southwest wiki case analysis

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southwest wiki case analysis

  1. 1. Southwest Airlines Sandra Guzman Lisa Ikkanda Laura Lopez Gerame Wong Dr. Chandler - MGMT 449 Summer 2012, Tuesday, Wednesday, Thursday 8:00 a.m. Case Analysis
  2. 2. Problem • What recommendations would we make to Southwest CEO Gary Kelley after the acquisition of AirTran for the Company to remain successful heading into 2011?
  3. 3. Recommendation 1 • Choose a company strategy that best executes the goals and objectives of Southwest Airlines after comparing the strategies of AirTran and Southwest • Rationale: It is crucial to keep only one strategy to avoid decision making dilemma. • Objective: Strategy decision making will take 3–5 years. Building an Organization Capable of Good Strategy Execution
  4. 4. Execution • Step 1: Put together a talented management team. • Step 2: Allocate sufficient resources. • Step 3: Institute policies and procedures. • Step 4: Strategy needs to relate to Southwest culture.` • Step 5: Strategy needs to support Southwest organizational structure. • Step 6: Exercise strong leadership. • Step 7: Employee decision-making authority. • Step 8: Install information and operating systems. • Step 9: Tie rewards and incentives to the strategy. Recommendation 1
  5. 5. Recommendation 2 • Implement the best practice operational activities among AirTran and Southwest that will help Southwest maintain low-cost leadership and high employee and customer satisfaction. • Rationale: Effective operational strategies will improve Southwest Airlines’ core competency • Objective: Execute within 3 years after acquisition Managing Internal Operations
  6. 6. Execution • Step 1: Measure effectiveness • Step 2: Select the most effective (Voting Process) • Step 3: Create and improve policies & procedures • Step 4: Implement best practice operational activities • Step 5: Re-evaluate effectiveness Recommendation 2
  7. 7. Recommendation 3 • Integrate AirTran Company into the Southwest culture • Rationale: Southwest is a more established airline and is the low-cost leader in the industry • Objective: Focus on teaching AirTran employees about the culture within 3–5years Corporate Culture and Leadership
  8. 8. Execution • Step 1: Compare and contrast the core competency for both companies • Step 2: Identify actions and behaviors for the new culture • Step 3: Identify problems and find solutions about Company policies, operations, or management • Step 4: Identify and execute visible and forceful actions Recommendation 3
  9. 9. Figure 12.2 Steps to Take in Changing a Problem Culture (p. 406) Step 1 Step 3 Step 2 Step 4 Compare and contrast the core competency of both companies Compare and contrast effective strategies and key success factors for both companies Substantive: Attend Southwest’s University for People Symbolic: Hold ceremonial events (annual awards banquets) Employee feedback through blog (Nuts about Southwest) and annual surveys Keep employee morale high Provide excellent customer service Be the industry leader of low-fares
  10. 10. Culture of Southwest Warrior Spirit • Work Hard • Desire to be the best • Be courageous • Display urgency • Persevere • Innovate Fun-LUVing Attitude • Have FUN • Don’t take yourself too seriously • Maintain perspective • Celebrate successes • Enjoy your work • Be a passionate Teamplayer A Servant’s Heart • Follow The Golden Rule • Adhere to the Principles • Treat others with respect • Put others first • Be egalitarian • Demonstrate proactive • Customer Service • Embrace the SWA Family
  11. 11. Culture of AirTran Our Guiding Principles • Safety • Courtesy • Pride • Teamwork • Innovation • Cleanliness • Anticipation • Results Our Values • A total commitment to safety • Compliance with regulatory standards • Technical excellence and continuous learning • Honesty, trust and integrity • Respectful responsibility for resolving issues • Acting with purpose and urgency • Hard work • Fun • Profit
  12. 12. Conclusion • The success of the acquisition will be based on how they implement our recommendations. – Building an organization capable of strategy execution. – Managing internal operations. – Integrate into one corporate culture and leadership style.

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