Managerial Economics and Strategic Management: The Case of Southwest Airlines
Introduction
The commercial air transport in the United States continues as extremely favored mode of transportation for many people even though the airline industry not undergoing the rapid growth it manifested prior to 1990 (Goetz & Shapiro, 2012). The population of travelers from around 1980 to 1990, used air surged on about 72%; contrarily, between 1990 and 1998, the air transport sector exhibited a growth of only 36% (Goetz & Shapiro, 2012). Additionally, from 1965 to 1978, the airline company were regulated by the State authority by compelling price levels and artificial wage upsurge. During the post-deregulation period, employment dialogs were a primary source of the majority of labor slowdowns. As a response, major industry transporters …show more content…
Vis-à-vis Southwest Airlines, the industry can uphold their principles through the application of vision, mission and objectives. With the view of the Southwest Airlines case, their mission has facilitated them to advance their commercial level policies. Furthermore, the industry empowers heavily in caring its employees accordingly by sharing profits with employees. In essence, such practices are extremely vital because they inspire workers to develop a vested attention in the firm. According to Egan (1995), such practices have also created a room for salary negotiation. In a firm, strategy is attained by the structure of the organization, its culture, people, and control methods. To retain its employees, as a way of ensuring strategic control, Southwest Airlines also have good salaries and health care programs. A keen assessment of their missions and objectives indicates that the company has been capable of influencing its competitive and operational
Introduction
The commercial air transport in the United States continues as extremely favored mode of transportation for many people even though the airline industry not undergoing the rapid growth it manifested prior to 1990 (Goetz & Shapiro, 2012). The population of travelers from around 1980 to 1990, used air surged on about 72%; contrarily, between 1990 and 1998, the air transport sector exhibited a growth of only 36% (Goetz & Shapiro, 2012). Additionally, from 1965 to 1978, the airline company were regulated by the State authority by compelling price levels and artificial wage upsurge. During the post-deregulation period, employment dialogs were a primary source of the majority of labor slowdowns. As a response, major industry transporters …show more content…
Vis-à-vis Southwest Airlines, the industry can uphold their principles through the application of vision, mission and objectives. With the view of the Southwest Airlines case, their mission has facilitated them to advance their commercial level policies. Furthermore, the industry empowers heavily in caring its employees accordingly by sharing profits with employees. In essence, such practices are extremely vital because they inspire workers to develop a vested attention in the firm. According to Egan (1995), such practices have also created a room for salary negotiation. In a firm, strategy is attained by the structure of the organization, its culture, people, and control methods. To retain its employees, as a way of ensuring strategic control, Southwest Airlines also have good salaries and health care programs. A keen assessment of their missions and objectives indicates that the company has been capable of influencing its competitive and operational