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Southwest airlines management case study
Southwest airlines management case study
Strengths and weakness of southwest airlines
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Abstract:
Southwest Airlines is currently the world’s fourth largest airlines and has always been one of the most respected organizations in the United States today. This is because of its unusual focus on creating value for its employees, and a conscious creation of an environment/surroundings that encourages the employees to have fun on the job. I propose to examine how Southwest Airline manages well people. For instance, how they go about hiring the right talent, what motivational techniques they use to retain and keep their employees’, how the company effectively leads their employees, their effective communication mode, and how they use change management tools to get the right results, etc. I also listed five potential resources I think are important to get a better understanding of the company.
Southwest Airlines
Thesis Statement: Southwest Airlines have never made promises it could not keep and considering its history makes it obvious and clear that it has always been a company whose key characteristic or attribute was “trustworthiness”.
Mission Statement: They are dedicated and committed to the highest quality of customer service provided with a sense of kindness, friendliness, distinct
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Moreover, they began this venture with one clear and simple idea/belief: If you get the passengers to the place they want to go, when they want to get there, in a timely manner, with the lowest feasible fares, and ensure they have a fun time doing it, people will want to fly their airline. They were right because Southwest Airlines is one of the biggest domestic air carriers and reputable airline business in the United States. Moreover, it is the only one that is, and has been, endlessly profitable for a number of good years. The key objective of this paper is to highlight Southwest Airlines ability to work and manage people well around
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.
We have all heard the phrase, time is money, and for the airline industry this is literally true. Herb Kelleher knew that corporate management needed to be as unobtrusive as possible to allow for the quick turning of planes at the gate. He also realized that an open climate of communication, and decentralized day to day decision making, would motivate employees towards a shared goal of accomplishing this task. Employees viewed themselves as part of the team and by working together they would ultimately produce greater customer satisfaction and loyalty. At Southwest, employees experienced a high degree of work motivation, satisfaction, and performance as defined in McGregor’s theory Y. Employees at SWA were able to perform a variety of skills, and had a degree of au...
As Frontier approached its 10th year of operation, Frontier officials realized an image shift was in order. The airline had established a reputation for friendly and reliable service, and reasonable airfares, mainly appealing to leisure travelers. But they reali...
Another internal challenge for Southwest Airlines is the conflicting management style and business operation with AirTran. On top of that, the external challenges such as the increase of competitions and gas prices are some of issues f...
“Our people are our single greatest strength and most enduring long-term competitive advantage,” reports CEO Gary Kelly on the Southwest Airline website (https://www.southwest.com/html/about-southwest). The company works hard to hire great individuals and then rewards and supports them to make satisfied, productive employees (Ross & Beath, 2007). In fact, Southwest Airlines has received repeated recognition as a great place to work (“Southwest Corporate Fact Sheet,” n.d.). As a result, Southwest Airlines is able to provide a low-cost, fun-cultured experience with excellent customer service (Ross & Beath, 2007). This has allowed the company to build its final strength in this evaluation: a strong brand
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.
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 customers is Southwest’s way of dealing with them. The employees of the airline treat their customers well and really listen to their needs. Southwest Airlines is also well-known for having a very productive and loyal workforce.
The marketing approach of Southwest Airlines is built upon their strong business model. They have successfully managed to target two specific market segments of the airline industry while remaining profitable. Their strategy is simple, to offer frequent non-stop flights with the lowest costs which appeal to both the business and budget travelers. By segmenting their target audience to specific demographics and ticket pricing, passengers know exactly what they are getting for the price they pay.
Northwest Airlines is one of the pioneers in the airline transportation industry and is ranked at the fourth largest air carrier in the United States today. The success of the carrier depends on the quality and reliability of the service at a reasonable price. Close competitors force Northwest to innovate their services by increasing efficiency. This essay will try to examine different perspectives in the services needed to successfully complete the company’s objectives. The analysis will explain historical and financial perspectives that may give a better understanding of the current market trend of the organization.
“Southwest Airlines ” Standard & Poor’s 12 Apr 2014: n. pag. S&P NetAdvantage. Web. 12 Apr. 2014.
The promotion of employees from within is a fact and testament of their successful development and training program. Southwest Airlines has a program designed to strategically developed managers in an intensive Manager-in-Training program that prepares them for the next level. The university is the umbrella for training and development for Southwest since 9/11 which has focused on enhancing its curriculum to help employees achieve their goals. Southwest Airlines provides a Career Development Group that helps employees focus on personal and career growth. This is accomplished by working on a component that will align the employee’s personal development needs and strengths so they can grow more. It also encompasses a skills assessment that’s structured toward helping employees align their degree to a specific job within the company. As stated before, Southwest’s purpose is designed to encourage employee fulfillment and by their Career Development services help them become more fulfilled in their jobs. According to their philosophy, Southwest Airlines hires for attitude and trains for skills. This is why they have become a company with high retention rates. Southwest Airlines is voted “the best place to work” for a simple reason. The company invests in their employees and are committed to their values and
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.
Southwest Airline statement reads, “The mission of Southwest Airlines is the dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual