The purpose of this case study individual assignment is for you to develop an understanding of (i) the organisation that the case is centred on and the broader context (industry, economy etc.) in which it operates; (ii) to identify and discuss the risks and potential solutions that the organisation faces and considers through the application of the concepts and theories learned in ACCT2102 to the case facts; and (iii) to encourage you to provide reasoned recommendations for how you might address the risk and solutions you have found. I.e., actions that management can take.

Section 1: Background of Southwest airline (3 Marks)

Provide a brief overview of the salient background information provided of the case firm. You are requiredto describe each point listed below:

the relevant characteristics of the business ((its products/services, processes, existing systems, strategy, and any important stakeholders (if relevant), etc.));

relevant characteristics of the industry in which the business participates (intensity of competition; customers, how the industry is changing, regulations etc.); and

relevant general business conditions (market/economy growing or in recession etc.), andany other relevant information that should be considered as background for the case firm.

You need to ensure when you complete this section that you remember the case firm reporting year is 2019. Hence, factors such as COVID-19 were not yet known as any major risk. Therefore, DO NOT list COVID-19 or anything similar as your major risk per Section 2 below. Economic conditions, competitors, customers etc. should be based up to 2019 as the point in time.

Section 2: Identification and discussion of Major Risk and Potential Solutions (12 marks)

Identify and discuss (i) one (1) major risk to firm performance facing the company and (ii) two (2) potential solutions (i.e. approaches) to deal with the major risk you identify.

Major Risk to Firm Performance: Ensure that you link this to the factors covered in Section 1. The proposed major risk to firm performance has to be very specific(i.e., do not generalise). Include: quoted figures, facts from the case report, and research etc. that led to your decision regarding choice of risk. Include as much rationale for your choice here as possible. Your challenge is to choose something that poses a very significant risk. I.e., a Major Risk. This is a key criterion to how well you can score in this section. Firms want to focus on the most significant risks because these clearly will have the most significant impact on firmperformance. Do not focus on something trivial! To discover a major risk it will typically involve looking both inside the firm AND outside the firm (i.e., micro- and macro-economic perspectives). You should have done this background in Section 1, so you need to integrate this now into your choice here. Remember, everything has to be evidence-based, no opinions etc.

Potential Solutions: usually there is not just one way to deal with a major risk because there are opposing viewpoints. Ideally the two potential solutions you choose should approach the risk from different perspectives, i.e., to give this opposing viewpoint.Furthermore, as you determine potential solutions to deal with the major risk, please note that these must adhere to the following guidelines:

Must involve the use of management accounting information consistent with strategy, and the aim should be to improve firm performance. Figure 1provides a visual representation of the scope your response should take in this regard;

Must draw on at least two different topics taught in the course. To be clear, you cannot submit two solutions that cover only one topic. We want you to demonstrate your understanding across multiple topics; and

Must be evidence-based. For example, you cannot simply list a major risk and propose generic solutions without clear evidence based on the case firm and as well as the broader macro-perspective as to why they are relevant.

In terms of the management accounting information, you should focus on Weeks 1 to 7 (i.e., up to the topic Process Costing).

Do not discuss recommendations for selecting between the potential solutions in this section.

Section 3: Recommendations (4 Marks)

In this section, you are required to provide your recommendations for addressing the major risk to firm performance and potential solutions you have identified.For example, what is the best solution? Why? What are the costs and benefits of implementing each of the two potential solutions? These recommendations must be actions that management can take. We are interested in how cohesive your arguments are, and whether it all links. You need ensure your recommendations are evidence-based, and appropriately supported by the analysis and discussions you have presented in the earlier sections. You may also consider if there are any limitations to implementing your suggested recommendations, or to your discussion and analysis.