1) Create an external factor matrix of the airline industry using the opportunities and threats that you should have identified a couple of weeks ago. Make sure to interpret what the resulting number indicates.
EXTERNAL FACTOR MATRIX (SOUTHWEST AIRLINES)
EXTERNAL FACTORS - OPPORTUNITIES
Weight
Rating
Weighted
Score
Improving national economy leads to more potential customers
0.10
3
0.30
Established national brand
0.10
4
0.40
Commitment to customer satisfaction
0.10
4
0.40
Advancing online technology enables more options to customers
0.10
3
0.60
New airliners are coming into the fleet
0.05
3
0.15
Low airfares
0.10
4
0.40
EXTERNAL FACTORS - THREATS
Cost / Volatility / Unpredictability of Jet Fuel expenses
0.10
2
0.20
Advancing communication technology reduces need for air travel
0.10
2
0.20
Outdated reservation system
0.05
3
0.15
Few international flights
0.10
4
0.40
Aircraft cause noise and air pollution
0.05
2
0.10
Limited service destinations
0.05
3
0.15
TOTAL
1
3.45
RATING: How effectively is Southwest Airlines responding to each factor: 1- very poor, 2- below average, 3-average, 4-good, 5-outstanding
A cumulative weighted score of 3.45 shows that Southwest Airlines is responding in a slightly above average manner to opportunities that are available and threats that are present as well. An increased attention to threats would be beneficial to additional corporate success.
2) Create an internal factor matrix for Southwest Airlines using the main information that you identified a couple of weeks ago (you will need to determine what are strengths and weaknesses). Make sure to interpret what the resulting number indicates.
INTERNAL FACTOR MATRIX (SOUTHWEST AIRLINES)
INTERNAL FACTORS - STRENGTHS
Weight
Rating
Weighted
Score
Largest domestic carriers w/ over 1M flights and 110M passengers
0.10
4
0.40
Low cost structure
0.10
4...