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Introduction of Southwest Airlines, 1996
Introduction of Southwest Airlines, 1996
Introduction of Southwest Airlines, 1996
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Introduction Southwest Airlines or Air Southwest Co. was incorporated in 1967 ("1966 to 1971", 2018). However; it was not until 1971 until Southwest was able to take their first flight (Dess, McNamara, & Eisner, 2016, P.C7). Nonetheless Southwest Airlines(SWA) received a win to be able to fly, SWA had other things to worry about, a regulation that penalized SWA for operating out of Dallas Love Field. After much lobbying at the House of Representatives, SWA had another win in 1979, stating that they were allowed to operate out of Dallas Love Field. (Dess, McNamara, & Eisner, 2016, P.C7). If it was not as a result of dedication from their employees as well as the leadership skills that was instilled in all employees, SWA would not be where the …show more content…
Through, employee dedication and productivity, Southwest Airlines is able to construct a successful company. Without generous dedicated employees, it can become difficult to implement the strategic plan that Southwest Airlines abide by. "The employees were caught up in fighting for the "SWA cause" that created "the warrior mentality", the very fight to survive" (Dess, McNamara, & Eisner, 2016, P.C7-C8). Moreover, dedication begins at the top level, then works down to the employees, "… Kelleher had won the hearts of his employees during his tenure" (Dess, McNamara, & Eisner, 2016, P.C8). Together with dedication of employees and corporate officers, SWA has expanded to more states and cities, as well as fleets. Southwest Airlines productivity is another intellectual asset that has played a key role in the success the airline. "Southwest Airlines has ascended to the top tier among U.S. carriers, capturing 11.7 percent of all domestic passengers, ranking third (behind American and United) in 2005" (…). Southwest Airlines did not become who they are today overnight. It took years of fighting for themselves and making an impact in the airline community. Customers are now loyal Continue to …show more content…
By using the leadership skill set forth from the CEO and other corporate officers, Crew members can lead customer's in the right direction. Southwest Airlines has implemented a strategic plan, but it does not stop there. The environment, customer demand and even employee demand are evolving. Southwest Airlines should continue to seek out opportunities that positively impact the culture that SWA has set serveral years ago. "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" (Dess, McNamara, & Eisner, 2016, P.C8). By abiding by the mission statement of Southwest Airlines can continue grow into more cities, states and expand even more into international flights. Unless the employees have dedication, the customers are loyal, and the reputation upholds the mission, Southwest Airlines has no room to grow. Conclusion Southwest Airlines did not become successful overnight. In the beginning, it was a complaint that led former CEO Herb Kelleher to come up with the idea of having an airline company. There were copious hours working to fight legal battles and even when they won those battles, Southwest Airlines had another fight to be able to operate out of Love Field. Numerous tribulations that has lead up to the success of Southwest Airlines, it
Southwest Airlines is one of the most successful airlines in the United States. There has never been layoffs or strikes in the history of the company, although there were several times when layoffs could have been justified, including the months following the September 11, 2001 terrorist attacks. However, Southwest's Mission statement says “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.” (Southwest, 1988). The Airline has always believed that their corporate culture is one of the keys to their success. The culture recognizes that employees have emotional intelligence and that their attitudes and morale are key to the teamwork and creative environment.
As the project management triangle states, “do you want something done good, cheap, or fast?. Pick two!” That had been the constraints applied to many businesses until the launch of Southwest airlines in the mid 1960’s. Southwest managed to break free of the management triangle and offer safe (good), low cost (cheap), and timely (fast) air service in Texas and eventually across the United States. From the beginning, the company’s staff and management shared these goals, and developed a foundation on which to build the business. Visionary leaders Rollin King, Herb Kelleher, Colleen Barrett and other early leaders at Southwest, proved that there is no more competitive advantage than a dedicated, loyal work force. Her Kelleher’s transformational leadership style was just what the new airline needed to be successful, and motivate the staff of SWA to do what no other airline had done before: offer cheap, short distance, no frills air service, and make a profit doing it.
Southwest airlines is one of the most widely respected companies among those profiled by Firms of Endearment. They are recognized for having one of the best corporate cultures, which is emphatically encouraged from the top down. Southwest’s model clearly exemplifies the concept of servant leadership, and we will elaborate on how this creates a firm of endearment.
Southwest Airlines is one of the top leading airline companies. It is also one of the top 10 fortune 500 admired companies according to Forbes Magazine. (Makovsky, 2014). Southwest which was founded in 1971 by Rollin King and Herb Kelleher. They offered very basic services to their customers and employees. There were no incentives, frills and offered a very basic structure. Their flights only flew out of Love Field in Dallas and to Houston and San Antonio. (Srinivasan, 2014).
Current Issues Despite Southwest’s long standing reputation as an employer who makes their employees and customers happy, there have been storms brewing in the company’s labor relations and customer relations sector. As mentioned before, Southwest recently acquired AirTran Airways and revealed plans to take its already successful domestic business international with flights to Mexico and the Caribbean (Martin, 2014). This organizational restructuring is causing Southwest to have what Time Magazine’s Brad Tuttle calls an “identity crisis” for the airline, whose new advertisements have removed the humor they are famous for and the messages of “bags fly free” from commercials. Bob Jordan, a Southwest executive, described the change as a new era for Southwest and a chance for consumers to see them in a brand new light.
Since its first grand opening in 1971, Southwest Airlines has shown steady growth, and now carries more passengers than any other low-cost carrier in the world (Wharton, 2010). To expand the business operations, Southwest Airlines took over AirTran in 2010 as a strategy to gain more market share for the Southeast region and international flights. However, the acquisition of AirTran brought upcoming challenges both internally and externally for Southwest Airlines. In this case analysis, the objectives are to focus on the change process post the merger with AirTran, and to evaluate alternatives to address the impacts of the merger. II.
Despite its growing domestic network, the company didn’t offer international flights until July 2014, and even then, it only offered limited destinations (“Southwest Corporate Fact Sheet,” n.d.). Furthermore, the company’s reliance on a single aircraft is cause for concern. Southwest Airlines was also weak with technology utilization initially but has since turned this into an asset, as described later. Finally, the company has a limitation with providing customer perks due to its low-cost operations (Ross & Beath,
Southwest Airlines strategy of focusing on short haul passenger and providing rates as low as one third of their competitors, they have seen tremendous growth in the last decade. Market share for top city pairs on Southwest's schedule has reached 80% to 85%. Maintaining the largest fleet of 737's in the world and utilizing point-to-point versus the hub-and-spoke method of connection philosophy allowed Southwest to provide their service to more people at a lower cost. By putting the employee first, Southwest has found the key to success in the airline business. A happy worker is a more productive one as well as a better service provider. Southwest will continue to reserve their growth in the future by entering select markets only after careful market research.
Even though Southwest offers no-frills, there is still a high degree of customer satisfaction that continuously builds customer loyalty for the company. As mentioned, Southwest offers low prices on their airplane tickets. Also, Southwest is renowned in the airline industry for its short turnaround time on arrivals and departures. And since people's biggest concern nowadays is money and time, having low price airline tickets to cater their traveling needs in a shorter period of time will surely satisfy them. Moreover, aside from the low prices offered, what attracts to customers is Southwest’s way in dealing with them. The employees of the airline treat their customers well and really listen to their needs.
Southwest Airlines operates in the American domestic market. It is well known for its growth over the years. Its mission is the dedication to the customer service of the highest quality that is delivered with a sense of friendliness, company spirit, personal pride and warmth, (Inkpen & Degroot, 2). The airline industry had general environmental factors that do impact it is several ways within the market.
Innovation is an essential ingredient in today’s competitive landscape (Denning, 2011). Unless innovation moves beyond initiative and becomes part of an organization’s DNA, innovation is doomed to fail. Southwest Airlines (NYSE: LUV) has embrace innovation as an essential part of its culture. The innovation and importance of the Southwest culture is demonstrated throughout customer service, business strategy and green initiatives.
Southwest has done what others in its industry seem to struggle to do, which is to make flying fun. This has been the cornerstone for how the Southwest operates, thinks, and plans. Many of the policies, procedures, and practices Southwest has used are aimed directly at providing patrons with a unique, fun, and enjoyable experience. This value and the effort Southwest has made to place customers at the forefront of its plans and strategy, has paid off as the company is one of the most popular and well-respected in the transportation industry.
Southwest has comprehensive strategy and they work with harmony. They are low cost airlines which make the customer feel like royalty. Southwest have a winning strategy is proven by their profit year after year even thought they had economy crisis. Since 1973 Southwest reported a profit each year even when they lost billions of dollars from the year 1980 to 2009 because of the low operating cost strategy, low fares and customer service. Since the start of Southwest they have stay faithful of keeping low cost across the industry. Their value in corporate culture reflected through their prices and customer service.
It all started in 1971, when Rolling King and Herb Kelleher decided to challenge the existing rut of charging high prices for air travels. They considered the railways and roadways their competitors and decided to offer cheaper travel for smaller routes. The company was incorporated in 1967, apart from initial entry troubles, Southwest has been the only US airline to have earned profits since 1973. The eccentric company’s outlandish way of conducting themselves has been the sole reason for Southwest Airlines to succeed in a highly competitive and packed industry.
The mission of Southwest Airlines is a dedication to the highest quality of service delivered with warmth, friendliness, individual pride, and company spirit (Mission…, 2007). The company also provides opportunities for learning and personal growth to each employee. Creativity and innovation is very important and highly encouraged, for the purposes of improving effectiveness. Employees are to be provided the same concern, respect, and caring attitude within the organization that the employees are expected to share with the customer. Southwest Airlines was initially created to be a low-cost alternative to high price of intra-Texas air carriers (Freiberg, 1996). Southwest’s fares were originally supposed to compete with car and bus transportation. It was a little airline, and it would withstand the test of time. As a discount, no-frills airline, it would provide stiff competition for larger airlines. Their strategy was to operate at low cost, offering no food, no movies, no first class, and no reserved seats. They created their own market and provided increased turnaround times at the gate, by avoiding hub-and-spoke airports and opting for short-haul, direct flights. Through this market approach, Southwest has a majority of market share in the markets they serve.