Capstone Project



Capstone Project3

Mission and Vision Statement3

Analyzing Mission Statement3

Analyzing Vision Statement3

Strategic Goals4

Link between Vision/Mission and Strategic Goals5

Financial Analysis6

Link between Financial performance and Strategic Goals7

Competitive Analysis8

Rivalry8

Entry and Exit9

Substitutes9

Supplier Power10

Buyer Power10

SWOT10

Strength11

Weaknesses11

Opportunity11

Threats11

Recommending strategy for Southwest Airlines11

Acquisition by Southwest Airlines12

Employee Rewarding system and its Impact on Employee Motivation13

Conclusion13

References15

Capstone Project

Mission and Vision Statement

Analyzing Mission Statement

Mission statement of Southwest Airlines states;

“The mission of Southwest Airline is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride and company spirit”. (www.southwest.com)

Southwest airline's mission statement gives an overview of the company's eagerness to serve customers in a remarkable way. They want to maintain a strong relation with their customers through delivering the best quality service to all of them. They want to develop an everlasting relation with their customers by giving them friendly and comfortable surroundings.

Analyzing Vision Statement

Vision statement of Southwest Airlines states;

“Our vision is to expand our locations both domestic and overseas by being the largest and most profitable airline company to achieve both short and long-haul carriers efficiently and with low cost. Also to be an airline carrier that has the most productive workforce to guarantee the best flight possible for each and every passenger”. (www.samples-help.org.uk)

The company's mission shows that the company has a goal of minimizing cost incurred. This will be helpful in maximizing the level of profits by making good use of all the assets. All the human resource of the organization is productive and will help the company in attaining the set goals. They actually want to be cost effective by maintaining a good relation with all its stakeholders.

Strategic Goals

Companies make strategic goals in order to set a target it has to achieve in a certain time frame. This help them in making their operations aligned with their missions and vision.

Some of the strategic goals set by southwest airlines in past few years are listed below

Southwest airline has obtained a single operating certificate with Airtran. Now southwest has done various conversions in the aircrafts, employees and airports of Airtran. This will lead them towards generation of $400 millions in the form of net pre-tax synergy annually.

Southwest airline is planning for more fleet modernizations. This will not only reduce per head cost, it will also increase the current number of destinations. Usage of fuel will also reduce, and it will be environment friendlier. Southwest has always preferred to prove it, socially and ethically responsible. This effort is purely aligned with these intensions.

A new concept of evolve is also another very important addition made by southwest. Southwest has started a sleek cabin which will lead the customers in experiencing an exceptional level of modernism and comfort both at the same time. Light and cozy materials are used for making it luxurious and cost effective both at the same time (www.southwestonereport.com).

Southwest airline is focusing more on building up good relations with its existing customers through offering them memberships and lucrative packages. Southwest is working on this along with its co-brands. This helps them in designing packages with hotel, credit cards, ...