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INSTITUT PENGURUSAN DINAMIK SARAWAK,

WISMA MORNIE, NO.1, JALAN HAJI TAHA,


93400 KUCHING, SARAWAK.

ASSIGNMENT COVER SHEET

Please attach a Cover Sheet to the front of each piece of work submitted. Please
check that you have
Filled in all details correctly, and signed the declaration at the bottom of the
page, before giving your assignment to the respective lecturer.

Be sure to keep a copy of all your work.

Student Details

Name
Jennifer Lahei Atok
Karen Nubur Agan
Christopher Dickson
Wenddy Huring
Audrey anak Cosmas
Melanie Intta anak Madang

Student

Matric Number
SW1402BD5811
SW1406BD7093
SW1409BD8134
SW1311BD5378
SW1311BD5387
SW1402BD5781

Assignment Details

Course Title / Code : QMSA Group (Case study )

Due Date

: 11th AUGUST 2016

Section

:1

Lecturer

: MISS CHRISTIANE
Declaration

I hereby declare that this assignment is my own work, and does not involve
plagiarism or collusion.

Student Signature:
2016

Date:

11TH AUGUST

1. Describe Southwests tangible and intangible resources


The tangible resources for Southwest is financial resources, physical resources

and

technological resource.
Financial Resource :The Southwest Airlines is always manage their cash very well and
details. As we can see in the financial year 2011, the airlines had generated a big amount of
financial with an operating income and a credit value is very good. Besides, the Southwest
airlines financial resource is their customers that contribute to their success in operating
because Southwest treat their customer right and efficient.
Physical Resource :

The size of fleet for Southwest Airlines is, it flies only one types of

aircraft which is Boeing 737s.


Technological Resource : The Southwest Airlines believe in cutting down additional
cost,achieve business objectives and maintain its efficient operation as airlines industry
principal factor of success are low fare. 737s fleet standardization reduces training cost,
equipment maintenance, and spare parts inventories. Next, this reduce cost by minimize flight
wait time and by lowering airport fees. Third is, Southwest does not assign seats to
passengers; boarding passes are distributed on a first come first serve served basis and
passenger choose their own seats.Besides , the Southwest intend to continue to devote
significant technology resource to accommodate the introduction of the

737 into the

Southwest fleet and to implement the new reservation system which allow the company to
add international destinations and improve profits management and customer service
functionality.
While the intangible resources are Human Resources and Reputation Resources.

Human Resources : Southwest Airlines increased its employees strength in the year 1971.
Southwest select people for their aptitude for team spirit, fun and frugality , thus creating a
workforce that has the natural potential to work cooperatively toward firms goal. Manager
act more as coaches, helping employees to learn from their mistakes, than as formal executive
evaluating the employee performance on the basis of predetermined criteria.
Reputation Resources : The brand value of Southwest is one of the most unique in its area.
Southwest in addition to being known as a lost-cost airlines, Southwest is also known for its
excellent service and quirky attitude. Besides, the customer associate the name Southwest
with an airlines that is fun to fly with, caring and also economical to the customers.

2.

Draw a table showing Southwests strengths and weaknesses

Strengths

weaknesses

Dominant market position in North America

Contractual obligation with regard to future


purchases of aircraft, payment of debt and lease
arrangements

Friendliest staff in the industry recognized as


having the Friendliest Flight Attendants and Declining margin profit from 2007-2009

Crew in a poll by Smarter Traveler reader

Best low fare carrier named by Business


Traveler magazine as the Best Low Cost Heavy dependence on passenger revenue
Airline in North America
Largest airlines in the world in term of highest Operates its own booking service, which makes
number of passengers per year

them less diversified than competitors

Strong brand recognition as a low fare leader Does not offer segmentation (business flight,
in the industry enable the company to expand first class and so on) missed opportunity for
its market share

extra income or only one class of seating is


offered

Highest daily domestic departures than any Space to carry freight and cargo limited
other commercial U.S airline
Very good safety record

Few morning flights offered

Dominates the short haul segment of the airline No fights to international destination or does not
industry

offer international flight

Low cost, efficient operations equates to low Dependent on single type of aircraft
fares/ great value
Was the first to offer senior discount, ticketless Most employees belong to union
traveling and services for air freight delivery

Purchased only Boeing airplane to reduce costs Booking flights is not available expect directly
in repair and get a bulk discount on the through southwest Airlines
purchase
High capacity usage

Can only carry a small amount of cargo and


freight

3. Does Southwest Airlines have potential advantage, resource-based advantage, or


both? Describe the sources of these advantages.

Southwest Airlines more on a resources based advantage. Resources-based advantage means


it is as a basis for the competitive advantage of a firm lies primarily in the application of a
bundle of valuable tangible and intangible resources at firm's disposal. Southwest Airlines
resources-based advantage, for intangibles are human resources. Southwest airlines does not
employ a lot of their employees. Because Southwest Airline is not a huge airlines and only
flies one type of aircraft which is Boeing 737. Second intangible is reputation resources.
Southwest Airlines had a hard and solid reputation because of its low cost. Customers only
need to pay one type of class which is economy-class. For the tangible, Southwest Airline had
technologies such as opening a web site. Customers are able to make their booking through
Southwest Airlines official web site. It is simple and easy and convenient.

4. Explain why is it difficult for competitors to imitate Southwests capabilities?

The competitors difficult to imitate Southwests capabilities because Southwests ability to


achieve the desired level of coordination among its operational units has been the envy of its

peer. The firms coordinative capabilities emerge from the innate skills of its employees to
mutually has created for this purpose. To be precise, Southwests selects people for their
aptitude for team spirits, fun and frugality, thus creating a workplace that has the natural
potential to work cooperatively towards the firms goals. Selected workers are then placed in
a structure that is relatively flat operational employees function without supervision. A flatter
structure reduces supervisory costs and, in addition, empowers employees to coordinate their
task with other work groups, as they deem fit.

5. What resources and capabilities would Southwest need if it planned to expand


significantly into the long haul and international markets?
Southwest Airlines had always managed its resources well including the financial
resources. Southwests strengths do not stop with operational systems and organizational
process but to extend to strong stakeholders relationships as well. Next is by implementing a
new reservation system as a part of its endeavour towards technological resources, Southwest
Airlines introduced the e-ticketing service a few years back which is now responsible for
generating 46% of its revenues. Third is hiring at the rate of only 3% of the job applicants

interviewed. Southwest Airlines has the most thorough recruitment process which equips it
with the most competent workforce. Apart from this the company culture of teamwork is
influential in efficient handling of operations.
The capabilities of Southwest Airline is firstly not high ticket price
like other airlines. Low price ticket is one excellent method by Southwest
Airlines and one of the low chargers of air tickets. As a result they are
able to achieve and to win the customers in this competitive market. To
achieve this target, Southwest Airlines developed a perception for
themselves. Southwest Airlines charge the customers as low as possible
and are continuously winning the customers of other airlines. In addition,
Southwest Airlines believe in freedom of flying and giving the potential
customers chamber of having the low fares while flying.
Secondly, the capabilities of Southwest Airlines is strong ties among the employees.
Southwest Airlines committed to provide their employees a stable working environment with
equal opportunity for learning and personal growth. Thus creativity and innovation are
encouraged for improving the effectiveness of Southwest Airlines. Beside that, all the
employees of Southwest Airlines will be provided the same concern, respect, and caring
attitude within the organization that they are expected to share externally with every
Southwest Customer. Even though Southwest Airlines employees are greatly unionized but
there is not a single strike of the employees but as a major weapon for Southwest Airlines
success.Furthermore, proficient website to market by Southwest Airlines.The Southwest
Airline became the first American airline, which is effectively and efficiently appeared in the
web of internet to serve their customers. Nowadays major portion of their bookings are

booked on the website by the customers. The potential customers are now able to know about
the services the Southwest Airlines is giving and choose the best one suited for them.

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