...The Culture of Southwest Airlines Ashley Foster Leadership and Organizational Behavior Dr. Jelena Vucetic August 22, 2014 What does organizational culture mean? Organizational culture is the system of shared actions, values, and beliefs that develops within an organization and guides the behavior of its members.(Schermerhorn, Osborn, Uhl-Bien, and Hunt, 2012) So, between the choices of picking an organization, I chose Southwest Airlines. In this paper, I will discuss Southwest Airlines, what they are trying to accomplish for their company, and what their culture means to the company. So the question is who is Southwest Airlines and why does the culture there make them from other airlines around the United States? Who is Southwest Airlines? Southwest Airlines was created in the 1971 by Herb Kelleher and Rollin King. Kelleher is legendary in the airline industry for doing things differently than the competition. Before he found himself Southwest's pitchman, Kelleher was a lawyer retained by the airline to get it off the ground - a fight that took him all the way to the U.S. Supreme Court. It seemed the last thing Southwest's competitors wanted to see was a low-cost upstart doing nothing but flying around Texas in and out of Dallas Love Field.(CBS News, 2007) CEO James Parker feels that it is all about the people and it starts with finding and hiring the right people. We at Southwest put a lot of effort into our selection process. We received over 100,000 applications...
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...I chose to research Southwest because living in Atlanta, Georgia I’ve personally waited for the discount airline to land on our doorstep and they did just that with the merger and acquisition of Airtran Airways. Southwest by way of the merger is now in Atlanta which is the nation’s busiest airport (McCartney, 2013). Southwest bought AirTran way back in 2011 for $1.4 billion with the intention of combining fleets and operating the newly merged airline under the Southwest brand. Another specific reason for Southwest opting to obtain AirTran was – in part – to extend its reach to AirTran's international destinations in Mexico and the Caribbean. Southwest was also able to expand its presence in the Northeast to cities not previously serviced by Southwest i.e. New York and Boston. Southwest by way of the merger is now in Atlanta which is the nation’s busiest airport (McCartney, 2013). Examine the culture of the selected organization. Southwest Airlines is probably one of the better examples of a company that outlined a very clear and simple key business principle, chose the right business model to support that principle, and consistently demonstrates the core values and behaviors derived from their key business principles. The brand promise 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, 2014). Every single employee of the company is aligned with this...
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...Culture & Diversity in Decision Making Dr. Steven L. Davis Bus 520-Leading & Organizational Behavior 09/13/2014 Integrating Culture & Diversity in Decision Making Introduction Southwest Airlines was created and founded in 1971 by Herb Kelleher and Rollin King. The organization was created to target busy markets and provide frequent, low cost transportation that were less than five hundred miles apart. Today, they are one of America’s largest airline companies that deliver great service at a relative low price. In addition to providing excellent service at a competitive pricing, Southwest Airlines believes in an amazing corporate culture that extends to the communities it serves. Description of Organization Southwest is an organization that is in the customer service business, which happens to fly airplanes. Current CEO, Gary Kelly, shares this philosophy with every employee of this company to help all 46,000 employees understand how their work contributes to the broader business objectives. Now we all know that every company has a vision statement, and Southwest Airlines is using the power of storytelling to make sure every employee pursues it every day. Southwest Airlines has the vision to become the world’s most loved, most flown, and most profitable airline. They exist to connect people to what’s important in their lives through three characteristics which are friendly, reliable, and low-cost air travel (Gallo, 2014). Organization’s Culture According...
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...Happy Flier: A Financial Analysis on Southwest Airlines Thomas J. Baucus FIN 200 12/20/2014 Executive Summary The purpose of this report is an in-depth analysis on the financial position of Southwest Airlines Co. (LUV). As it stands, Southwest Airlines is a big player in the Regional Airline Industry due to the company’s focus on efficiency and consumer support. The company is prepared to handle the conditions cause by the decline in the economic cycle due to a conservative approach. Southwest Airline’s financial statements and ratios indicate a large increase in operations and profitability in the last three years. However, recent financing activities indicate an increase in current liabilities, PPE and a decrease in long-term debt. Analysts are worried that the company’s market price is inflated and are recommending the company less because of this. Despite these worries, Southwest Airlines is projected to be profitable in the upcoming years. This report is organized as so: the title page, the executive summary, the introduction, the current financial climate, financial statement and ratio analysis, short and long-term financing, risk management, and at last, the conclusion. A page containing my references used is available at the end of the report. Introduction Southwest Airlines Co. (LUV) is a leader in the regional airlines industry. Yahoo Finance states that “as of December 31, 2012, the company operated 694 aircraft… (and)... served 97 destinations...
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...Mission and Vision Statement Today, in the 21st century, when the borders between countries erased, and people travel all over the world and within their countries, the airline industry has become more popular. Air carriers have become more sophisticated and aware of their customers’ needs; thus, they operate at all levels providing a valuable service to their customers. Talking about the US airline industry, 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...
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...Two Profile of a Successful Company: Southwest Airlines Eileen Bertera Southern New Hampshire University Executive Summary Upon review on a profile of a successful company we see Southwest Airlines as a prime example. Their ability to recognize weakness in their management system and adjust strategies has allowed them to emerge as a leader in the US airline industry. Southwest is the largest US low fare carrier with low fare rates, no additional fees and excellent customer service. Southwest Airlines currently has one of the most innovative management practices in the US to date. A review of the critical elements of Southwest Airlines proves to be effective and innovative. Mission and Vision According to their mission statement, Southwest is “dedicated to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride and company spirit.” (sw.co, 2015) This mission is demonstrated by the recognition of the airline business as a customer service industry. With this recognition is the practice of customer service and hospitality skills by all employees in all departments. The customer experience comes first. Southwest Airlines believes in treating all employees like family and customers like guests in their home. By providing hospitality skills and engaging with their customers, Southwest Airlines is able to fulfill their mission purpose. Strategic Management Plan The main goal of Southwest Airlines strategic management plan is...
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...HRMN 410 Southwest Case Study Click Link Below To Buy: http://hwaid.com/shop/hrmn-410-southwest-case-study/ Southwest Airlines Case Study Objective of this assignment: This activity serves as a final assessment for the course. It provides you the opportunity to demonstrate how well you have achieved the learning outcomes of the course. You are to provide your knowledge of the strategic and administrative function of Human Resources by thinking about the situation of Southwest Airlines recent merger and their expansion. Deliverable: • Read and reflect on the case study below • Prepare a response paper of not less than Six pages (excluding title and reference pages) with appropriate in text citations. • Demonstrate your research and analytical skills in developing your comprehensive paper by using the organizations website and outside articles written about the organization to supplement the information provided in the case study. • However, the case study is unique in that it is focused on the HR ramifications and most of the outside reports you will locate articulate the business side of the merger or expansion possibilities. Tailor your paper to the HR ramifications of the merger and expansion. • Keep in mind that the purpose of this final assessment is for you to demonstrate your knowledge of the strategic and administrative function of Human Resources. While the business side of the situation is the foundation, it is the command of the needed tasks...
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...Yuchen Sui MGT300 Management Update Report Southwest Dedicates New Heart Logo to Unhappy Workers Businessweek.com 9.8.2014 http://www.businessweek.com/articles/2014-09-08/southwest-dedicates-new-heart-logo-to-its-workers-amid-labor-dispute#r=read Summary: Southwest Airlines has been operating a lot worse than it did few years ago. Its high delay rate has caused frictions between front-line staff and executives. The airline is considering to introduce performance-based payments into the workers’ compensation instead of fixed pay increases. The airline is also negotiating with its flight attendants, pilots and other staff. Chief Executive Officer, Gary Kelly, wrote in his blog post that Southwest is focused on reminding and encouraging employees to work for customers’ satisfaction and compensate employees, the company changed the corporate logo to a three-colored heart, symbolizing the company’s commitment that it’ll remain true to our core values as Southwest sets its sights on the future. Discussion: An effective team should have the following characteristics: a clear purpose, good communication, healthy conflict, effective decision making, accountability, strong relationships, commitment, and shared leadership. First, as a big airline company, Southwest has a clear purpose. It has a set of core values and its every move has a purpose. The purpose of the new logo is to remind the employees about the company’s core values, to encourage them to stick to the core values and to...
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...and is also unfortunately used by customers to abuse and exploit employees. Southwest Airlines has adopted a different strategy, one that is unique and sought after by many organizations developed by their founder Herb Keller who started the company in 1971 (Smith, 2004). The Mission Statement of the company is twofold and first addresses the customer. Second the statement addresses its employees. The customer’s message “Mission of 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.” The second portion of the mission statement titled “To Our Employees” states, “We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer.” “The company’s attitude is that its employees are the “first customer” and passengers are the second (Smith, 2004).” The history of Southwest airlines meeting the needs of its first customers, the employees is evident through the actions of the company in its early introduction stage. The company not having enough money to pay it employees faced the decision of laying off...
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...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 their...
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...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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...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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...Southwest Airlines Corporation INTRODUCTION The Mission of Southwest Airlines 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 Airlines Co. is a major U.S. airline and the world's largest low-cost carrier, headquartered in Dallas, Texas. The airline was established in 1967and adopted its current name in 1971] The airline has 44,831 employees as of December 2013 and operates more than 3,400 flights per day. As of June 5, 2011, it carries the most domestic passengers of any U.S. airline. As of November 2014, Southwest Airlines has scheduled service to 93 destinations in 41 states, Puerto Rico and abroad. Southwest Airlines has used only Boeing 737s, except for a few years in the 1970s and 1980s, when it leased a few Boeing 727s. As of August 2012 Southwest is the largest operator of the 737 worldwide with over 550 in service, each averaging six flights per day. Southwest had the lowest operating-cost structure in the domestic airline industry and consistently offered the lowest and simplest fares. Southwest also had one of the best overall customer service records. In 2001, the airline had 35,000 employees and generated total operating revenues of $5.6 billion from a passenger load factor of 68.1 percent. Its stock exchange symbol was LUV, representing Southwest’s home at Dallas Love Field, as well as the theme of its employee and...
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...Air Group and Southwest Airlines Co. | | 2/11/2012 | Introduction For the purpose of this paper, Alaska Air Group (ALK) is the subject of the primary financial analysis with the majority of comparisons made against Southwest Airlines Co (LUV). For financial purposes, the airline industry falls under the transportation sector, consisting of airlines, railroad, and trucking and characterized by the movement of people and products. For the purpose of this analysis, comparable airline carrier ratios are used. An enhanced look into the specifics of Alaska and Southwest’s financial statements and accounting methods explain their positioning in the airline industry and reflect their performance in recent years. Activities Alaska Airlines reported record earnings for the year 2010, with a $203 million improvement from 2009. A 9.8% increase in passenger traffic over the previous year drove the revenue increase (Alaska Air Group, Inc., 2011). Alaska also led the ten largest carriers in on-time performance for the year. For the third year in a row, it ranked highest in customer satisfaction among traditional network carriers, as listed by J.D. Power and Associates (Alaska Air Group, Inc., 2011). Challenges * The safety and financial results could be harmed in the event of an accident or incident * Changes in government regulations or restrictions could drive operating costs up * Security concerns related to the airline industry as a whole ...
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...Southwest Airlines Corporation Question 1 : What is Southwest’s strategy? What is the basis on which Southwest builds its competitive advantage? One of the goals of the company is to achieve its goals which can be seen through the Vision. Southwest’s Vision “ To become the World’s Most Loved, Most Flown, and Most Profitable Airline” can be achieved by planning good strategy. Strategy is also needed in order to achieve Southwest’s goals and purpose, which is “To connect People to what’s important in their lives through friendly, reliable, and low-cost air travel”. The main strategy of Southwest is the capability of the company to manage and take advantage of its competitive advantage. Major competitive advantage of Southwest Corporation is its people, just like current CEO Gary Kelly said on company’s official website : “Our people are our single greatest strength and most enduring long-term competitive advantage”. Additionally, Southwestt keep developing its sustainable competitive advantage by using Generic Competitive Advantage. It was the advanced of Michael Porter’s Five Force Analysis Model consist of Low Cost or Differentiation. a) The Low Cost Strategy or Cost Leadership Southwest used tight cost control and cost minimization by keeping their cost of goods sold low but not as an exchange of satisfaction of the customer. They maintained low cost operation by doing several following things in the right way, effectively and efficiently: ...
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