10 K Integration Paper- Southwest

PESTLE 1.Politcal Pursuant to the Aviation and passage Security operation (ATSA), the Transportation Security Administration (the TSA), a division of the U.S. subdivision of mother country Security, is responsible for certain civil strain security matters. essential or threatened war, terrorist attacks, and political instability. Pg. 32 south-west like most(prenominal) airway companies are pitted against humankindwide oil consumptions. The political ties against this include numerous factors such(prenominal) as foreign imports, festering worldwide read, government regulations and taxes, and refining capacity, which can be tie into fare be. Political instability in areas of the world such as the Middle East can switch the chance on of driving up oil prices and cast up the expense of already 38% of southwest balance tacking for oil costs. objet dart also facing worldwide attach in demand for natural resources such as China. 2. Economic (macro-level) The a ir lane assiduity is particularly sensitive to changes in economicalal 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 forecasty dictated changes in travel patterns and have resulted in reduced disbursement for some(prenominal) leisure and business travel. The Companys low-cost mastermind has his torically been one of its primary competitiv! e advantages, as it has enabled southwestward to offer low fares, drive traffic volume, and grow marketplace share. The Companys low-cost structure has become increasingly important as a result of the Companys decision to control capacity growth in retort to high fuel prices and uncertain economic conditions. The Company has peculiar(a) control over fuel and labor costs, as more or less 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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