...Southwest Airlines Co. Analysis * Introduction and Mission Southwest Airlines Co. is a major U.S airline and the world's largest low-cost carrier. It was established in 1967 and adopted its current name in 1971. The airline operates more than 3,400 flights per day and has more than 46,000 employees as of August 2012. In 2013, Southwest Airlines has scheduled service to 84 destinations in 41 states and Puerto Rico. In 2012, Southwest Airlines was the market share leader in domestic air travel in the United States; it transported more passengers from U.S airports to U.S destinations than any other airline, and it offered more regularly scheduled domestic flights than any other airlines. For the 40th consecutive year, the Company was profitable, earning $421 million in net income. The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. The mission statement has always regulated the way the company conducts their business. The company mission statement also highlights their desire to serve customers better and it provides them with direction when they have to make certain service-related decisions. The company mission statement is also another way of saying, "We always try to do the right thing!" According to the U.S. Department of Transportation, Southwest Airlines has the best cumulative consumer satisfaction record. * Market Share These three...
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...Effects of Quality Management on Domestic and Global Competition Yudyth Vera MGT/449 January 23, 2012 Dr. George DeMetropolis Effects of Quality Management on Domestic and Global Competition Quality management is an essential factor in any commercial industry, regardless of the targeted customer segment. The effects of proper management and the measurement tools used are evident in successful airlines servicing both U.S. and international passengers. For U.S. domestic carrier, Southwest Airlines their focus on quality has provided three consecutive years of profitability. While international German airline, Lufthansa has attained longevity of ~90 years because of their ability to adapt to political and economical challenges. This paper will address various topics concerning the effects of quality management on domestic and global competition. First it will provide a definition of an airline and highlight company information for service providers Southwest Airline and Lufthansa. Second, it will provide a description of the processes similar between Southwest Airlines and Lufthansa and explain the processes from beginning to end. In addition, an explanation of the process and how it produces a competitive service in the domestic and global markets will be presented. Last, this paper will explain how quality management affects the position of the companies in the domestic and global market. Airline Industry and Overview of Southwest Airlines and Lufthansa The...
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...Employing Strategy in a Competitive Environment Lutuéce Hurt Dr. Lloyd H. Stebbins, P.E. Strategic Management BUS 599 May 5, 2013 Create an environmental scan for the company indicating the most significant environmental threats and discuss how the company should respond to each threat to ensure that the impact to the business is minimal. The significant success for any organization is strategic planning. To develop a successful plan would require the organization to have a comprehensive understanding of their current environment. Environmental scanning is used to establish the focus of the strategic plan. To conduct an environmental scan external and internal information should be evaluated. A SWOT analysis will focus on the strengths, weaknesses, threats, and opportunities. We will discuss the most signification environmental threats for Southwest Airlines. There are many environmental factors that could influence the performance of the company, Southwest Airlines, which provides low-cost air travel and service. This student will discuss two environmental threats pertaining to Southwest Airlines. Two environmental factors that have a major impact on how businesses operate are: economic factors and regulations. September 11, 2001 terrorist attack on the World Trade Center was a moment in history that effected Nation and the U.S. economy. Most importantly the airline industry was threatened by the aftermath of the economy. “The events of September...
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...Socio-Geographic Factors MMPBL-560 Managing in a Cross Cultural Environment Socio Geographic Factors for Southwest Airlines Businesses are determine to be successful in the future because they know they will be challenged to embrace the changes in a diverse group, which will allow them to be competitive in the global sector. Organizations that will develop a cultural sensitivity will be crucial in order to succeed and within recruiting and retaining the qualified workforce. Defining cultural sensitivity is described as acceptance. Organizations will need to accept the values and beliefs of an individual. In addition, understanding that each employee is different and working together to learn and appreciate the similarities within them. Cultural sensitivity at times can be a challenge for larger organizations to develop. There are different aspects that can affect a business strategic plan to successfully identify and exploit diversity in the direction of sustaining development which consist of employees in the working class, regional variations that are currently present, and how the family impacts today’s workforce and the society. The following aspects have a crucial effect within recruiting and retaining a diverse labor force which determines the outcome of being successful or unsuccessful. Southwest Airlines is a national organization and has demonstrated how the following factors have impacted the organization. Identify and Define Class Class is...
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...within the organization, regional variations that exist within the organization, and the impact of the changing family definitions in today’s world. Each of these three factors has an influence on the successful recruitment and retention of a diverse workforce. Southwest Airlines (Southwest) is an example of a national organization that demonstrates the impact of these three factors. The organizational status of each employee would be achieved through personal effort in an open class system versus the social class to which each employee belongs (Kottak & Kozaitis, 2003). Guaranteed merit based upward mobility is a factor that can motivate top candidates to come to work for a given organization. Furthermore, merit base upward mobility will go on to motivate top candidates to stay and continue working with the organizations because he or she see that their efforts are being recognized and rewarded with upward mobility within the organization. Another motivational benefit of an open class system within an organization is that it will inspire individuals to work in a dedicated and efficient manner toward achieving organizational goals. At Southwest, class differentiation between employees exists in the ranges of income. Southwest has reduced its potential negative effects through established human resources management policies that have succeeded in promoting equal respect for all employees...
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...within the organization, regional variations that exist within the organization, and the impact of the changing family definitions in today’s world. Each of these three factors has an influence on the successful recruitment and retention of a diverse workforce. Southwest Airlines (Southwest) is an example of a national organization that demonstrates the impact of these three factors. The organizational status of each employee would be achieved through personal effort in an open class system versus the social class to which each employee belongs (Kottak & Kozaitis, 2003). Guaranteed merit based upward mobility is a factor that can motivate top candidates to come to work for a given organization. Furthermore, merit base upward mobility will go on to motivate top candidates to stay and continue working with the organizations because he or she see that their efforts are being recognized and rewarded with upward mobility within the organization. Another motivational benefit of an open class system within an organization is that it will inspire individuals to work in a dedicated and efficient manner toward achieving organizational goals. At Southwest, class differentiation between employees exists in the ranges of income. Southwest has reduced its potential negative effects through established human resources management policies that have succeeded in promoting equal respect for all employees...
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... I want to analyze such companies as Southwest Airlines and Jet Blue Air. In order to analyze these companies, it is necessary to start with what are the company aims, what is important to it, what it wants to achieve, and who the groups are. All this valuable information is reflected in the company’s mission and vision statement. Thus, let’s take a closer look at mission and vision statements of Southwest Airlines and Jet Blue Air. According to the Southwest Airlines Annual Report (2013), “The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.” Moreover, the company has expanded mission statement, “We are committed to quality service for the everyday person. Southwest provides air transportation to cities all around the United States. We fly the most luxurious planes on the market with the latest technology money can buy. We competitively provide the lowest airfare price in search for the greatest advantage in today’s busy world. We provide the highest standards of safety for all our customers while still offering a reasonable price. A portion of our proceeds is donated to various charities throughout the United States. Since our first flight in 1971, our employees have been the vital asset in making Southwest the most recognized airline today.”(Southwest Airlines Annual Report, 2013). I think that the Southwest Airlines clearly...
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...religion is the one that person chooses to practice. Marketers have a big impact on both of these belief's and values. It is important for marketers to research what is trending upward and downward in the cultural environment in order to expand on a possible opportunity. This is the same if a new cultural change poses a risk to what marketers have already invested time and energy in. Constant assessment of cultural values as well as people's views on society is needed in order to properly advertise a product to consumers. 2. The micro environment of a company consist of elements close to that company that impact the company's ability to serve its customer's. Six components make up the micro environment of a company. The company's internal environment which includes management personnel, finance, purchasing, manufacturing, research and development, ect The company's suppliers provide goods and services in order to produce the company's products. Market intermediaries help in the promotion, selling and distribution of the company's products. The customer's of the company include the consumer, reseller, international markets, ect. The company's various public's and it's competition make up the last two components. The macro environment of a company are condition's that exist in the economy as a whole. It is closely linked to the general business cycle, as opposed to the...
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...Southwest CEO Rashanna Brown MAN103 September 13, 2013 Jean Anderson Southwest CEO The different cultures at southwest airlines that are displayed is, they are always being very serious and cautious about keeping their coast down, they are committed to provide their employees a stable work environment with equal opportunity for learning and personal growth. Southwest airlines are dedicated stated in their mission to high quality customer service delivered with warmth, friendliness, individual pride, and company spirit. None of their employees has ever gone on strike. Southwest Airlines leads industry in on time performance. Through the year 2002 their stock prices has increased for the preceding ten year period. One of southwest missions was to always be dedicated to the highest quality of customer service. The effective skills that Kelly possess that makes him an effective leader is he shows the customers that he care by talking to them and also remembering all the employees names. Kelly always makes sure things are done in an orderly fashion, not only for his benefit, but for the benefit of the company, employees, and customers. Kelley treats his customers as king and queen, but he treats his employee’s even better than the customers, that is a true team leader and in this conclusion Kelly also does things to save the airline money by locking up fuel hedging contracts that results in paying less for jet fuel than competitor airlines. Some of Southwest Airlines’...
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...Southwest Airlines COM/530 Communications for Accountants March 24, 2014 Abstract Southwest Airlines is the most respected airline in the United States for their philosophy, mission, vision, and values. More than 38 years ago Rollin King and Herb Kelleher started in 1971 as a small 3 airplane carries operating with in Texas. Southwest has dedicated themselves with providing the highest quality of customer service, provides safe reliable air transportation service at a cost effective pricing. “Southwest Airlines is the nation's largest carrier in terms of originating domestic passengers boarded and has acquired AirTran Airways, now a wholly owned subsidiary of Southwest Airlines Co. Southwest serves 73 cities in 38 states and remains one of the most honored airlines in the world known for its commitment to the triple bottom line of Performance, People, and Planet.” (PR Newswire, 2012) SOUTHWEST AIRLINES This paper will discuss the culture of Southwest Airlines philosophy, mission, vision and value statements. The mission of Southwest Airlines is its ongoing dedication to provide the highest quality level of customer service. “Air Transports World’s selection for Airline of the Year for 1991 is Southwest Airlines of Dallas. Created in 1967 by Herbert D. Kelleher and Rollin King, the airline started up in 1971 as a small, 3-airplane carrier operating entirely with Texas. Southwest has dedicated itself to providing safe, highly reliable and frequent air transportation...
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...Southwest Airlines Corporation Southwest Airlines was incorporated in Texas and commenced Customer Service on June 18, 1971, with three Boeing 737 aircraft serving three Texas cities - Houston, Dallas, and San Antonio. Today, Southwest operates more than 500 Boeing 737 aircraft between 67 cities. Southwest topped the monthly domestic originating passenger rankings for the first time in May 2003. Yearend results for 2008 marked Southwest’s 36th consecutive year of profitability. Southwest became a major airline in 1989 when it exceeded the billion-dollar revenue mark. Southwest is the United States’ most successful low-fare, high frequency, point-to-point carrier. Southwest operates more than 3,300 flights a day coast-to-coast, making it the largest U.S. carrier based on domestic departures as of September 30, 2008. Since 1987, when the Department of Transportation began tracking Customer Satisfaction statistics, Southwest has consistently led the entire airline industry with the lowest ratio of complaints per passengers boarded. Many airlines have tried to copy Southwest’s business model, and the Culture of Southwest is admired and emulated by corporations and organizations in all walks of life. Always the innovator, Southwest pioneered Senior Fares, a same-day air freight delivery service, and Ticketless Travel. Southwest led the way with the first airline web page, southwest.com. The first-ever direct link to Customer’s computer desktops that delivers live...
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...Issue/Decision Despite its industry-leading position, Southwest Airlines was facing new challenges in mid-2008 which threatened its annual growth potential. Historically, Southwest’s seat availability grew at a rate of 5-10% each year; however, 2008’s projected growth was limited to 3% year-over-year. This is a direct result of strengthened competition which weakened Southwest’s competitive advantage, the onset of an economic recession, a high fixed cost structure with high operating costs—particularly fuel which consumed 31% of the total operating costs—and overall market saturation. Strategic Framework Southwest Airlines was built with a strong cost-leadership strategy, focusing on domestic, short-haul (under 500 miles), point-to-point flights (not “hub-and-spoke” network like competitors), using only one type of aircraft and offering a “no frills” approach to service. Its operating efficiencies enable high frequency flights with quick turnaround times. Like all airlines, Southwest faced challenges with the market environmental factors. The industry is notorious for its high fixed-cost structure. With 80% of operating costs fixed, there are limited cost reduction opportunities, which make it low profit-potential industry. The airline industry was faced with pressures of customer dissatisfaction with airline services, increasing costs for aircraft safety maintenance, debt servicing, increased air-traffic delays, financial pressures encouraging mergers, and increased...
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...Company Analysis Project – Final Paper – Southwest Airlines Charles M Mohr MBA 6008 – Global Economic Environment Capella University Doctor Halstead February 19, 2016 Abstract The aircraft carrier business contends in an oligopoly showcase. This implies just a few of airline companies control the significant bit of the business. Southwest Airlines is one of these organizations. They make up 16.6% of the business sector, second only to Delta. The motivation behind this paper is to talk about the microeconomic and macroeconomic situations that Southwest Airlines faces every day. The Airline Deregulation Act that was passed in 1978 was a huge impact on the aviation industry. There are administrative contemplations on financial choices, for example, group clamor and air quality. Southwest Airlines has moral (ethical) contemplations that should be tended to at whatever time financial choices are made. This paper additionally touches on the monetary hypotheses and models, including the Bertrand Model that Southwest Airlines ought to audit and consider for future accomplishment of the organization. Southwest Airlines must take after the Sustainability Accounting Standard for Airlines for all their bookkeeping purposes. Table of Contents Abstract 2 Microeconomic Environment 5 Macroeconomic Environment 8 Economic Implications 10 Regulatory Considerations on Economic Decisions 11 Ethical Considerations on Economic Decisions 13 Economic Theories and Models 14 ...
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...Effects of Quality Management on Domestic and Global Competition Carletta Whiting MGT/449 December 19, 2011 Timothy De Long Effects of Quality Management on Domestic and Global Competition Quality management is the “management activities and functions involved in determination of quality policy and its implementation through means such as quality planning and quality assurance including quality control” (www.businessdictionary.com). Whereas, the “total quality management is a holistic approach to long-term success that views continuous improvement in all aspects of an organization as a process and not as a short-term goal” (www.businessdictionary.com). Consumer satisfaction is determined by the quality of products and services a company gives to consumers, which determines if the organizational objectives were achieved. This dissertation will compare and contrast two companies one international (Lufthansa Airlines) and the second national (Southwest Airlines). Southwest Airlines executed a strategy constructed to achieve a favorable outcome for the organization. The calculated plan starts with the directive to contribute to each aspect of the business: consumers, technology, facilities, and aircrafts. Southwest Airlines plan to gather consumer devotion by offering low cost merchandise and amenities for corporate America and for vacationing individuals seeking to cut cost. The strategy offers a less expensive value to consumers who do not have resources to use other...
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...Revolution in the Sky Introduction Southwest Airlines: Southwest Airlines was originally incorporated to serve three cities in Texas as Air Southwest on March 15, 1967, by Rollin King and Herb Kelleher. It is an American low-cost airline based in Dallas, Texas, with its largest focus city at Las Vegas' McCarran International Airport. It is the largest airline in the United States by number of passengers carried domestically per year and (as of December 31, 2007) also the largest airline in the world by number of passengers carried. As of July 12, 2008, Southwest operates approximately 3,500 flights daily. Indian Aviation: Air Deccan, the first low cost airline of India was founded by Captain G. R. Gopinath and its first flight was launched on 23 August 2003 from Bangalore to Hubli. Air Deccan is a business unit of Deccan Aviation, India’s largest private helicopter charter company, which pioneered helicopter tourism in India. Air Deccan is India’s first low cost, no frill airline, which was launched on strength of simple dream that every Indian to fly atleast once in his/her lifetime. In October 2007, Air Deccan as a planned makeover after the acquisition was renamed as Deccan with is tagline "The Choice is Simple" based on its previous famous tag line 'Simplifly'. The old logo of hands has been replaced by the Kingfisher logo and the font of Kingfisher is also being used. Strategy for Success Southwest Airline: As the first commercial...
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