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 Organization History and Life Cycle  External Environment  Mission, Goals, and Strategies  Organizational Culture and Management  Interorganizational Relationships

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— nearly 35,000 Employees in 35 states,and growing

‹#› Simple + Stable Low Uncertainty Complex + Stable Low Moderate Uncertainty 1.Small number of external elements, and elements are similar. 2.Elements remain the same or change slowly. 1.Large number of external elements, and elements are dissimilar. 2.Elements remain the same or change slowly. Simple + Unstable High-Moderate Uncertainty Complex + Unstable High Uncertainty 1.Small number of external elements, and elements are similar. 2.Elements change frequently and unpredictably. 1.Large number of external elements, and elements are dissimilar. 2.Elements change frequently and unpredictably. Uncertainty

 Air- Traffic Controller shortage  Competition  Fuel Prices  Air traffic disasters  Decline in customer demands  Economic downfall ‹#› Complex + Unstable High Uncertainty 1.Large number of external elements, and elements are dissimilar. 2.Elements change frequently and unpredictably.

External SWOT Analysis OpportunitiesThreats Falling interest rates New technologies increasing efficient Limited substitute products High entry barriers Bargaining power with Boeing Declining fuel prices Receptive business traveler Underserved markets Uncertainty in fuel prices Increased airport security Weather Strong power of buyers Substitute products in short- haul markets Intense competition New Northwest/Delta merger (increased competition) Labor union demands ‹#›

Porter’s 5 Forces  Threat of New Entrants (H) Capital Intense Government Regulations Excess to distribution channels Economies to scale  Power of Buyers (H) Switching cost Differentiation of products Information available ‹#›

Porter’s 5 Forces Cont.  Power of Suppliers(H) Switching costs Substitutes Difference between Products  Threat of Substitutes(M) Rental Car Services Rail Bus Ship ‹#›

Porter’s 5 Forces Cont.  Rivalry of Existing Firms (H) Mergers Competition ‹#›

— The mission of Southwest Airlines is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and Company spirit. — To Employees: — We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer ‹#›

— Low cost leadership — High customer service ‹#›

 Low cost Leadership ‹#›

—Chart on pg 73 — ess/21south.htmlhttp:// ess/21south.html — /southwest-airlines-agrees-to-buy- airtran-for-1-4-billion-in-cash-shares.htmlhttp:// /southwest-airlines-agrees-to-buy- airtran-for-1-4-billion-in-cash-shares.html  Defender strategy ‹#›

— Internal process approach

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Resource Dependence Population Ecology Collaboration NetworkInstitutionalism Organization Relationships Organization Type Cooperative Cooperat

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