Activity Objective

The objective of this discussion is to aid you in mastering the following course competencies:

• Apply theories, models, and practices of global operations management to address business problems.

More specifically, you will:

• Formulate solutions to capacity management problems.

Activity Instruction

Describe three strategies for expanding capacity (defined in Chapter 7). What are the advantages and disadvantages of incremental versus one-step expansion?

Review the case study Southwest Airlines 2011 (2011) by Inkpen. First describe Southwest Airlines’ strategy and process, and then respond to the following questions in view of your knowledge about expanding capacity:

1. Is the United States airline industry attractive?
2. Why is Southwest successful?
3. How easy would it be to imitate this strategy?
4. Is the strategy sustainable?
5. Should Southwest become an international airline?