Which of the Following Is TRUE of Southwest Airlines

question 40

Multiple Choice

Which of the following is TRUE of Southwest Airlines?

• A) Southwest has an unusually low amount of flexibility for a large firm.
• B) Southwest's success is largely due to the fact it has little market commonality with other airlines.
• C) Decision-making responsibility is centered at its Dallas headquarters, which allows the firm to respond quickly to competitive attacks.
• D) Southwest's advantage lies in its ability to "think small."

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Definitions:

Equivalent Sales Increase

A metric that assesses additional revenue by comparing the effects of various marketing or operational initiatives as if they were translated directly into sales.

Profit Margin

A financial metric that represents the percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a company.

Logistics

The management of the flow of goods, information, and resources between the point of origin and the point of consumption in order to meet the requirements of customers or corporations.

Supply Chain Performance

An evaluation of how well a supply chain achieves its goals, often measured through metrics like efficiency, speed, cost, and reliability.