The company has done a super job with using LUV to create a supportive culture and to nurture achievement of the company’s customer satisfaction objectives. They have a cost-saving approach to operating, both management and employees are attentive to keeping costs down and to operating in a lean fashion. This is a major reason for Southwest’s success in implementing and executing its strategy. Southwest formed a Culture Committee in 1990 to promote “Positively Outrageous Service” and devise tributes, contests, and celebrations intended to nurture and perpetuate the Southwest Spirit and Living the Southwest Way. Over the years, the committee has sponsored and supported hundreds of ways to promote the traits and behaviors embedded in …show more content…
A quarterly news video, As the Plane Turns, was sent to all facilities to keep employees up to date on company happenings, provide clips of special events, and share messages from customers, employees, and executives. The company had published a book for employees describing “outrageous” acts of service. Southwest’s management deserves a grade of A+, it is hard to see what Southwest could have done much better. The best examples being the company’s array of employee management practices and their strong commitment to identifying and implementing ways to keep its costs low. Southwest is a company with no glaring weaknesses or critical operating problems, but there are areas of concern. Southwest has lost some of its cost advantages in recent years, rival airlines have been slashing costs to survive, particularly in the areas of pilot salaries and employee salaries. Southwest has also been moving into airports with higher landing fees and more congestion. The acquisition of AirTran is a great choice for Southwest. Air Tran is also pursuing a low-cost strategy, so there is a good fit from the standpoint of their core competitive approaches. AirTran has flights to several attractive geographic areas and
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.
Southwest Airline’s low-cost fare structure and customer service has been its primary core-competency and has enabled the airline to maintain its market share while sustaining its competitive advantage over its rivals for over 40 years. This internal analysis will provide a review of the strengths and weaknesses of events that occur within the firm along with a financial analysis assessment and recommendation for future decisions.
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.
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 embodies the best that a large company can be. The structure is designed to allow quick action and support of its large body of employees rather than complete control and bureaucratic red tape. It is widely recognized as one of the most desirable places to work and is constantly emulated by its competitors, not to mention other business not in competition. It is an entity that holds its employees in the highest regard, even above its external customers. Its culture is unique and strong and based on love and respect. Even after its current leaders are gone, the
Southwest employs a qualified and extremely skilled management team. This airline has the financial stability and solid understanding of the aviation business. Not only are its customers a vital cog of the organization 's success but also its employees. Each employee is familiar
Southwest Airlines has been in business for more than thirty years. Presently, operating airplanes and flight services is very competitive, and in most cases, is not cost-effective industry; however, Southwest Airlines has been consistently profitable company, which is successfully designed with the intention of achieving high growth. According to an interview of Southwest Airlines former CEO, Herb Kelleher, when he visited Graduate School of Business at Stanford University, despite all airline industry challenges, the “low-fare airline has grown into the third largest in the world as measured by the number of passengers carried, and the largest with destinations exclusively in the United States” (2006). To the customers, Southwest
Southwest Airlines has a very clear competitive advantage of keeping their customers happy. The organization has a clear focus on the employees they employ and the customers they service. The organization has very clear corporate values, that help engage the staff to get excited about their positions and serving customers. Instead of using words like trust, integrity, and customer service; Southwest encourages their employees to have “A Warrior Spirit,” “A servant’s heart,” and “A Fun Loving Attitude.” (Makovsky) Southwest has put a significant amount of time and energy into promoting employees from within, based on these attributes.
Southwest Airlines is a very aggressive company striving to increase its competitive advantage in the market without compromising the core values that have been set to differentiate itself from its competitors. It’s only by keeping the values of working hard, having fun, and treating everyone with respect that Southwest Airlines and its affiliates will continue to be an award winning organization. Southwest Airlines has been known to create a synergy between the multitude of personalities and behaviors which make up its workforce. Southwest has benefited from its successes by being able to acquire other
What are the key policies, procedures, operating practices, and core values underlying Southwest’s efforts to implement and execute its low-cost/no frills strategy?
Southwest Airlines has been serving its customers since 1971 and has focused its business on convenience, customer service and low-cost flights. From the outset, the two founders were dedicated to success and the company has taken many steps since then to accomplish this. Through the use of technology, strategic placement of travel routes and keeping the business person in mind, Southwest has continued to succeed even when the economy would project otherwise.
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
Southwest Airlines is excellent in planning out their long-term goals. The above SWOT analysis proved that the company is successfully carrying out the cost leadership strategy to manipulate their competitors and boost up their company. Their mission in providing Low Fare cost is one of the best strategy that they can have to increase their market share, but not just that it also put a significant increase in the demand of air travel. Southwest Airline rapid rewards program is brilliant, so they should continue and expand it even more.
Since its creation in 1967, Southwest Airlines has established itself as a serious contender in the airline industry. The company grew from a small Texan company to a multimillion dollar airline giant over the past 50 years. Over the years, Southwest has seen continued growth and profit, and continues to outperform other airlines. “Sustained rapid growth has seen Southwest overtake rivals such as American and United to become the USA's top carrier of domestic passengers" stated Southwest Chief Executive Officer Gary Kelly.(Mutzabaugh, 2017). The company's success, however, can be attributed to many things, especially its organizational culture.
Southwest airline has many strengths, but as southwest airline put it in a nut shell its all