MGT 499 Southwest Airline Exam
UPDATED QUESTIONS AND CORRECT
ANSWERS
Which of the following would be considered a distinctive competency for Southwest
Airlines? - CORRECT ANSWER Southwest is able to maintain a lower cost structure.
One of Southwest Airlines' many resources is employees, who are rewarded through a profit-
sharing plan that includes Southwest stock. This profit-sharing plan as an incentive to
employees is considered which type of resource? - CORRECT
ANSWER Organizational architecture
Part of Southwest Airlines' uniqueness is in its workforce's willingness to do other jobs in
addition to the position they were hired for. This organizational culture provides great value
to the company and is classified as what type of activity? - CORRECT
ANSWER Support activity
Although Southwest Airlines' fares cost less than many other airlines' fares, which of the
following equations [with V = value (utility) to consumer, P = price, and C = cost of
production] best represents why Southwest's profitability is higher? - CORRECT
ANSWER Southwest's P - C > Other airlines' P - C
Based on the VRIO framework, which element is most represented by Southwest Airlines'
practice of flying only Boeing 737s? - CORRECT ANSWER Value
Based on the VRIO framework, which element is most represented by Southwest Airlines'
practice of devoting enormous attention to its staff - CORRECT
ANSWER Organization
Based on the strategies Southwest Airlines uses to contribute to profitability, a change in
which of the following would most quickly and noticeably affect passenger satisfaction? -
CORRECT ANSWER Increasing comparative fares that Southwest charges for its
flights
UPDATED QUESTIONS AND CORRECT
ANSWERS
Which of the following would be considered a distinctive competency for Southwest
Airlines? - CORRECT ANSWER Southwest is able to maintain a lower cost structure.
One of Southwest Airlines' many resources is employees, who are rewarded through a profit-
sharing plan that includes Southwest stock. This profit-sharing plan as an incentive to
employees is considered which type of resource? - CORRECT
ANSWER Organizational architecture
Part of Southwest Airlines' uniqueness is in its workforce's willingness to do other jobs in
addition to the position they were hired for. This organizational culture provides great value
to the company and is classified as what type of activity? - CORRECT
ANSWER Support activity
Although Southwest Airlines' fares cost less than many other airlines' fares, which of the
following equations [with V = value (utility) to consumer, P = price, and C = cost of
production] best represents why Southwest's profitability is higher? - CORRECT
ANSWER Southwest's P - C > Other airlines' P - C
Based on the VRIO framework, which element is most represented by Southwest Airlines'
practice of flying only Boeing 737s? - CORRECT ANSWER Value
Based on the VRIO framework, which element is most represented by Southwest Airlines'
practice of devoting enormous attention to its staff - CORRECT
ANSWER Organization
Based on the strategies Southwest Airlines uses to contribute to profitability, a change in
which of the following would most quickly and noticeably affect passenger satisfaction? -
CORRECT ANSWER Increasing comparative fares that Southwest charges for its
flights
