Southwest Airline Strategic Audit

11683 words 47 pages
Ecole supérieure libre des sciences commerciales appliquées

Strategic Management Paper

Southwest Airline Strategic Audit

Prepared By : Hesham Gamal El Din El Desouky Mohamed Dandash Wael Youssef

Professor : Dr. Saneya El Galaly
Group : 21-A

Table Of Contents

I. Executive Summary 5

II. SouthWest Airlines History 6

III. Current Situation 8

III.1. Current Performance 8
III.2. Strategic Posture 13
III.2.1. Mission & Vision 13
III.2.2. Objectives 14
III.2.3. Strategies 15

IV. Corporate governance 19

IV.1. Board of Directors 19
IV.2. Top Management 21
IV.3. Corporate Governance Guidelines 22
IV.4. Ownership Profile 26

V. External Environment (SWOT) 27

V.1. External Societal Environment 27
V.1.1. Economic 27
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Supreme Court declined to review the case without comment. That date is considered by many to be the de facto beginning of deregulation in the airline industry.

Southwest Airlines founder Herb Kelleher studied Pacific Southwest Airlines extensively and used many of the airline's ideas to form the corporate culture at Southwest, and even on early flights used the same "Long Legs and Short Nights" theme for stewardesses on board typical Southwest Airlines flights.

The airline adopted the first profit-sharing plan in the U.S. airline industry in 1973. Through this plan and others, employees own about 10 percent of the company stock. The company went public under the symbol LUV in 1977. What began as a small Texas airline has grown to become one of the largest airlines in America. Today, Southwest Airlines flies almost 100 million passengers a year to 63 cities all across America, with more than 3,300 flights a day.

With over 500 aircrafts, Southwest has one of the youngest fleets in America, with an average age of approximately nine years. Included in the fleet are three flying killer whales, the “Shamu” aircraft; “Lone Star One,” painted like the Texas flag, to celebrate Southwest Airlines' 20th Anniversary in a style and manner second to none; “Arizona One,” a symbol of the importance of the state of Arizona to Southwest Airlines; “California One,” a high-flying tribute to the state of California; “Silver One,” Southwest Airlines' 25th


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