Engineering Manager

In: Business and Management

Submitted By Richas1440
Words 1852
Pages 8
Balanced Scorecard Southwest Airlines

Steven Richardson
September 20, 2012

Executive Summary

Southwest Airlines is the largest domestic carrier for 106 million passengers and has been a strong growth company over the last 39 years. To guarantee its future achievements, Southwest Airlines needs to preserve its cost advantages and find new growth opportunities.

The price of fuel has risen considerably and is the number one source of rising cost in the airline industry. Therefore, I recommend that Southwest Airlines continue to seize opportunities to improve the fuel efficiency of its fleet. I recommend that Southwest Airlines examine the consideration of purchasing new Boeing 737-700s and 727-200’s to stay competitive in this ever changing market. Southwest Airlines should consider using cash reserves to upgrade on-board amenities such as in-flight WiFi and offer live sporting games such as NFL & MLB during the flight. These upgrades can make a direct impact on generating additional revenues for Southwest Airlines. Labor costs are also an opportunity for Southwest Airlines to shift its focus to ensure that they maintain their competitive edge on the competition. As Southwest Airlines begin to make future improvements union wages could pose a threat to the cost of labor demanding magnanimous wage packages. Southwest Airlines has always been on the forefront of maintaining an open and great relationship with its employees. They should leverage the relationship they have with their employees by including them in maintaining a low cost advantage to stay competitive amongst an array of fearless competitors.

Integrating with AirTran has exposed growth opportunities for Southwest Airlines in expanding operations in cities already serviced. The acquisition of AirTran will give Southwest Airlines the opportunity to be exposed to markets…...

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