...culture that is needed to accelerate the goals and objectives and to guarantee that implemented changes are successful. The intention of this paper is to analyze the effects of organizational culture on organizational development and change. To allow one to grasp the concept of organizational culture Team A will give the description of Southwest Airlines, including the organization’s philosophy, mission, vision, values, and structure, an analysis of the relationship between the design and Southwest Airlines and its organizational culture, and the effects of organizational culture on Southwest Airlines workforce will be reviewed. An evaluation of the effects of change within Southwest Airlines will also be discussed. Description of Southwest Airlines Southwest Airlines is an airline that provides many services in different destinations around the United States. Southwest Airlines believes in being devoted to each of the communities that they serve by having their employees, customers, neighbors being a part of a loving family. Southwest philosophy is that happy employee’s equal happy customers and happy customers keep Southwest flying. They believe in providing a one of kind culture within their organization that means...
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...Diversification Strategies Southwest Airlines Southwest Airlines was started 45 years ago in 1967 by two entrepreneurs: Herb Keller and Rollin King who had the right vision and culture by which to become successful entrepreneurial leaders. This vision was achieved as Southwest Airlines became the greatest airline in the USA. As a young business in the airlines industry, Southwest Airlines in the initial years confronted very tough situations, and it was due proper planning and with the assistance of its employees that kept Southwest Airlines afloat from sinking. There were already pioneer big companies well established in the airlines industry when Southwest Airlines joined the industry. Some of these companies had a good share of the market and with low over head costs. Such a scenario makes it problematic for a new comer to get a solid footing in the industry. Through these decades, times have been changing and Southwest airline have been changing its waste of operation to keep up with the time. Gould stated, “Core competencies are not constant. They tend to change as the organization changes. Therefore, it’s important that the competencies are flexible and not etched in stone.” (p.5, 2008) The history of the air industry is characterized with very tough competition among companies. Besides, it is even tougher for new companies to enter the industry. The corporate head office of the Southwest Airlines is located in Dallas, Texas and that was where it was initially...
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...Southwest CEO Amanda McKenna MAN103-015-002 Sunday November 25, 2012 Instructor: Jean Anderson Southwest Airlines has been in business for over 25 years. It has high executive development. The most impressive thing about Southwest Airlines, perhaps, is that over the past 25 years it has managed to retain its one- of a-kind corporate culture. Southwest has grown from a three airplane Texas puddle jumper into the world’s sixth largest airline in terms of enplanements. Southwest operates a fleet of 243 Boeing 737s and it now employs 23,000 people. They serve 51 cities in 25 U.S states. Southwest offers manager in training programs as well as leadership classes. Southwest recruits about 95% of executives internally. It is said that the airlines success rate is bringing in outside executives is probably no better than 50%. Southwest has a culture that depends on employees at all levels. Southwest’ success is entirely home grown. Southwest Airlines maintain permanent low cost for permanent low fares. It is the only way to run a permanently profitable airline. Southwest ranked N0.4 among U.S majors in terms of passenger enplanements. Southwest’s route map comprises 59 airports serving 58 cities in densely populated areas. So, Southwest Airlines offers low cost air fare and is a high-tech company. It has several different airports in many cities and is constantly growing and evolving. They treat their customers as well as their employees with high respect and kindness. Their...
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...Contents South West Airlines 4 Goals and Objectives 5 Their Mission and Vision Statement 5 Strengths 6 Weaknesses 6 Opportunities 8 Threats 8 Analyzing company’s external environment 9 Analyzing the nature and strength of competitive forces 11 Competitive pressure stemming from bargaining power of buyer: 16 Determining whether the collective strength of the five competitive forces is conductive to good profitability: 17 Competitive pressure from seller of substitute products 18 Sign that competition from substitute is strong 19 Competitive pressure stunning from supplier bargaining power 20 PESTEL ANALYSIS 24 SCENARIO PLANNING 56 SCENARIO NO.1 58 SCENARIO NO.2 59 SCENARIO NO.3 59 SCENARIO NO.4 60 SCENARIO NO.5 60 SCENARIO NO.6 60 SCENARIO NO.7 61 SCENARIO NO.8 61 Competitors Objectives 62 Competitor's Current Strategy 63 Competitor's Resources and Capabilities 64 Competitor’s Assumptions 66 Regional Factors 67 Value chain activities: 68 Key competitive advantages: 72 Solutions: 82 Weights of Key success factors in five airlines: 86 COMPETITIVE ADVANTAGE 92 FIVE GENERIC COMPETITIVE STRATEGIES: 92 LOW COST PROVIDER STRATEGIES: 92 DIFFERENTIATION STRATEGIES: 95 BEST-COST PROVEDER STRATEGIES: 96 FOCUS (MARKET NICHE) STRATEGY: 96 STRATEGIC ALLIANCE AND PARTNERSHIP: 97 MERGER AND ACQUISITION STRATEGIES. 98 VERTICAL INTEGRATION. 98 OUTSOURSING. 98 OFFENSIVE...
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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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...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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...------------------------------------------------- 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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...Organizational Behavior December 12, 2014 Gary Kelly serves as the Chairman of the Board, President, and Chief Executive Officer at Southwest Airlines. Under Gary's leadership, Southwest has grown to become the nation's largest airline in terms of originating domestic passengers carried and is a mainstay on Fortune magazine's list of the most admired companies in the world, ranking seventh in 2013 (About Southwest, 2014). Gary's biggest source of pride is the fact that Southwest Airlines has never had a single furlough in the airline's 43-year history. Gary is pioneering the airline's transformation through several key initiatives, including the integration of AirTran Airways and launching international destinations in 2014 for the first time in Southwest's history. Gary has been named one of the best CEOs in America by Institutional Investor magazine three times and he was selected as Dallas Business Journal's CEO of the year for 2011. Gary is a lifelong Texan and received a B.B.A. in Accounting from the University of Texas at Austin. As a proud alumnus, Gary has served the University in a number of capacities, including on the McCombs School Advisory Council. Gary is a Certified Public Accountant; serves on the Board of Directors of the Lincoln National Corporation and is Chairman of Airlines for America (Southwest, Gary C. Kelly, 2014). Southwest Airlines would not be the company it is without having a superb leader. It takes a good leader to understand the current economy, market...
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... Abstract The role of human resources management is indispensable in Southwest Airlines and the Coca Cola Company. The department has the power of steering the companies to success and greatness. Indeed, this department deserve due attention because of the role it plays in the two organizations. However, the two companies, Southwest Airlines and the Coca Cola Company manage their human resources in somewhat different ways. Some of these ways employed by the company contravenes the conventional way of managing human resources. This paper therefore, made a critical evaluation of the human resources management of the two organizations. Apart from critically organizing the human resources management, the paper also highlights the organizational structure and change management issues in the two organizations. From this analysis, the paper claims that the because the two organizations operate in different industries, aviation industry and hotel industry, the manner in which the human resources management practices are conducted is unique for each of the organizations. It is also noted that each of the organizations has a distinct organizational culture. In the same note, it is observed in this paper that the two organizations have different organizational structure. Because of these differences, the PESTLE and SWOT analyses done are different for each of the organizations. In conclusion, the paper observes that depending on the organizational goals...
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...travel is one of the most competitive industries in the world. From its onset, Southwest Airlines has made significant inroads in pursuit of low fares. The organization has been determined to be the lowest cost airline in the industry for the selected routes that it flies. Considering their position, the question arises as to how they consistently remain more successful than their competition. The answer is not one that sheds light on one specific area, but a series of factors that, when combined, allow Southwest Airlines to shine above their peers. The goals of Southwest’s management within Southwest include keeping operations simple and consistent, maximizing assets, managing customer expectations, and keeping costs to a minimum. Management has achieved these goals by incorporating the following: 1. Using a One plane fits all philosophy. The competition operates many different jets to meet their missions. Southwest saves millions in inventories, training, maintenance, and other problems associated to non-commonality. This is in addition to having the ability to swap planes from one route to another. 2. Flying from one point to another. Other airlines use the common “hub and spoke” system, unlike Southwest, which flies from one point to another, non-stop. This reduces ground time and delays, while assisting with on-time performance. 3. Implementing a “no frills, no fees” policy. To keep cost to a minimum, Southwest sells seats in three price points. Prices are all inclusive...
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..... 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 “Our people are our single greatest strength and most enduring longterm competitive advantage.” Gary Kelly, CEO Southwest Airlines Time flies when you’re having fun! More than 38 years ago, Rollin King and Herb Kelleher got together and decided to start a different kind of airline. They began with one simple notion: 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. And you know what? They were right. What began as a small Texas airline has grown to become one of the largest airlines in America. Today, Southwest Airlines flies over 100 million passengers a year to 66 great cities all across the country, and we do it more than 3,200 times a day. To illustrate our steadfast focus on a triple bottom line—our Performance, our People, and our Planet—we have highlighted these three elements of sustainability in a new format, our first annual One Report. This comprehensive document combines a report on our 2009 financial performance and updated content from our 2008 Southwest Cares report—our corporate responsibility and environmental report—while elevating our triple bottom line through adherence to the Global Reporting Initiative...
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...compete in the domestic market and one in the global market. The organization that the author will use is Southwest Airlines and Lufthansa to compare and contrast. The author will also describe or diagram a process or procedure that is similar between the organizations, and explain the process from beginning to end. The author will also explain why the process or procedure produces a competitive product or service in the domestic and global markets. In conclusion the author will explain how quality management affects the position of the companies in the domestic and global market. Effects of Quality Management The two organizations that are being compare and contrast are similar to each other are Southwest Airlines and Lufthansa. Southwest Airlines competes in the domestic market which is the U.S nation leading low fare carrier which continues to stand above other airlines offering reliable product and services with exemplary customer service. Southwest Airlines is the most productive airline in sky and offers customers a comfortable traveling experience with premium leather seats and plenty of leg room. Southwest Airlines recently updated its gate areas and improved its boarding procedure to make Southwest Airlines to be more convenient and simple. Southwest Airlines currently serves 68 cities in 34 states and soon to add two more cities. Southwest Airlines currently operates more than 300 flights a day and has more than 35,000 employees system wide. (Anonymous,...
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...Southwest Airlines: In a Different World - Team 3 1.) Why has Southwest Airlines been more successful than its competitors? Herb Kelleher and Rollin King established Southwest Airlines in 1967. For the first few years, Southwest Airlines battled illegal lawsuits from larger airlines that did not want Southwest to enter the market. After many years in the courts Southwest Airlines was able to offer flights to customers. Starting a new company with large expenses is not an easy task. Southwest Airlines had to find a way to stand out to customers so they could sell their airline tickets. In the beginning Southwest offered a low fair price to fly. One of their promotions was a one-way fare for only $20. Southwest wanted to expand their flights to more cities and needed more revenue. In order to increase their prices and not lose customers, Southwest promoted free alcoholic beverages with airfare. Many customers had no problem paying more for flights and Southwest expanded. Southwest did not charge for additional luggage, which helped out those who had an abundance of luggage on trips – giving them an advantage and separating them from other airlines. Southwest also used many promotional schemes to attract new customers. One of them was “long legs and short skirts” for stewardesses on board the flights. The same person who hired hostesses for Hugh Hefner’s Playboy jet hired many of Southwest Airlines stewardesses. Southwest has always hired interesting employees with...
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...entrepreneur Soichiro Honda had loved motor vehicles almost since birth. When he was fifteen, he became part of an auto repair shop, and the passion grew. His greatest dream was to become a world-renowned car racer, and it was an ambition which he would fulfill in time. But first, the auto lover found himself employed as a technician. During his free time, he nurtured his growing interest in motor vehicles by building race cars and tooling with his Harley motorcycle. Honda possessed a natural talent for anything motorized, and his skills allowed him to open the doors of his very own repair shop in 1928. As his curiosity grew, he attended technical school in order to discover the perfect way to manufacture a piston ring. Honda combined his inborn knowledge with his new technical knowledge to take the first tentative steps toward entrepreneurial success. He utilized what he had learned about piston rings to form the Tokai Seiki Company. In 1928, he secured his first of many patents (for automobile wheel spokes). Then, as World War II ravaged Japan, Honda cornered the market on badly needed generator motors. His growing capital allowed him to break ground on the Honda Technical Research Laboratory in 1946. Just two short years later, the Honda Motor Company, Ltd. would open its doors in Hamanatsu. The motor world would never be the same. The company initially found its niche in the manufacture of motorcycles. Following the launch of the company’s first success—the “C” model...
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...What a Luv-ly Company: Southwest Airlines Executive Summary This case study delves into Southwest Airlines, analyzing their tactics for growth and sustainability, and how they compare to the airline industry as well as how they compare to privately owned companies in general. According to Southwest’s fact sheet, they have reported more than 40 years of consecutive profit as they have grown from an intrastate Texas airline into an international phenomenon. Southwest is the largest air carrier in the United States. They have taken a fun-loving attitude and turned it into a money maker, as well as being a fantastic place to work. Southwest has had only two fatalities since its start, with neither death being a direct cause of a crash. Southwest operates only one type of aircraft, Boeing 737s, thus making maintenance much more streamlined and cost effective. Southwest is heading the effort to make commercial flight more eco-friendly, with lighter, more comfortable seats as well as new types of customer comforts such as in-plane Wi-Fi and free streaming music and movies. Southwest is not only a great model for the airline industry, they are a model that many companies can learn from. (2015) Introduction: A Few...
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