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Essay / Environmental Analysis: Southwest Airlines - 1325
Environmental Analysis: Southwest AirlinesSouthwest Airlines is one of the most successful airlines in the United States. There have never been any layoffs or strikes in the company's history, although there have been several times when layoffs might have been justified, including in the months following the 9/11 terrorist attacks. September 2001. However, Southwest's mission statement states: "Above all, employees will enjoy the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest customer. ยป (South-West, 1988). The airline has always believed that its corporate culture is one of the keys to its success. The culture recognizes that employees have emotional intelligence and that their attitudes and morale are essential to teamwork and the creative environment. Southwest Airlines operates in an industry that is struggling to turn a profit. Slowing economic growth and rising fuel costs decrease profits while revenues remain the same. Macroeconomic factors affecting the airline industry include unemployment, economic growth in the United States, and inflation. With slow economic growth, consumers are finding it harder to purchase luxury items, and vacation plane tickets fall into this category. Unemployment contributes to the lack of travelers on vacation, as unemployed people do not have extra money for vacations or plane tickets. Inflation also causes airlines' operating costs to increase, which reduces profits. Unemployment affects the airline industry. Although unemployment in the United States is relatively low, unemployment in the airline industry has been more volatile. As unemployment has increased, airlines have laid off a much higher percentage of their workforce. As unemployment decreased, they rehired large numbers of people. Layoffs among major airlines are not uncommon. Southwest is unique in its history of refusing to lay off workers. increase. The airline industry contributes on average 0.4 percent to GDP. However, if GDP has increased, AirFigure 2: Growth of the airline industry and gross domestic product.