1. SkyWest Strategic Audit
Stefan Johnson
Allan Padua
Mike Richardson
Rachel Sa-Onoy
Libby Schuster
Clear Vision, Inc.

2. SkyWest, Inc.

3. SkyWest Inc. SWOT Analysis
Strengths
Weaknesses
Strong reputation for safety, on time arrivals, and customer service
Largest independently owned regional airline
Partnerships with United and Delta
Positive employee relations
Smaller aircraft are perceived by public as being less safe
ASA ranked near bottom in customer satisfaction
Regional carriers limited geographically and can be affected by bad weather
Opportunities
Threats
Expand outside the U.S. to China, Brazil, and Mexico
Diversify operations to reduce dependence on Delta and United
State of economy affect business
Rising costs of fuel
Pressure from major partners to accept lower fees

4. MESA Air Group SWOT Analysis
Strengths
Weaknesses
Partnerships with United Airlines, U.S. Airways, Midwest Airlines, and Delta
Good Reputation for customer service
Filed for bankruptcy in 2009 to reduce fleet size
Opportunities
Threats
Consolidate fleet and resources
Focus on customer satisfaction
Increasing cost of fuel
State of economy
Loss of contracts with major airlines

5. Pinnacle Airlines SWOT Analysis
Strengths
Weaknesses
Ranks high in customer satisfaction
Major airline partnerships with Delta and Northwest Airlines
Involved in airline disaster when a plane crashed into a home in 2009
Opportunities
Threats
Focus on customer satisfaction and safety
Pursue new contracts to increase scope of service
Increasing fuel costs
State of economy
Loss of contracts with major airlines

6. Key Success Factors Acquire partnerships with major airlines
High customer Satisfaction
Strong safety image
On-time arrivals

7. Pinnacle Airlines Corp.
Key Success Factors
SkyWest Inc.
Mesa Air Group
Pinnacle Airlines Corp.
Key Success Factors
Weight
Rating
Weighted Score
Major Partnerships
.35 5
1.75 4
1.4
Customer Satisfaction .3 3
0.9
1.2
Safety Image .2
0.8
0.6 2
0.4
On-time Arrivals
.15
Total
1.0
4.05
3.5
3.6

8. Financial analysis Net Profit Margin 3.2% 4.7% 5.7% 7.1% N.A. (2.2%)
2009
2008
2007
2006
2005
2004
SkyWest Inc.
3.2%
4.7%
5.7%
7.1%
Mesa Air Group
N.A.
(2.2%)
(6.3%)
2.7%
5.0%
2.9%
Pinnacle Airlines
(1.3%)
3.9%
9.4%
3.1%
6.4%
Debt-to-Equity Ratio
2009
2008
2007
2006
2005
2004
SkyWest Inc.
2.01
1.96
1.99
1.97
2.43
0.99
Mesa Air Group
N.A.
7.75
7.45
3.69
5.61
7.70
Pinnacle Airlines
11.61
19.23
11.3
2.11
11.30
(6.43)

9. Porter’s Five Forces Model
Competitive Rivalry (Strong) Buyer’s Bargaining Power (Strong) Supplier’s Bargaining Power (Strong) Availability of Substitutes (Weak) Threat of New Entrants (Weak)

10. Attractiveness of the Industry
Industry as a Whole (Not Attractive)

11. Historical View of Strategies (Typology)

12. Problems
Recession

13. Implementation Plan Advertise to Increase Brand Awareness
Member Reward/Incentive Program
Repurchase Shares
Upgrade Technology and Decrease Labor Costs
Improve Flight Portfolio
Increase Fleet in Operation
Seek Out Partners, Absorption of Smaller Airlines
Expand to Division of Low Cost Carriers and Regional Routes

14. Contingency Plan Failing Plan: Company Failure:
Immediate Reissuance of stock
Consolidation Though Sale of Weak Branches
Reduce Service (cut out rural areas)
Seek Further Partnerships and Mergers
Company Failure:
File Chapter 11 to Reorganize the Company
Sell Off Assets to Repay Debt

15. Sources of Resistance

16. Ethical Implications of Recommendations