Southwest Airlines an Industry Giant - 2380 Words

From 1972 to 2002, Southwest Airlines stock returned more for their shareholders than any other stock in the same time period (Collins, 2006, Hospital Strategy IV: Southwest Airlines and thinking outside the box). Many companies have begun to take notice of the Southwest model; a model that allows Southwest to thrive while many of its contemporaries are faced with financial difficulties. The success of Southwest Airlines can be attributed to their structure. This structure has made it possible for Southwest Airlines founders Rollin King and Herb Kelleher to create a culture that was unique and ahead of its time: a people first culture. This culture is supported by Southwest s human resource practices. Every aspect is dependant upon each†¦show more content†¦By placing people into functional departments with people with the same or similar specializations, Southwest ensures efficiency. There is a reduction in the duplication of personnel and equipment, and allows employees t o the opportunity to use terms that are inherent to the position. There is a chain of command that is clear and defined. The structure has helped to create a work environment that allows employees to thrive. Due to the success of Southwest Airlines, many companies have attempted to duplicate the Southwest model. They have been able to change their policies and procedures to copy those of Southwest Airlines. In this part, most companies have been successful; but the one thing that they have not been able to duplicate, and this is what makes Southwest Airlines successful, is their culture. Robbins (2005) defines organizational culture as a shared meaning held by an organization that defines that organization and separates it from other organizations. There are several characteristics that capture the essence of the culture of an organization. The characteristic that helped to change Southwest Airlines from a rural airline that serviced only three cities and had four aircraft, to one of the largest airlines in the nation that services sixty three cities and has over five hundred aircraft is innovation and risk taking. Founder Herb Kelleher and Rollin King started Southwest Airlines with a simple plan: to get peopleShow MoreRelatedAdjustments to Southwest Airlines Operations1000 Words   |  4 PagesSOUTHWEST OPERATIONS Although in recent history Southwest Airline did some adjustments to its operation, company maintained its philosophy and stayed true to its original strategy. When company was established in 1971 its primary focus was to stick to short-haul trips, point-to-point flights, fleet only consisting of Boeing737s, high-frequency flights, low fares, and no international flights. Operating in no frills philosophy resulted in lower fixed cost which enabled Southwest Airlines opportunityRead MoreEffects of Quality Management on Domestic and Global Competition1265 Words   |  6 Pagescompetition associated with the airline industry. While Southwest and Lufthansa are both airline companies with similar goals they each have a different process or procedure that they abided by that keeps the company effective. Southwest Airline vs. British Airways Similarities The leading airlines in the industry are Southwest Airline and British Airways. Quality management and innovation is where they both place the heaviest emphasis. Southwest airlines is a domestic airline that is based in the UnitedRead MoreCase Study : American Airlines Value Pricing1062 Words   |  5 PagesAmerican Airlines Value Pricing Joslyn Arteaga Gana April 11, 2016 American Airlines was the United States’ largest carrier in 1992 with a fleet of 622 jet aircraft, flying 2,450 flights daily to 182 locations, as well as new innovative technology and programs. American Airlines was the first to introduce a computerized airline reservation system called Sabre, â€Å"Super Saver† fares and frequent flier programs. Regardless of the innovations, American Airlines and the airline industry was stillRead MoreA Case Study On Southwest And Will Address Acquisitions871 Words   |  4 Pagesbeen around and have been popular in the United States for decades. It has been said that that mergers and acquisitions have contributed to the reconstruction of businesses during the 80’s and 90’s. The following is an analysis of a case study on Southwest and will address acquisitions, mergers, and restructuring. Acquisitions are popular in the United States and there are many reasons why a company decides to acquire another company. Companies will decide to acquire a business in order to increaseRead MoreSouthwest Airlines /Competition Paper Introduction: Air transport is a global industry and as such1500 Words   |  6 PagesSouthwest Airlines /Competition Paper Introduction: Air transport is a global industry and as such every airline is a likely challenger for every other. It is contrary to expectation that any airline will be able to contest on a large scale without being associated to other carriers. Traffic feed is the industrys lifeblood and stand-alone carriers will be labored to carry low-revenue point-to-point traffic when front with airlines able to offer manifold route alliances. Southwest Airlines is a majorRead MoreEnvironmental Scan1299 Words   |  6 Pagesleadership to remain relevant in industries where new technology can push one forward or backward in the time it takes a season to change. Therefore organizations must conduct environmental scans to determine their internal and external environment as part of the strategic plan process. There are numerous organizations using environmental scanning to develop their strategic plan. Today the author will look at three successful companies, which are Southwest Airlines, Target, and Whole Foods MarketRead MoreSouthwest Airlines Essay1385 Words   |  6 PagesMichele Lynn October 12, 2008 Marketing – Resnik Case Study: Southwest Airlines 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 â€Å"A, B, C† boarding groups as opposed toRead More Southwest case analysis Essay1063 Words   |  5 Pages Southwest has made an organization out of providing low-fare, short haul routes between city pairs. It has concentrated specifically on offering low-fares on all of its flights by maintaining its no frills attitude and high frequency of flights. This has afforded Southwest Airlines with the lowest cost structure in the industry. Southwest has created a niche for itself by flying a network of flights between smaller U.S. cities that average just one hour apart. This has differentiated them from theirRead MoreEssay on The Airline Oligopoly1125 Words   |  5 Pagesthat the airlines had with each other. Airlines did not compete, they co-existed. When profits were low for the airline industry, prices went up across the board. The only difference between regulation and an oligopoly is under regulation the airlines did not choose to not compete, it was simply not permitted. Regulation was a government mandated oligopoly and most of the airlines didnt want it any other way. It should be of little surprise then that ever since the airline industry was deregulatedRead MoreLabor Relations: Southwests Current Issues1425 Words   |  6 Pagesmentioned before, Southwest recently acquired AirTran Airways and revealed plans to take its already successful domestic business international with flights to Mexico and the Caribbean (Martin, 2014). This organizational restructuring is causing Southwest to have what Time Magazine’s Brad Tuttle calls an â€Å"identity crisis† for the airline whose new advertisements have removed the humor they are famous for and the messages of â€Å"bags fly free† from commercials. Bob Jordan, a Southwest executive, explained