SouthWest Airlines Case Study

SouthWest Airlines Case Study SouthWest Airlines Case Study Executive Summary Thousands of people travel by air; Southwest Airlines provides low-fare air transportation service among 58 cities in the United States. Although the industry suffered a major blow from the terrorist attack of September 11th, the company is still holding strong; while other airline companies are in debt. The information was majority gathered and analyzed from the internet; sources such as News Week, and Wall Street Journal. According to the acquired knowledge of Southwest, the company maintains steady sales. The major success to their continued success is due to their low-cost model and competitors are aware that they cannot match Southwest Airlines low prices therefore, by dropping the price even lower; Southwest Airlines can force a company to go bankrupt. Introduction In 1971, Rollin King and Herb Kelleher started an airline service with one simple notion: If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline. They were right about that. Southwest Airline is now a major airline, in fact, the fourth largest airliner in the United States that is trading under the Symbol LUV on NYSE. The mission of Southwest Airlines is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit. It primarily provides short haul, high-frequency, point-to-point, low-fare air transportation service among 58 cities (59 airports) in the United States. Here are some numbers that will give a brief idea how the company is operating: Net income: $241 million Total passengers carried: 63 million Total RPMs: 45.4 billion Passenger load factor: 65.9 percent Total operating revenue: $5.5 billion The airline industry has been hit hard by the terrorist attack of September 11th. There is a 13% insurance raise for the airlines and the government is enforcing fees regarding security problems. The operation cost increases dramatically and there are less people traveling by air. Most of the airliners are losing money expect a few. Southwest is one of those airlines which have remained profitable. Organization of Southwest Airlines is described as an upside-down pyramid. The upper management is at the bottom and supports the front line employees (~35000), who are the experts. This is Herb Kellehers unorthodox leadership style, in which management decisions are made by everyone in the organization, not just the head executives. The company is described to not have much emphasis on structure; instead employees are encouraged to think freely without constraints such as titles. Kelleher, for example, is said to know the names of virtually all his employees. Southwest Airlines is characterized as a C-corporation with duration distinguished as a normal perpetual existence. The shareholders are not normally liable for debts of the corporation and they preserve an operation that is normally more structured, requiring more meetings and (in some states) more reporting requirements. Management is very centralized through the board of directors (elected by the shareholders) and the officers (elected by the directors). The corporation is taxable entity, although the income which would normally be taxed at the corporate level can normally be paid out in salaries (and in other deductible ways) so that there is in fact no tax at the corporate level. As far as transferability of interest, it is normally fully transferable and raising capital is in the choice of public companies. Southwest Airlines values employees, initiating the first profit-sharing plan in the U.S. airline industry in 1974 and offered it ever since. In 2000, Southwest offered its employees a record-setting $138M in profit sharing. This tax-deferred compensation represented an additional 14.1 percent of each employees annual salary. Methodology In order to explore Southwest Airlines corporate structure, the method in which we obtain our information is a critical component in our mission. Therefore, this analysis describes a methodology that utilizes Southwest Airlines official website to attain background history, company particulars and financial statistics. In addition, the librarys electronic journals, business research databases (Wall Street Journal, Business Week) and accredited search engines on the Internet such as Yahoo! are also major resources for our investigation in conducting a fundamental SWOT analysis and acquiring information regarding the companys main competitors and customers. Our research will not be limited to just Southwest Airline, our research involves Boeing 737 as well as a few of the opposing companies. Research on these additional topics will be specific, material that pertains or assists in elaborating our recommendations for the company of Southwest. Results According to the attached figure covering the past four years of Southwest Airlines financial progress, they have maintained steady net sales. In 1999, they had total net sales of $4,735 million which had risen to $5,585 million. Their slight drop in 2002 to $5,521 million was due to the September 11th incident. However, this is nothing compared to other major airline industries where they have lost so much more. Many have even gone bankrupt and been forced to close down. In fact, Southwest Airlines was the only major US air carrier to remain profitable since then; albeit Southwest Airlines were affected by the poor economic conditions. Few of their main competitors are Continental Airlines and American Airlines. Substitute products include the train (Amtrak) and bus (Greyhound) which cover long distances. While these alternates cannot offer the speed of travel, most of Southwest Airlines customers are attracted to the low price. Suppliers include those who provide service/products necessary for Southwest Airlines to their business function. For Southwest Airlines, suppliers include mechanics(and other maintenance people), providers of fuel, food(the snacks that are offered). The suppliers do not have much bargaining power. Customers include both residential and commercial sectors. There is no bargaining power for customers, as there is no threat of backward integration; it is unlikely that customers of Southwest Airlines are going to build their own airplanes and fly themselves. Rivalry among competitors sets the price-Southwest Airlines is a discount airliner. Rivalry is increasing, as the market decreases, and competitors downsize, the competitors become more or less equal in size and capacity. This means that as economic conditions worsen, competitors downsize and then compete for the same remaining market. The threat of new entrants is low, the demand is not high. On top of that, there are hurdles, not necessarily the greatest; the FAA. Government regulations and restrictions imposed on those involved in this industry. Such would be government sanctions consequent of international issues. At a glance, the companys source of competitive advantage is its low price tickets. Most of its customers are people who are willing to forego in-flight meals, direct routes and fancy seats if that would mean for a cheaper ticket. Not to imply that Southwest doesnt provide direct flights, but that is offered at a higher price. Southwest Airlines was in better shape than its competitors after recent attacks on September 11 for a simple reason: their low-cost model. Terrorist attacks on the World Trade Center had a devastating effect on the airline industry, particularly because the instrument of destruction of these attacks was hijacked airplanes. The public lost faith in the airline industry immediately following September 11th, and for many airline companies this meant going into severe debt or even declaring bankruptcy. Even after some time, the majority of the airline industry experienced lower profits and massive downsizing. However, for smaller companies like Southwest, they were able to turn a profit and were in a more enviable position than the larger counterparts. The reason for Southwest Airlines success is due to their low-cost model. The Southwest Airlines consists solely of Boeing 737s and offers only coach seats (there is no business or first class). Southwest Airlines also do not offer in-flight meals, only peanuts and other snacks. Southwest is simple and direct at the goal of their service; a primarily short-haul airline that flies directly from city to city, with just one type of planethe Boeing 737 and the lowest costs. With a simple goal, Southwest has excised many of the luxuries that competitors have offered, such as luxury seats; this is made evident by their decision to enforce a rule for passengers who could not fit into the seats to purchase an additional seat. This rather unpopular move (whereas other airlines would have suggested a more luxury class seat) is simple in its purpose-get passengers from point A to point B. Services, such as in-flight meals and luxury seats, which have become standard to competitors, have been s een as unnecessary for an airline that provides a short-haul trip from city to city at the lowest cost. To have opted for a first class, business class, or any form of luxury class seat would have been excess baggage; most people would prefer to do without it if it meant for cheaper ticket price. While Southwest Airlines offers no frills, Southwest Airlines do meet customer expectations when it comes to service. They base their model on the motto, which states that if theyre happy, satisfied, dedicated, and energetic, theyll take real good care of the customers. When the customers are happy, they come back. And that makes the shareholders happy, Southwest has very good relations with all their employees. Employees are either of independent unions or have flexible contracts which allow employees to work longer hours. Southwest Airlines, however, is not without weaknesses. No matter how successful, Southwest Airlines serves only 29 states and cannot compete against the bigger companies that serve nationally or even internationally. Furthermore, Southwest Airlines does not utilize a hub system that allows for bigger competitors to reach further out. Such competitors are aware that they cannot match Southwest Airlines prices; their market is larger and is not feasible to offer cheaper tickets at the cost of no in-flight meals. Instead, competitors narrow the price difference between Southwest Airlines and themselves and stress on the quality of these frills (such as roomier seats). Others, through use of flight hubs, are the only ones who can economically serve remote customers. Another weakness of Southwest Airlines is their preference of Boeing 737s. Being limited to one type of airplane leaves them with little flexibility when the model receives a bad reputation or a critical flaw is discovered. Such would be a costly venture for this company, whove used only one type of airplane and in the face of a dire situation would face a costly venture of finding replacements or counteracting bad publicity. Southwest Airlines success is primarily because they have focused sharply on their goals. This is evident by their no-frills, low-cost model: their goal is to provide the cheapest form of short air travel between two cities; providing the bare necessities. Driven by the idea that customers can be satisfied without having expensive options available for them, Southwest Airlines have stepped on the toes of many of its bigger competitors. Southwest Airlines was able to differentiate themselves from their competitors by offering the lowest prices. This appealed to many people who were not impressed with the additional services such as in-flight meals or wanted to avoid busy airports. Coupled with the utilization of the internet, Southwest Airlines almost became a trend, a sort of an underground hit, bypassing travel agents and their fees. Southwest Airlines provided a medium in which city-to-city transportation was possible with the lowest costs. Part of their success is due to their focused group; Southwest Airlines serves only 29 states a substantially smaller portion of geography, when compared to those who serve customers coast-to-coast. While the company was able to enjoy their success in the earlier years, recent events and poor economic conditions have made competition fierce. Now, the bigger companies are trying to emulate Southwest Airlines style. By narrowing the price gap, the luxurious services previously deemed too expensive has become more affordable. A possible drawback is that because Southwest Airlines strategy has proven so effective, it will be duplicated and emulated by its competitors to a point where it would lose the originality. This could result in competitors offering low rates to the areas covered by Southwest and beyond, making Southwest Airlines range and limitations more obvious. It would be very possible in the near future where a big company, with its hubs(something Southwest does NOT have), basically introducing Southwest Airlines low-cost model to a wider market, encroaching and outdoing Southwest Airlines. When a comparatively small, new company is able to take on major players in an extremely competitive industry, gain market share, please customers and employees alike, it is time for others to take notice. We will initially evaluate Southwest Airlines competitive business strategy of their maintenance of a low cost and exceedingly reliable service approach (forgoing perks such as meal service, first-class preference and assigned seating), as a major transportation corporation. We will ultimately make supplementary recommendations and improvements based on the stratagem of their already flourishing company. As a company that still faces continuous growing challenges before them, it is essential for Southwest Airlines to expand on their existing achievements. Our analysis and promising suggestions will be developed with intent to better serve customers by improving their routing system, offering enhanced accessibility and minimizing delays. As business consultants, we anticipate to pav e the way of one of the leading travel industries into becoming the best of the best. Recommendations: Southwest Airlines were able to operate their business relatively undisturbed. It was only in the poor economic conditions that suddenly Southwest Airlines method of operation became the ideal model for its competitors. While the publicity is beneficial in raising employee morale, and raising stock prices; Southwest Airlines is now target of competitors focus. A tactic that Southwest Airlines can do to inflict damage to competitors is to slash prices. This type of tactic is typical of a big company that has a monopolistic rule in an industry squeezing other competitors. This tactic is advisable when competitors are near bankruptcy or are in dire situations. Because competitors cannot match Southwest Airlines prices, the most they can do is narrow the gap of the price difference. Southwest Airlines, which has consistently made a positive profit, can increase the price gap by lowering their prices. Southwest Airlines will incur losses from this move, but the goal of this move is to drag the competitors further into debt. Because this move affects both companies, this move is very risky and should not be done unless Southwest Airlines is sure that their competitor is near bankruptcy. Possible reasons for this move would be to eliminate the weakest competitor in the industry, which would free up the market held by that company. The reason for the creation of Southwest Airlines started when its founders saw an opportunity. Frequent trips between cities were exploited by providing a quicker form of transportation. Southwest Airlines has weathered through several crisis and has proven itself to have potential for to be a leader of its industry. The poor economic conditions has placed many airline companies in debt, while Southwest Airlines was able to make a profit. With its competitors weakened, Southwest can take the initiative and expand-not foolishly, but with the same drive and precise execution the company was founded under. The genius behind Southwest Airlines success is location; and if researched properly, this can be applied to other areas. The appeal of Southwest Airline is the cheap tickets, as they offer none of the luxuries(such as in-flight meals). Southwest Airlines no frills approach may not be pleasing to all, it would be good for Southwest to make a few changes in which the aesthetics would be more accommodating. Upgrading seats may be a costly venture, but it would open Southwest Airlines to a larger market. The medium of choice for customer referral is the internet. Internet referrals have been the main source of customers (it further cut costs by charging a lesser fee to book seats through the internet than through a travel sales agent). With the saturation of discount websites, however, Southwest Airlines is losing the grip it held advertising on the internet. More websites offer competitive rates and special discounts-which if Southwest Airlines does not take immediate action can end up losing customers. Since advertising through the internet is risky, as people hate pop-ups or spam e-mails, it is our general consensus that Southwest should find ways to be listed on these price comparison websites. Before, there werent many sites that offered price comparison and finding deals was difficult. With these sites, information is available at the fingertips of the web surfers who can make better informed choices. Southwest Airlines should ensure that their voice is heard through this mediu m, as it is sure to attract people in search of deals. Conclusion First and foremost, Southwest Airline has developed a great low cost model for the past thirty year that fits todays economy the best. It has expanded from a tiny company with merely three aircrafts to one of todays major airliners that flies between 58 cities carrying over 60 million customers each year. As everyone can see, Southwest Airline has been a big success. Now, it is given an opportunity to grow even bigger at this extremely hard and critical time for the airline industry. After the incident of September 11, Southwest Airline is one of the few airliners that remained profitable; other airline companies are losing millions of dollars due to the insurance raise, the security cost and lack of customers. We recommend Southwest airline to take this opportunity to expand to greater regions. It is the time for Southwest airline to use its low price tickets to drive its competitors out of business and take over their market. We believe, giving up some of the profit to cut the ticket price even lower and upgrade hardware can open Southwest Airline to a much larger market that will bring more profit in future. Implementations of cost saving technology such as internet is needed to lower the operation cost to give customers better deals.

Chapter 2-the Great Gatsby

Chapter 2 In chapter two of The Great Gatsby, F. Scott Fitzgerald uses many methods of narrative. In this essay I will analyse three: Character, Setting and Voice each in detail. In the opening sentence of chapter 2, Fitzgerald uses imagery to create a setting of almost like a limbo with never-ending roads and barren land. This theme continues throughout the first setting in the chapter. â€Å"This is the valley of ashes-a fantastic farm where ashes grow like wheat into ridges† Fitzgerald uses the word ‘ashes’ twice which re-inforces how dead and desolate the ‘valley of ashes’ is.Secondly, Fitzgerald uses an oxymoron with the connotations of ‘ash’ and ‘wheat’: death and life. This is like a microcosm of the fact that many people (in the book) came to New York to achieve ‘The American Dream’ and many failed. However, it could also represent Gatsby and how there are hints in the book that he came from nothing but h as worked his way to the top. In chapter 2, Fitzgerald introduces a few new characters to the reader. The character that stood out most for me was Myrtle. Myrtle is Toms mistress and is characterized as the complete opposite as Daisy.She is described with a ‘thickish figure’, ‘sensuously’ and ‘smouldering’, whereas Daisy is slender, kind and loving. Further on in the scene, Myrtle changes her outfit quite often. â€Å"Mrs Wilson had changed her costume† The word ‘costume’ suggests that Myrtle is just playing a part in her own fairytale with Tom. It is ironic because the reader later learns that Tom has no interest in Myrtle apart from her being a distraction. Also, the quality of her dresses as we read deeper into the scene become more and more rich as the first dress is described as ‘crepe-de-chine’, the second is ‘muslim’ and the final dress is ‘chiffon’.She changes her ‘costume ’ to give people the impression that she is wealthy because it is the life that she wants to live. Lastly, the use of ‘Mrs Wilson’ instead of Myrtle infers that is more important than when she was with her husband and it also underlines the fact that she is married. Fitzgerald uses the change of structure in the narrative voice to portray the state of Nick. â€Å"I have only been drunk twice in my life and the second was that afternoon† We already know from chapter 1 that Nick is apologetic and likes to think he is honest. Therefore it is almost like he is apologising for what is about to come.This is most likely to be because alcohol was illegal then and he is obviously embarrassed by his state. Later on in the scene, the narrative voice then changes to a more drunken state for example, he rants and uses repetition of ‘then’. Later on, as the evening progresses Nick wipes off â€Å"a spot of dried lather that had worried me all afternoonâ₠¬  from Mr McKee’s cheek. If Nick was sober he would not have done this but obviously feels the need to due to the alcohol. Lastly, the whole scene is told in a strange order and it seems like he is looking back and piecing it all together.

Italian Unification

To what extent did foreign intervention impact the Italian unification movement? Italy, 1870. The unification movement of Italy has just been completed, the movement that could not have been successful without the efforts of Italy itself. Though foreign intervention was a minimal part of the unification, and at times even more of an obstacle than aide, without the militaristic action, internal economic and political change within Italy, the unification would not have been sparked, much less completed as successfully as it was.One of the important factors that contributed to the successful unification of Italy, was the decision to take militaristic action by joining wars and invading states that were crucial to the completion of the unification and would benefit Italy in the long run. By making the decision to join the Crimean war, and therefore aiding France and Great Britain, not only did Piedmont make a name for itself among all of Europe, gaining respect and fame, but the benefits for Italy in the long run were also known by Cavour, the leader of Piedmont at that time.Just by making the decision to aide France and Great Britain, it demonstrates how aware Piedmont was of the benefits of joining the war, and how the future Italy, and its unification would be impacted through it. Additionally, in the midst of the unification, it was the leaders of Italy that decided to invade the Papal States, to eventually complete the unification of Italy.This proves that the efforts of Italy itself completed the unification, because if the Papal States were not invaded, then Rome still would not have been part of Italy and the unification would have remained uncompleted. In addition to the militaristic action that was taken by Italy, the internal economic change that occurred within the nation also sparked the unification of Italy by furthering Piedmont, and eventually the rest of Italy’s image of a state in the process of modernizing.The textile industries, such as t he wool, silk and cotton industries were prime examples of Piedmonts economic industrialization. By industrializing the state, more citizens were happily employed, thereby creating a sense of unity among the people. Additionally, the construction of the railways advanced communication, and this economic development would eventually lead to benefits similar to those in Great Britain and in France.This development was again one instituted by Italy, and contributed greatly to the unification of Italy. Finally, under Cavour’s rule, trading treaties were signed with states such as France, Portugal, Britain and Belgium. Through these treaties, Italy was able to gain economic growth and support, resulting in import and export increases. Through these economic changes, the nation grew as a whole, and the citizens gained a greater sense of unity and recognition as a unified country from foreign states.And lastly, the political change that occurred under Cavour’s rule within Ita ly also shows the measures Italy took to complete a successful unification. A large part of the new political changes that were occurring in Italy stemmed from the new leaders that were instituting them. Mazzini, Garibaldi, Victor Emmanuel II and Cavour were all political figures that contributed to the unification of Italy, and without Mazzini’s motivation, Garibaldi’s military strength, Cavour’s brain or Victor Emmanuel II as King, the unification would not have been possible.Additionally, the statuto that was retained as a liberal constitution in Piedmont was an important factor in the unification, as it signifies the start of political freedom that began in Piedmont, and eventually spread throughout Italy. These ideas, which sparked the unification, could not have been put in place by any foreign nations. In conclusion, through the militaristic actions taken by Italy, in addition to the internal economic and political changes that occurred, it is clear that foreign intervention was not the cause of the successful unification movement that occurred in Italy.

Five Simple Mindfulness Skills That Work Essay - 1008 Words

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The studies are compelling about the health benefits of mindfulness meditation. In fact, studies show that mindfulness meditation actually changes the brain in positive ways. The cortex of the brain is thicker in certain areas of the brain in those who practice mindfulness meditation. And brainwave patterns are changed in healthy ways as well. Many people think that mindfulness meditation consists solely of sitting still and thinking about nothing for twenty or thirty minutes and are put off by the thought. In fact, mindfulnessShow MoreRelatedPersonal Learning And Insights From Ob 1 Class Sessions, And Your Proposed Plan For Your Personal Development Plan Essay1468 Words   |  6 Pagestraits are an accumulation of particular traits and attributes that characterize you and make you special. Knowing your personal style and adjusting this to a vocation bearing is a key variable to joy and achievement in work/life. 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Relationship between Genetic Suceptibility, Obesity, and...

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Nelson Mandela s Leadership Characteristics - 1971 Words

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Microsoft 06.06.2012 6/6/2012 NELOSN MANDELA’S LEADERSHIP June 6, 2012 TITLE PAGE CAUCASUS UNIVERSITY CAUCASUS SCHOOL OF BUSINESS COURSE TITLE: Developing effective leadership skills COURSE CODE: MGS-3211 INSTRUCTOR: Dara Ahmed GROUP PRESENTATION: N1 PRESENTATION TITLE: NELSON MANDELA’S LEADERSHIP GROUP MEMBERS: Tamar Geladze DATE: 6th of June, 2012 12 Page 2 NELOSN MANDELA’S LEADERSHIP June 6, 2012 TABLE OF CONTENT Read MoreOutline Of Nelson Mandela s Legacy2404 Words   |  10 PagesNelson Mandela 2 2 Nelson Mandela Hallmark Assessment Task: Nelson Mandela Jackie D. McDowell University of Louisville Dr. Carpenter, Bradley ELFH 490-91 May 15, 2015 Hallmark Assessment Task: Nelson Mandela Introduction Nelson Mandela is one of the most iconic leaders of the 20th century. In 1948 the National Party gained control in South Africa and implemented a system of apartheid (Campbell, 1990, p 147-150). 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These characteristics and practices additionally effortlessly observable in the character of Nelson MandelaRead MoreEssay about Nelson Mandela’s Childhood Defined His Identity3002 Words   |  13 PagesThe life of Nelson Mandela is an interesting example of this ideology. In his case, the connection between childhood and life is special and goes even further than the first instinctive connections that often come to mind. When one examines the interesting details the childhood of Nelson Mandela, one is compelled to conclude that Nelson’s Mandela childhood environment fashioned his politics. In order to understand fully how the childhood environment of Nelson Mandela fashioned hisRead MoreA Role Model Leadership, Nelson Mandela7546 Words   |  31 PagesNELSON MANDELA I choose Nelson Mandela as my role model leader. I analyzed Mandela’s leadership style and found his eight leadership best practices which I think every leader must learn and put into practice to become a real leader. Many of them come directly from his personal experiences and all of them are calibrated to cause the best kind of trouble; the trouble that forces us to ask how we can make the world a better place. Nelson Mandela’ s 8 leadership best practices and explanation whyRead MoreRacial Inequality : African Man And The Man Who Spoke Out Against It1877 Words   |  8 Pagesis â€Å"The belief that all members of each race possess characteristics or abilities specific to that race, especially so as to distinguish it as inferior or superior to another race or races†. Racism is an inequality dealt with throughout the world that still exists even to this day. Another thread tied to racism is defined by Your Dictionary as, â€Å"Racial inequality is a disparity in opportunity and treatment that occurs as a result of someone s race†. There are several occasions in which racial inequality

Human Capital and Entrepreneurship-Free-Samples -Myassignmenthelp

Questions: 1.Critically evaluate the Importance of creativity and innovations are needed for an Entrepreneur to thrive. 2.How challenging can change be for an Entrepreneur? Critically evaluate this in terms of changes in the Macro and Industry Environments. 3.Managing people (employees) is one of the must have leadership skills for an entrepreneur. Critically evaluate this statement and provide reasoned arguments for and against the statement. Answers: Introduction: In the present competitive business environment, development of effective strategies and policies is essential for any business entity to fulfill all their goals and objectives. For that reason, entrepreneurs have to formulate different unique decisions for accomplishing all their goals and objectives. Innovation is the heart of any growing economy, especially where traditional business models or practices have become obsolete. Without proper utilization of innovation or creativity, businesses can become financially stagnant within the market. Successful entrepreneurship needs a focus on integrating innovation, creativity and strategic business practices. Secondly, the report deals with the changing nature of the business environment and its impact on the strategies and policies of entrepreneurs. Several factors like political, economic, legal, technological and environmental plays significant role in creating overall business environment. For that reason, any changes in these factor s alter the present business environment completely. The entrepreneurs will always have to be ready to face such type of complex business environment in order to accomplish sustainable growth in the market. The report will provide an idea regarding the way managers can implement different changes in present strategies or policies for countering the changing business environment. Thirdly, the report deals with the importance of handling employees within the corporate environment for accomplishing all the business goals and opportunities. The report will highlight different concept associated with the handing people for providing an idea regarding the amount of impact it can have on the overall business environment. It will also include different critical argument regarding the best way to handle people within the organization for accomplishing all the business goals and objectives. 1.As per the article by Wolf (2012), creativity refers to the ability to bring, create into existence, to produce through imaginative skills, to invent into a new form. Creativity is not the ability to produce something out of nothing, but the ability to formulate new concepts or ideas by changing, combining or reapplying the existing ideas. Creativity also refers towards an attitude for accepting new changes in the business environment that can add dimension to the overall business structure. On the other hand, innovation refers to the development of process that is more creative or changing process, ideas and products. For businesses, innovation reflects to initiating new concepts, ideas and dynamic products for enhancing the efficiency of the present operational process. Innovation is fostered by capturing new form of connections with new disciples, places and collegial network. However, Boncz et al. (2015) have mentioned that innovation needs a fresh way of looking into regular a ctivities. It also requires proper understanding of the people along with organizations willingness to take additional risks in the business processes. Different elements are associated with the innovation process such as customer focus, challenge, creativity, communication, collaboration, competition and culture that can have significant impact on the overall business environment. Entrepreneur reflects to those persons who are responsible for setting up new businesses. Generally, entrepreneurs posses high level of skills and knowledge that allows them to oversee the entire operational procedure of a business. Entrepreneurs are prime catalyst for the development of different innovative and creative strategies that provides new dimension to the organization. In any business firm, entrepreneur is considered as the prime actor in developing marshalling resources and business ideas for accomplishing operational objectives. In the present competitive business environment, it is critical for any businesses to look for new opportunities for maximizing the profit level in a major way. The opportunities for innovation include in process where the entire focus is provided on the enhancing the overall process for achieving success in the market. Similarly, proper utilization of innovative products and services can also increase the overall revenue level of the organization. Moreover, entrepreneurs can also focus on utilizing different strategies for maximizing the utility of the present resources. As stated by Schnackenberg and Tomlinson (2016) innovation centers on culture, people, process and technology, which converts different market opportunities into profitable, workable and marketable ideas. However, utilization of innovation or creativity also can generate different challenges for businesses for accomplishing all the goals and objectives. For instance, management will have to focus on assessing the kind of impact any new initiated strategies can have on the present organizational culture. Moreover, management will have to assess present level of skills of the employees before initiating any new technologically advanced process. It will help the management to understand the kind of training and development needs for the employees. Otherwise, it can affect the overall motivational level of the employees in a significant manner. For that reason, organizations like Apple, Microsoft and Samsung have spent huge share of the total revenue in providing proper training facilities to the employees. It has allowed all the employees to enhance their present level of skills in a significant manner, which is likely to create positive impact on the eventual organizational performances. On the other hand, efficiency in product or service innovation also heavily depends on the present market needs and wants. Thus, it requires proper utilization of market research strategies for understanding exact type of innovation requires for achieving success through innovation and creativity. For instance, Nestle and Cadbury always focuses on investing huge amount of money in the market research activities for having clear idea about the market needs. It allows them to reduce the risk level associated with the launch of any new products. Similarly, management will also have to remain very careful about the way different new strategies were initiated to maximize the utility of the available resources. As illustrated by Dent and Whitehead (2013) it is critical for entrepreneurs to create a balance between work pressure and personal life for the employees. The term work life balance have gained significant amount of intersect in recent times. Almost all the prime organizations like Samsung, Microsoft, Coca Cola and many others have provided enough flexibility for the employees so that they can give maximum effort for the benefit of the organization. Thus, the above discussion has highlighted the fact that proper implementation of any developed new idea is critical for any organization. Without the exact implementation of the initiated strategies, it will be extremely difficult for any organization to accomplish all the goals and objectives. In fact, the success of any innovative or creative strategy heavily depends on the way it is executed in the corporate environment (Molloy and Heath 2014). The execution process determined the amount of impact it can actually create on the desired goals and objectives. Hence, the statement An idea that is developed and put into action is more important than an idea that exists only as an idea is absolutely correct. In fact, management needs to be more careful on the execution process of an idea compared with the development process. Proper execution will provide employees a specific guideline regarding the way they can fulfill all the goals and objectives. Therefore, it will keep them motivat ed towards the provided roles and responsibilities, which will enhance the efficiency level of the operational process (Smith et al. 2012). On the other hand, proper utilization of market research strategy will provide clear understanding regarding the needs and wants. Therefore, it will increase the efficiency level of the implemented innovation and creative product or service development strategy in a major way. 2.As per the article by Cummings and Worley (2014) all the organizations are looking to initiate different unique strategies for gaining competitive advantage in the market. Over the years, market dynamics for different industry have changed in a significant manner. Therefore, it has induced organizations from different sector to implement new strategies and procedures for fulfilling all the business goals and objectives. Now, PESTEL is among the most popular tools to evaluate macro environmental condition of overall business environment. It will help to highlight all the critical elements that have induced market to change its dynamism. PESTEL theory: Political factor: Political factors include all the government rules and regulations imposed on different industries. As stated by Ho (2014) different economies have their own set of rules and regulations that businesses have to follow to remain competitive in the market. Now, government tax, fiscal or trade policies change over certain span of time that directly creates adverse impact on the overall profit level of the businesses. Hence, it provides businesses no alternative options than to initiate unique strategies for maintaining competitive advantage in the market. Economic factor: Economic factors include all the determinants like foreign exchange rate, inflation rate, interest rate, tariff and quota of an entire economy. Now, any changes in these rates directly increases overall operational cost (Clegg, Kornberger and Pitsis 2015). As a result, organizations have to consider different alternative strategies to reduce the cost as much as possible. For instance, high rate of inflation increases the overall cost of the raw materials for any production firm. Therefore, it reduces profit margin, which eventually increases massive pressure on the overall efficiency level of the operational process. Social factor: As stated by Morse, Babcock and Murthy (2014) social factors include factors like demographic, culture, age group, gender of the entire community. It has been assessed that overall market needs and wants heavily depends on the dynamism of the market. For that reason, with the changes of social structure, organizations will also have to initiate different changes in their initiated strategies for maximizing the revenue level. Now, initiation of unique strategies eventually changes the overall business environment. Technological factor: Technology is arguably the most important factor that changes the overall business environment completely. The entire globe has seen significant technological advancement across industries (Oster and Strong 2017). As a result, it has allowed organizations to produce more in a limited span of time. On the other hand, it has also changed the market dynamism or competitiveness in a significant manner. Environmental factor: Environmental factor focuses on assessing the locations, transport and other facilities that can eventually create major impact on the overall business perspectives. With increasing competition, organizations have to face more pressure to utilize environmental friendly strategies (De Anca and Vega 2016). It has allowed many prime organizations like Tesco, Wal-Mart or Woolworths to represent itself as a responsible corporate citizen. Thus, environmental factors have also created significant impact on the changes of overall business activities. Legal factor: Legal factor focuses on evaluating different legislative rules and regulations that restricts different business procedure (Day 2014). Over the years, different economies have changes their legislative guidelines in such a way so that it can able to add more dynamism on the entire business structure. Specifically, changes in legislative guidelines completely transform the dynamism of the international business. Therefore, it can be mentioned that changes is obvious in business environment of any industry. Now, in order to counter continues changing business environment, entrepreneurs will have to focus on utilizing different unique strategies and procedures. Now, Lewin has suggested one of the most popular organizational change theory that management can utilize for fulfilling business goals and objectives. Lewin change theory: In this theory, Lewin has suggested three steps for the entrepreneurs to utilize at the time of initiating change in the present business strategy. The stages are discussed as follows: Unfreeze: As illustrated by Reason (2016) first step of the change theory involves preparing the business to accept the necessary changes. Therefore, management will have to focus on breaking down the current status quo in many segments. Here, management will have to ensure that all the employees associated with the organization can understand the significance of change in an appropriate manner. Thus, management will have to challenge the values, attitudes, beliefs of the employees in order to initiate different changes in the operational procedure successfully. Change: In this step, management needs to focus on implementing different change strategies so that it can able to maintain its position in the market. For instance, if any management is looking to introduce any advance technology base instrument on the operational process. They will have to introduce it in this step along with proper training and development facilities for the employees (Hanks 2015). It will ensure employees do not have to face too many challenges in performing their roles and responsibilities in an appropriate manner. In this step, employees start to learn how to cope up with the changes in the operational procedure. Here, employee might have to work with new teams in completely new environment. Therefore, management will have to provide required level of support at each step to ensure they remain motivated towards the organizational goals and objectives. Refreeze: After the initiation of changes, management will have to concentrate on refreezing the entire operational process in an appropriate manner. In this step, employees are likely to understand the new initiated tools and technologies in an effective manner (Gupta, Pistorius and Vijge 2016). Moreover, they have developed strong team bonding with each team member. Refreezing step reflects the successful implementation of change strategy for gaining competitive advantage in the market. Now, innovation requires proper changes in the present business procedure. Therefore, entrepreneurs will have to remain very careful at the time of initiating Lewins change theory in the corporate framework. Otherwise, it can create massive affect on the overall accomplishment of business objectives. Therefore, entrepreneurs will have to follow all the steps of change theory module for successful accomplishment of all the goals and objectives. 3.As opined by Birkinshaw and Gupta (2013) employees are the most valuable resources for any business entities to accomplish all the business goals and objectives. Proper maintenance of employees is one of the prime responsibilities for any management in order to fulfill all the organizational goals and objectives. In the present complex business environment, leaders or managers have to deal with different aspect of the business on regular basis. The responsibilities of the leaders include keeping track of the stock levels of raw materials, efficiency the operation process, target achievement, team bonding and many other things. However, all the responsibilities associated with the leaders are linked with employees. According to Bridges and Bridges (2017) without proper help from the employees, no organization can able to grow in the competitive market. Hence, keeping all the experience and talented employees happy and satisfied with the organization is among the prime goal of any or ganization. Experienced employees are likely to possess more in-depth knowledge and skills, which is likely to help organization to handle any types of complex business situations in an appropriate manner (Trevino and Nelson 2016). On the other hand, organizations are likely to found very difficult with the full support from the workforce. Hence, the statement Managing people (employees) is one of the must have leadership skills for an entrepreneur is very much correct. Since, without handling employees appropriately, no organization can achieve success in the market. There are several ways to manage people within the workplace so that they can able to achieve competitive growth in the market. Out of this, prime three strategies for handling employees are discussed as follows: Performance assessment: Proper utilization of performance management is critical for any organization for keeping the entire workforce motivated towards the provided roles and responsibilities. Performance management includes proper assessment of the efforts provided by each employee for accomplishing all the business goals and objectives (Rummler and Brache 2012). Proper assessment of employee performance allows management to identify best performing employees within the organization. Therefore, it will allow organizations to provide proper rewards and recognitions to the employees. Now, proper utilization of both tangible and non-tangible benefit structure is likely to encourage other employees to give their best at the workplace (Rice 2013). As a result, it will increase the overall efficiency level of the operational process. Thus, proper utilization of performance strategies keeps the overall motivation of the employees at the desired level. Therefore, it eventually reduces the employee attrition rate within the organizational structure. Leadership style: Hatch and Cunliffe (2013) have highlighted the significance of developing proper leadership structure within the workplace for managing all the employees in an effective manner. As illustrated earlier, business environment is changing at a rapid rate over the past few years. Therefore, employees have to focus on developing new skills and knowledge on regular basis. For that reason, managers or leaders need to initiate proper support facilities for each of the employees so that they can able to take on different professional challenges in an appropriate manner. Leaders need to show the right direction to each of the employees for accomplishing all the business goals and objectives in an appropriate way (Coombs 2014). It has been assessed that proper support from the leaders can encourage employees to provide additional efforts for the success of the organization. Therefore, it will eventually increase the efficiency level of the overall performance level of the organization. Hence, of fering proper support and guidance to the employees is critical to keep them associated with the organization for longer period of time. Career progression plan: Career progression plan is another critical element that entrepreneurs need to provide to each of the employee so that they give their best at the workplace. Every employee aims to achieve greater professional goals for fulfilling all the needs. Now, proper performance assessment process allows organizations to identify best performing employees within the organization (Kohonen 2012). Therefore, it is likely to help organization to provide greater responsibilities to the suitable employees. The career progression plan is a sketch that describes the way an employee can move up to the ladder. As a result, it increases the overall satisfaction or motivation level of the employees in a major way. It is also likely to create strong bonding with the different level of employees, which will create positive work atmosphere within the workplace. Conclusion: The above illustration has highlighted the fact that proper utilization of management strategies is critical for fulfilling all the business goals and objectives. Now, innovation and creativity is the prime aspect for enhancing the overall efficiency level of the operational process. Moreover, the report has highlighted different factors that change the overall business environment in a significant manner. It has highlighted the significance of becoming flexible management in order to accomplish all the business goals and objectives. The report has also highlighted the way managers can handle entire workforce and motivate them for go beyond the provided professional target. References: Birkinshaw, J. and Gupta, K., 2013. 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