it uses in different markets, the targeting strategies…...
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REFERENCES
Cadle, J., Paul, D., & Yeates, D. 2010, Business Analysis, 2nd Edition. Swindon: British Informatics Society
Kurtz, D.L., MacKenzie, H.F., & Snow, K. 2010, Contemporary Marketing, 2nd Edition. Toronto: Nelson Education
Lamb, C., Hair, J., & McDaniel, C. 2012, Essentials of Marketing, 7th Edition. Ohio: South-Western Cengage Learning
Nike, Inc. 2012, About Nike, Inc. Available from [Accessed September 30th, 2012]
external environment facing TOYOTA, the global car manufacturer. This paper discusses impacts of the company's internal organizational strategy (structures and management). The work is divided into two tasks. Task 1: Critically evaluates key factors (e.g. environmental, global, competition, technology) impact TOYOTA performance. Task 2: Provides strategic recommendations for senior managers of the TOYOTA.
Examine the external environment of TOYOTA and how this impacts on the internal organizational strategy (structures and management). Critically evaluate the key factors (e.g. environmental, global, competition, technology) that impact on TOYOTA performance. Findings are drawn from use of analysis tools (e.g. PESTLE, Porter's five forces, SWOT).
Strategic Analysis
We begin our analysis of Toyota by looking at the company through three analytical prisms: Porter's Five Forces Analysis, SWOT Analysis, and PESTLE. It is necessary to define what these analytical prisms are, initially, i.e., define terms, before beginning the analysis in earnest.
Porter 5 Forces Analysis
Porter's Five Forces is an…...
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REFERENCES
1. Toyota seeks 15% of global car market: Japanese automaker targeting Russia, India, China and Brazil, MSNBC.com, November 13, 2006
2. Global Economic Research: Global Auto Report: Strengthening Car Sales Drive Global Vehicle Output To Record High -- Production increase will support global economic activity, Feb. 25, 2011, Scotiabank Group
Economic Environment of a Business
The objective of this work is to summarize the economic environment of a business including information relating to microeconomics, macroeconomics, and international trade aspects
The business organization is a "micro-economic unit" and the business environment is that which makes provision of the "macro-economic context within which firm operates." (eddy, ) The business environment can be categorized into the 'economic' and non-economic' and the 'micro- and macro-environment. (eddy,, paraphrased) The firm is an economic institution in a market system with the behavior of the firm reflecting the result of the decisions that were economic in nature that the manager of the firm made.
The economic environment of a business in today's globalized business society is complex in nature. There is an inherent link between the business sector and it relationship with the government, capital market, household sector and the international business sector -- all of which serve to influence…...
Business - Management
External Environment Analysis
Southwest Airlines is the nation's low fair, high customer satisfaction airline. It mainly serves short haul cities, offering single class air transportation, which aims for the business commuter as well as leisure travelers. The North American Industry Classification System (NAICS) classifies Southwest Airlines as Scheduled Passenger Air Transportation - 481111 (North American Industry Classification System, 2011).
When conducting an external analysis it is important to look at Porter's five forces to determine the competitive strength and therefore magnetism of a market. Porter's five forces comprise five forces from horizontal competition and vertical competition. These forces are: threat of substitute products, the threat of established rivals, and the threat of new entrants, the bargaining power of suppliers and the bargaining power of customers (Porter's Five Forces a Model for Industry Analysis, 2010).
The first threat is that of the threat of new entrants into the market. This is a…...
Technological advancements and cultural trends can have a significant impact on the macro environment for businesses in several ways:
1. Technological advancements: New technologies can create opportunities for businesses to streamline operations, improve efficiency, and develop innovative products and services. Businesses that are able to leverage technology effectively can gain a competitive advantage in the marketplace. On the other hand, businesses that fail to adopt new technologies may struggle to keep up with competitors and meet consumer expectations.
2. Cultural trends: Changes in cultural attitudes and values can influence consumer preferences, buying behavior, and market trends. Businesses that are able to identify....
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