Southwest Airlines and Gary Kelly

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

People – One of the many things good about Southwest Airlines is that the kinds of people who are heroes of the organization are people who care and go out of their way to help the customers. They’re the ones who are celebrated and held up as shining examples. Additionally, high levels of satisfaction among employees can be attributed to Southwest employee policy. Happy employees can provide high quality service and bring more customers back. To reinforce the culture of hard work, high-energy, fun, local autonomy, and creativity, the company provided continuous education program to employees. If you can help someone out or brighten someone’s day, be it a co-worker or a passenger, you’re doing your job well.

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 is dedicated to incorporating all servant leadership principles throughout their organization. Accordingly, their mission statement is clear and concise it evidently exemplifies all principles and acknowledges a servant-led organization. Their mission statement embraces their commitment to serve the highest quality of customer service through a sense of warmth, friendliness, individual pride, and company spirit (Southwest, 2014). Therefore, through Southwest’s’ mission statement it makes it explicitly apparent that they seek to listen and commit to the growth of their people. Southwest empathizes with their employees because they are dedicated to providing

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.

There are interesting facts that Southwest’s approaches to business are based on fun, trust, community, and family. For example, at Southwest, there is little cross training except for only two formal teams: the marketing and reservations department. This means that Southwest promotes mingling with the employees for informal networking and helping each other out, in spite of their job assignments. “Flight

As the low-cost leader, Southwest spends an inordinate amount of time focusing on its mission, vision, culture, and goals. This concentration allows Southwest to rank as one of the 100 Best Companies to work for in America. The employee’s attitudes and efforts lead to fewer customer complaints and more on-time arrivals and departures.

Southwest Airlines' strong organizational culture is reflected in its mission statement "dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit" (Southwest, 2012). Southwest serves not only as a prime example of a company that excels in customer service and profitability, but as one that has utilized employee development as a means to meet these ends. Southwest makes a strong commitment to foster ongoing relationships with human resources. They demand that their employees are responsible members, however

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

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

Southwest Airlines is often a modeled by other companies for its organizational structure. Organizations that have an effective management team are successful in developing a strong organizational culture, utilizing managerial controls, and leveraging diversity. Effective management teams are developed by cultivating leadership skills in those that supervise the company’s associates. Organizations want managers that can motivate their associates to achieve the goals and vision of the company. Managers that are able to utilize the leadership principles to engage their associates to share the success of the company are considered effective. Leaders are able to develop a strong vision and communicate that

The Company is committed to providing their employees with a stable work environment with equal growth opportunities. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. (The Mission of Southwest Airlines, 2011)

Southwest Airlines incorporates a team orientated culture by cross training its employees so they are capable of helping each other if necessary. The company place a strong emphasis on training work teams and cultivating employee citizenship behavior. Employees participate in twice daily meetings where they can discuss any issues and determine a course of action. Job applicants who are not viewed as team players are not hired. This team oriented organizational culture offers more positive relationships with managers and coworkers thus providing a quality workplace.

Southwest Airlines Company (Southwest Airlines or ‘the Company’ SWA) is a passenger airline that provides scheduled passenger and freight transportation services. The Company primarily provides scheduled services throughout the US and near-international markets. It is headquartered in Dallas, Texas and employs 48,000 people and serves over one hundred million customers annually (“Southwest,” 2015). Southwest Airlines has accumulated over forty years of revenue and is one of the supremely flown airlines in the United States of America (Dess, et al, 2014, p. C137). Recognized for dominating the national or domestic airline market, Southwest Airlines’ diligence has built an