BUS4476 WK2 Primary and Secondary Stakeholders and PESTEL Methods

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Their answers are all based on Case 16.

Browse Case 16 and my classmates' answers then provide a response to each classmate. Your response must be substantive and contribute to the learning environment. (min 100 words each)

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扫描全能王 创建 扫描全能王 创建 扫描全能王 创建 扫描全能王 创建 扫描全能王 创建 扫描全能王 创建 扫描全能王 创建 扫描全能王 创建 扫描全能王 创建 扫描全能王 创建 扫描全能王 创建 扫描全能王 创建 扫描全能王 创建 扫描全能王 创建 Stakeholder Analyst. (Job C) Identifies the primary and secondary stakeholders in the case. You will also discuss their "stakes" or claims. Which stakeholders have the most power? Are the claims legitimate? Southwest Airline Company is an airline company which is primarily based in the United States. The airline company is well known for its low price fares, point-topoint services and turnaround time. For Southwest Airline Company to thrive in such a competitive environment, the company has established standards of efficiency for them to be profitable. The company has both the primary and secondary stakeholders who facilitate the existence of the company. To begin with is the primary stakeholders who consist of the international and domestic customers, the company employees and the investors. The employees of Southwest airline are the critical factor that makes the company's operations to run efficiently and smoothly. The company believes that if they treat their employees well, then they will create a chain reaction in other stakeholders. By treating their employees fairly, they are guaranteed that the employees will treat the customers well which will, in turn, lead to high profitability (Bowen et al., 2016). Southwest airline relies entirely on the employees to demonstrate their commitment to the company and a drive and desire to make their company successful. Southwest airline will have both the international and domestic employees as their stakeholders following their international expansion. Empowering the local employees and makes them proud of their work in the company will make them transfer the environment to their development overseas. Foreign and domestic customers as the next primary stakeholders, Southwest airline has loyal customers in the country such that they had an 18.8% market share in 2015. Due to its sharp focus on customer services they have a large customer market (Bowen et al., 2016). A-list program, A-list preferred program, Rapid Rewards program is one of the largest contributors of customer loyalty. The current target market for the company are the college-age students, frequent travelers, and business travelers. The target market is, however, expanding to make short distance international flights to places like the Caribbean and Mexico. Finally, the last primary stakeholder of Southwest airline is the investors; they are seen to play a vital role especially in the international expansion of the company. The company was able to return $1.4 billion to the investors which consisted of $1.2 billion of common stock and $180 million dividends. The company in recent years has also been experiencing a rise in the amount of money per share that they pay out as dividends (Bowen et al., 2016). The financials of the company have always been a strength and will play a fundamental role in international market expansion. Aircraft manufacturers are the secondary stakeholders of Southwest airline. During the analysis for this company, we can found that the company had a weakness of being reliant on one aircraft manufacturers. The company relies on Boeing for purchases of the aircraft spare parts, aircraft purchases and support for its fleet. Boeing is the secondary stakeholder for the company, and it will continue to be an instrumental figure in the expansion efforts of Southwest airline. Because Southwest Airline generates a lot of revenue to Boeing, it means that Boeing will have a vested interest in the company’s future plans (Voigt et al., 2017). References Bowen, B. D., & Headley, D. E. (2016). Airline quality rating 2016: The 26th year reporting airline performance. Voigt, K. I., Buliga, O., & Michl, K. (2017). Pioneer in the Skies: The Case of Southwest Airlines. In Business Model Pioneers (pp. 171-184). Springer, Cham. Environmental Analyst - (Job D) (Focuses on trends in the six segments of the general environment including technological, demographic trends, economic trends, political trends, social cultural trends, & global trends) Shifts in the macro-environment factors lead to a direct effect on all the Regional airlines. The changes in the macro-environment factors affect the Porters Five Forces which are responsible for shaping the competitiveness of a company. They can affect the service industry or an individual firm in the industry. The analysis of PESTEL provides the operating challenges that Southwest airline faces in the prevailing macro-environment factors. In a steady growth trajectory an industry should be profitable; however, this is not the case for Southwest airline because it exists in an unstable political environment (Wurthmann, 2019). Politics play a vital role in determining the political factors that can impact Southwest airline in a particular market. Southwest Airline Company exposes itself to a variety of political system risks and political environment because it operates in Regional airline business in more than a dozen countries. To make sure that they succeed in their business they have to diversify the political system risks in those countries they operate. There are also economic factors that impact the company that is factors such as inflation rate, foreign exchange, interest rate, and savings rate. The economic cycle determines the aggregate investment and demand in the economy. The company can use the economic factors of a country they operate to predict the growth trajectory of not only their industry but also the organization. Southwest company need to look into such factors like government interventions, the economic system of the country, economic growth rate, unemployment rate, inflation, the comparative advantage of the host country, infrastructure quality in the Regional Airlines, the efficiency of the financial markets and the interest rates to develop a good strategy. The culture of society also impacts the way a company operates in a specific environment (Wurthmann, 2019). The shared beliefs of a certain community or social groups determine how the marketers of Southwest airline will approach the customers. They have to develop and design the marketing messages for the Regional airline industry after understanding the customers. The leaders of the company should analyze factors such as demographic and the skills of a population, culture, class structure and attitudes of the given society. Reviewing how technology affects Southwest airline, it is good to understand that technology is disrupting in various industries. Therefore a company should not only do an analysis of technology exclusively but also the speed at which the industry is being disrupted by technology. Slow speed technological change may give the company more time to automate, but a high-speed technology will provide less time for automation. Southwest focuses on technological changes in the industry to make sure they are at par with the other competitors (Wurthmann, 2019). Globally in some of the countries that the company operates in, no robust legal framework is capable of protecting the intellectual property rights of the company. Southwest Airline Company has to, therefore, evaluate the legal framework well before entering into a particular market. This way they will be able to eliminate any threat to theft of their secrets which can affect competitiveness. Reference Wurthmann, K. (2019). The essential mix: six tools for strategy-making in the next decade. Journal of Business Strategy. ...
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School: Cornell University



Response to Classmates
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Response to Classmates
Response 1
Hi, I am like that your work is articulate and easy flowing. I agree with the
classification of both the primary and secondary stakeholders. The primary stakeholders
are those that have a direct interest in the business such as a financ...

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Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

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