Strategic Audit Us Airways vs Southwest Airlines

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Strategic Audit

Southwest Airlines VS US Airways
Megan Kelly
Ashley Ruiz
Molly Tomkins

Strategic Audit
Southwest Airlines
I. Current Situation
A. Current Performance
1. Record revenue performance led to Southwest’s 40th consecutive year of profitability (best in US Aviation history), in 2012. 2. 2011 net income of $412 million, despite increase in fuel costs. 3. Southwest has achieved record operating revenues of $17.08 billion and operating income of $623 million. 4. Placed first in the industry Customer Satisfaction rating 5. Expanded domestic market share to 25% from 21% within the last year 6. Remained the largest domestic US carrier in terms of passengers carried, measured by the number of domestic originating passengers boarded as of September 30, 2012. 7. Gained a 7% return on invested capital (ROIC) before taxes B. Strategic Posture

What are the corporation’s current mission, objectives, strategies, and policies? 1. Are they clearly states or are they merely implied for performance? Southwest Airline’s current mission, objectives, strategies, and policies are all clearly stated on either their official website or in specific company released articles. Southwest has true brand identity which is consistently upheld and maintained throughout every facet of its operation. 2. Mission - Dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride and Company Spirit (Southwest). 3. Objectives

a. We want to protect the job security, prosperity, and wellbeing of all of our employees b. Our goal is to be the hometown airline of every community we serve and because those communities sustain and nurture us with their support and loyalty, it is vital that we, as individuals and in groups, embrace each community with the Southwest Spirit of involvement, service, and caring to make those communities better places to live and work. c. We strive to be a good Environmental Steward across our system in all of our hometowns, and one component of our stewardship is efficiency, which by its very nature, translates to eliminating waste and conserving resources. Using cost-effective and environmentally beneficial operating procedures (including facilities and equipment) allow us to reduce the amount of materials we use and, when combined with our ability to reuse and recycle material, preserve these environmental resources. 4. Strategies

d. Maintain and promote “Living the Southwest Way” e. Provide leadership to a changing work force. f. Reinforce and focus the community and charitable programs to maximize results g. Optimize fuel efficiency and alternative energy options h. Minimize energy use at all ground-base operations i. Ensure suppliers are adhering to Southwest’s environmental and culture standards j. Eliminate waste generation through source reduction and recycling/reuse where practicable k. Support legislation that provides incentives and funding for safe solutions to climate change, including alternative jet fuels and engine, airframe, and related infrastructure development 5. Policies

Southwest Airlines complies with a detailed set of policies including a code of ethics, insider trading policy, foreign corrupt practices act, blackout and preclearance procedures, and auditing procedures (Appendix A). 6. Do the current (above) reflect the corporations international operations whether global or multi-domestic? Yes, the above-mentioned mission, objectives, strategies, and policies reflect Southwest Airlines domestic operations. II. Corporate Governance

A. Board of Directors
a. Who is on the board?
The board of...
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