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Strategic Management

Strategic Management

Company Background

Southwest Airlines is one of the largest airlines in the US and throughout the world. The airline operates on a low-cost model, focusing on offering customers value. It flies to 21 destinations across the US and 10 other countries. The airline also boasts of a culture that puts the employees first (Kennedy, 2021). The company has never had involuntary employee layoffs throughout its existence. Employee satisfaction at the company has led to increased productivity and increased profitability. Customers describe employees at Southwest as a happy lot, which means that they are receiving satisfactory services.

Southwest Airlines has also developed a reputation for high shareholder returns. From 2010 to March 2020, the company returned a whopping $12.9 billion to its investors (Southwest Airlines, 2022). The returns were in the form of dividends and share purchases. In the first quarter of 2020 alone, Southwest Airlines returned $639 million to its investors. The returns were $451 million in common stock and $188 million in dividends (Southwest Airlines, 2022). These returns are evidence of the company’s accountability and culture of valuing its people.

New Mission Statement

Our focus as an airline is to offer quality and safe flight services to our esteemed customers by ensuring operational safety and quality standards are not compromised. We also seek to ensure optimum shareholder returns by efficiently utilizing the company’s resources. The company will adopt the best human resource practices to put employees first and ensure that they are highly motivated.

Value Statement

Company Values

Embracing a never-giving-up approach.

Valuing shareholders.

Fun attitude.

Low-cost services.

Enhancing customer experience.

Company Philosophy

Southwest is both internal and external-looking. The company values its employees and customers. Employees are compensated well, just as the company has made operational sacrifices by re-routing to allow a customer to see their kids in a comma. Also, Southwest’s hiring strategy ensures the company has the best talent.


Kennedy, K. (2021). Domestic Airlines in the US (pp. 1–45). IBISWorld.

Southwest Airlines. (2022). Company Overview.


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Pick a passenger Airline carrier based in the United States of America. The Chief Executive Officer (CEO) of this airline has asked you, a renowned Strategic Management expert, to draft a Mission Statement for the company. Your task is to come up with a new Mission Statement and Values Statement that addresses the following:

Strategic Management

Strategic Management

Provide a background of the company that you have selected:

Do some research in the library on the airline industry. Open the Trident University IBIS World document and scroll to the bottom of the page. Visit IBIS World in the Library Databases (an organization well known for conducting industry-level research). Run a search on “Airlines in the U.S.” in the search window. This will lead you to a detailed and industry-specific report. After familiarizing yourself with the airline industry, write your Mission statement.

Develop a new Mission Statement that:

States the business the airline is in.
Is creative, informative, and simple.

Develop a new Values Statement:

Specify at least five specific core values of the airline.
Use the Mission Statement as a reference point.
State whether the airline is internally focused, externally focused, or both. An internal focus would be oriented toward employee needs or company profits, while an external focus would be oriented towards the needs of the community (e.g., philanthropy).
Be creative. Consider the specific target market of the airline (its passengers or the kind of services it offers), and remember that this airline is in competition with other major airlines.


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