![]() The unitary or U-form structure is also known as the functional form because of the use of business function as a basis for grouping resources and activities, such as finance and airline marketing in this case. ![]() Southwest Airlines has a U-form organizational structure. Southwest’s Organizational Structure Type and Characteristics ![]() Structural characteristics also facilitate strategic planning and implementation to address trends in the industry, such as those identifiable through a PESTEL/PESTLE analysis of Southwest Airlines Co. The company uses its corporate structure as a tool to manage operations while competing with other firms, like American, Delta, and United. The business strengths, core competencies, and competitive advantages shown in the SWOT analysis of Southwest Airlines are partly a result of human resources and strategic support from the corporation’s organizational structure. Its profitable performance and large operational scale indicate that Southwest Airlines benefits from its organizational structure’s implementation to address business needs and strategic challenges in the international commercial aviation industry. It is apparent that the company finds its corporate structure ideally applicable to its operations in the transportation sector. In its organizational development, starting as a local carrier in Texas and now an international low-cost airline business, Southwest has largely maintained its organizational design and its organizational structure’s characteristics. The corporate structure facilitates the administration of the aviation company’s resources, including human resources. In this structural system, Southwest possesses a rigid hierarchy that addresses strategic management concerns. As a major low-cost carrier with international operations, the company has an organizational design representative of a business configuration that enables strong corporate headquarters in controlling all areas of operations. Southwest Airlines’ organizational structure (company structure) promotes centralized strategic decision-making processes. Southwest Airlines’ organizational structure (corporate structure) reflects an organizational design that emphasizes the company’s managerial control in all areas of the business. A Southwest aircraft at San Francisco International Airport in 2010.
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