Southwest Airlines Corporate Strategy Analysis

1465 Words6 Pages
Southwest Airlines Corporate Strategy Southwest is ranked as the fourth largest airline in America concerning domestic traveler miles flown. The following factors accounts for Southwest Airlines success. Firstly, the organization is very serious about keeping their costs down. Secondly, Southwest employees have never gone on strike. Thirdly, Southwest dominates airline industry in on-time performance. Additionally, its unique culture maintains the morale of the employees elevated. Lastly, Southwest increased its stock price by 29 percent per annum in 2002. Southwest Airlines is glued together by its corporate culture. King and Kelleher founded it in 1971. Their major objective was to offer regular, cheap airline service in eventful…show more content…
A primary value for Southwest is that people work harder when they are happy. One of the reasons that Southwest has had such good relationships with its employees is because the company treats them well and in return the employees will treat the customers well. This also suggests that if clients are happy, they are likely to come back again. Herb’s objective seems to be appropriate since the organization has enjoyed 50 uninterrupted quarters of profits. Herb explains that there exists no difference on their grand culture. According to Kelleher, focusing on every stakeholder in the corporation personally, and not merely on their work, calls for a massive information network. Every business has its intelligence and metrics, but only a few of them are eager to incorporate time, money, attention, and effort in order to prove they care about their employees (Gittell, 2003). This might seem to be an odd thing to focus on as a business but it enabled Southwest to succeed. Kelleher said, “having a simple set of values for a company was also a very efficient and expedient way to go” (Freiberg & Freiberg, 1996, p. 48). Kelleher added that it is a straightforward manner of carrying out business operations, but definitely not an easy one. The approach can only be applicable is organizations where people define and recognize the culture for themselves. The organizational behavior of

More about Southwest Airlines Corporate Strategy Analysis

Open Document