Fluent Essays

Good Day Writer, Please see the below instructions for the assignment. I will also provide the feedback from each week in the below instructions. Please use US Microsoft word format and APA format. If you have any questions, please let me know.  You are almost at the finish line; the last step in the completion of your strategic audit report is to put everything together. You will compile your report with what you have already completed during each activity for the final strategic audit report. However, before you begin, ensure you go back and implement all of the instructor's feedback, guidelines, and comments into each strategic audit assignment created in each module. Part of the grade for this assignment includes your ability to implement feedback from the instructor properly. This should take several hours to do if it has not already been done. In most businesses, continual updates to a strategic audit report will be made based on an organization's input, feedback, and suggestions which is part of the overall processes. Complete your deliverablesProvided are the guidelines to complete your report: Once you have updated each section based on your instructor's feedback, compile all of the sections together as per the report outline provided within the Strategic Audit Report Guidelines. Do not include anything extra such as a table of contents, abstract, summary, or other that is not listed as part of the report outline. Ensure each section is identified correctly (title, numbers, and letters) as per the Strategic Audit Report Guidelines and that your sources are properly cited and referenced in current APA format. Compile all pages of your document to submit to this assignment. Review the Strategic Audit Report: Final Strategic Audit Report rubric for additional grading criteria. Week 1 Feedback: Great job on your strategic audit company introduction. Please make sure to add the word References at the top of your references page in future papers. Week 2 Feedback: You did a good job describing Southwest Airlines mission and vision statements. I like the detail you added to the profitability area but would like to see more in the investment area.   Convert your table for the board of directors to paragraphs. Your level 1 heading should be the same as your title and references should have its own stand-alone page. See the APA 7th edition example paper for the proper way to format your papers. Week 3 Feedback: This assignment received a 29/100....There were two sections missing from your paper (natural and physical environment and explanations). Your EFAS worksheet is well done and provides lots of detail and full descriptions. Week 4 Feedback:You did a good job describing the culture of the organization and your IFAS. I would like to see you develop your 10K analysis and summary more. What is the company's strategic financial plan from a historical, current, and future perspective? Week 5 Feedback: Great job! You covered the concepts well and provided very good descriptions within each section. Please the highlighted section of your paper regarding APA formatting. Week 6 Feedback: Great job on the TOWS Analysis; however, your SFAS was lacking substantive comments. You provided a very good strategy recommendation about diversification that would serve Southwest Airlines well. Week 7 Feedback: No response yet.  Week 8 Feedback: No response yet. 2 STRATEGIC AUDIT REPORT 2 Southwest Airlines Co. - Strategic Audit Report Introduction Overview James Goggans MGMT 436, Strategic Management Prof. Robert E. Rue 11 July 2021 Southwest Airlines Co. - Strategic Audit Report Introduction Overview The organization selected for the strategic audit report is Southwest Airlines Co. The Airline was established jointly by Herb Kelleher and Rollin King in 1967 (Southwest Airlines Co., 2021). It is pertinent to note that the founders of the Airline aimed at targeting the domestic air travel demand in the United States and initially focused only on air routes connecting Dallas, Houston, and San Antonio. The company’s main competitive edge over other airlines in the industry has always been its exceptional customer service, which has helped the company grow its business substantially within the United States over the years (Southwest Airlines Co., 2021). The services of Southwest Airlines Co. mainly comprise the scheduled air transportation through its point-to-point service in the United States and other neighboring international markets (Reuters, 2021). Apart from these scheduled air services, Southwest Airlines Co. also provides additional services, such as pets transportation, unaccompanied minors transportation, and EarlyBird check-in services to its customers. The ticketing and reservation services are available through an online platform on the company’s website (Reuters, 2021). As far as the target customer base is concerned, it is important to note that although the Airline operates internationally, it only serves the near-international markets. However, the main target market of the company remains within the United States. In addition, the Airline has traditionally positioned itself as a low-cost carrier within the United States, and hence it mainly focuses on middle-class families, small businesses, and young travelers in its marketing and promotional campaigns (Marketing School, 2020). In other words, Southwest Airlines Co. makes use of niche marketing to target specific population groups, as discussed above. References Marketing School. (2020, November 28). Targeted Marketing. Retrieved from Marketing School: https://www.marketing-schools.org/types-of-marketing/targeted-marketing/ Reuters. (2021). Southwest Airlines Co. Retrieved from Reuters: https://www.reuters.com/companies/LUV Southwest Airlines Co. (2021). About Southwest. Retrieved from Southwest Airlines Co.: https://www.southwest.com/html/about-southwest/index.html#:~:text=In%201967%2C%20Herb%20Kelleher%20and,%2C%20Houston%2C%20and%20San%20Antonio. SOUTHWEST AIRLINES 5 Strategic Posture and Good Governance: Southwest Airlines James Goggans Embry Riddle Aeronautical University MGMT 436, Strategic Management Prof. Robert E. Rue 18 July 2021 Question 1: Performance of the Company over the past year Investment The 2020 financial year witnessed a significant recession in the airline industry that affected investment decisions. The customer service remained outstanding, and the company adapted quickly to the new mode of operations. The company restructured the route network and launched the Southwest Promise that added cleaning practices throughout the company's process. The company invested in the leisure sector with several leisure destinations increasing the company's market share (Vinod, 2021). The company recorded short-term investments of $ 14.5 billion by the end of the second quarter. The company focused on minimizing cash burn and recorded notable positive results. Market shares The company maintains a strong presence across significant markets. It serves America's top cities and has expanded to leisure destinations such as Colorado, Hawaii, Florida, and California. Since March 1, 2020, the company announced and introduced services to other Leisure destinations hence increasing the customer base (Shaneyfelt, 2021). Statistics reveal that Southwest Airlines is ranked second in the domestic market share led by American Airlines (American Airlines 19.3%, Southwest Airlines 17.4%). Today, the company serves more than 100 destinations by flying 4,000 flights a day across the US. Today, the company serves 14 near-international destinations in 10 countries. Profitability After 47 consecutive years of profitability, 2020 was a bit different for Southwest Airlines. During a virtual interview where the company's CEO was hosted by Texas Tribune, Gary Kelly revealed that traveling is modest, and the revenues have dropped. During the interview, the CEO highlighted that it would be unrealistic to think that they would recover to a point where they will be profitable like it was in 2019. The company's second-quarter earnings were the worst as the company lost $1.5 billion. During the first quarter, the company had lost $77 million (Dube et al., 2021). The airline industry is one of the most hit industries by covid-19. However, the CEO revealed that as they adjust to the new normal, they hope that operations will resume normally. Question 2: Mission and Vision Statements Southwest Airline's vision is statement is "to become the world's most loved, most flown, and most profitable airline." (Dias, 2020). Southwest Airlines has strategic plans that help to achieve the vision. The vision is reflected in the company's performance over the past years in terms of gaining a competitive advantage and profitability. The use of the word world's depicts the company's vision to tap the global market. It is also clear that it aims at achieving an outstanding brand image. Talking of the most flown and loved, it seeks to be highly popular among passengers and the only way to gain the popularity is to offer the best services to customers. The company also aims to attain the industry's highest profitability, which is attributed to the efforts to gain a competitive advantage. The strategic vision of the company requires strategic initiatives such as seizing growth opportunities. Southwest Airlines' mission statement is, "The Company is dedicated to the highest quality of customer service that is delivered with a sense of warmth, individual pride, friendliness, ad company spirit." It has made outstanding efforts in customer service that makes it different from other companies in the airline industry. Several points emerge from the company's mission statement. First, the company seeks to offer the best aviation customer service. Second, employees must serve customers with warmth, corporate spirit, and friendliness. Therefore, it emphasizes excellent customer service that is aligned to employee culture and organizational image (Kim et al., 2021). The mission statement depicts that customer service is a significant determinant of company performance. It explains the company's strategic efforts in offering high standards operations in customer service. The mission statement points out employee behavior as a determinant of performance. Question 3: Board of Directors Name Internal/ External Year of election Level of management Role Gary Kelly Internal 2004 Top Chair of the board and CEO of the company.Chair of the executive committee (Martinez, 2021). Ron Ricks Internal. 2015 Top Vice-chair of the board. Member of executive and safety/compliance committees. David Biegler External 20o6 Top Chairman of compensation and safety/compliance committees. Financial expert of the audit committee. Veronica Biggins External 2011 Top Member of the compensation and nominating/ corporate governance committees (Company website, 2021). Douglas Brooks External 2010 Top Member of nominating and corporate governance committee and the safety and compliance oversight committee (Company website, 2021). William Cunningham Internal 2000 Top Chair of nominating and corporate governance, member of executive committee, and financial expert/member of audit committee. John Denison Internal 2008 Top Denison is a member and financial expert of audit committee. He is also a member of the executive committee, and chair of safety and compliance oversight committee (Company website, 2021). Thomas Gilligan External 2015 Top He is a Member and financial expert of audit committee. Thomas is a member of safety and compliance oversight committee too (Company website, 2021). Grace Lieblein External 2016 Top She is a member of compensation committee and safety/compliance oversight committee. Nancy Loeffler External 2003 Top Nancy is a member of compensation and nominating corporate governance committees (Company website, 2021). John Montford External 2002 Top John Chairs the audit committee where he is also the financial expert. He is a member of compensation/ nominating and corporate governance committees (Company website, 2021). References Dube, K., Nhamo, G., & Chikodzi, D. (2021). COVID-19 pandemic and prospects for recovery of the global aviation industry. Journal of Air Transport Management, 92, 102022. Dias, R. S. (2020). Southwest airlines Co.: consistency for the future (Doctoral dissertation). Kim, S., Murray, K. B., & Moore, S. G. (2021). The Importance of Warmth in Brand Design. In The Value of Design in Retail and Branding. Emerald Publishing Limited. Martinez Garbuno, D. (2021). Southwest’s Plan To Attract More Business Travelers. Shaneyfelt, H. J. (2021). Flying Under the Radar: Multimarket Contact and Tacit Collusion in the US Airline Industry (Doctoral dissertation, Miami University). Vinod, B. (2021). Airline revenue planning and the COVID-19 pandemic. Journal of Tourism Futures. Southwest Airline official website (2021)https://www.southwestairlinesinvestorrelations.com/corporate-governance/board-of-directors THE EXTERNAL ENVIRONMENT 3 Southwest Airlines: The External Environment James Goggans Embry Riddle Aeronautical University MGMT 436, Strategic Management Prof. Robert E. Rue 25 July 2021 Natural and Physical Environment Weather Weather affects the operations of the company by increasing the time between taking off and landing. Weather patterns such as ice, fog, and snow increase the time is taken between take-off and landing, consequently reducing the number of aircraft that the company can manage in a day. Weather also affects road transport, and travellers may take longer to reach the airport. During bad weather days, the company is likely to make more profit. Temperature There is a significant climate change, and the temperature changes share the performance of the aircraft ad general operations at the company. Very high temperatures reduce the lift and make the requirements lengthy (Ryley, 2020). The company mays also consider increasing the payload that may reduce demand. Also, temperatures influence travel destinations and may change the demand for the company's services geographically and seasonally. Sea Levels The company is expected to witness an increase in sea levels due to the changes in global climate. A rise in sea levels puts Southwest Airlines a risk of inundation, and there is a possibility of increased storms marked by geographical differences. When the sea level is high, the airport may lose its airport capacity, leading to disruption networks. Other surface links will be disrupted, leading to delays and the cancellation of flights. Consequently, the company will register low profits. Wind patterns Extreme winds increase turbulence and disrupt schedules significantly. When it is windy, airplanes experience challenges when decelerating and accelerating. The situation is worse when there is snow on the ground, as the high winds will cause the airplane to drift the runways, leading to delays (Chen et al., 2020). The delays reduce the number of flights in a day which leads to reduced income. Forces that affect the Aviation Industry Economic factors Prevailing economic factors shape the profitability and operations of southwest airlines and other companies in the aviation industry. Economic growth increases sales and profitability, while economic suppression reduces profitability. Coronavirus has created economic uncertainties by minimizing travel which directly influences the industry's operations (Antosova et al., 2020). The past year has witnessed reduced sales and profitability because of reduced traveling and other carriers' availability in the domestic market. Technological factors Technological factors are significant in the aviation industry, and companies that use more advanced technologies gain a competitive advantage over others. Today, the industry has shifted focus to customer safety, convenience, and satisfaction. The need to meet customer needs has challenged companies in the industry to deploy safer flight technology and enhanced digitalization to stand out from other companies (Ravi, 2020). Today, the use of mobile devices in booking flights has increased significantly, and most companies, including Southwest Airlines, have invested in mobile technology. Political-legal factors Political regulations have a direct, significant impact on the performance of the company. Recently, the legal environment is not very tight, and the company exercises some freedom regarding routes and charges (Van Kleef, 2020). However, the hit of the pandemic has also shaped the operations of the company and the entire industry. Governments exercise direct control, especially in terms of routes to help contain the pandemic, and this control affects the company's performance. Although the company introduced leisure travel recently, the profitability is lower due to minimal traveling. Sociocultural factors Sociocultural factors shape the performance of the industry by increasing or decreasing demand. As people become more economically and technologically aware, the demand for air travel increases. Today, more people are using air transport because of increased knowledge and perception of the industry. According to research, companies are more attracted by companies with a positive social image (Yowell, 2021). Since the company has a positive image in society, the demand for its services is high. Airline companies that have a positive image have a competitive advantage over those that have a negative image. References Antošová, G., Vogl, M., & Schraud, M. (2020). Challenges for the Visegrad Group–The Coronavirus Crises and its Impact on Tourism. Visegrad Journal on Bioeconomy and Sustainable Development, 9(1), 28-32. Chen, F., Peng, H., Chan, P. W., & Zeng, X. (2020). Wind tunnel testing of the effect of terrain on the wind characteristics of airport glide paths. Journal of Wind Engineering and Industrial Aerodynamics, 203, 104253. Ravi, A. K. (2020). Reinventing strategic management: An evolutionary perspective. Asian Journal of Management, 11(4), 429-433. Ryley, T., Baumeister, S., & Coulter, L. (2020). Climate change influences on aviation: A literature review. Transport Policy, 92, 55-64. Van Kleef, G. F. (2020). Model of Low-Cost Carriers Development Possibilities in the International Small Packages Delivery Markets (Doctoral dissertation, Vilniaus Gedimino technikos universitetas). Yowell, A. (2021). Corporate Social Responsibility Takes Flight: An Exploration of Airline Industry CSR Reporting Practices. SOUTHWEST AIRLINES CORPORATE CULTURE 4 Southwest Airlines Company Culture James Goggans Embry Riddle Aeronautical University MGMT 436, Strategic Management Prof. Robert E. Rue 1 August 2021 Southwest Airlines Company Culture Southwest Airlines has a strong, positive culture that has contributed to its success. The company has a caring culture, and stakeholders have worked to protect it, leading to its recognition as one of the FORTUNE magazine's most admired companies for 26 years. At the company, it is more of the heart and focuses on connecting people and communities. The main components of the company's corporate culture are; employee-centered celebration, recognition, and appreciation. Customers and business stakeholders enjoy the company's slogan; Working the southwest way (Imaizumi, 2017). The slogan encourages customers and employees not to take life so seriously and always embrace a fun-loving attitude. The company's culture is aligned with its strategic policies, objectives, and plans. The company culture has made Southwest Airlines a compelling brand in the eyes of its customers. The fun-loving attitude and customer-friendly policies are available to make it outstanding. The efforts of appreciating and recognizing employees enhance the company's customer service because employees are dedicated to boosting the company's success. The employees are recognized as the best in the industry as they manifest hospitality and admirable customer service. The company's marketing objective is to attract a loyal customer base who will fly consistently. The marketing goals are clearly stated and are aligned with the company's vision and mission statements. The company's mission is to offer the highest quality of customer service through a sense of warmth, friendliness, company spirit, and individual pride (Peters, 2019). Southwest Airlines' vision is to become the world's most loved, most profitable, and most flown airline. The vision and mission statements are aligned to the marketing objective as they aim at offering the best services that will increase the number of loyal customers. When the company has more customers, its low-cost strategic model will be more effective. References Imaizumi, M. (2017). Company Culture Drives Productivity: A Study on How Company Culture Impacts the Bottom Line. Peters, L. (2019). Corporate Culture: It Takes More Than Donuts!. In The Simple Truths About Leadership (pp. 63-72). Palgrave Macmillan, Cham. INTERNAL ENVIRONMENT 6 Internal Environment James Goggans Embry Riddle Aeronautical University MGMT 436, Strategic Management Prof. Robert E. Rue 8 August 2021 Internal Environment Operations and Logistics Southwest Airlines produces its goods and services both internally and externally. However, most of their products are made externally, and they maintain an ethical relationship with the suppliers. They partner with suppliers to produce the equipment they use to offer transportation services to their customers. The company has a diverse supplier base consisting of women, the LGBT community, the disabled, and the disadvantaged. Most of its equipment is customized, helping in maintaining the identity and building its brand. The company uses several resources to offer services to its esteemed customers. The first resource is its fleet of aircraft that form the main part of the company resources. It would not be possible to offer services without the aircraft. The company also has a service and maintenance infrastructure that attends to emergencies whenever one arises, ensuring that customers get services all the time with minimal disruption. Southwest Airlines has a network of partnerships that enhances its community outreach and boosting its corporate social responsibility. It has an IT infrastructure whereby some of the services have been automated. IT infrastructure also improves the quality of services and minimizes delay (Dias, 2020). Lastly, the company enjoys a team of dedicated employees whose customer services are unmatched. The company operates by offering point-to-point flights between cities and connecting to secondary airports in larger cities and other countries. The company maintained frequent departure and implemented automated ticketing. Automated ticketing reduces congestion at the gate and also increases revenue due to the reduced cost of production. The company's customer service phone line is reachable 24/7, and this enhances customer convenience. Human Resource Management The company currently has 54 448 employees who have enhanced a positive corporate culture and have contributed to the company's success. The employees enjoy various benefits that make them committed to the company's strategic goals. The company offers health benefits in medical, vision, dental, short-term disability, and accidental coverage. The company has exceptional retirement plans where employees can pay as they prepare for a comfortable future after retirement (Harvey & Turnbull, 2020). There are well-being rewards that enhance better living among employees, including time off for personal development. Employees also have access to free counseling services so that they have good mental health. They also have paid vacation and leaves depending on job group and years of service. Reports indicate that about 83% of the company's employees are unionized. The goal is to make sure parties maintain the collective bargaining agreements to take care of employees by offering them the best working conditions and payment environment. For example, NEXSTAR represents flight attendants and ensures they are working in a very comfortable environment. Employees review the company as a good workplace with favorable conditions. However, recently, employees complain of stressful demands caused by the pandemic. There are also concerns that the management and culture of the organization have to be worked on for better results. There are no records concerning government fines or human rights protests against the company for mistreatment of employees. However, unions have raised the alarm over frequent abuse and violence from passengers. In May 2021, a flight attendant lost two teeth after a passenger punched him. Reportedly, the passenger had ignored inflight instructions and became furious. The union says that flight hostility is unprecedented and wants the company to be consistent in barring unruly passengers (Wood, 2021). The union also calls for increased air marshals on planes to tame the behavior. Information Technology The company implemented automation of some administrative tasks that are considered burdensome to reduce costs and time. The company has automated its recruiting process to create a personalized and efficient approach to candidates' selection. According to the company website, automation is projected to reduce the selection time from 42 days to 21 days. The company has deployed an automated chatbot that answers questions from potential candidates and connects recruiters with these candidates. Most of the customer care services are also automated. For example, the company allows customers to book flights online and be checked in automatically. The complaints process is not automated, but customers must call the customer relations department to tweet to launch complaints. The company has registered a swift transition from a paper-based environment to a complete technology-based structure. The company has automated logistic processes and can easily track contracts, making it easier and transparent to review operations. The company automatically emails insurance brokers and companies when updating specific fields. Using Risk connect software, the company has integrated different business units, easing supervision and service delivery. Today, passengers are wary of touching services, and Southwest Airlines offer a contactless experience through an inflight entertainment portal that allows customers to stream content without downloading an app. The change is driving a real-step change regarding connectivity and quality of services (Tansitpong, 2020). The automation of customer services at the company made it easier to transform to the new normal where employees work from home and there is minimal physical contact. The company has bid goodbye to antiquated systems, and a new reservation system has been implemented to tighten flight timing and accept foreign currency. Mechanics and other employees have access to real-time information to address emergencies within the shortest possible time. References Dias, R. S. (2020). Southwest Airlines Co.: consistency for the future (Doctoral dissertation). Harvey, G., & Turnbull, P. (2020). SOUTHWEST AIRLINES. Case Studies in Work, Employment and Human Resource Management, 80. Tansitpong, P. (2020, January). Identifying key drivers in airline recommendations using logistic regression from web scraping. In Proceedings of 2020 the 3rd International Conference on Computers in Management and Business (pp. 112-116). Wood, D. (2021). Flight Attendant Union Sends Letter to Southwest Airlines CEO After Vicious Assault. DIVERSIFICATION 3 Southwest Airlines’ Need for Diversification James C. Goggans Embry Riddle Aeronautical University MGMT 436, Strategic Management Prof. Robert E. Rue 15 August 2021 Diversification at Southwest Airlines Southwest Airlines has been operating within the US market for some decades. The company has considered diversification and taping the international markets that have been successful in Mexico and the Caribbean. However, this diversification is limited, and the company should invest further in international markets to increase its market share and enhance profitability (Amankwah-Amoah, 2021). Due to its brand name and value, it will be easier for the company to establish loyal customers in the international market. The loyal customer base will make the company more profitable and improve its penetration to new customers. Diversification is the most effective strategy for the company, with existing strategies that can help Southwest Airlines tap the international market. The company has a dedicated and motivated team of employees. These employees will gain a competitive advantage in the global market. While competition from other Airlines may be stiff, a strategic and gradual penetration will be fruitful (Ambrose & Waguespack, 2021). The company's cost management will also make it possible to incur the lowest costs possible in entering the new markets. The success in the local market will be replicated in international markets, and the outcome will be increased market share, enhanced brand value, and more profits. Diversification reduces the risk of loss. Currently, the company relied on the local market apart from the few international markets it ventured into recently. There is a higher risk of losses due to market uncertainties. It is rare for uncertainty to befall the whole world, and by tapping different markets, the company minimizes the risk of losses. By tapping the international market, the company will expose itself to more opportunities. Southwest Airlines will discover more gaps in these markets and create value that other Airlines may not have made before. References Amankwah-Amoah, J. (2021). COVID‐19 pandemic and innovation activities in the global airline industry: A review. Environment International, 156, 106719. Ambrose, S., & Waguespack, B (2021). Fundamentals of Airline Marketing: Strategies for Success in a Hyper-competitive Environment. EVALUATION AND CONTROL 5 Southwest Airlines Evaluation and Control James C. Goggans Embry Riddle Aeronautical University MGMT 436, Strategic Management Prof. Robert E. Rue 22 August 2021 Performance Evaluation Southwest Airlines uses two main tools for performance management. The first tool is the quarterly check-in pilot covering nine departments, including operations, commercial, and enterprise departments. The model focuses on the continuous feedback model based on performance appraisals. It is a simple program that involves setting clear expectations and motivating people through continuous feedback (Gillespie, 2017). The company also still relies on the traditional performance appraisal, where employees are assessed yearly to determine their performance and identify areas that require improvement. Both leaders and employees participate in performance evaluation forms, and collaborative forums have been The two performance evaluation programs are pretty effective, but some gaps can be fixed by improving the performance tools or by introducing new evaluation programs/tools. The tools do not allow continuous assessment because it is done a standard number of times in a year for the check-ins and one a year for the traditional performance appraisal. The two programs also lack a system that focuses on the future after assessing current performance. No coaching culture targets continuous improvement in the two evaluation programs. One of the best ways to enhance these programs is introducing a coaching culture to facilitate continuous improvement. Alternatively, the company should consider the use of software for performance appraisal. This approach enhances better assessment and enhances ongoing and consistent evaluation. It also allows managers to provide constant feedback so that stakeholders can work on the gaps as soon as possible. Tools such as Inspire, intelliHR, and KissFlow HR cloud integrate different company parts for appraisal. The company should also be on the lookout for the latest advancements in technology that support employee evaluation for better outcomes. Output, behavior, and input controls at Southwest Airlines. Southwest Airlines implements several control mechanisms to maintain high performance and retain its market share. The behavior control mechanism comprises tools that encourage employees to give their best and register the highest level of performance. These mechanisms include the use of incentives that encourage employees to work harder. The company also offers stock purchasing programs available to the employees to get more involved in the company. The company uses different mechanisms to calculate output, depending on the department and the parameter found to be impactful in that department. The mechanism targets the identification of errors and defining ways to correct these errors. The company also manipulates the output variables to determine the actual productivity. The company included input controls data because it has a significant impact on productivity. The input controls of the company are Southwest's business model that centered on efficient operations, innovative logistics solutions, and low-cost pricing (Cote, 2018). The company focuses on customer experience by channeling resources on employee training and investing in technologies that boost customer experience. All this would not be possible without a motivated team of employees. Therefore, the company also focuses on employee motivation by integrating monetary and non-monetary forms of rewards. The control mechanisms have been effective and successful. Through these mechanisms, the company has responded to behavioral and financial deficiencies on time before significantly impacting the company. The mechanisms allow the company to take corrective measures and adjust processes to enhance output. For instance, when employees do not meet performance standards, the company can easily detect the cause of the problem and address it for better performance. References Cote, R. (2018). Leadership Analysis: Southwest Airlines-Herb Kelleher, CEO. Journal of Leadership, Accountability & Ethics, 15(1). Gillespie, K. M. (2017). How do Airline Acquisitions Impact Customer Service? A Case Study of Southwest Airlines' Acquisition of AirTran (Doctoral dissertation, Fielding Graduate University). EXECUTIVE SUMMARY 4 Executive Summary James C. Goggans Embry Riddle Aeronautical University MGMT 436, Strategic Management Prof. Robert E. Rue 29 August 2021 Executive Summary Southwest Airlines was established in 1967 and is famously known for its low-carrier strategy in the US. The company has gained a competitive advantage over time due to its exceptional customer service, enabling the company to register consistent profitability for years. This executive summary summarizes its strategic report, capturing essential elements, including its corporate social responsibility, marketing message, business, and corporate strategies, SWOT analysis, corporate governance, and Evaluation and Control. Based on the findings of the report, the company has a positive brand image and offers high-quality services at low prices (Dias, 2020). While it may be facing some challenges, there is an opportunity for better performance. The company has a social responsibility slogan that challenges the company always to do the right thing for the community, employees, customers, and other stakeholders. The company gives back to the community through share-the-spirit programs such as donations and scholarships. The company is also dedicated to keeping customers and the entire community safe through indiscriminative employment, and the fun-loving attitude makes the organization a safe place for all (Cote, 2018). The company has outstanding corporate governance policies that hold the board of directors to the highest integrity, objectivity, wise decision-making, and other ethical standards. The company has a set of strengths that contribute to its outstanding performance. These strengths include a Luv culture, lower costs, a suitable environment for employees, a high brand value, and global admiration. However, the company also experiences overdependence on Boeing 737s, limited diversification, dependence on the domestic market, increased operational costs, and ineffective feedback mechanism (Chishty-Mujahid, 2017). Externally, the company has an opportunity to expand routes, upgrade the fleet, restructuring the cost model, deploying low-cost airlines, and expanding its social amenities. Southwest Airlines faces threats from the current pandemic, fuel price fluctuation, stiff competition, a demanding legal environment, and increased remote working. Despite these threats, the company is determined to utilize these opportunities and enhance its market share and performance. The company deploys differential and cost-leadership strategies as business-level and corporate-level strategies, respectively. The integration of differentiation and low cost reduces the cost of production, resulting in higher profits. The company also utilizes cost-leadership to ensure it offers the best services to customers, making them choose this company over others. The company's marketing messages briefly mark Southwest Airlines as the most loved and flown airline with the best customer experience. Lastly, Southwest Airlines deploy input, output, and behavioral mechanisms to balance corporate culture and performance (Cote, 2018). These mechanisms contribute to a safe environment for all stakeholders. References Cote, R. (2018). Leadership Analysis: Southwest Airlines-Herb Kelleher, CEO. Journal of Leadership, Accountability & Ethics, 15(1). Chishty-Mujahid, N. (2017). Southwest airlines’ successful economistic, cost-leadership strategy examined in light of Paul Lawrence’s renewed Darwinian theory: an analysis. Journal of Global Business Insights, 2(2), 115-123. Dias, R. S. (2020). Southwest Airlines Co.: consistency for the future (Doctoral dissertation).