An Assessment of Four Function of Management within Southwest Airlines

An Assessment of Four Function of Management within Southwest Airlines

According to Edward de Bono "an expert is someone who has succeeded in making decisions and judgments simpler through knowing what to pay attention to and ... Creativity involves breaking out ..." Southwest Airlines has done just that, in a world of high competition and drastic changes they paid close attention to their customers needs, therefore, succeeding when many other airlines were failing. In a time of national tragedy (9-11) this airline pulled together to develop create ideas to prevent them from going through bankruptcy as many of their business rival suffered. With a motto of "Time flies when you are having fun!" (www.southwest.com), Southwest Airlines has managed through rapid change, diversity, e-business solutions to maintain a loyal customer base while moving forward.

The airline industry is fragile and especially vulnerable due to increase security demands, the cost of fuel with limited resources, highly expensive industry, very highly regulated industry, and labor intensive industry. Despite the vulnerability of this industry Southwest Airlines has managed to survive despite the odds, when larger airlines were forced to merge, have huge lay-offs of employees and some even when under. It is interesting to review just how Southwest Airlines survived the rapid changes, while presently recognizing a growth spurt.

Weather a business can survive the rapid change of technology, increasing customer. Demands, while remain creative, producing innovate solutions often determines the success of the business. In spite of these embedded difficulties, after September 11, southwest was the only major carrier that did not ground any of its fleet or furlough any of its Employees. We were able to borrow sufficient cash to maintain liquidity because:

• Our costs were lower than our competitors'.

• Our balance sheet was better than our competitors'.

• Our debt per plane was less than our competitors'.

• Our Customer Service was better than our competitors'.

(www.southwest.com)These are all important factors in the survival or Southwest Airlines business. Another factor of 9-11 that created a huge amount of change was the already struggling airline industry was increase security measures.

It is an understatement to say that the events of September 11, 2001 changed the lives of all Americans and particularly our relatively unfettered ability to travel by air. All of what we knew changed as the result of the diabolical endeavors of a relative few, and the new procedures, while still evolving, will likely be with us in perpetuity.