...VMOST Vision Mission Southwest Airlines' mission statement reads: "The mission of Southwest Airlines is dedicated to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit." All these traits are what have made Southwest # 1 in fewest customer complaints for several years running. Southwest continues to thrive on its reputation from this # 1 ranking as well as reap monetary rewards that come with this distinction. Southwest’s commitment to their employees reads: “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” Objectives Strategy The strategy that Southwest Airlines should use in order to continue its success is also based on the “Short-Haul” strategy. The difference is that the strategy must be inter-converted. Southwest can try its best to duplicate its “Short-Haul” strategy globally. For instance, it can do exactly the same business with the same strategy once again. But this time, Southwest has to do it in every part of the world. For instance, Southwest can expand its business in France, Germany, Australia, Russia, China, Japan, Poland, Greece,...
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...Assignment #5. Corporate Culture/Leadership Actions Corporate Culture/Leadership Actions for Strategy Implementation Veronica M. Peterson Strayer University Strategic Management - Bus 599 Dr. Donny Bagwell June 14, 2010 Southwest Airlines Discuss the corporate culture at Southwest Airlines and how it leverages its culture to achieve a competitive advantage. Southwest Airlines culture has set them apart from other airlines and companies. Their culture is living the Southwest Way, which means one must have a warrior spirit, a servant’s heart and a fun-LUVing attitude. Another important company value is getting excellent results, which includes: focusing on safety, low cost, and high customer service delivery. Also, demonstrating integrity in all actions: being honest, ethical and trustworthy. They define their culture as the development, improvement, and refinement of the originality, individuality, identity, and personality of a given people. (Southwest) They operative principle is that the “employees come firs and customers come second.” The culture that Southwest Airlines have is the basis for their labor relations, customer service and organizational flexibility. One excerpt from Southwest's "The Book on Service: What Positively Outrageous Service Looks Like at Southwest Airlines" is rather instructive: "'attitude breeds attitude...' If we want our customers to have fun, we must create a fun-loving environment. That means we have to be self-confident...
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...Southwest Airlines Christopher Slusser Embry-Riddle Aeronautical University Abstract Southwest airlines are currently the dominating airliner in the United States. Many other companies have tried to join Southwest in their current dominance, but have not held up to their standards. This paper will take a deep look into what and how Southwest operates in order to keep themselves a head of the game. A broad explanation of their current management style and where they plan to be in the future will touched on. To be at the top, Southwest has taken an in depth strategic planning and the willingness to do the impossible. TABLE OF CONTENTS Abstract…………………………………………………………………………..2 History……………………………………………………………………………4 Decision Making………………………………………………………………….5 Companies Strengths and weaknesses……………………………………………6 Short Term Goals…………………………………………………………………8 Long Term Goals…………………………………………………………………9 Ethics……………………………………………………………………………..9 Leadership………………………………………………………………………10 Performance Affected by Environment…………………………………………11 Threats…………………………………………………………………………...12 Opportunities…………………………………………………………………….13 Strengths…………………………………………………………………………14 Continuous Improvement………………………………………………………..15 Overall Strategy……………………………………………………………...…..17 Southwest Effect…………………………………………………………………18 Suggestions……………………………………………………………………....19 Southwest Airlines Southwest is an airline that was incorporated in Texas on June 8th, 1971. The company began their venture with...
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...Assignment 4: Leadership Style: What Do People Do When They Are Leading? Gary Kelly, CEO and Chairmen of Southwest Airlines Company BUS520 Leadership & Organizational Behavior 6/05/13 Introduction Mr. Gary C. Kelly has been the Chairman of the Board, Chief Executive Officer and President of Southwest Airlines Company since July 2001. The 58 year old executive has been with the company since 1986 being hired in as controller working his way to Chief Financial Officer and the finally to the Chief Executive Officer. Mr. Kelly attended the University of Texas where he received a bachelor degree in accounting. Southwest Airlines is a very unique company in as they have never had a non-profitable year, they continue to serve as the country’s largest discount airlines, they have a straight forward philosophy of taking care of their employees, great customer service, and having fun. While other airlines have failed, actually almost all of the large airlines have failed, Southwest continues to grow and at the head of the company is Gary Kelly. Mr. Kelly has been with Southwest for most of the companies’ existence, and together, they have developed a unique culture and style. Most of which he inherited when he took the office of CEO. The former CEO and co-founder Herb Kelleher, was a very aggressive leader that like to lead in a very unorthodox style. His management was quick and to the point, always thought of himself as the underdog. Kelleher cared greatly...
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...out to keep it in shape, in order for it to last forever. While some may disagree that “LUV” can’t last forever, when it comes to relationships, the “LUV” that is in question is Southwest Airlines. What once was a small commuter air service, has now grown to be one of the largest and most successful major airline companies in the United States. So how did Southwest Airlines become so successful? It all began with the founders Rollin King, an entrepreneur, and Herb Kelleher, an attorney, who demonstrated strategic leadership from the beginning. The strategic leadership began when the these two gentlemen saw an opportunity that would be beneficial due to the inconvenience and expense of ground travel by either bus, train, or automobile between three major cities, which were Houston, Dallas, and San Antonio. Due to this, the establishment of Southwest Airlines came into existence by providing point-to-point short haul flights to less popular and less congested airports. Shortly after its establishment, like any other new businesses, Southwest faced many barriers in the beginning phases, which pertained to safety issues, inspections, and flight operations, which Southwest was able to overcome due to Herb Kelleher’s legal experience. After overcoming the barriers, the strategic leadership continued with the incessant building of the organization. Southwest Airlines’ organization is like an upside-down pyramid where upper management is on the bottom and the employees, who are...
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...Degree: EMBA UPH-PKU (batch 2) Course: Module 20 - Strategic Human Resources Management Lecturer: Prof. Carol Hooi Assignment's Topic: Implementing the Bonding of Relationships to Achieve Magnificent Performance at Southwest Airlines Submission date: 11-06-2015 Group: 2 Members: Stanley Agus Sardjono Stevie Faverius Jaya Johan Indra Wiratanto Ervina Yelena Introduction to Topic Southwest Airlines Co. is a major U.S. airline and the world's largest low-cost carrier, headquartered in Dallas, Texas. The airline was established in 1967 and adopted its current name in 1971. The airline has nearly 46,000 employees as of December 2014 and operates more than 3,400 flights per day. . In summary, operational-wise, Southwest Airlines has three distinctive characters which have been copied by other airlines: 1. Flying just one aircraft type – to cut down on training and maintenance costs. 2. Using smaller, less congested airports – to avoid schedule disruptions caused by multiple aircraft demands. 3. Eliminating meal service and seating assignments – to allow aircraft to be turned around more rapidly. However, the heart of the Southwest success story are in fact summarized into these three “magnificent recipe”: 10 Organizational...
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...Mr. Gary C. Kelly has been the Chairman of the Board, Chief Executive Officer and President of Southwest Airlines Company since July 2001. The 58 year old executive has been with the company since 1986 being hired in as controller working his way to Chief Financial Officer and the finally to the Chief Executive Officer. Mr. Kelly attended the University of Texas where he received a bachelor degree in accounting. Southwest Airlines is a very unique company in as they have never had a non-profitable year, they continue to serve as the country’s largest discount airlines, they have a straight forward philosophy of taking care of their employees, great customer service, and having fun. While other airlines have failed, actually almost all of the large airlines have failed, Southwest continues to grow and at the head of the company is Gary Kelly. Mr. Kelly has been with Southwest for most of the companies’ existence, and together, they have developed a unique culture and style. Most of which he inherited when he took the office of CEO. The former CEO and co-founder Herb Kelleher, was a very aggressive leader that like to lead in a very unorthodox style. His management was quick and to the point, always thought of himself as the underdog. Kelleher cared greatly for his employees, for his customers, but most of all, having fun. In the seventies, the airline had its stewardess dressed in hot paints, and sing songs to the guests. Today they still are very casual and continue to have...
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...Southwest Airlines Operations – A Strategic Perspective September 1, 2014 by Airline Editor Southwest Airlines Operations – A Strategic Perspective By Mukund Srinivasan Background: Southwest Airlines is the largest airline measured by number of passengers carried each year within the United States. It is also known as a ‘discount airline’ compared with its large rivals in the industry. Rollin King and Herb Kelleher founded Southwest Airlines on June 18, 1971. Its first flights were from Love Field in Dallas to Houston and San Antonio, short hops with no-frills service and a simple fare structure. The airline began with one simple strategy: “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.” This approach has been the key to Southwest’s success. Currently, Southwest serves about 60 cities (in 31 states) with 71 million total passengers carried (in 2004) and with a total operating revenue of $6.5 billion. Southwest is traded publicly under the symbol “LUV” on NYSE. Facts: * The first major airline to fly a single type of aircraft (Boeing 737s) * The first major airline to offer ticketless travel system wide including a frequent flier program based on number of trips and not number of miles flown. * The first airline to offer a profit-sharing program to its Employees (instituted in 1973). * The first major airline to develop...
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...Southwest Airlines revolutionized the airline industry with what is known as the Southwest Effect: low cost fares, point-to-point service, “10 minute turnaround” and an enjoyable friendly atmosphere. After the Airline Deregulation Act of 1978, Southwest adopted a polity that irregardless of the profitability of expansion opportunities, the company wanted to commit to a manageable annual growth rate of about 10-15%. The following questions and discussion will address the historical challenges of Southwest airlines, the direction the company contemplated in 2002, and a brief look at the challenges of today. 1). What is the competitive business environment The airline industry has always been competitive. In an analysis of the most profitably investments as per our class discussion, surprisingly, airlines come in at the lowest return on each dollar invested at around 2.5%. Southwest Airlines experienced 30 consecutive years of profit a mere two years after it’s founding in 1971. Many airports began requesting Southwest service for their passengers, but throughout Southwest’s expansion, the company aimed to maintain a manageable growth rate and focus on their core competencies of low price fares that would compete with the cost of driving to the destination. In the mid 1990’s, the major carriers entered into price wars to undercut competition. Although, these dealings did affect Southwest’s bottom line, Southwest still manage to continue to turn a profit...
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...3 C. Objectives 3 D. SWOT Summary 6 E. Recommendations 7 II. Current Situation 8 A. Current Performance 8 B. Strategic Posture 9 III. Corporate Governance 25 A. Board of Directors 25 B. Top Management 25 IV. External Factors 27 V. Internal Factors 118 VI. Action Plan 178 Appendix A. Stakeholders Worksheet 206 Appendix B. Answers to Panel’s Questions 212 I. EXECUTIVE SUMMARY A. Mission To provide a low-cost/low-price/no-frills, reliable, friendly service with “more value for less money” mode of transportation for consumers traveling short distances for business and/or leisure. B. Vision To keep their costs down, keep their ticket prices down and expand into new markets that have a high traffic potential while maintaining profitability and strong position as an industry leader. C. Objectives Short-term Strategic Objectives ▪ To increase market share by 5% within the next 2 years. ▪ Southwest will decrease its downtime for...
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...SOUTHWEST’S PENDING ACQUISITION OF AIRTRAN: ANALYSIS OF THE CASE AND STRATEGIC CONSIDERATION BMA 5013: Corporate Strategy Jacob Dreizin Rudiger Hesse Robert Martinez Lee Vu Hoang Nhat Victor Ka Sing Tsui Executive Summary On September 27th, 2010, Southwest Airlines announced its intention to buy AirTran Airways for $1.4 billion, with the merger being effected within two years. Although by number of planes, AirTran is just slightly more than one-quarter the size of Southwest, the number of routes that each airline presently flies is the same. We anticipate that the intended merger will thus affect the latter far more than might be suggested by the fleet size indicator. Indeed, if the U.S. Government approves the merger, Southwest would become a different entity. It would transform from a primarily regional airline into a national one, becoming America’s third-largest carrier by number of passengers flown. Its fleet would increase by over 25 percent, and it would fly two airplane types—the Boeing 717 and 737—rather than just one. Moreover, having acquired AirTran’s hub operations in Atlanta, currently the world’s busiest airport, Southwest would, for the first time, come into direct competition with Delta, the number two U.S. airline by number of passengers flown, which also claims Atlanta as its main hub. It would also take over AirTran’s Caribbean routes, thus gaining its first international operations. Our analysis will first provide a background of the U.S...
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...Southwest Case Study 1. What are some of the ways in which Southwest is different than other commercialairlines? There are many elements that contribute to Southwest Airlines' success in the airline industry. These elements include service, operations, cost control, marketing, and the corporate culture. Southwest made flying fun for employees and customers by making everyone feel like they are part of one big family. Management encouraged good relations between employees and passengers that resulted in high employee job satisfaction and low turnover. From an operational perspective, Southwest Airlines distinguished themselves from other airlines by incorporating cost saving programs such as the airline doing its own ticketing and not going through a travel agent. Southwest flew passengers nonstop to their destinations and did not promote connecting services. Southwest focused on flying passengers into uncongested airports and did not transfer baggage to other airlines. Only drinks and snacks were served on board. Southwest Airlines only flew newer Boeing 737 jets, which required less maintenance, and hence reduced the time needed to "turn" an aircraft around from an industry average of 55 minutes to 15 minutes or less. Southwest Airlines emphasized cost control and all employees worked together to minimize costs. Pilots developed new procedures regarding takeoffs and landings and fuel was purchased from vendors with the lowest prices. Marketing was an important element to...
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...CONTENTS 1 Introduction to Southwest Airlines 3 1.1 Overview 3 1.1.1 History 3 1.1.2 Southwest Airlines’ offerings 4 1.2 Reasons for choosing Southwest Airlines as a case study on HR practices 5 2 Literature review 5 2.1 HR strategies 5 2.2 Training and development 7 2.3 Compensation 8 2.3.1 Financial compensation 8 2.3.2 Non-financial compensation 10 3 Human resource practices in Southwest Airlines 11 3.1 Human resource strategies in Southwest Airlines 11 3.1.1 Southwest Airlines Strategies 11 3.1.2 Role of HR Strategies in implementing Southwest Airlines’ strategies 12 3.1.3 Southwest Airlines human resources strategies and tactics 14 3.2 Training and development in Southwest Airlines 20 3.2.1 Southwest offer the employees the freedom to learn and grow 20 3.2.2 Safety and security training and outreach 21 3.2.3 Environmental and sustainability training 22 3.2.4 Diversity and inclusion education and outreach 23 3.2.5 University for people - leadership 23 3.3 Southwest Airlines’ Compensation and Benefits for People 27 3.3.1 The Freedom to Travel 28 3.3.2 The Freedom to create Financial Security 29 3.3.3 The Freedom to pursue Great Health 30 3.3.4 The Freedom to Learn and Grow 32 3.3.5 The Freedom to Work and Have Fun 33 3.3.6 Employee Recognition Programs 34 3.3.7 Distributed Leadership 35 CONCLUSION 37 REFERENCE 38 Introduction to Southwest Airlines Overview History Southwest Air...
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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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...Strategic Report for JetBlue Airways Harkness Consulting Innovation through Collaboration Rosanna Smart Alisher Saydalikhodjayev Sayre Craig April 14, 2007 Table of Contents Executive Summary ………………………………………………..3 Company History ………………………………….………………..4 Competitive Analysis ………………………………………………7 Internal Rivalry …………………………………………………………. 8 Entry ………………………………………………………………………… 9 Substitutes and Complements …………………………………….. 11 Supplier Power ………………………………………………………….. 12 Buyer Power …………………………………………………............... 13 Financial Analysis ………………………………………………….14 SWOT Analysis ………………………………………………………23 Strategic Issues and Recommendations …………………..25 References ……………………………………………………………30 Harkness Consulting 2 Executive Summary From its initial flight in February 2000, JetBlue emerged into the heavily competitive airline industry as the little airline that could. While legacy carriers declared bankruptcy, JetBlue trounced its competition by offering low‐cost, customer‐focused service. Under the direction of the energetic David Neeleman, JetBlue became a major player in the airline industry. Operating domestic flights on a point‐to‐point system, JetBlue primarily manages East‐West and Northeast‐Southeast routes. While this route structure initially proved profitable for the company, rising costs and heated price competition are currently threatening JetBlue’s market share. The com...
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