Identify Macro Environment

Identify Macro Environment

Southwest Airline is an airline carrier that operates in the United States domestic market. Southwest is one of the most successful airlines in the domestic market. The company is experiencing challenges in a competitive market. This paper presents an analysis of the external environment that affecting the Southwest airline industry. “The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit (Southwest, 2015).” The company’s vision is to expand their location both domestic and overseas by being the largest and most profitable airline company to achieve both short and long-haul carriers efficiently and with low cost. Also the carrier has the most productive workforce to guarantee the best flight possible for each and every customer (Southwest, 2015).

Economic

Within the airline industry unlike other service businesses economics effects the airline industry in various ranges of the need for expensive equipment and facilities. Even as the economy is showing signs of recovery in certain areas for the airline industry. Macroeconomics factors that affect the airline industry are enormous debt, high fuel prices and medium hall, low cost airlines can expand their operations to attempt to gain more market share (Elidad, 2005)

Political/Legal

The political and legal environment is made up of factors of government policies, rules and regulations, tax policies, international trade regulations. These all have an impact on Southwest airlines and with the growing threat of terrorism and concerns of national security the main concern is safety regulations and protection for consumers. The government have developed security policies that protects all stakeholders of the airline industry (Valued Based Management, 2014).

Social/Cultural

Social factors such as attitudes have a profound impact on businesses, as well as the...