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Stakeholders

Southwest case

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Page 1: Southwest case

Stakeholders

Page 2: Southwest case
Page 3: Southwest case
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Relevant Stakeholder : 1. The Federal Aviation Administration ( FAA ) 2. The U.S. Department of Transportation. 3. The Project on Government Oversight 4. U.S. House Committee 5. Suppliers Non_Relevant Stakeholder : 6. Whistle blowers ( Employees ) . 7. Public 8. Passengers

Stakeholders :

Page 5: Southwest case

1. The Federal Aviation Administration ( FAA )

_ Pay fines ( several billion USD ) _ Grounded 44 planes between its Love

Field Dallas and Chicago maintenance facilities.

2. The U.S. Department of Transportation and The Project on Government Oversight :

_ Corporate to the checking systems from general office .

Address the needs of Stakeholders

Page 6: Southwest case

THE FEDERAL AVIATION

ADMINISTRATION ( FAA )

SUPPLIERS SOUTHWEST AIRLINES

Problems for Stakeholder :

Page 7: Southwest case

The Federal Aviation Administration ( FAA ) _ Being accused of falsifying a safety report that provided assurances that the airline had met compliance rules for safety inspections of its jets_ Some FAA supervisors, may have been complicit in Southwest’s safety lapses._ The whistleblowers say the problems stem from a cozy relationship that developed between the FAA and Southwest ( Bribery )

Problems for Stakeholder :

Page 8: Southwest case

Suppliers _ Ineffective oversight : Engine failures occurred in FY 2003 due to faulty speed sensors on fuel pumps , engine failures occurred on the ground and one occurred in flight ._ Substandard parts : supplier released approximately 5,000 parts that were not manufactured proper_ Untrained employees to manufacture several components.

Problems for Stakeholder :

Page 9: Southwest case

Corporate with inspector general’s office for the U.S. Department of Transportation. The Project on Government Oversight to recheck all systems .

Pay fines to The Federal Aviation Administration ( FAA )

Increasing by eight the number of on-site technical representatives the airline has at companies that perform major maintenance on its airplanes.

Allowing FAA inspectors improved access to information used for tracking maintenance and engineering activities.

Stakeholder Engagement

Page 10: Southwest case

Eight Strategic Radar

SeekingEnvironmental

Intelligence

Customer Environme

ntCompetitor Environmen

tGeographical Environment

Technological

Environment

Legal Environme

nt

PoliticalEnvironme

nt Social Environmen

t

Economic Environme

nt

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Customer Environment : being boycotted

Competitor Environment : development of other aviation agency other choices to flight instead of Southwet Airlines

Economic Environment : threat of losing business due to falsifying a safety report

Technological Environment : couldn’t verify that their suppliers were providing effective oversight of the sub-tier suppliers they used to produce parts .

Social Environment : danger to flight passengers .

Political Environment : take advantage of a cozy relationship with FAA to pass laws

Legal Environment : falsifying a safety report , violate compliance rules for safety inspections , commit bribery .

Geophysical Environment : air crash ( fire ) ( 2009 )

Eight Strategic Radar

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