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Jun 19, 2024

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Environmental Analysis and SWOT Analysis Tiara Jefferson Mkt 574 University of Phoenix 06/17/2024 Prof. Ismael Hau
Part A: Environmental Analysis and SWOT Analysis Business Description Southwest Airlines Co. was founded in Dallas, TX in 1967 and went commercial on June 18, 1981. It is the world's largest operator of the Boeing 737 and has a fleet of eight hundred seventeen (About Southwest Airlines, 2024). Being in business over fifty years, the airline is in more than one hundred twenty airports across eleven countries. The company’s mission statement is “To connect People to what's important in their lives through friendly, reliable, and low-cost air travel.” (About Southwest Airlines, 2024). The vision statement is “To be the world's most loved, most efficient, and most profitable airline” (About Southwest Airlines, 2024).
Environmental Analysis Competitive Forces Southwest is the fourth largest commercial airline fleet globally with over seventy-four thousand employees (About Southwest Airlines, 2024). The main competitors are Delta, American, Frontier, and Spirit airlines. Southwest Airlines ranks number one in overall customer service compared to their competitors (About Southwest Airlines, 2024). To stay competitive in this challenging environment, Southwest needs to continue focusing on cost control, operational efficiency, and delivering a superior customer experience. Economic Forces The company has made approximately 26.1 billion USD as of May 2024 (Southwest Airlines Co (LUV) 2024) and has increased 9.56% since 2022 (Southwest Airlines Co(LUV) 2024). During the pandemic, air travels decreased due to people not feeling safe being in proximity of airplanes. Political Forces Geopolitical events can impact international travel and tourism. To prevent exploitation and other sorts of mistreatment Southwest should guarantee that the employees know the rules and regulations (International Labor Organization, 2023). Legal, Regulatory, and Ethical Issues Legal The laws determine how much overtime employees can be worked, how many hours a person can work in a day, and paid vacation. They are in place to safeguard employees, but they can be challenging for businesses especially if people are not use to their
culture (International Labor Organization, 2023). Employment Security Act went into effect January 1st, 2018, and it states if working conditions of labor contracts are different from the conditions indicated in the initial job-offering (International Labor Organization, 2023). Regulatory The organization provides a detailed onboarding program that includes networking opportunities, orientation, and training based off the individual jobs. The business also offers mentorship programs and chances for workers to interact with senior personnel and leadership. (Southwest 2024). Due to the pandemic, Southwest still has virtual interviews but since the guidelines have changed in-person interviews are now an option again (Southwest, 2024). The company still makes it efficient, effective, and engaging to the new employees. Ethical Labor unions represented approximately 83% of our workforce. (Southwest, 2024). Their approach to collective bargaining focuses on partnering with Leaders and Unions to negotiate labor agreements that achieve positive outcomes for the employees (Southwest, 2024). The company should work with a local labor union to make rules are followed. Every business should make sure employees are aware of their legal rights and protections, such as Employee handbooks, training seminars, etc. (Southwest SWOT 2023).
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