Saturday, December 28, 2019

Define Functional Versus Dysfunctional Conflict in a Work...

Conflict arises when there is some indifference among two parties. In any working group conflict is almost unavoidable. When most people hear the word conflict, they often tend to take the term in negative manner. Almost everyone perceives conflict to be a malefactor and that it often hinders the development process of any group. Although usually people think of it as a bad thing, conflict on the contrary can be a positive occurrence within a group to bring about change. Comprehensively conflict refers to a situation in which there are opposing demands or ideas and a choice has to be made between them. So, it means without conflict there wouldnt be any opposing demands or ideas in which case the choices are obvious and easy. This can†¦show more content†¦A functional conflict is the positive conflict that occurs among the people in a work group. They support the company’s goal and improve performance. Functional conflict is healthy and it is constructive disagreement between two or more individuals. A functional conflict often improves the quality of decisions, simulates creativity, innovation and encourages interest and curiosity among group members. Functional conflict helps everyone to learn the art of harmonious and efficient compromise. For instance in a group when people engage in a functional conflict, the outcome in general is very fruitful to the group itself. A functional conflict requires people to understand and respect each other’s idea. It allows other person to speak his/her thoughts without being interrupted. People engaging in a functional conflict know that the other party is a part of the group. It involves listening to what other has to say. Every other person can provide a valuable insight and suggestion to help solve a crisis. This creates willingness to cooperate. Furthermore in order for functional conflict to be a success, each individual must be given certain freedom of speech and work. Forcing someone to do things they don’t agree is not an effective way to resolve a conflict. A functional conflict focuses on finding a resolutionShow MoreRelatedChannel Conflict When Adding Internet Channel on Existing Store Based Retailer23250 Words   |  93 PagesChannel conflict when adding the Internet as a complementary marketing channel to an existing marketing channel system. A case study of a Greek mobile telecom re tailer. by GEORGIA EFROSSINIDOU carried out in conjunction with WIND Hellas Telecommunications, Leicester October 2009 Project submitted to Leicester University in partial fulfillment of the requirements for the degree of Master of Business Administration. CONTENTS Page Acknowledgments Executive Summary Introduction InternetRead Moretutorial7342 Words   |  30 PagesTutorial expectations and participation. 5. Briefing on Group Report Oral Presentation (requirements and expectations). 6. Team formation for Group Report. (4 members per group) 7. Tutor assigns question and time for oral presentation group report ** Oral presentation and group report submission will starts from Week 3 to 5** **Important note** Students are required to sit for one (1) online test on Week 3. Please make sure that you are registered under this course and be able to access Read MoreAnswer Key - Fund. of Management Chpt 1-7 Essay10238 Words   |  41 Pagesspecific purpose. All organizations share three common characteristics. 1) Every organization has a purpose and is made up of people who are grouped in some fashion. 2) No purpose or goal can be achieved by itself, therefore organizations have members. 3) All organizations develop a systematic structure that defines and limits the behavior of its members. Organization—an entity that has a distinct purpose, has people or members, and has a systematic structure. Managers direct the activities of otherRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 Pagesretrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise. To obtain permission(s) to use material from this work, please submit a written request to Pearson Education, Inc., Permissions Department, One Lake Street, Upper Saddle River, New Jersey 07458, or you may fax your request to 201-236-3290. Many of the designations by manufacturers and sellers to distinguish their products are claimed as trademarks. Where those designations appearRead MoreThe Effects Of Relation Social Intelligence As Leadership Style On Chinese Hierarchy Environment10166 Words   |  41 Pages/ year† Tutor: Prof. Yahia H. Zoubir â€Æ' Table of Contents 1. Abstract 3 2. Introduction 4 3. Problem statement 4 4. Turnover definition 6 5. Analysis of employee turnover 8 6. Reason for leaving, Literature review 10 6.1. Global analysis 10 6.1.1. Work environment related reason 12 6.1.2. Management style related factors 15 6.1.3. Salary / career advancement related factors 17 6.1.4. Personal reasons related factors 17 6.2. Meta-Analysis between Asia – Europe – US 19 6.2.1. Cross-Cultural DifferencesRead MoreThe Impact Of Implementation Of Relation Social Intelligence Essay10283 Words   |  42 Pagesto 2016), the data were analyzed using regression fit analysis in order to evaluate the correlation between variables. Introduction The porpoise of this research is to assess the benefits to implement RSI in Chinese firms in order to decrease Employee turnover and evaluate the ROI (return of investment) in terms of quality and productivity and cost saving. A literature research will be analyzed in order to understand the ratio and the reasons why people are quitting the job and lookingRead MoreChannels of Distribution and Logistics18744 Words   |  75 PagesChapter 6 Channels of distribution and logistics LEARNING OBJECTIVES By the end of this chapter you will: n n n n comprehend key elements and decisions in distribution channel design be able to evaluate different configurations of channel structure be familiar with recent trends and developments in channels of distribution appreciate the importance of managing the physical flows of products, services and information into, through, and out of the organization to its customers n grasp theRead MoreProject Mgmt296381 Words   |  1186 PagesVirtual teams 9.3.3.1 Team performance [9.4.2.2] 9.4.2.3 Conflict management 9.3.2.6 Recognition and awards Defining the Project 4.1 Project charter 5.1 Gather requirements 5.2 Defining scope 5.3 Creating a WBS 5.4 Tools and techniques 6.1 Define activities 9.1.2. Responsibility matrixes 10.1 Communication planning (.2.3.4) [App. G-4] Chapter 12 Outsourcing 12.1.1 Procurement requirements [G.8] 12.1.2.3 Contract types 9.4.2.3 Conflict management 12.2.7 The art of negotiating 12.2.3.5 ChangeRead MoreManagement Control Systems Pdf115000 Words   |  460 PagesStructure to Strategy: Evolution of the Matrix Structure: Project Organizations, Product Organizations, Service Organizations, The Matrix Structure and the Multinational Firm – Evaluation of the Control Factors in Organizational Design: Matrix Versus Functional – Controller’s Organization – Adaptive Organization: The Need for Adaptive Organization, Adaptive Controls that Support the Adaptive Organization rI B S U se O nl y C la s s of 20 09 Chapter 6: Autonomy andRead MoreChange Management49917 Words   |  200 PagesChange 3. Planned Change 5. Unplanned Change 2. 4. 6. Stimulating Forces Change Agents Lewin’s Three Step Model The change means the alteration of status quo or making things different. It may refer to any alteration which occurs in the overall work environment of an organization. When an organizational system is disturbed by some internal or external force, the change may occur. The change is modification of the structure or process of a system, that may be good or even bad. It disturbs the existing

Friday, December 20, 2019

David K. Shipler s Freedom Of Speech Mightier Than The...

I’ve not had the pleasure of reading a nonfiction book as intriguing and enjoyable as David K. Shipler’s Freedom of Speech: Mightier Than the Sword in a long time. The pages brought to life stories of secrecy and conspiracy, of authority and rebellion, and of missteps by public figures readers like myself often only get an outsider’s glimpse of. After first reading the introduction, however, I wasn’t sure how I felt; I couldn’t fully grasp what Shipler was saying and was concerned that the rest of the book would elicit similar feelings. Thankfully, those fears were alleviated only pages into Part I: Books. I found Shipler’s style of writing incredibly engaging and easy to follow, and the case studies were both interesting and new to†¦show more content†¦Shipler’s awareness of human beings’ tendency toward biases such as this one led me to wonder, first, whether he would avoid allowing his own points of view on vario us matters to influence his writing. I was pleased to discover that he did an exemplary job at stating facts without â€Å"choosing a side,† focusing, rather, on representing opposing sides and humanizing all individuals, no matter which side of a debate they fell on. The second question I found myself coming back to throughout my reading is closely related to the first: what are Shipler’s own views on the matters he is writing about? I can recall very few moments during which he explicitly offered his own opinion (such as describing himself as a near absolutist regarding the First Amendment in the introduction). This consistent neutrality accomplishes two great feats. First, Shipler shows the reader that he is both professional and experienced in writing on controversial topics as the ones covered in Freedom of Speech. Second, by giving all parties a platform to state their feelings and reasoning, this book becomes accessible to all represented sides of these de bates. As previously stated, people unconsciously seek out sources that support their side – Freedom of Speech paradoxically manages to simultaneously support all sides while supporting

Thursday, December 12, 2019

Compare and Contrast Report

Question: Discuss about the Compare and Contrast Report. Answer: Introduction The two companies Bramble and Blackmores have a significant Australian presence. Bramble is a supply-chain logistics company operating in more than 60 countries, primarily through the CHEP and IFCO brands. Blackmores on the other hand is Australias manufacturer and distributor of vitamins, minerals, and nutritional supplements. They operate in different sectors and have different scale of operations (Helfat and Mitchell 2015). The report will compare the vision or mission statement for both these corporates. A comparison of the Values and Corporate Social Responsibility/Sustainability will also be made. Then the report will try to understand the comparison of stakeholders in the company. A vision or mission statement Bramble has a committed workforce of 14000 people and have owned more than 400 million pallets and crates. That enhance their container outlays and increase their business. They also have a large number of service centers and more than 800 call centers thus ensuring better quality. Their vision is to expand to more territories and look after the business expansion in a holistic manner (Schilling 2014). Blackmores on the other hand is relatively smaller in operations and is looking to expand in other countries. Their vision is derived from naturopath and founder Maurice Blackmore (1906-1977), was very passionate about the aspect of nature oriented health and care. They also inspire people to take control of their own health and to make investment in their health and wellbeing. Now this company is trying to move to many other countries. The issue with moving overseas is based on the fact that the laws with every country is different. There are varying laws of real estate and there are several emerging challenges and opening restrictions for the company. Values of the Organization Bramble has a shared value operating model which enlists a Code of Conduct and a core Group cultural dynamic system. They are customer centric and success oriented. The team also believes in a framework of safety, diversity, people and teamwork with the organization. The team is also culturally innovative and driven towards new strategies. They act according to the integrity and respect for the communities and cultures that they work around and cater to this environment (Ackermann 2013). Blackmores has been selling vitamins and minerals for a wide range of customers. They deal with quality and safety as their main advantage. They came up with quality parameters in the sector marred by poor quality. The company also provides their customers with better pharma nourishments along with the vitamins that they sell as well. The company generates major sales revenue from North Australia. This revenue arises from products that include their three flagship products and comprise 95% of the sales figures. Now this company is trying to move to many other countries. The issue with moving overseas is based on the fact that the laws with every country is different. There are varying laws of real estate and there are several emerging challenges and opening restrictions for the company (Mellahi and Frynas 2015.). Blackmores Company is thus involved with pharma business and works in tandem with the Pharmacy Guild of Australia and hence they have huge credibility of their own. If they want to establish outlets across the world they must understand the laws governing cross border movement as well as the shopping and cultural habits in the country. Although this seems to be a noble business pharma has been marred by several allegations (Mullins and Schoar 2013). Corporate Social Responsibility/Sustainability The sustainability report of both companies is very elaborate and let us look at these factors one at a time. Brambles has a three way framework for sustainability and activities are included in that manner (Eisner 2014). The group is highly customer focussed and they plan for Better Business, Better Planet and Better Communities (Norton 2016). These three are their major strategies to look forward to. They also look at the aspects of an organized channel for integration with their 2020 sustainability goals and strategies. These realignments have been driven by preservation and creation of value oriented framework. We can also see that the Brambles sustainability framework is mapped with United Nations Sustainable Development goals and they have aligned themselves with it. We can also see that their business is around input from customers and suppliers. They also look at the peak industry bodies and the framework supports them for that. They also align with sustainability practitione rs for better input from their business sense. Now let us look at the sustainability framework for Blackmores, they have a guided framework under the Environmental Social and Governance (ESG). The company is thus compliant in terms of a much guided approach to sustainability. They also look into the aspects suggested by Australian Council of Superannuation Investors (ASCI) and the Financial Services Council (FSC). Let us look at the aspects of GRI G4 Sustainability Reporting Guidelines which come up as a parameter for the Global policy framework for sustainability. The major factors are continued drive for sustainable growth in terms of revenue and environment friendliness and better social and community outcomes. They also look at the aspect of long-term financial performance as one of the key sustainability parameters. Stakeholders mentioned in their corporate statements Both companies are trying to move to other markets. Bambles has already moved in other markets and Blackmores is coming up to terms with the same. Let us take an example of movement in China, The Chinese population is more than 1.5 billion and land area is greater than the United States. There are several ways in which other multinationals prefer the location in China, the issue also lies around Tier 1 cities and these include Shanghai, Beijing and Guangzhou. These areas of dense population are extremely above average annual income based (Hesterly 2015). If they want to establish outlets across the world they must understand the laws governing cross border movement as well as the shopping and cultural habits in the country. Although this seems to be a noble business pharma has been marred by several allegations. The company also provides their customers with better pharma nourishments along with the vitamins that they sell as well. The company generates major sales revenue from North Australia. This revenue arises from products that include their three flagship products and comprise 95% of the sales figures (Shuen 2010). Choosing a city among the list of all these cities will help to reduce risk for both companies but at the same time the company faced increase in competition and operational cost. Staff hiring is another challenge in Chinese market and it is major factor which can lead to success of any company within the market. Often the quality of the organization is judged by the human resource employees working there thus we did not compromise while hiring experts in this sector. Thus the stakeholders must ensure better strategy when they aspire to enter overseas. SMART Framework Both companies are smart framework driven in many ways as far as their sustainability factors are concerned (Subramanian 2010). They are specific in terms of their goals and strategies for future. Both have a path towards achieving these goals. They are also measurable since they have set targets for all outcomes. Blackmores has come up with a 2020 strategy for sustainability. The goals are realistic and possible to implement in the span of time provided. The goals are also time oriented. Conclusion Brambles have reached heights in the fields of technology including majorly in computer science and supply chain. Further a dense network Trans Pacific Australia was create to build Australian relation with other parts of Asia. The country supports technology to a huge extent thus it can be assumed that Brambles and Blackmores can take this opportunity in order to develop its products. It is a well-known fact this company manufactures Pharma and a robust supply chain network and other items hence if technology introduced while producing then it can benefit the company to innovate them to a large extent. Thus we can see how these two companies are different yet understandably extremely efficient is delivering results. Let us look at the aspects of GRI G4 Sustainability Reporting Guidelines which come up as a parameter for the Global policy framework for sustainability for all Australian companies. The major factors are continued drive for sustainable growth in terms of revenue and environment friendliness and better social and community outcomes. They also look at the aspect of long-term financial performance as one of the key sustainability parameters. Thus both companies need to be driven by intellect and determination to come up with these challenges. References Subramanian, R., 2010.Strategic management: Formulation, implementation, and control. Chicago, Illinois: Irwin. Shuen, A., 2010. Dynamic capabilities and strategic management.Strategic management journal, pp.509-533. Mullins, W. and Schoar, A., 2013.How do CEOs see their Role? Management Philosophy and Styles in Family and non-Family firms(No. w19395). National Bureau of Economic Research. Norton, D.P., 2016. Using the balanced scorecard as a strategic management system. Schilling, M.A., 2014.Strategic management: theory: an integrated approach. Cengage Learning. Peppard, J., 2016.The Strategic Management of Information Systems: Building a Digital Strategy. John Wiley Sons. Ackermann, F., 2013.Making strategy: The journey of strategic management. Sage. Slack, N., 2015.Operations strategy. John Wiley Sons, Ltd. Mellahi, K. and Frynas, G., 2015.Global strategic management. Oxford University Press. Helfat, C. and Mitchell, W., 2015. Qualitative empirical research in strategic management.Strategic Management Journal,36(5), pp.637-639. Hesterly, W., 2015.Strategic management and competitive advantage concepts and cases. Pearson. Eisner, A.B., 2014.Strategic Management: Text and Cases. Stead, W.E., 2013.Sustainable strategic management. ME Sharpe

Wednesday, December 4, 2019

Southwest Airline case study free essay sample

Competitive advantage is a position of a company in a competitive landscape that allows the company earning return on investments higher than the cost of investments. Competitive advantage should be relevant, unique and sustainable. Therefore sustainable competitive advantage, it’s a long-term competitive advantage that a company own over others in the same sector that is not easily duplicated or surpassable by its competitors (wikipedia, 2009). Competitive advantage can also be seen as a superiority gained by an organization when it can provide the same value as its competitors but at a lower price or can charge higher prices and providing greater value through differentiation (Porter, 1985) For a company to sustain its competitive advantage its must possess a core competence which is a unique ability that he as develop over time that cannot be imitated by its competitors. Core competence is what gives a company one or more competitive advantage, in creating and delivering value to its customers in its chosen field. The sustainability of competitive advantage depends on three conditions, the first is the particular source of the advantage, secondly sustaining advantage requires change, it demands that a company exploit, rather than ignore industry trends, it also demands that a company invest to close off the avenue along which competitors could attack and lastly, to sustain its position a firm may have to destroy old advantages to create new higher ones. (Portal, 1990) For the purpose of this study we shall be taking southwest airline as a case study, Southwest Airline is a major U.  S. airline that primarily provides short haul, high frequency, point- to point, low fare service. Southwest was incorporated in Texas and commenced operations on June 18, 1971 with three Boeing 737 aircraft serving three Texas cities- Dallas, Houston, and San Antonio. Today Southwest operates nearly 400 Boeing 737 aircraft to 59 U. S. cities. Southwest has the lowest operating cost structure in the domestic airli ne industry and consistently offers the lowest and simplest fares (wordpress. com, 2012). Southwest also has one of the best overall customer service records. Southwest is an entrepreneurial frame-breaking company that has chosen to play by a different set of rules in the airline industry. Some of its major rules are: -Having one type of aircraft(boewing 737) -Keeping cost as low as possible -Great customer service -Reward programme -Employee’s benefit and salaries -Utilization. Southwest Airline uses only one type of aircraft which is boewing 737, with this system they only need to train all their mechanics on only one types of airplane thereby reducing the cost of labour from manpower. Because they fly on on type of plane through all their routes they keep inventory for that type of airplane, if they need to swap a plane for maintenance at the last minute the plane is changeable on the spot without the stress of incurring extra cost that may arise as a result of swapping planes and time wasting. Southwest airline major business strategy of lowering cost is that they concentrating on airport that are underutilized and close to metropolitan areas thereby reducing airport charge cost and brings service close to their customers. The fleet of aircraft they use is fuel efficient boewing 737s, aside the fact that they reduce mechanic maintenance cost they also reduce fuel consumption cost by using boewing 737 aircraft. Unlike other airline rewards programs, which credit points for each mile traveled, the Southwest Rapid Rewards program awards credits for each leg of a trip. Once you reach the equivalent of 8 roundtrip legs in any 2-year period, you’ll earn a credit for a roundtrip flight between any two operating cities. Another key to Southwest Airline success is there employee’s salaries and benefits, southwest airline employee’s are paid lower than most of its competitors in the airline industry but they work more hours, pilots and flight attendants are paid by trip but seniority brings higher salaries. You get paid according to your grade and level. Southwest airline run a program that allow its employee’s to own its share on a discounted price, 85-90% of its employee’s own southwest airline stock, i.  e 12% of its total stock is owed its employee’s because of the discount purchase program put in place by the management. Mostly importantly, another very important strategy adopted by southwest airline is utilization. Each plane in the fleet flies extra flights per day, saving on maintenance and training costs. Utilization of cost effective revenue streams have been critical to their success. Southwest were one of the first airlines to have a website in early 19 95. In 2006 70% of Southwest’s revenue were generated from bookings online. Southwest gained a reputation for outside the box thinking and proactive risk management, including the use of fuel hedging to insulate against fuel price fluctuation. From a cost point of view, Southwest have maintained a cost per seat mile of $0. 12, which is around 25% cheaper than competitors. Aircraft turnaround time is 15 minutes, this is facilitated by multi tasking crews, with pilots and air crew cleaning the plan while on the ground. On average there are 94 employees per aircraft in contrast to competitors who have 130, and the south west staff serve on average 2500 passengers per year compared to competitors 1000. Another major strategies used by Southwest Airline to sustain competitive advantage and to maintain its market share was its fuel hedging strategy and passenger friendly technology which was introduced by Gary C. Kelly. The executives of southwest airline Know that its impossible to pass higher fuel prices on to passengers by raising ticket prices due to the highly competitive nature of the industry. The fuel hedging strategy was employed to reduce amount spent on jet fuel per annual.  2008 was a bad year for the airline industry in general, but not too bad for Southwest. During 2008, the cost of fuel fluctuated greatly, as the price of a barrel of crude oil soared from near $100 in January 2008 to almost $150 in July 2008, south west was able to maintain a reasonable production because of its fuel hedging strategy. Compare and contrast between the strategies adopted by Southwest Airlines and those of other airlines in the industry. Southwest as adopted a major strategy which as di fferentiate its operation from other airline in the industry. Why other airline uses different types of aircraft, southwest adopted the strategy of using just one aircraft (boewing 737) for all its route. Southwest operates a single aircraft type – the Boeing 737. This lowers personnel training and maintenance expenses for the airline. Costs related to spare part inventory management are also lower for one aircraft type compared to multiple aircraft types. Additionally, the use of a single aircraft type simplifies scheduling, flight operations and training activities. In the case of Southwest, the airline could employ an all Boeing 737 fleet as its operations are primarily focused on the domestic U. S. market with no long haul international flights. Thus, the Boeing 737 which is a short-to-medium range airplane is sufficient to serve its current flight operations. Problem solving: At most airlines (and many other businesses), when problems arise, everyone wants to avoid the blame. With that goal in mind, nobody likes to be the bearer of bad news. As usual, Southwest turns this around to its advantage. Southwest employees are openly encouraged to report problems as soon as they become aware of them so everyone can get involved in figuring out the best way to solve it. Just this subtle change has a huge impact on the quality of the communication taking place. â€Å"When something goes wrong, according to a Southwest pilot: ‘We figure out the cause of the delay. We do not necessarily chastise, though sometimes that comes into play. It is a matter of working together. No finger pointing, especially here, and I’m sure that’s the case elsewhere at Southwest. A Southwest station manager explained his philosophy: ‘If there’s a delay, we find out why it happened. Say there was a 10-minute delay because freight was excessive. If I’m screaming, I won’t know why it was late. The freight handlers will think, ‘He’s an idiot. If only he knew. ’ Then they’ll start leaving stuff behind or they’ll just shove it in and I won’t know. If we ask, ‘Hey, what happened? ’ then the next day the problem is taken care of. You have to be in that mode every day. There’s no one person who can do it. We all succeed together – and all fail together. You have to truly live it. I think we do here’. † (Gittell, 2003, p. 8). Southwest airline offers a free luggage checking to its customer why other airline charges for luggage checking. Southwest airline operates a 15minutes turnaround time which makes them fast than most airlines in the industry. While southwest operates a No sit reservation policy, which makes all its sits fully occupied before flight takeoff, other airline tickets are purchase based of sit. Southwests open-seating policy encourages passengers to get aboard faster and this also saves turnaround time. Southwest airline uses new technology of self checking and counters and boarding gate, to reduce the number of people standing in queue and to hold down the wait time in the ticket counter line. Contrary to most airlines, Southwest Airlines was able to withstand the shock from the September 11 attack. Describe the major steps taken by its management to make this possible. Lower fare as always been the biggest competitive advantage, driving passenger traffic and increasing market share for southwest airline. Lower fares have been critical in allowing southwest to post its 39th consecutive year of profits in 2011 and have helped the carrier in the past decade when the events of 9/11occur the low fare strategy was fully implemented. Southwest airline was able to withstand the shock from 9/11 through lower airfare. In 2002 after the September 11 terrorist customer level reduced greatly due to the fear of flying by customers, one way south west hope to retain customer trust was through lower airfare. In 2002 no airfare was more than $399, the company reduced airfare even further by lowering last minute fare to the minimum to further stimulate travel. In 2003 south west was offering fare as low as $39, they keep ticket price as low as possible to increase demand. Aside lower fare southwest was able to gain customer trust during September 11 attach by working with congress, the DOT, FAA and the law enforcement agencies to enhance maximum security of passengers. Security onboard board and anti-weapon system were put in place to guarantee passenger security. With this security measures put in place, southwest airline was able to gain customers trust. Another strategy used southwest to withstand the 9/11 shock, was continue streamlining and automation, this was an important strategy for south west to cut cost and maintain its competitive advantage. Southwest expanded it ticket counters and security checkpoints and has increased airport workforce. Southwest airline streamline its board process by replacing the traditional plastic boarding system with an automated one, and plan to introduce the new self check technology to reduce boarding times and reduce queuing in boarding gates. Critically evaluate the threats faced by Southwest Airlines and the airline industry in general. Illustrate how to overcome these possible threats. Weather Uncertainty: As we have seen most recently with Hurricane Sandy, natural disasters can cause major losses in business for the airlines, and because Mother Nature is so unpredictable, there is always major uncertainty revolving around the company Immense Competition: The airline industry is incredibly competitive, and the race to get the consumer’s business often leads to margin contraction. The major competitors of southwest are JetBlue Airways and US Airways JetBlue is significantly smaller than southwest and directly competes with Southwest in most of their core markets. Jetblue will continue to be a major threat for southwest because the fly different type of airplane that are more spacious and offer first class facility to the same locations as southwest, almost at the same price. Vulnerability to Rising Oil Prices: When jet fuel prices rise, airline companies are faced with the decision of passing the pain onto their customers and possibly losing business, or swallowing the costs and ruining their margins Exposure to Shaky American Economy: The Company operates mainly in the United States of America, and thus any economic slowdown exclusive to the American economy could drastically hurt Southwest’s business, while other international companies possess the ability to weather the storm. Other major threat faced by southwest is Threats of new airline security measures, terrorist attacks, and stricter airline industry regulations are affecting all firms throughout the industry and southwest is no exception. Southwest is faced with increased war risk, insurance and passenger security laws and directives. The three greatest threats that Southwest faces are the decrease in air travel, the increase in competition and security threats. Southwest faces competition from low fare airlines with similar business models. Because southwest has been a leader in the industry forging the groundwork for low-cost airlines, many other airlines have emulated its business model. This is causing a significant threat for Southwest because the decrease in commercial air travel has lessened the opportunities for airline service. One of the way to Neutralize these threats is by increasing its customer service and building on customer loyalty, and introducing rewards programs to attract more customer and ease of use for booking flights. Conclusion Conclusively the management of southwest airline should take advantage of the new fuel-efficiency technologies, which will help to reduce the fuel consumption of their aircrafts and thereby reducing cost of flying an aircraft. A reduction in operating cost will lead to further reduction in the prices of ticket. They should also try as much as possible to increase the capacity of some long-haul fights, and expanding their discreet collection of ancillary fees. Aside the current reward program management should introduce other programs, like promotion (buy two, get one free) ticket or buy a round trip ticket and get 10% offer your next purchase.