10 K Integration Paper- Southwest

PESTLE 1.Politcal Pursuant to the Aviation and passage Security subprogram (ATSA), the Transportation Security Administration (the TSA), a division of the U.S. division of mother country Security, is responsible for certain civil tune security matters. essential or threatened war, terrorist attacks, and political instability. Pg. 32 south-west like most(prenominal) airway companies are pitted against initiation-wide oil consumptions. The political ties against this include numerous factors such(prenominal) as opposed imports, festering worldwide read, government regulations and taxes, and refining capacity, which can be tie into fare cost. Political instability in areas of the world such as the Middle East can accommodate the chance on of driving up oil prices and increment the expense of already 38% of southwest balance shred for oil costs. objet dart also facing worldwide addition in demand for natural resources such as China. 2. Economic (macro-level) The airline assiduity is particularly sensitive to changes in frugalal conditions; an increase in unfavorable economic conditions or continued economic uncertainty could negatively affect the Companys results of operations. Pg.

28 The airline industry, which is subject to relatively high fixed costs and passing variable and unpredictable demand, is particularly sensitive to changes in economic conditions. Unfavorable U.S. economic conditions have histori makey set changes in travel patterns and have resulted in reduced outlay for some(prenominal) leisure and business travel. The Companys low-cost aim has h istorically been one of its primary competit! ive advantages, as it has enabled souwest to offer low fares, drive traffic volume, and grow market share. The Companys low-cost structure has become increasingly important as a result of the Companys decision to control capacity growth in reply to high fuel prices and uncertain economic conditions. The Company has duplicate control over fuel and labor costs, as tight as other costs such as regulatory...If you call for to get a full essay, order it on our website: BestEssayCheap.com

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