Strategic analysis Despite the tumbling economy, SkyWest is still operational. The statements of the entity reveal that its core undertaking is still viable owing to its operating profit. The entity has managed to sustain profitably despite the plummeting revenues in the industry. The success of this entity emanates from the strategic measures. The entity has invested in different types of planes that will ensure that the entity can undertake extensive distance and regional flights. Consequently, enlarging its clientele volume has culminated in additional revenue. SkyWest has also collaborated with larger airlines. Larger airlines have outsourced smaller entities as they seek to cut costs presenting SkyWest with an opportunity to increase their turnover. SkyWest has done commendably in customer satisfaction and baggage handling. These are areas of concern to the airline clientele hence, giving the entity an edge over its rivals. The entity has identified that partnerships and customer satisfaction as the key strategies towards success in the industry. Internal environment analysis I SkyWest has provided ample benefits to its workforce. This has ensured that the workforce remains motivated. Failure to motivate workers in this industry has dire consequences since industrial actions lead to massive losses. This airline motivates employees via retirement plan, income security schemes, and other benefits. However, this affects the entity’s finances significantly since it increases operational costs. SkyWest has streamlined its operations by acquiring firms that complement its operations. The acquisition of Atlantic Southeast Airline has enabled Sky West to differentiate its product portfolio since the subsidiary dealt largely in cargo handling. Additionally, collaborating with Delta Airlines has enabled the entity to benefit from synergistic alliances. Delta Airlines has passed on the business to SkyWest in instances where the venture is unprofitable to the enormous entity. Internal environment analysis II Liquidity ratios Current Ratio Current Ratio=Current Liabilities /Current Assets 1,220,668/41525= 29.39 This means that this entity can easily settle its current liabilities. Quick Ratio Quick Ratio = (Current asset- Inventory)/Current liabilities (1,220,668-226,474)/ 41525= 23.94 The above ratio denotes the capability of SkyWest to settle short-term responsibility from liquid assets. Efficiency Ratios Inventory turnover Inventory turnover= Total turnover/Inventory 3,496,249/104,383=33.49 The figure denotes the ratio of income generated and he inventory. Asset turnover Asset turnover= Total turnover/ Total assets 3,496,249/4014291= 0.89 The ratio denotes the proportion of income generated by the total assets. Profitability ratios Gross profit margin (GPM) GPM= Gross profit/ Total revenues 255231/3,496,249= 0.073 Operating profit margin (OPM) Operating profit margin =Operating profit/ Total revenues 255231/3,496,249= 0.073 Net profit margin (NPM) Net profit margin= Net income/Total revenues Net profit margin=112,292/3,496,249= 0.3211 Return on assets (ROA) Return on assets (ROA) = Net income/ Total assets 112,292/4014291=.02 Return on equity (ROE) Return on equity (ROE) = Net income/ Shareholder’s equity 112,292/1,275,521= 0.08. External environment analysis I The airline industry is exceedingly competitive. Thus, most entities offer similar products. The cust