Some societies encourage entrepreneurship while some don’t. Entrepreneurial spirit and broader nature of the society.Culture (gender roles, social conventions etc.).Education level as well as education standard in the Southwest Airlines Co.Class structure, hierarchy and power structure in the society.Demographics and skill level of the population.Social factors that leadership of Southwest Airlines Co. will understand the customers of a given market and how they design the marketing message for Regional Airlines industry consumers. Shared beliefs and attitudes of the population play a great role in how marketers at Southwest Airlines Co. Society’s culture and way of doing things impact the culture of an organization in an environment. Social Factors that Impact Southwest Airlines Co. Labor costs and productivity in the economy.Skill level of workforce in Regional Airlines industry.Comparative advantages of host country and Services sector in the particular country.Infrastructure quality in Regional Airlines industry.Efficiency of financial markets – Does Southwest Airlines Co.Exchange rates & stability of host country currency.
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Government intervention in the free market and related Services.Type of economic system in countries of operation – what type of economic system there is and how stable it is.should consider while conducting PESTEL analysis are. Economic factors that Southwest Airlines Co. can use country’s economic factor such as growth rate, inflation & industry’s economic indicators such as Regional Airlines industry growth rate, consumer spending etc to forecast the growth trajectory of not only -sectoryname- sector but also that of the organization. While micro environment factors such as competition norms impact the competitive advantage of the firm. The Macro environment factors such as – inflation rate, savings rate, interest rate, foreign exchange rate and economic cycle determine the aggregate demand and aggregate investment in an economy. Product labeling and other requirements in Regional AirlinesĮconomic Factors that Impact Southwest Airlines Co.Industrial safety regulations in the Services sector.Work week regulations in Regional Airlines.Wage legislation - minimum wage and overtime.Pricing regulations – Are there any pricing regulatory mechanism for Services.Anti-trust laws related to Regional Airlines.Trade regulations & tariffs related to Services.Legal framework for contract enforcement.Bureaucracy and interference in Regional Airlines industry by government.Level of corruption - especially levels of regulation in Services sector.Political stability and importance of Regional Airlines sector in the country's economy.can closely analyze the following factors before entering or investing in a certain market. The achieve success in such a dynamic Regional Airlines industry across various countries is to diversify the systematic risks of political environment. is operating in Regional Airlines in more than dozen countries and expose itself to different types of political environment and political system risks. Political factors play a significant role in determining the factors that can impact Southwest Airlines Co.'s long term profitability in a certain country or market. Porter 5 Forces Analysis & Industry Analysis Political Factors that Impact Southwest Airlines Co. PESTEL / PEST Analysis Order Now - Southwest Airlines Co. So the decade long profits didn’t materialize in the end. But the business was later expropriated by the Left Wing government. It started an above average profitability operations in Argentina and made strong returns in 5-7 years. Spanish oil giant Repsol had to face a similar instance.
if it is situated in unstable political environment. For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for Southwest Airlines Co. will face in prevalent macro environment other than competitive forces. PESTEL analysis provides great detail about operating challenges Southwest Airlines Co. They can impact individual firm’s competitive advantage or overall profitability levels of the Services industry. That shape strategy and competitive landscape. The macro-environment factors can impact the
but also can impact other players in the Regional Airlines. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Southwest Airlines Co.Ĭhanges in the macro-environment factors can have a direct impact on not only the Southwest Airlines Co. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. Strategic Management Essays, Term Papers & Presentations
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