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Craig Jarrell Kamaria Hill Kerrie Byrd Ross Ray

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Presentation on theme: "Craig Jarrell Kamaria Hill Kerrie Byrd Ross Ray"— Presentation transcript:

1 Craig Jarrell Kamaria Hill Kerrie Byrd Ross Ray
Southwest Airlines Craig Jarrell Kamaria Hill Kerrie Byrd Ross Ray

2 Agenda SWOT Analysis Balanced Scorecard Strategy Map
IFE/EFE Balanced Scorecard Strategy Map Mission/Vision Southwest Airline Recommendation Acquiring LaGuardia Questions

3 SWOT MATRIX Internal Factors External Factors
S-Strength Great work environment Superb Customer Service Guaranteed lowest prices than competitors Quick landing/departure turning around (30mins) Made one fifth of their flights one stop W- Weakness Flying into unprofitable routes that causes a monetary loss Does not Award Program Benefits for being a frequent flyer Does Not Offer booking by class SWA ‘s flight to LaGuardia is more expensive than the major booking websites O- Opportunity Not being a part of major websites such as Orbitz.com Possibility to generate enough revenue from eight flights to cover the cost for the slot purchase According to Daryl Kaurse, long term employees get the chance to work and gain experience in New York City In need of service within New York City SWA’s already worker- friendly environment will allow them to capitalize on employees gaining experience in a new location Superb customer service and low prices would ensure quality service with major websites SWA quick landing/ departure times fits right into LaGuardia’s time slots SWA should offer Award Program Benefits and consider booking flights by class to penetrate NYC Airports and competitors SWA should partner up with major websites such as Orbitz.com to increase profit margins T- Threats Other low-fare providers such as JetBlue An improvement in the recession and travelers do not have to be cost efficient and more willing to travel outside the states VP of Properties pointed out that 50 % of all delays in the U.S. derive from the three major New York Airports. New York Airports have a High Cost Structure: -1. Flight delays cost SWA -2. Airport has high landing fees -3. High wages must be paid to employees in the city. Reputation being damaged by entering into NYC Airport Structure Continuing to keep prices low while offering quality service will keep competition scarce. Reducing the amount of lay over flights to combat high delay percentage and NYC High Cost Structure Maintaining high quality customer service to combat bad reputation from NYC Airport Structure SWA should survey other low-fare providers such as JetBlue to reduce flight prices to LaGuardia SWA should look into airports within close proximity of NYC to balance out NYC Airport High Cost Structure, high delay percentage and reduce monetary loss Internal Factors External Factors

4 EFE Matrix Opportunities: Weight Rating Weighted Score 0.14 3 0.42
Opening slots in LaGuardia 0.14 3 0.42 Become a part of a major websites such as Orbitz.com 0.17 1 In need of direct flight within New York City 4 0.56 Provide award programs for their frequent flyers 0.11 2 0.22 Expanding its market into other major cities and outside the U.S Threats: An improvement in the recession and travelers do not have to be cost efficient and more willing to travel outside the states 0.06 2 0.12 JetBLue is also a low-fare provider 0.08 0.16 New York Airports have a high cost structure (landing fees, high wages in city) 0.07 3 0.21 Gas and oil price fluctuations 0.18 Flying into unprofitable routes that causes a monetary loss Total 1.0

5 IFE Matrix Strengths Weight Rating Weighted Score
Great work environment .10 4 .40 Lowest price against competitors .18 .72 Quick landing/departure turn around .08 3 .24 Provide free luggage check-in .05 .15 Flight schedule availability up to next year Weaknesses Flying into profitable routes .13 1 No award programs for being a frequent flyer .09 Does not book by classes .20 The flight from LaGuardia is more expensive .07 2 .14 Only have five between LaGuardia and Chicago Midway and three between LaGuardia and Baltimore/Washington Total 1.00 2.32

6 Balanced Scorecard Customer Satisfaction Employees & Company Culture
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. Strategic Objective: Acquiring LaGuardia Objectives Measurement Target Initiative Internal Customer Satisfaction Employees & Company Culture  Feedback Use culture to provide customer service  Employee Incentives Fun “LUVing” Attitude Financial Generate Profits Increase in Flights  Flight Revenues Landing & Fuel Costs Increase % of ticket sales Reduce # of flight delays  Low costs strategies Customer    Customer Commitments On-Time Departures Service to NY  % of Delayed Flights Amt. of Returning Customers  #1 in prices and flight turnarounds Building Relationships  Customer Loyalty Programs Growth and Development      More Flights Service in larger city Attract more customers  Success of serving LaGuardia Bring Southwest experience to New York  Serve the New York area Customer Service Employees Culture Airline Delays Profitability 8 Flights Daily High Costs Structure Flig hts are on time Stronger Commitment Service to New York Expansion

7 QUESTIONS


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