Southwest Airline Has Changed The Company Or Foreseeable Problems Essay

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,

Southwest Airlines (SWA) maintained a low-cost, low-price and no frills strategy. The small Texas carrier began as a concept, its business plan detailed on a cocktail napkin in 1971 and grew into the nation’s fourth largest airline. Known as an innovator with low operating costs, dominating smaller airports, with a humorous customer service, SWA saw its 40th profitable year in 2013. Like all companies, SWA underwent leadership changes in 2001, and said goodbye to the company’s founder in 2008. Unfortunately, the changes in leadership were not the only changes; the organization proceeded to alter their beliefs and activities.

Today Southwest Airlines is the biggest domestic passenger carrier in the United States of America operating more than 3,400 flights a day. They provide service to 93 cities and 5 countries internationally. Last year Southwest Airlines, “Enplaned approximately 136 million Customers (About Southwest). The airline has grown since it’s first years flying out of Love Field in Dallas, Texas. In the beginning, Southwest provided flight service to only three Texas cities in 1971. One of Southwest Airlines’ early advertisements was a double page ad that ran in Dallas newspapers during May announcing their first flight on June 18, 1971 (Lusk). This advertisement introducing a new airline would soon revolutionize the airline industry and create the new category, of low cost carrier, to the world.

Air travel has its ups and down, as does basically any type of travel. However, Southwest Airlines has always been my favorite airline to fly. As a young single who loved traveling, I found their fares and schedules to be the most convenient for my taste. I always appreciated the staff’s sense of humor, and it really never bothered me where I sat, so I didn’t mind the “A, B, C” boarding groups as opposed to assigned seats: I actually appreciated the freedom of choice. It wasn’t until after a couple of marketing classes that I realized the things I preferred about Southwest were intentional marketing strategies that the company used to differentiate

At Southwest Airlines, the company’s business strategy has a positive effect on the training they provide to their employees. Southwest Airlines is a Texas based airline that started up in 1971 (Corporate Fact Sheet). Over the years the airline has been recognized for its outstanding customer service and its low airfare fees. Due to their excellent customer service, the company has been ranked number one in customer satisfaction in 2013 by the U.S Department of Transportation. In. 2015, Southwest airlines was recognized as one of the Best Places to Work in the Glassdoor Employees’ Choice Award. The reason that Southwest airlines is recognized for all these great things is because they obtain a good organizational control over the airline.

The mission of Southwest Airlines is loyalty promise to the most amazing nature of Customer Service brought across with a feeling of warmth, friendliness, amazing surprising or single pride and Company Spirit. Their vision is to become the world 's most loved, most flown, and most money-making airline.

In Cascio’s book, he explains, “The values-based approach begins with a set of fundamental values that are energizing and capable of unlocking people’s human potential – values such as fun, fairness, challenge, trust, respect, community, and family” (Strategic Human Resource Management, P.44). The management invents the strategies for management policies and practices that are consistent with these values on a day-to-day basis. Southwest fits in Cascio’s criteria of the values-based firm. The following are the case details:

Southwest for many customers have been known for being one of the best companies in the country. Its organizational structure was based on gaining respect in the industry and also being known for having great customer service and fewer flight delays than any of its competitors. Southwest did this while remaining competitive and also being profitable (Nisen, 2016). Herb Keller played a great role in the development of culture for Southwest. Herb placed great concerns on culture and also the customer experience, this philosophy was in place from other CEO’s as well. Many companies want to know the reason that Southwest is so successful. Kelly stated that “ it's not a job that you do for six months and then you just say, "Well, that's behind

Southwest Airlines (SWA) which was incorporated in Texas, is a leading U.S. low cost airlines that was established by Herb Kelleher and started operations in 1971 with only three Boeing 737aircrafts, and they served only three cities in Texas. After Southwest Airlines acquired AirTran Airways in 2011, it began its international services to three Caribbean destinations which includes Aruba, Bahamas and Jamaica. Today the company has over 50,00 employees and more than 100 million customers, and they serve about 96 destinations in 41 states of U.S. and they are also the largest user of Boeing 737 worldwide with over 700 in service presently and they fly more than 3900 flights a day.

The management style of Southwest airline is characterized by how greatly it takes care of its employees’ well-being. The management considers it as a mean to achieve higher customer satisfaction: “Keep employees happy, then they will keep customers happy”.

In Cascio’s book, he explains, “The values-based approach begins with a set of fundamental values that are energizing and capable of unlocking people’s human potential – values such as fun, fairness, challenge, trust, respect, community, and family” (Strategic Human Resource Management, P.44). The management invents the strategies for management policies and practices that are consistent with these values on a day-to-day basis. Southwest fits in Cascio’s criteria of the values-based firm. The following are the case details:

This proposal addresses the needed steps to be taken in order for Southwest Airlines to see continued growth in the airline industry. Southwest Airlines has been able to remain one of the most profitable airlines in the industry for an extended period of time. Even with the hindrance of the 2001 terrorist attacks involving airplanes and the U.S recession of 2008, Southwest has continued to see strong revenue growth. Meanwhile, other companies were experiencing major losses and in some cases folding. Southwest Airlines has capitalized on the company’s strength of being the top low cost

Southwest has segmented the market and decided that their target market would be pleasure travelers who are looking for low cost flights. Their positioning is a low cost airline with great customer service. This sets them apart from the competition because airlines that are low cost usually lack good service, where as, Southwest prides itself in good customer service. Colleen Barret, executive vice president of customers, says, “We are not an airline with great customer service. We are a great customer service organization that just happens to be in the airline business.” This clearly shows Southwest’s feelings towards their customers and is a big reason for their continued success.

Southwest Airlines show their true commitment to the employees by providing an “equal opportunity environment, where personal growth, learning, innovation, and creativity are highly encouraged” (Forbes, 2017). This, in turn, improves Southwest Airlines’ effectiveness. A can-do principle is engraved into the corporate culture of the airline. The tough competition with the rivals has molded the employees into one passionate family. This, in turn, improves Southwest Airlines’ effectiveness immensely (Southwest, 2015).

Southwest Airlines provides short haul, high frequency, point-to-point, low-fare services to and from 58 cities across the United States. The company is known for its low-cost fares and superior customer service in the airline industry. The company was started in 1971 with a motto still lived by today, "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 motto has been effective for the company because they recently reported their 58th straight quarterly profit.