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Southwest Airline Corporation

In: Business and Management

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Chapter 3
Case Analysis of Management Control System
Southwest Airlines Corporation
Southwest Airlines actually could hit the company goal on achieving profitability for consecutive 32 times which is really good compared to others airlines corporations. The company could offer low cost fares to its customer mostly through website and also provides point to point flight majoring on short haul and medium flight. Besides, to ensure the organization reach company goals, the company put more effort on creating comfortable environment and culture for its employees. The company strategy is align with Anthony and Govindarajan (2005) statement about good management control system that is created to ensure that individual actions taken to achieve personal goals also to reach company goal.
Southwest believe that the employees are the fundamental factor on company sustainability. The major impact from above culture is that it can make the employees feel comfortable and happy to work. As the result customer can experience good services from happy employees and the customer possibility to come back again will getting higher. Further impact, it could increase shareholder profit because more and more customer will come to buy company products.
Southwest airlines focus on two strategies which are minimizing operating cost and employee management. It is because company prefer to use low cost to be company competitive advantages. Several actions done by Southwest to implement their strategies are based on the following points:
Use less congested airport. This action is part of minimizing operating cost. By using this strategy, southwest could minimize cost on higher landing fees because of slot reservation on peak period. In addition, in the busy period there are resource and equipment scarcity due to high level of resource usage. This condition could leads into many delay and

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