TEAM MEMBERS :KRYSTAL BROWN, JASMINE

COOLEY, ARETAS COLEMAN, JEREMY LEWIS, TERRY KERR

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OVERVIEW

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

HISTORY

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HISTORY

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HISTORY

LIFE CYLCE

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LIFE CYCLE

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LIFE CYCLE nearly 35,000 Employees in 35 states,and

growing

EXTERNAL ENVIRONMENT

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Simple + StableLow Uncertainty

Complex + StableLow 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 + UnstableHigh-Moderate

Uncertainty

Complex + UnstableHigh 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

EXTERNAL ENVIRONMENT

Air- Traffic Controller shortage

Competition Fuel Prices Air traffic disasters Decline in customer

demands Economic downfall

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Complex + Unstable

High Uncertainty

1. Large number of external elements, and elements are dissimilar.

2. Elements change frequently and unpredictably.

EXTERNAL ENVIRONMENT

External SWOT AnalysisOpportunities Threats

• 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

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EXTERNAL ENVIRONMENTPorter’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

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EXTERNAL ENVIRONMENTPorter’s 5 Forces Cont.

Power of Suppliers(H) Switching costs Substitutes Difference between Products

Threat of Substitutes(M) Rental Car Services Rail Bus Ship

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EXTERNAL ENVIORNMENTPorter’s 5 Forces Cont.

Rivalry of Existing Firms (H) Mergers Competition

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Low cost leadership High customer service

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High Uncertainty Opportunities Threats Resource availability

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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

Defender Strategy Low cost leadership Chart on pg 73 http://www.nytimes.com/2010/11/21/busi

ness/21south.html http://www.bloomberg.com/news/2010-0

9-27/southwest-airlines-agrees-to-buy-airtran-for-1-4-billion-in-cash-shares.html

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STRATEGIES Internal process

approach

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MANAGEMENT Size:nearly 35,000 Employees in 35

states,and growing

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INTERORGANIZATIONAL RELATIONSHIPS Population Ecology

Variation->selection->retention

ecosystem

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