Profit Analysis of Southwest Airline

2659 WordsSep 23, 200911 Pages
SOUTHWEST AIRLINES Presented by: Allan Abutin Rick Boone Peter Bond Bethany Lam Phuong Nguyen A. EXECUTIVE SUMMARY Southwest Airlines has been serving its customers since 1971 and has focused its business on convenience, customer service and low-cost flights. From the outset, the two founders were dedicated to success and the company has taken many steps since then to accomplish this. Through the use of technology, strategic placement of travel routes and keeping the business person in mind, Southwest has continued to succeed even when the economy would project otherwise. The following information will give you a history of Southwest Airlines and the airline industry, an overview of their business strategy, a…show more content…
They also might postpone travel all together. Company travelers also have to keep the bottom line in mind and might decide to delay travel or use other options. III. Top Management and Employee Compensation Management is compensated in various ways within Southwest Airlines. The company’s top two benefits are free airfare and profit sharing (Tripp). Other benefits include stock options, bonuses and salary increases to reward “excellent performance, maintaining loyalty, job satisfaction” (Tripp). Southwest Airlines does a good job compensating their employees to create a rewarding, hard-working environment where success does not go unnoticed. Overall, Southwest Airlines stays ahead of the curve in the airline industry and works very hard to do so. Their convenience, customer service and prices cannot be matched by other airlines and they focus on staying ahead of the competition. C. SUMMARY OF BUSINESS STRATEGY The primary focus of Southwest Airlines is business travelers. They offer many non-stop flights to business destinations within the same day. This allows a business traveler to attend an important meeting and return home the same day, avoiding expensive food and hotel costs. Southwest also has personal travelers looking for the best cost and good service. This helps diversify the customer base, instead of relying on one class of traveler. D. FINANCIAL ANALYSIS I. Analysis of short-term liquidity and
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