...Southwest Airlines BUSN412 Business Policy September 29, 2011 CASE ANALYSIS SOUTHWEST AIRLINES COMPANY NAME: Southwest Airlines. INDUSTRY: Southwest Airlines Co COMPANY WEBSITE: (www.southwest.com) COMPANY BACKGROUND: Southwest Airlines was incorporated by Rollin King and Herb Kelleher in March 1967. Their main focus was to avoid federal regulations by providing interstate services in Texas. In 1970, the Supreme Court upheld the right for Southwest Airlines to fly within Texas. By January 1978, Southwest Airlines had a total of almost fifty million dollars of revenue. In January 1998, Southwest Airlines were considered one of the best companies for America to work for (Our History). SWOT ANALYSIS: Strengths: The strengths for Southwest Airlines are one of the lowest airfares offered, which attracts more customers because of the same quality, but with less cost. They also have no fees for the first two baggage cost. Many other airlines charge expensive fees for one bag, which loses their customers. Weaknesses: Southwest Airlines has a limited amount of cities that it flies to, which are about 70 cities. This is harder for customers to book through their airlines because of the limited cities that it is constricted to. Since it started off with only Texas, it still continues to expand. Opportunities: As mentioned above, one of Southwest Airlines opportunities is expanding to more cities. Going from one to about seventy one has made their business increase...
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...South West Airlines The Mission of Southwest Airlines 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 ("The mission of," 2012). Southwest’s Strengths Southwest started out as a small airline only servicing three cities, Dallas, Houston and San Antonio, but my, how times have changed for this company. Southwest has flourished mainly because they have been able to get such a tight reign over their costs and by marketing low domestic fares, becoming well known in the industry for being a low cost carrier ("History of southwest," ) ("Marketing mix," 2012). With almost 3100 flights carried per day, according to the number of passengers, Southwest has been termed the largest airline in the world. Southwest offers a diverse fleet of 547 Boeing 737 aircrafts, which has made Southwest the third largest fleet for carrying passengers in the world ("Marketing mix," 2012) Southwest also maximizes its bookings through web site services. It also gives customers the option to change reservations without paying any additional costs. Giving options to passengers is a strength that will play out well for them in the future as the demand for customer options increase ("Marketing mix," 2012). Overall, Southwest Airlines has an abundance of strengths. They have a very good safety record, employees are encouraged to use their sense of humor, their flights...
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...Introduction Southwest Airlines was founded in 1967 by Rollin King and Herb Kelleher in vision of creating an affordable airfare to public. They had the idea that if they could offer the speed and convenience of air service at a price competitively near that of driving or bus service then they could win over customers. According to frequently-cited story, King described his vision concept to Kelleher over dinner by drawing on a paper napkin a triangle symbolizing the routes, Dallas, Houston, and San Antonio, later became known as “The Golden Triangle”. This image is still found today on their website. In November 27, 1967, with $500,000 in the bank account, Kelleher filed the application with the Texas Aeronautics Commission (TAC) with only three Boeing 737 aircraft. The original name of the company was Air Southwest co. (Southwest Airlines, 2012) In March 1971, Lamar Muse joins Air Southwest as president and sold promissory notes raising an excess of $1.25 million to cover aircraft and startup cost and changes its name to Southwest Airlines Co. (Southwest). In September 29, 1971, Southwest receives it fourth aircraft. The primary aspect of the firm’s business model is to eliminate the unnecessary frills offered by competitors, thus reducing the cost to customers. Southwest also reduced cost by focusing on a smaller number of routes and only flying one type of aircraft, the Boeing 737. Choosing only to fly one type of aircraft was a very strong and successful strategic...
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...Southwest Airlines is a major U.S. airline and the world's largest low-cost carrier. The headquarters are in Dallas, TX. The airline was established in 1967 and took on their current name in 1971. The company employs more than 46,000 people. They operate more than 3,000 flights per day and it carries the most passengers, domestically in America. Southwest has over 80 destinations in over 40 states and Puerto Rico. The Airlines has exclusively used Boeing 737s, except between the years in the 1970s and 1980s, when they used Boeing 727s. In 2012, southwest is the largest operator of the 737 international with over 500 planes in service, each making an average of six flights per day. In 2011 the airline acquired Air Tran Airways, with addition of the carriers expected to be complete by 2014. Unexpectedly in 2012, the airline was issued a single operating certificate, theoretically making the two airlines into one airline. In 2011, the airline gain purchased Air Tran Airways. (Southwest History, 2013) The Culture The culture of Southwest is spelled out in their mission statement which states: Dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. And the mission goes on to address the employees by stating: We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the...
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...Southwest Airlines’ Motivational Profile PSY/320 Southwest Airlines’ Motivational Profile According to Merriam-Webster (2011), the definition of motivation is “a motivating force, stimulus, or influence” (p. 1). Based on Johmarshall Reeve’s Understanding Motivation and Emotion, this definition is widely customary by many psychologists, but what psychologists cannot agree on is what causes motivation. In fact, this topic has been on a rollercoaster ride over many decades by gaining and losing popularity of psychologists. Keeping of this in mind, some of today’s top companies keep motivation near and dear to everything that they do. The chosen organization for this research is Southwest Airlines, and the following paragraphs will take a close look at the history of the organization, corporate culture, management, and the motivational strategies used. The History of Southwest Airlines When many people today think of flying in aircrafts, they do not realize that this mode of transportation started only 107 years ago with Wilbur and Orville Wright. Only 64 years later in 1967 Southwest Airlines, known as Air Southwest incorporated, and applied for license to fly (Southwest Airlines, 2011, p.1). 1971 Through 1981 Numerous legal battles with Continental Airlines and two other airlines at the time occurred in the Texas State Court and Texas Supreme Court from February 21, 1968 to June 17, 1971. The next day, June 18, 1971, marked the first day...
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...Economic Analysis of Southwest Airlines Facilitator: James Young MGT: 513 Managerial Economics October 14,2012 Economic Analysis of Southwest Airlines History of Southwest Airlines History and Key Defining Moments Southwest Airlines was founded in 1966 when a group of Texas investors pooled together 560,000 to form the Air Southwest Company, incorporated in 1967 the company was envisioned as a commuter airline serving the cities of Texas, Dallas, Houston and San Antonio. Although the Texas Aeronautics Commission (TAC), the body responsible for overseeing aviation within the state granted the company permission to fly the routes requested in February 1968, three competing airlines filed suits to prevent the airlines form getting off the ground. An attorney, who stake in the company was a mere 20,000, took the case all the way to the U.S. Supreme court and in December 1970 this court ruled in the favor of Air Southwest. Early in 1971, Air Southwest changed its name to Southwest Airlines, the fledgling airline began operations on June 18, 1971 under the stewardship of President M. Lamar Muse, the airline offered six daily roundtrip flights between Dallas and San Antonio, and twelve daily roundtrip flights between Dallas and Houston. The start of service in June 1971 was accomplished with three 737-200 aircrafts that had been obtained from Boeing on favorable terms, and a fourth aircraft was obtained in September of 1971. The rest of 1971 and 1972 saw operating...
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...------------------------------------------------- Industry Comparison & Outlook For Two Major Airlines MGMT 3490: Jonathon J. Feilmeier Introduction: The Airline industry is a volatile and chaotic atmosphere in today’s rapidly paced society. Customers are more demanding in every way. They want cheaper flights, free baggage, more amenities aboard the aircraft, and much more. With fuel prices getting higher, leisurely travel on a downward spiral, and demands for higher salaries in the industry, where are the airlines to make up for costs besides higher airfares? Lets take a look into the industry and see what one company does to be extremely innovative and what another does to stay traditional, for lack of a better word. I have chosen two companies in the airline industry that I feel are complete opposites in more ways than one in their management, financial, and marketing structures. These companies have been long-time competitors in the commercial airline industry for nearly five decades competing for best quality, comfort, and convenience. Company Overviews: Southwest Airlines (LUV) and Delta Airlines (DAL) have been competitors in the same industry for over fifty years now. Both companies have been enormously successful in their own ways, but as many of us know, the world of commercial travel has seen its share of obstacles lately. The ATA (Air Transport Association of America) reported that domestic airline industry saw an 18 percent decline in revenues in fiscal year 2009 exceeding...
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...Southwest Airlines Company's Purpose Belen Juarez COM/530 October 6, 2015 University of Phoenix Southwest Airlines Company's Purpose Every day someone is traveling. One of the most common forms of traveling is the airline. Whether the trip is business or personal, most likely while purchasing the ticket, checking in, or boarding the plane we do not sit there and ponder what the company's purpose or philosophy is. People get so caught up in everyday life they forget the company’s services that they are using have a purpose to serve them. In this paper, you will get an overview on Southwest Airlines Company, its culture, values, and communication. With headquarters located in Dallas, Texas, Southwest Airlines Company is one of the major United States airlines, as well as the world's leading low-priced carrier. Southwest Airlines Co. “founded on March 15, 1967 by Rollin King and Herb Kelleher” (Avstop.com, Sept). For the very first time, Southwest Airlines Co. launched international services on July 1, 2014. The total number of flight to and from Latin American and the Caribbean was up to 100 per day (Kelly, 2015). A company’s culture is member’s values and practices; essential it is the employee’s values and practices that can make or break the company. Southwest Airlines Company (2015) defines culture as “the development, improvement, and refinement of the originality, individuality, identity, and personality of a given people.” Southwest Airlines Co. prides itself...
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...Southwest Airlines Research Report Tommy Best - Jessica Johnson - Adam McCormick Laura Monday - Evvan Tolly - Jessica Wirth Mary Wrenn ADV 340 - Dr. Childers - Fall 2009 Table of Contents Industry Overview Introduction....................................................................................................................................................................................................................... 1 History............................................................................................................................................................................................................................... 2 Size of Industry.................................................................................................................................................................................................................. 2-3 Stage in Product Life Cycle.................................................................................................................................................................................................. 3-4 Seasonality......................................................................................................................................................................................................................... 4 Growth Potential/Forecasts..........................................................................................................
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...The Airline Industry: A Strategic Overview of Southwest Airlines Terra Thompson Ohio Dominican University Running head: SOUTHWEST AIRLINES 1 The Airline Industry: A Strategic Overview of Southwest Airlines Terra Thompson Ohio Dominican University SOUTHWEST AIRLINES The Airline Industry: A Strategic Overview of Southwest Airlines Table of Contents 2 The History of Southwest Airlines ................................................................................................. 3 Target Market and Business Model ................................................................................................ 3 Current Product............................................................................................................................... 4 Southwest’s Culture ........................................................................................................................ 5 Mission Statement .......................................................................................................................... 5 Mission and Corporate Culture....................................................................................................... 6 Employees and the Mission ............................................................................................................ 7 The Importance of the Mission Statement and Corporate Vision................................................... 7 Strategic Analysis .................
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...Southwest Airlines, owned by Southwest Airlines Company, is a passenger airline primarily operating in the United States. Based on information in their annual stockholders report (Southwest Airlines, 2012), they provide scheduled air transportation for passengers departing and arriving from 103 cities in 41 states. This is limited compared to some of the larger airlines. The airline is the largest US domestic airlines based on the total number of originating passengers boarded. This does not mean they are the largest by fleet size or number of employees. Because of the point to point model rather than the typical hub and spoke model, 71% of Southwest’s fares are non-stop allowing them to increase the total passengers per day per plane. With this point to point model Southwest has made a profit for the past 39 years, and has grown into a $15.7 billion business operating 140 aircraft. Based on Gwynne (2012), Southwest started as a low cost point to point airlines operating from 3 Texas cities in 1971. They offered ticket prices as low as $40 per seat between Dallas, Houston, and San Antonio. Southwest flew from small airports and was able to get people in and out quickly with fewer hassles as compared to the major airlines of the time. Their market strategy at the time was simple. Get people where they wanted to go, on time, for the lowest price possible. This follows the production concept as described by A Framework For Marketing Management (2012). The early Southwest airlines...
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...description of the organization you chose to research. Southwest Airlines was founded in 1971 by Herb Kelleher and Rollin King to provide frequent, low cost airline service in busy markets less than 500 miles apart. “Southwest Airlines is now America’s largest low-fare carrier, serving more Customers domestically than any other airline with a unique combination of low fares, no annoying fees, friendly Customer Service delivered by outstanding People, safe and reliable operation, and an extraordinary corporate Culture that extends to the communities it serves” (Southwest Corporate Fact Sheet, 2013, pg.1). The company has been in operation for 42 years and has returned a profit every year except for the first year (Southwest Corporate Fact Sheet, 2013). Even after September 11th, 2001, the company made a profit without layoffs or furloughs (Reingold, 2013). Examine the culture of the selected organization. As stated in Southwest Airline 2009 Corporate Report, “Our unique airline Culture enables our Family of Employees to provide the highest quality Customer Service. Our valued Customers return to Southwest Airlines because of our People. Our People listen to the Customer’ suggestions create innovative programs that make their lives easier, and continually seek ways to trim operating costs to keep airfare affordable. Our Customer Service extends to sharing the SPIRIT of giving with those who need it most. At Southwest Airlines, our Employees care about maintaining LUVing relationship...
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...image to the public that customers will receive quality customer service, and is also unfortunately used by customers to abuse and exploit employees. Southwest Airlines has adopted a different strategy, one that is unique and sought after by many organizations developed by their founder Herb Keller who started the company in 1971 (Smith, 2004). The Mission Statement of the company is twofold and first addresses the customer. Second the statement addresses its employees. The customer’s message “Mission of Southwest Airlines” states, “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.” The second portion of the mission statement titled “To Our Employees” states, “We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. 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.” “The company’s attitude is that its employees are the “first customer” and passengers are the second (Smith, 2004).” The history of Southwest airlines meeting the needs of its first customers, the employees is evident through the actions of the company in its early introduction stage. The company not...
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...Southwest Airlines Case Study Jared G. Sanders BUSN412 Business Policy April 1, 2012 SOUTHWEST AIRLINES WWW.SOUTHWEST.COM AIRLINE INDUSTRY BACKGROUND /HISTORY/ COMPANY TIMELINE: Southwest, founded by Rollin King and Herb Kelleher, began as a small Texan airline almost 35 years ago and has grown to become one of the largest airlines in America. It was created on the following premise: “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!” (www.southwest.com). Today Southwest Airlines flies more than 70 million passengers a year to 60 great cities all across the country, and they do it more than 3,000 times a day. They have 436 of the newest jets in the nation, with each plane being an average age of 9 years. (www.southwest.com). Southwest’s combination of low fares, outstanding customer service, and strong leadership have helped the airline remain profitable even in the midst of tragedies like the terrorist attacks on September 11, 2001. SWOT ANALYSIS: Southwest was set up for success from the beginning because of its unique upside-down organizational structure. Upper management is at the bottom and supports the front line employees, who are the real experts. Kelleher’s unorthodox leadership style, in which everyone in the company makes management decisions, is largely unheard of these days. The company doesn’t...
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...Southwest Airlines Motivational Profile PSY 320 Southwest Airlines Motivational Profile Southwest Airlines provides the motivation the company needs for its employees to succeed. For employees to take actions on desired goals he or she requires motivation. Therefore, it becomes necessary for companies to effectively motivate employees. With the proper motivation, employees can improve their knowledge within an organization as well as help the company become a success. Employees desire the need to accomplish personal and professional goals within a company and also the knowledge they gain from the experience; it is motivation that helps an individual accomplishes their goals. Southwest Airlines values their employees; they believe that the low turnover rate and high productivity levels are positive proof that they value their employees. This paper will provide a brief history, current motivation methods of Southwest Airlines, and explanations of the current motivational methods of Southwest Airlines and provide detail if the methods work or not for Southwest Airlines. A Brief History of Southwest Airlines Founded in 1967 by Herb Kelleher and Rolling King, Southwest Airlines began as a small operation offering commercial flights beginning 1971 covering three Texas cities (Ashutosh & Mukuli, 2011). The airline has grown from a very small operation to a premier carrier of the largest number of passengers...
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