Southwest Airlines Transition Paper

Business Strategy – BAD 4013 – SUMMER 1999 Case Study Southwest Airlines I. Strategic Profile and Case Analysis Purpose 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. Twenty-seven years ago, Rolling King, owner of floundering commuter airline, and Herb Kelleher, King’s lawyer, got together and decided to start a different kind of airline that would provide a short-haul, low-fair, high-frequency, point-to-point service in the United States. The company began service on June 18, 1971 with flights between Dallas, Houston, and San Antonio (“The Golden Triangle” as Herb called it). Southwest Airlines is the fourth

Currently, Southwest Airlines Company achieved the higher net income in 2013 and widened its field of operations by the integration with AirTran Airways. It seems Southwest’s business is going pretty well. However, there are numerous problems from competitors who will cause negative effect on Southwest’ market leader position and market shares. This marketing plan will make a careful analysis of the current activities of Southwest Airlines Company, and then this marketing plan will create how the company develop Southwest’s market leadership and higher market shares within 5years.

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.

The article “U.S. Slaps Duties on Canadian Jet, Raising Trade Tensions,” written by Ana Swanson and published in The New York Times on September 26, 2017, describes how new duty fees will be charged on all new Bombardier CS100 airplanes imported into the United States. This conflict arose after Boeing (American airplane manufacturer) accused Bombardier (Canadian airplane manufacturer) of using subsidies to sell its jets at incredibly low prices in the American market. The United States Commerce Department confirmed that Bombardier’s CS100 aircraft had received subsidies that were worth 220 percent more than the value of the plane’s sales price. These subsidies, which were given by the Canadian government, allowed Bombardier to reduce prices on their aircraft. The profits that they

“Your employees come first, and if you treat your employee’s right, guess what? Your customers come back, and that makes your shareholders happy. Start with employees and the rest follows from that” (Byrne, 2012). This quote from Herb Kelleher, co-founder of Southwest Airlines, embodies the leadership at the airline. Southwest is the leading low-cost airline based in Dallas, Texas and founded in 1967 by Herb Kelleher and Rollin King. They dare to differ from other carriers because their philosophy revolves around people both internal and external. Communication, culture, and leadership are the cornerstone of their success. This paper explores key leader’s communique tactics, the role communication plays in daily operations, how the mission, vision, and culture reinforce the goals, and the prominence of connecting with internal and external stakeholders. A clearer understanding the role of communication and culture at Southwest are beneficial in developing best practices for any organization.

Herb Kelleher care for his people in Southwest as family and look forward to his employees act the same way as him: treat each other and their customers as family also. And the new leaders have participated with Herb continually building their vision and unique culture (D'Aurizio, 2008). According to James Parker, who is the former CEO of Southwest Airlines, said that the top management should put high intention to build a strong corporate cultures prioring to others and goading the capability of employees to make profits (Holstein, 2008). Thus, Southwest Airlines is well known for its positive culture and emphasis on its employees. The former officer of Southwest Airlines, Dave Ridley, described the corporate culture in Southwest Airlines can’t not departed with people. They embrace people-oriented and treat people mannerly, resulted the positive way which frontline people treating their external customers. Ridley said, the employees have been considered as internal customers also, and employees’ welfare has been treated fairly or even more important than the external customers. He also indicated that they aimed to construct a happy working environment which can make their employees adore the workmates, the workplace, and the people they serve(Peel, 2015). The culture

HR Policies and Leadership: The advanced employee training techniques and employee engagement is an important element of Southwest’s success so far. The exceptional customer service which differentiates SW from their competitors is attributed to their strong employee base. Herb Kelleher, a transformational leader, led the organization by maintaining a fun-filled culture. By creating a friendly working environment in the organization, CEO of southwest airlines was able to retain the employees in the organization. Employees were not only extrinsically motivated to be in the company but intrinsically motivated to be a part of the Southwest Airlines family. It was demonstrated from the fact that when there was a downturn, managers froze their salary for 5 years just to maintain

When Herb Kelleher and Rollin King founded Southwest Airlines in 1971, their mission stated the “dedication of the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit” (Smith, 2012). With that mission in mind, Herb Keller and Rollin King managed to make Southwest the only profitable airline in the United States (Smith, 2012). Southwest’s mission is not the only reason why the airline continues to grow. Without the way, Herb Kelleher former CEO of Southwest, had developed a particular leadership style, power base, and a set way the organization motivates its’ work force, the company would not be as successful as it is

Southwest Airlines is one of the most successful airlines in the United States. There has never been layoffs or strikes in the history of the company, although there were several times when layoffs could have been justified, including the months following the September 11, 2001 terrorist attacks. However, Southwest's Mission statement says “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.” (Southwest, 1988). The Airline has always believed that their corporate culture is one of the keys to their success. The culture recognizes that employees have emotional intelligence and that their

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”.

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

Low-cost carriers pose a serious threat to traditional "full service" airlines, since the high cost structure of full-service carriers prevents them from competing

Southwest Airlines, a major airline company in the United States says there’s something they value more than its customers and that something, is their employees. Organizational structure is referred to the system of shared ideas, values, and beliefs which basically controls how employees behave in organizations. These shared ideas and values have a strong influence on the organization and its employees in the means of how they dress, act or even how they perform their jobs. Southwest Airlines is known for their organizational culture and this is also considered one of the key factors contributing to their success. However, it is very unusual to hear that a company will put their employee happiness above their customer satisfaction. Southwest Airlines lists the employees first, customers second and shareholders third. If the company treats the employees right, the employees will treat their customers right and this all results in increased profits which will make everyone happy including the shareholders. Southwest has created a culture that is fun, full of values and ideas which is to help employees to enjoy what they do and take pride in their jobs. The airline as well teaches and encourages the employees to put others first and show great customer

When one guises at organizational culture, one should correspondingly look at the principles, beliefs, and the vision of the Company. Southwest Airlines’ CEO, Herb Kelleher, is a man whose approach of treating all individuals with dignity and admiration helped the Company gain a competitive advantage over major airlines. The responsive customer service, reliability,