Using handouts provided in this module, determine the Southwest's position on a matrix and develop a strategy for improving its position (moving either vertically or horizontally on the matrix). Which way you propose to move? Why? How? Make a suggestion about one strategic move that a company should make to improve its position (by moving vertically or horizontally on the matrix). Why do you think that your proposal might be effective?

Key External Opportunity Factor	Weight	Rating	Score
Stable air travel industry growth of 3.5% annually between 2021-2025 due to recovery from COVID restrictions
Modernization of airports and availability of open gates there
Boeings new plane models burn less fuel due to new engine design
International Open Sky policy
Increase in number of travelers planning on going overseas in 2021-2025
Increased popularity of social media
Removal of Cuban embargo
Key External Threat Factor	Weight	Rating	Score
Intense competition in a low-cost sector
Terrorist activities
High fuel costs
Cost of compliance with government regulations
Substitute travel by train or car
	Total of 12 weight numbers Should be 1.0 or 100%	Scale 1 5 (min-max) No total here	Total of 12 scores: Put your number here:

Key Internal Strength Factor	Weight	Rating	Score
One model of an aircraft Boeing 737-700
Consistent high-quality service with the fastest turnaround time of 25 minutes in the industry
Lowest debt-to-equity ratio in the industry: 0.30 for Southwest and 1.20 for the industry
Simple and clear pricing structure transfarency
Good relationship with its union
Strong inspiring organizational culture employees first
Maintains the status of the USA largest domestic air carrier since 2003
Key Internal Weakness Factor	Weight	Rating	Score
A net profit margin is instable between negative 4% to positive 11% while the industry average is 7% for the last five years
Small number of morning flights
Less than 1% of revenues come from cargo
Offers one class of seating
Reached a bottleneck for future achievements
	Total of 12 weight numbers Should be 1.0 or 100%	Scale 1 5 (min-max) No total here	Total of 12 scores: Put your number here:

Plotting Southwest EFE and IFE Scores (GE McKinsey Matrix)

In the table below put a mark where you think the Southwest Airlines strategic position is based on your calculations.