South West Airlines Research Paper Example | Topics and Well Written Essays - 3500 words

South West Airlines - Research Paper Example The company also seeks to serve the communities it engages with a sense of involvement and diversity, while providing business sustainability to the shareholders (Lauer, 2010). The company has future strategies of expanding regionally, to serve other markets that include Canada and Mexico. The South West Airlines operates in a competitive environment, where the participants in the airline industry are constantly striving to make profits. The challenges facing the company in its operating environment include competition from the other major industry players in the airline industry, the rising costs of fuels, the slow growth of the USA economy and the ever-rising inflation (Evans, 2002). All these environmental factors have served to make the business environment for the airline a major challenge. Nevertheless, with such challenges facing the South West Airlines, one factor has stood out as its single most strength; the South West Airlines organizational culture, which has allowed it t o overcome most of these challenges and rise to become the giant organization it is today. An Introduction to the focus of the report The South West Airlines has emerged as the major focus of the airline industry, owing to its operating culture that has served to enable the organization grow and expand, in an industry that is so dynamic and unpredictable, where major giants emerges and collapses in unpredictable fashion (Wilson, 2004). There are various factors that account for the profit dynamism and unpredictability in the airline industry. First, the airline industry is wholesomely dependent on the economic performance of a country, especially for the domestic-based airline operators, considering that the economic situations of... The South West Airlines operates in a competitive environment, where the participants in the airline industry are constantly striving to make profits. The challenges facing the company in its operating environment include competition from the other major industry players in the airline industry, the rising costs of fuels, the slow growth of the USA economy and the ever-rising inflation. All these environmental factors have served to make the business environment for the airline a major challenge. Nevertheless, with such challenges facing the South West Airlines, one factor has stood out as its single most strength; the South West Airlines organizational culture, which has allowed it to overcome most of these challenges.The South West Airlines has emerged as the major focus of the airline industry, owing to its operating culture that has served to enable the organization to grow and expand, in an industry that is so dynamic and unpredictable, where major giants emerge and collapse in an unpredictable fashion. There are various factors that account for the profit dynamism and unpredictability in the airline industry. First, the airline industry is wholesomely dependent on the economic performance of a country, especially for the domestic-based airline operators, considering that the economic situation of the individuals within a country determines their ability and preference of air travel, at the expense of the other means of travel, such as the road or rail.

Corporate Finance Essay Example | Topics and Well Written Essays - 1750 words - 1

Corporate Finance - Essay Example TSR is defined as a measure that helps in evaluating the performance of different company’s shares and stocks over the passage of time. It takes into account appreciation of share price and payment of dividends in order to show the total shareholder’s return and is expressed as percentage. It is calculated after considering capital gain, which is accrued after purchase of company’s share. In calculating TSR, it is assumed that the dividends are reinvested in the company shares (Rexam Plc, 2014b). Through calculation of TSR, the performance of share is compared over the period of time. This is the main advantage of calculating TSR as it shows the exact position of the share even if it has high growth and low dividend or low growth and high dividend. After collecting relevant information from the annual reports of the two companies mentioned above, TSR is calculated. The information needed for the same are share price at the end and beginning of the year along with the dividend that are paid out to the shareholders. This information has helped to calculate the TSR of the companies, which are provided in the following table (Rexam Plc, 2014a): The above table reflects the change or fluctuation in the value of TSR over the 7 years. It is observed that the TSR value of Rexam Plc has increased over the years from a negative value since 2007. During the period 2007-2009, the company was unable to maintain a positive TSR mainly due to its poor performance in the industry, which occurred mainly due to the insufficient sales. However, positive TSR after 2009 indicates that the company has improved its share price performance, which is the result of increase in sales. Presently, the company has satisfied customers by offering them with good return and higher dividends, which are reinvested in company shares that are issued for them. From the above table it is evident that GSK has encountered