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 Organization
History and Life Cycle
 External Environment
 Mission, Goals, and Strategies
 Organizational Culture and Management
 Interorganizational Relationships
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
nearly 35,000 Employees in 35 states,and growing
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Simple + Stable
Low Uncertainty
Complex + Stable
Low 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 + Unstable
High-Moderate Uncertainty
1. Small number of external
elements, and elements are
similar.
2. Elements change frequently
and unpredictably.
Complex + Unstable
High Uncertainty
1. Large number of external
elements, and elements are
dissimilar.
2. Elements change frequently
and unpredictably.
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Complex + Unstable
High Uncertainty
1. Large number of external
elements, and elements are
dissimilar.
2. Elements change frequently
and unpredictably.

Air- Traffic Controller
shortage

Competition

Fuel Prices

Air traffic disasters

Decline in customer demands

Economic downfall
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External SWOT Analysis
Opportunities
• 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
Threats
•
•
•
•
•
•
•
•
•
Uncertainty in fuel prices
Increased airport security
Weather
Strong power of buyers
Substitute products in shorthaul markets
Intense competition
New Northwest/Delta merger
(increased
competition)
Labor union demands
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Porter’s 5 Forces

Threat of New Entrants (H)

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
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
Capital Intense
Government Regulations
Excess to distribution channels
Economies to scale
Power of Buyers (H)

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Switching cost
Differentiation of products
Information available
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Porter’s 5 Forces Cont.

Power of Suppliers(H)

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
Switching costs
Substitutes
Difference between Products
Threat of Substitutes(M)


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
Rental Car Services
Rail
Bus
Ship
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Porter’s 5 Forces Cont.

Rivalry of Existing Firms (H)


Mergers
Competition
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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.
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
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Low cost leadership
High customer service
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 Low
cost Leadership
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http://www.bloomberg.com/n
09-27/southwest-airlines-agre
airtran-for-1-4-billion-in-cash-
 Defender
strategy
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Internal process
approach
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Cooperat
Cooperative
Organization Relationships
Organization Type
Resource Dependence Population Ecology
Collaboration Network Institutionalism
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