ILROB1220 1st Edition Lecture 4Outline of Last Lecture I. IncongruencesII. Congruence ModelIII. Steps to using Congruence ModelIV. Fixing IncongruencesOutline of Current Lecture I. Structure of US Airline Industrya. External and Internal Congruence of SouthwestII. Congruence Analysis and ConclusionIII. Current Real Life DevelopmentsIV. TakeawaysCurrent Lecture: Southwest Case ExampleI. Structure of the US Airline industrya. High entry and exit barriersb. High fixed labor costsc. Unionized labor, hostile relations between unions and employersd. High and uncertain fuel pricese. Expensive equipmentf. Expensive and congested facilitiesg. Price sensitive customersh. Price competition, price warsi. Basically an extremely unattractive industry!II. External Congruence of Southwesta. Environmenti. Highly competitive industryii. High fixed costsiii. Bad relationships between managers and unionsiv. Price sensitive customersb. Strategy: Create Low Cost Leadershipi. Focusedii. Point to pointiii. Low cost and high productivityiv. Good relationships with unionsIII. Internal Congruence of SouthwestThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.a. Tasksi. Keep costs down, productivity upii. Consistency (strategy and service)iii. High utilizationb. Peoplei. Fun Lovingii. Intrinsically motivatediii. Energeticiv. Positivev. Committedvi. Interpersonally skilledc. Formal Organizationi. Flat structureii. Recruiting practicesiii. Compressed pay and profit sharingiv. No rule bookd. Informal Organizationi. Teamworkii. Appreciationiii. Work hard play hardiv. Initiativev. Egalitarianvi. AutonomyIV. Congruence Analysis Conclusiona. All the pieces fit together!b. Management practices are the key to the successful external and internal alignmentV. Current Real Life Developments in Southwesta. Biggest competiters are American, JetBlue, and Deltab. Recent labor disputesc. Unsafe scandal in 2007d. Financial losses in 2008VI. Takeawaysa. Management practices are paramount for building a sustained and competitive advantageb. Alignment requires continual reinforcementc. Trust, teamwork, intrinsic