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Vesna [10]
3 years ago
14

Is the U.S. airline industry attractive? Describe Southwest Airlines’ strategy. What are the most important strategic choices? W

hat is unique about the Southwest strategy? What components of Southwest’s strategy are VRIO? Would it be easy to imitate its strategy? Is the strategy sustainable? What threats are on the horizon? Should Southwest become an international airline?
Business
1 answer:
MA_775_DIABLO [31]3 years ago
7 0

Answer:

Yes, the US airline Industry is attractive. Southwest Airline's has a unique business model with an efficient operational strategy.

Explanation:

The most important strategic choices for Southwest Airline is a low-cost operational structure that achieves high returns on capital due to a unique

The unique thing about southwest strategy is, the company has good credit rating which has positioned them strategically compared to its competitors.

The components of Southwest's strategy that are VRIO is as follows

!. The management keeps the balance sheet strong by being financially conservative.

2. Investors concentrates on earnings volatility and short term stock prizes

3. They are specific about their staff specifications

4. They are deliberate in their branding and public image.

No, it would not be easy to imitate the strategy like the one they employed to mitigate the tragic incident that occurred seven months ago that had one person killed.

Yes, their strategy is sustainable because it is both cost effective, efficient and produces result.

The threats they are likely to face include

1. Unfavorable Legislation: Regulatory changes in commercial aviation that directly influences their current business model will directly affect their impeccable record.

2. They will be at a disadvantage position if pitted against larger airline companies.

3. Their pilot population is limited.

4. Volatility of fuel prices can upset their lean budget.

From the foregoing, it is evident that southwest has a sustainable business model that should make them become an international airline

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Answer:

a and b

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c

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Business Income and Capital gain of entity will have no impact for Linda and Ellie on their income tax returns.

Explanation:

a A partnership and b. An S corporation

At the level of entity, otter pays no taxes either on the capital gains or on the business income.

Members will pay taxes on the capital gains and on business income.

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Business Income = Gross Income - Operating expense

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c. A C corporation

Ottor pays for the business income which amounts to $110,000 as well as the Capital gain of $15,000 at the applicable tax rates.

Members pays taxes only when they receive the distribution which is dividends.

The distribution of $25,000 each will be taxable in the hands of members as it is a dividend income.

Business Income and Capital gain of entity will have no impact for Linda and Ellie on their income tax returns.

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3 years ago
Sun Inc. assigns $6,000,000 of its accounts receivables as collateral for a $2 million 8% loan with a bank. Sun Inc. also pays a
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The answer is: Assigning accounts receivables as collateral for a bank is not a asset transfer.

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c. Question Mark

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e. None of these

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