...Southwest Airlines Case Study Jared G. Sanders BUSN412 Business Policy April 1, 2012 SOUTHWEST AIRLINES WWW.SOUTHWEST.COM AIRLINE INDUSTRY BACKGROUND /HISTORY/ COMPANY TIMELINE: Southwest, founded by Rollin King and Herb Kelleher, began as a small Texan airline almost 35 years ago and has grown to become one of the largest airlines in America. It was created on the following premise: “If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline!” (www.southwest.com). Today Southwest Airlines flies more than 70 million passengers a year to 60 great cities all across the country, and they do it more than 3,000 times a day. They have 436 of the newest jets in the nation, with each plane being an average age of 9 years. (www.southwest.com). Southwest’s combination of low fares, outstanding customer service, and strong leadership have helped the airline remain profitable even in the midst of tragedies like the terrorist attacks on September 11, 2001. SWOT ANALYSIS: Southwest was set up for success from the beginning because of its unique upside-down organizational structure. Upper management is at the bottom and supports the front line employees, who are the real experts. Kelleher’s unorthodox leadership style, in which everyone in the company makes management decisions, is largely unheard of these days. The company doesn’t...
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...Introduction Air Southwest Company started in 1967 and in 1971 they changed their name to Southwest Airline Company (). Southwest is America’s low-cost carrier. Southwest’s vision is “to become the World’s Most Loved, Most Flown, and Most Profitable Airline (). Southwest’s mission is, “dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit (). Their values are to be a warrior spirit, have a servant’s heart, have a “fun-LUVing” attitude, and be a passionate team player. A warrior spirit is someone who works hard, desires to be the best, be courageous, display urgency, persevere, and innovate. For the servant’s heart they believe to follow the Golden Rule, adhere to the principles, treat others with respect, put others first, demonstrate proactive customer service, and embrace the Southwest family. For “fun-LUVing” Southwest believes in having fun, do not take yourself too seriously, maintain perspective, celebrate successes, and enjoy work. For being a passionate team player, Southwest believes in safety and reliability, friendly customer service, and low cost (). The three sphere of…. Are economic, political and civil society. There needs to be a balance in the three spheres to be successful in ….. Southwest has current programs in the three spheres and the environment. Under the economic sphere…. Under the political sphere…. Under the civil sphere…. Under the environment…. Recent events...
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...1. Is there anything that you find particularly impressive about Southwest Airlines? There are several things that I like about Southwest Airlines The first is its large fleet of 527 aircraft, all of which are Boeing 737. In addition, I like the implementation of the strategy of the low cost airlines. The company has been able to understand the cost structure in the Airlines industry, has been able to understand customer needs, and has been able to deliver a remarkable value based product to its customers. I have been impressed by the manner in which the Airlines has been able to implement the low cost model of airlines. Southwest Airlines has also shown flexibility in addressing the needs of its customers. It has now decided to go in for 737-800 because they would improve scheduling. Southwest Airlines has been successful because it has eliminated services that were not valued by the customers and instead provided customers with a relatively lower cost option. 2. What grade would you give Southwest management for the job it has done in crafting the company's strategy? What is it that you like or dislike about the strategy? Does Southwest have a winning strategy? Southwest Airlines management deserves to be given an A grade for developing a winning strategy. Southwest Airlines strategy begins with its HR strategy of recruiting personnel that are high quality, are trained well and their performance is well managed. In addition, the strategy focuses on improving high level of employee...
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...Southwest Airlines 1 Southwest Airlines: What is Southwest Airlines Doing Right? Management Southwest Airlines 2 Southwest Airlines: What is Southwest Airlines Doing Right? Time and time again Southwest Airlines has been recognized for its outstanding customer service, employee loyalty and unorthodox leadership methods. Southwest Airlines success can be attributed to the enforced morals and belief system of its leaders; they treat their customers fairly and their employees like family. There are numerous reasons why Southwest Airlines has been so successful; some of the most important being employee and customer satisfaction, keeping costs down and strong future initiatives. These key areas would not be what they are today without the strong leadership behind this great company. Southwest also believes in educating its employees formally and informally, Southwest Airlines Chief Executive Gary Kelly incorporates several policies of his own to keep the company going. These policies are: First question authority and challenge convention, second remove the fear of failure, third make work an adventure, and fourth play to win, don’t play not to lose. Southwest Airlines has one of the lowest absenteeism rates of major companies and almost a complete lack of tardiness on staff, as a reward Southwest Airlines implemented casual Friday’s everyday. The leadership...
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...of reducing a labor surplus. Compare and contrast the list we generated with what was done at Southwest in the wake of the 9/11 attacks. How did the response at Southwest differ from other airlines? This case shows how a company, Southwest Airlines, was able to go against the normal cost-cutting measures of a layoff and not downsize employees even during an extremely difficult period in the Fall of 2001. Southwest Airlines has a strong focus on its employees and a no-layoff policy which is “one of the core values that underlie its human resource strategy” (p. 218-9). Downsizing of any kind would have undermined this strategy, so it was clearly not an option for the company. This was not the case with the other airlines. The case outlines “draconian cuts in both schedules and service” made by Southwest’s competitors even before the 9/11 attacks. After the attacks, over 100,000 employees were downsized by the other airlines (p. 217). Southwest’s alternative to layoffs was to cut costs through other ways. The company was able to rely heavily on its employees who were very productive and flexible (p. 218). High productivity equates to a cost savings for the company because it keeps the labor costs low. Some of this cost savings was passed on to consumers who were also looking to reduce their own costs during the economic crisis. Because of the commitment to its no layoff policy, the company was also able to leverage that job security for its employees into creative thinking...
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...Human resources department to develop and maintain personnel policies. These policies establish the hiring process, working conditions and the terms of termination. An important feature of personnel policies includes compliance with federal labor and nondiscrimination laws, health and safety conditions and employee behavior expectations. Organizations maintain personnel policies to ensure all employees receive equal treatment and access to benefits, such as vacation time sick time and sick leave. While researching Southwest Airlines I was very impressed how dedicated this organization is to their employees and customers. Southwest Airlines states”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.” (Southwest.com) I thought this statement clearly identifies Southwest as a company that is rich in diversity and ethics. Their HMR has created a diverse environment that is beneficial to the success of managers as well as employees. Southwest Airlines is known for their great customer service. This is because their employees love what they do, and have confidence in their management. Therefore, employees continue to be motivated and help maintain this reputation. Their employees represent multi cultural backgrounds Southwest feels this gives them a competitive advantage in the marketplace. Southwest Airlines supports and has a dedicated outreach for the GLBT...
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...STRATEGY MBL 915P Southwest Airlines in 2008: Culture, Values and Operating Practices Repeater Assignment 2 By : Refiloe Mokebe (72542683) 9/6/2011 Table of Contents Introduction 3 Question 1 – What is impressive about South West? 3 Question 2 – Benchmarking against the best practices 4 Question 3 – Key drivers for low cost / no frills strategy 6 Question 4 - What are the key elements of Southwest’s culture? 9 Question 5 - What grade would you give Southwest management? 13 Question 6 - What problems or weaknesses do you see at Southwest Airlines? 15 Question 7 - What recommendations would you make to Gary Kelly? 16 List of References 17 Introduction The objective of this assignment is to apply analytical methods on how Southwest Airlines strategy is executed. Various Strategic models will be used in analyzing how Southwest Airlines is applying and executing their strategy. In late 1966, Rollin King, a San Antonio entrepreneur who owned a small commuter air service, marched into Herb Kelleher’s law office with a plan to start a low cost/ low-fare airline that would shuttle passengers between San Antonio, Dallas and Houston. Southwest Airlines was founded as Air Southwest Company in 1967, it incorporated as Southwest Airlines in Texas and began customer service in 1971. The airline was founded on King’s simple business concept “attract passengers by flying convenient schedules, getting them to their destination on time with good experience...
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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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...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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...Southwest Airline: Culture, Values, and Operating Practices What is particularly impressive about Southwest Airlines is that the company has been consistently profitable every year since 1973. This is mostly due to its eager pursuit of low operating costs, low fares, and customer-pleasing service. Also, Southwest has consistently led the entire airline industry with the lowest ratio of complaints per passengers boarded. The company started out at the bottom and worked its way up through industry ranks to become a major competitive force in the domestic segment of the U.S. airline industry. The company was able to overcome industry downturns, dramatic increases in the prices of jet fuel, falloffs in airline traffic due to terrorist attacks and recessions, while other airline companies are in debt or have gone bankrupt. Also, not only were they able to overcome these threats, but they continued to add more and more flights to more and more airports overtime. The major reason for their continued success seems to be due to their low-cost model and strong emphasis on employee and customer satisfaction. Southwest management has done an incredible job at crafting the company’s strategy. From the beginning, Southwest has pursued a low cost/low price/ no-frill strategy. The company has crafted its strategy by incorporating its overall mission, vision, and core vales. Southwest’s strategy is a great example of a winning strategy because it shows the three complementary qualities...
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...Southwest Airlines Christopher Slusser Embry-Riddle Aeronautical University Abstract Southwest airlines are currently the dominating airliner in the United States. Many other companies have tried to join Southwest in their current dominance, but have not held up to their standards. This paper will take a deep look into what and how Southwest operates in order to keep themselves a head of the game. A broad explanation of their current management style and where they plan to be in the future will touched on. To be at the top, Southwest has taken an in depth strategic planning and the willingness to do the impossible. TABLE OF CONTENTS Abstract…………………………………………………………………………..2 History……………………………………………………………………………4 Decision Making………………………………………………………………….5 Companies Strengths and weaknesses……………………………………………6 Short Term Goals…………………………………………………………………8 Long Term Goals…………………………………………………………………9 Ethics……………………………………………………………………………..9 Leadership………………………………………………………………………10 Performance Affected by Environment…………………………………………11 Threats…………………………………………………………………………...12 Opportunities…………………………………………………………………….13 Strengths…………………………………………………………………………14 Continuous Improvement………………………………………………………..15 Overall Strategy……………………………………………………………...…..17 Southwest Effect…………………………………………………………………18 Suggestions……………………………………………………………………....19 Southwest Airlines Southwest is an airline that was incorporated in Texas on June 8th, 1971. The company began their venture with...
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...- Pets are welcome on flight: Southwest Airlines allows customers to carry small pets (cats and dogs only) on board all domestic Southwest Airlines flights. All in-cabin pets must be carried in an appropriate pet carrier. The pet fee is $95 each way per pet carrier. Each customer is limited to carrying one pet carrier on board. The carrier may contain up to two cats or dogs of the same species. The carrier will count as the customer’s carry-on bag. Southwest does not require a health certificate or any other documentation from the customer’s veterinarian for pets to travel. Pets are not permitted on international flights. Other several airlines carriers also allow pets on board, like United, Delta, American and US Airways, put the advantage of southwest airlines that is less expensive than its competitors, southwest airlines charge 95$ for one pet carrier, other mentioned airlines are charging a 125$ for one pet carrier. - Cashless cabin: Southwest airlines applied the cashless cabin technique to all of its units, this technique helped improving consumer’s goodwill, a traditional scenario that irritates consumers usually, buying 5$ juice and give the flight attendant a 20$ note, and wait half an hour for the change to come back. Also, this technique saved the time and reduced the jam on atm machines at airports, because travelers can dispense cash if buying items with credit card is possible. But southwest airlines is not alone, American Airlines, United Airlines, AirTran...
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...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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...Case Study - Southwest Airlines: Price-Value Equation Module 7 Case Study Roderick McPeak Embry Riddle Aeronautical University Southwest Airlines has been a model of admiration for the airline industry and businesses from around the world combined. Southwest Airlines is a rag to riches story that has had to fight for everything it has become. Before Southwest was able to take on its first passengers, they had to fight competitors in the court system for nearly three and a half years. Southwest did not make its maiden voyage until 1971 – from a napkin to the airways with their runway in the Court system. When Texas Aeronautics Commission authorized Southwest to fly, their competitors grounded them within the Court system with continuous litigation for three and a half years. The litigation went as high as the Supreme Court. Finally, on June 18, 1971, Rollin King and Herb Kelleher started an airline service with one simple notion: "If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline." They were right about that. Southwest Airline is now a major airline, in fact, the fourth largest airliner in the United States. 1) What benefits do airline customers seek when they buy air travel tickets? They have always had the lowest price in any market they serve. Because of the cost structure that was developed, Southwest did the opposite...
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...Nicole Ferriss BA 301 Final Term Paper Section Number: 1/3/2015 Southwest Airlines Table of Contents Executive Summary………………………………………………………………….....pg. 1-2 Situation Analysis………………………………………………………………………pg. 3-8 Problem Analysis & Description……………………………………………………….pg. 8-12 Solutions, Evaluation & Recommendation……………………………………………..pg. 12-16 Implementation Plan……………………………………………………………………pg. 16-18 Success Metrics…………………………………………………………………………pg. 18-19 Bibliography……………………………………………………………………………pg. 20 Executive Summary Today we are going to be taking a look at Southwest Airlines. After being provided with a background of this wonderful company, we are going to look into some problems that they are having with their Airlines Quality Ratings (AQR). We will discuss how the lack of on-time flights, problems customers are facing with the merger of Southwest and Air Tran and the open seating policy are negatively effecting this rating. We will look into solving these problems by implementing an Employee Incentive Program, getting new merger software and adopting a different seating policy. Once all of these concerns are solved we will talk about implementation and success metrics and start raising those AQR scores so Southwest Airlines can continue to grow to one of the greatest airlines in the world. Situation Analysis Southwest Airlines strives to be a very goal oriented company. Annually, Southwest airlines distributes what they call their One Report, which covers...
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