...An Analysis of “Southwest Airlines: We Love Your Bags” I visited the Southwest Airlines website and clicked on the “Our Culture “ tab. On this page, Southwest has culture defined as such: Cul’ture: the development, improvement, and refinement of the originality, individuality, identity, and personality of a given people (“Culture”, 2012). Southwest Airlines has stood out from the rest of the airlines even before I ever read a case study on the company and its business model. Although I have never flown on a Southwest Airline airplane, the difference can be seen just by walking through an airport that they service. The people look more relaxed, happier, and dedicated to their jobs. The company has capitalized by tailoring their culture to fit their customers and their employees versus tailoring their culture to adapt to the market/environment of the airline business. While they may not be the fanciest company in the airport, the friendly service is seen wherever you see their logo. It is an airline designed for the individuals looking for great value and dependability. When you look at the mission statement for Southwest, it is evident that they are committed to its employees. In a Knowledge@Wharton article, Colleen Barrett was quoted as saying ”Our mission statement is posted every three feet, all over every location that we have, so if you are a customer, you’ve seen it”(Knowledge@Wharton, nd, para. 3). The mission statement states, “Above all, Employees will...
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...Southwest Airlines prides itself in being a company with “heart”. We know this because it is something its employees as well as customers have said about Southwest Airlines. Southwest Airlines began flying in 1971 and they keep going strong. Southwest seems to understand that doing what other airlines are doing simply because it can benefit their profit margin. Standing out from the crowd is what has allowed Southwest Airlines to be known as a company with heart. I have to say that I have flown Southwest Airlines as well as several other airlines. Knowing that the price I see is the final price since I don’t have to pay for my bags is a relief. In a time where people are trying to save money to afford a family vacation, every little bit helps and makes it that much easier to relax during that vacation. Although it may make Southwest Airlines more money to charge for bags, they will also lose their advantage over the other airlines. Southwest Airlines likes creating a fun work environment. This is something I have seen other companies try to do for their employees. I work for Verizon Wireless and there are several activities they do to make it fun to show up for work. Although this may not ensure everyone will thrive in this type of work environment, when dealing in customer service, every little bit helps. Before going this route, I dreaded waking up in the morning to go to work and deal with people who would be screaming at me on the phone. I’m not saying they don’t scream...
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...Communications Case Exercise E – “Southwest Airlines – We love your bag” (uploaded in Moodle) 1. Identify and explain the possible promotional objective(s) of the “Grab Your Bag. It’s On!” campaign. There are two objectives the Southwest Airlines want to reach through the campaign. First is creating a more favorable image of the organization. The campaign re-position itself as an airline that treats its customers like people. Through allowing passengers to check two bags free per customer, it seems more attractive and friendly as compared with another competitor which charge US$15 to $25 each for checked bags. It enables customer to have fun flying, since the lower airline budget is one of the factors that influence the degree of customer satisfaction. On the other hand, the funny taglines such as “Grad Your Bag It’s on” and “We Love Your Bag” are also instilled its customary humor in its commercials as well. Thus, both of these enhance the company image to be more favorable. Second is stimulating the demand for the service of Southwest Airlines so that its market share can be increased. Due to the economic recession, people are not interested in travelling. Since the “bags-fly-free” policy is an incentive item that encourages people to purchase the airlines service, the demand of Southwest Airlines services will increase. It can improve the sales volume and profit directly. 2. Describe the various promotion elements that Southwest Airlines used in its integrated marketing...
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...We love your Bags 2 1. Determine how Southwest Airlines corporate culture differs from other airlines. Wiley (2012) found…that Southwest Airlines corporate culture, started in 1971, It was at dinner two men with a great plan craved out on a dinner napkin. These co-founders are Mr. Herb Kelleher and Rollins King. The originally started to serve three cities in Texas, it was a triangle route from Dallas to San Antonio, and Houston. Wiley found (2012) “Southwest interest in its passengers was reflected when competing airlines started to charge customers for their checked baggage. Southwest refused to charge for the first two bags a passenger checks in. The airline started running commercials based on the theme “We Love Bags” to reflect this stand.” According to Wiley (2012), Southwest is differ from other carriers are the competitive costs. “Southwest Airlines ensures their cost advantage by keeping unit costs 50 percent less.” The corporate culture, the company looks after its people. Wiley ( 2012) found, Southwest Airline will frequently host 2:00 AM barbeques for the night staff, and permit staff to work in pajamas for a day; also provide rocking chair for impromptu meeting. According to Welch (2012), “Southwest Airlines strong culture is an overall Strategy, at Southwest it is more that than frequently employees and passengers refers to Southwest as company...
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...Marketing Excellence Southwest Airlines Introduction Southwest Airlines Co. is the largest low-cost carrier in the United States, and is headquartered in Dallas, Texas. The airline was established in 1967, by Rollin King and Herb Kelleher. Southwest begins flying within the state of Texas (between Dallas, Houston, and San Antonio) with three Boeing 737 aircraft. Today Southwest operates nearly 400 Boeing 737 aircraft to 59 U.S. cities. Southwest has the lowest operating cost structure in the domestic airline industry and consistently offers the lowest and simplest fares. Southwest also has one of the best overall customer service records. Moreover, It is one of the few airlines with no layoffs aimed a travel slump created by the slow economy and the threat of terrorism. Southwest offers types of products and services which include; air transportation, mobile access, shuttle service, priority boarding, early bird check-in, and pet allowance. Southwest has pioneered in Senior Fares, a same-day air freight delivery service, Fun Fares, and Ticketless Travel. Southwest was the first airline with web page- southwest.com, DING! The first-ever direct link to Customer’s computer desktops that delivers live updates on ticket deals, and the first airline corporate blog. A timeline of key dates in Southwest Airlines history: 1971 - Southwest begins flying between Dallas, Houston, and San Antonio. The idea for the airline was hatched over drinks by San Antonio lawyer Herb Kelleher...
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...Kelleher: Let’s Get Nuts! Everyone have the ability to be a leader in today’s society, whether we chose to embrace the inner leader is up to the individual. By definition, leadership is characterized as a person with a vision and the ability to energize individuals to turn that vision into a reality. The book written in 1996 by Jackie and Kevin Freiberg explains how Kelleher and Southwest lead the airline business. To understand how far Herb Kelleher has gone in life, you have to understand where and how far Southwest Airlines has come. Purpose: Herb Kelleher is an example of a leader with a vision, a vision we know today as Southwest Airlines. His ability to build relationships within a company and a new twist of how things should be run are reasons why his company still is thriving today. Theme Statement: Kelleher not only appeals to the customer’s wants, but he listens to his employees and acts accordingly. Context: Herb Kelleher is a New Jersey native and a former graduate of New York University School of Law. There he gained the knowledge to become a successful lawyer, also meeting his supportive wife, Jon Negley. Kelleher and his wife soon moved to San Antonio where he continued to practice law. He had made connections with Rollin King because Kelleher had done some legal work for King’s air service (Freiberg and Freiberg, 1996, p. 15). The creation of Southwest Airlines began as a vivid dream for 2 men, now this vision is a reality that is flourishing. This all...
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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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...Southwest Case Southwest airline is one of the major U.S. low-cost airlines in the United States. It was founded in 1966 from an idea of Rolling King a San Antonio entrepreneur who owned small commuter air service. The original plan was fairly simple attract passenger by offering convenient schedules, getting on time to their destination while having a good experience, all these while trying to charge the most competitive prices. Over the course of the years Southwest had to fight really hard in order to establish itself in the market because of fierce competition. In order to compete with other big airline, Southwest introduced important and revolutionary concept that have deeply affected the airlines world until now a days. Just to mention a few: taking cue from its hub at Dallas Love Field they started the so called “Love campaign” (Southwest’s airplanes were Love Birds, it’s drinks Love potion etc) this set the tone for Southwest’s approach to its customers to make flying with Southwest an enjoyable and fun experience. The company decided strategically to move from big, expensive Intercontinental Airports to smaller and closer to downtown airports. They also reduced to 10 minutes the turnaround time (the time spent refueling, off-loading passengers and bags and cleaning up the airplane in order to be ready for the next flight). Southwest was also the first to differentiate among its consumers. They offered generally low fares but in certain time and on certain days it...
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... Dr. Sarah Park | Unit title and code (eg MN20010): MN30449 | Number of pages in assignment:17Word count: 2845 | Declaration I/we certify that I/we have read and understood the entry in the relevant Student Handbook for the School of Management on Cheating and Plagiarism and that all material in this assignment is my/our own work, except where I/we have indicated with appropriate references. I/we agree that, in line with Regulation 15.3(e), if requested I/we will submit an electronic copy of this work for submission to a Plagiarism Detection Service for quality assurance purposes. I/we also confirm that the percentage allocation of work is as shown above. Student Signature(s) | | | | | | | If assessment is group based, all members of the group must sign this form When to hand in You should aim to hand your work in before the deadline given by your lecturer/ tutor. The University guidelines on penalties for late submission are as follows: Any assessment submitted late without an agreed extension, will receive a maximum mark of 40%. Any assessment submitted more than 5 working days without an agreed extension will receive a mark of zero How to hand in This form is available electronically and can be pasted in to the front page of your assignment. If you are including this as a hard...
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...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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...Analysis of Strategic Structure of Southwest Airlines Uploaded by so cerious on Jun 26, 2006 [pic] |Analysis of Strategic Structure of Southwest Airlines | | | |Twenty-nine years ago, Rollin King and Herb Kelleher got together and decided to start a different kind of airline. They began 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. | | | |Within 28 years, Southwest Airlines became the fifth largest major airline in America. With the addition of service to Buffalo-Niagara | |International Airport on October 8, 2000, fly more than 57 million passengers a year to 57 great cities (58 airports) all over the | |Southwest and beyond. And she does it over 2,600 times a day. | | ...
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...What a Luv-ly Company: Southwest Airlines Executive Summary This case study delves into Southwest Airlines, analyzing their tactics for growth and sustainability, and how they compare to the airline industry as well as how they compare to privately owned companies in general. According to Southwest’s fact sheet, they have reported more than 40 years of consecutive profit as they have grown from an intrastate Texas airline into an international phenomenon. Southwest is the largest air carrier in the United States. They have taken a fun-loving attitude and turned it into a money maker, as well as being a fantastic place to work. Southwest has had only two fatalities since its start, with neither death being a direct cause of a crash. Southwest operates only one type of aircraft, Boeing 737s, thus making maintenance much more streamlined and cost effective. Southwest is heading the effort to make commercial flight more eco-friendly, with lighter, more comfortable seats as well as new types of customer comforts such as in-plane Wi-Fi and free streaming music and movies. Southwest is not only a great model for the airline industry, they are a model that many companies can learn from. (2015) Introduction: A Few...
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...For the exclusive use of M. Park, 2016. CASE: HR-1A DATE: 1995 (REV’D. 04/05/06) SOUTHWEST AIRLINES (A) “The workforce is dedicated to the company. They’re Moonies basically. That’s the way they 1 operate.” —Edward J. Starkman, Airline Analyst, PaineWebber Ann Rhoades, vice president of people for Southwest Airlines, was packing her briefcase at the end of a 17-hour day. Tomorrow was an off-site meeting with the top nine executives of Southwest Airlines. The agenda for the meeting was to review Southwest’s competitive position in light of recent actions by United and Continental, both of whom had entered Southwest’s low fare market. That day’s New York Times (September 16, 1994) had an article that characterized the situation as a major showdown in airline industry: This is a battle royal that has implications for the industry, said Kevin C. Murphy, an airline stock analyst at Morgan Stanley. The battle will, after all, be as much a test of strategy as a contest between two airlines. United and other big carriers like USAir and Continental have decided that they can lower their costs by creating a so-called airline-within-an-airline that offers low fares, few flights, and frequent service. The new operations are unabashedly modeled after Southwest, the pioneer of this strategy and keeper of the healthiest balance sheet in the industry.2 The reasons for this competition were easy to understand. Over 45 percent of United’s revenues came from passengers...
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... Introduction The intent of this paper it to define critical concepts of strategic planning with Southwest Airlines (SWA) top management and how their organization pursued choices and different strategies to run the business by using superior performance employees that gave them a competitive advantage over their competitors. I will concentrate on the thirteen strategic staffing decisions that are critical for any organization to be successful. I will also emphasis the knowledge, skills, abilities, and others (KSAOs) relative to the staffing process and how the company teaches these skills to the employees. This paper will focus on the success of the employees of the organization through the eyes of its past CEO Herb Kelleher. “We want to show them they’re important to us as who they are, as people. And by the way, one ramp agent - I have not disclosed this - sent me a note one day which I’ve never publicized, and I think you’ll understand why.” He said, “Herb, I finally got it. Your making work fun, and home is work.” (Herb Kelleher 2013) SWA was formed in 1971, to serve the inner cities within Texas but by 1998, it had 24,000 employees and 2,500 flights per day. The business was growing fast and the company worked hard at developing and maintaining a culture that it still emphasizes and instills today; flexibility, family orientation, and fun. Southwest airlines philosophy is about the people. It has been consistently successful with great employees and less than...
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...Southwest Airlines People Management People Strategy 26 Aug 2012 Abstract Southwest Airlines has been the most profitable airline in the United States for decades. It leads in customer satisfaction and for years led the rankings in on time performance. Many have identified the successful business practices that have allowed such remarkable success but Southwest's corporate culture has been identified as the secret sauce. This paper will discuss the company's overall people strategy, employee reward and motivation, company culture, employee hiring and sustainment, and ways to continue success. Southwest Airlines History Southwest Airlines was the largest provider of scheduled domestic passenger air travel in the United States in 2011 according to a Standard & Poor’s stock report dated 18 August 2011. Its ranking for total revenue places it in fourth place among airlines in the US. “The company specializes in low-fare, point to point, short-haul, high-frequency service” and they claim to have harmonious relations with its labor force, even though 80% of the work force is unionized. According to her book, "The Southwest Airlines Way, Using the Power of Relationships to Achieve High Performance", Jody Gittell identifies three key components to the companies' success. Lying at the heart of the Southwest success story are these three elements: It fosters 10 organizational practices which build relationships between...
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