Firm implementing low-cost business strategy

Assignment Help Operation Management

Reference no: EM132183788

SOUTHWEST AIRLINES REPORT

Revenue Reconciliation – 2013 to 2017:

Revenue Effect of Growth: $4,188,332,435

Revenue Effect of Price Recovery: $(716,332,435)

Expense Reconciliations – 2013 to 2017:

Personnel-Related Expenses (Driver = Employees):

Cost Effect of Growth: $1,191,494,085

Cost Effect of Price Recovery: $932,510,936

Cost Effect of Productivity: $159,994,979

Trip-Related Expenses (Driver = Trips):

Cost Effect of Growth: $1,624,786,174

Cost Effect of Price Recovery: $(2,189,197,844)

Cost Effect of Productivity: $(1,069,588,330)

“Fixed Costs” – Aircraft-Related Expenses (Driver = Aircraft Seats):

Cost Effect of Growth: $546,170,476

Cost Effect of Price Recovery: $(152,287,818)

Cost Effect of Productivity: $(284,882,658)

“Fixed Costs” – Other Expenses (Driver = Aircraft Seats):

Cost Effect of Growth: $523,452,813

Cost Effect of Price Recovery: $269,371,591

Cost Effect of Productivity: $(316,824,405)

Operating Income Reconciliation (aggregated over revenue and expense components) – 2013 to 2017:

Operating income - 2013: $1,278,000,000

Aggregate Effect of Growth: $302,428,886

Aggregate Effect of Price Recovery: $423,270,700

Aggregate Effect of Productivity: $1,511,300,414

Operating income - 2017: $3,515,000,000

EXPLANATORY NARRATIVE

2013 to 2017 Summary:

Does the pattern of Southwest’s aggregate/summary earnings components from 2013 to 2017 resemble the pattern we should observe for a firm implementing a low-cost business strategy? Briefly explain.

Reference no: EM132183788

Questions Cloud

Why marissa mayer was chosen : Why Marissa Mayer was chosen as C.E.O. of Yahoo? Did Ms. Mayer successfully contribute as the C.E.O. of Yahoo or was she vastly overpaid?

Would regular policy reviews have helped the situation : Would regular policy reviews have helped the situation? Are there any legal consequences to such inconsistent policy?

How do effective supervisors reduce costs : How do effective supervisors reduce costs? Increase revenues?

Do rights and responsibilities go hand-in-hand : Do rights and responsibilities go hand-in-hand? If a non-human entity can enjoy certain rights, does it naturally follow that it also has responsibilities?

Firm implementing low-cost business strategy : We should observe for a firm implementing a low-cost business strategy?

Build an ethical reputation : How should managers foster ethical behavior though their own actions? What can a company as a whole do to build an ethical reputation?

Define legal and ethical considerations for group and family : Post an explanation of how legal and ethical considerations for group and family therapy differ from those for individual therapy.

Impact of the layoff in employees : What will you do to minimize the impact of the layoff in employees?

What is the minimum variance portfolio : FIN 3300 Investments Assignment - Risk/Return Trade-off (Markowitz Efficient Frontier), University of Denver, USA. What is the minimum variance portfolio

User Account

All Pages