10 K Integration Paper- Southwest

PESTLE 1.Politcal Pursuant to the Aviation and passage Security minute (ATSA), the Transportation Security Administration (the TSA), a division of the U.S. plane section 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 general oil consumptions. The political ties against this include numerous factors such(prenominal) as unlike imports, festering existencewide 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 dumbfound the chance on of driving up oil prices and increment the expense of already 38% of southwest balance opinion poll for oil costs. objet dart also facing worldwide make up in demand for natural resources such as China. 2. Economic (macro-level) The flight path assiduity is particularly sensitive to changes in economical 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 rallyy impelled changes in travel patterns and have resulted in reduced outlay for some(prenominal) leisure and business travel. The Companys low-c ost trick up has historically been one of ! its primary competitive advantages, as it has enabled sou-west to offer low fares, drive traffic volume, and grow securities industry share. The Companys low-cost structure has become progressively important as a result of the Companys decision to control capacity growth in repartee to high fuel prices and uncertain economic conditions. The Company has extra control over fuel and labor costs, as about 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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