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Southwest Airlines           Case Analysis                   Sandra Guzman                     Lisa Ikkanda               ...
Problem• What recommendations would we make to  Southwest CEO Gary Kelley after the  acquisition of AirTran for the Compan...
Recommendation 1 Building an Organization Capable of Good Strategy                     Execution• Choose a company strateg...
Recommendation 1                  Execution•   Step 1: Put together a talented management team.•   Step 2: Allocate suffic...
Recommendation 2           Managing Internal Operations• Implement the best practice operational  activities among AirTran...
Recommendation 2                Execution• Step 1: Measure effectiveness• Step 2: Select the most effective (Voting Proces...
Recommendation 3        Corporate Culture and Leadership• Integrate AirTran Company into the Southwest  culture• Rationale...
Recommendation 3              Execution• Step 1: Compare and contrast the core  competency for both companies• Step 2: Ide...
Figure 12.2 Steps to Take in Changing a       Problem Culture (p. 406)         Compare and contrast the core competency of...
Culture of SouthwestWarrior Spirit       A Servant’s Heart            Fun-LUVing Attitude• Work Hard          • Follow The...
Culture of AirTranOur Guiding Principles      Our Values•   Safety                  • A total commitment to safety•   Cour...
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Southwest wiki

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Southwest wiki

  1. 1. Southwest Airlines Case Analysis Sandra Guzman Lisa Ikkanda Laura Lopez Gerame Wong Dr. Chandler - MGMT 449 Summer 2012, Tuesday, Wednesday, Thursday 8:00 a.m.
  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 Building an Organization Capable of Good Strategy Execution• 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.
  4. 4. Recommendation 1 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.
  5. 5. Recommendation 2 Managing Internal Operations• 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
  6. 6. Recommendation 2 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
  7. 7. Recommendation 3 Corporate Culture and Leadership• 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
  8. 8. Recommendation 3 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
  9. 9. Figure 12.2 Steps to Take in Changing a Problem Culture (p. 406) Compare and contrast the core competency of both companiesStep 1 Compare and contrast effective strategies and key success factors for both companies Keep employee morale highStep 2 Provide excellent customer service Be the industry leader of low-fares Employee feedback through blog (Nuts about Southwest) andStep 3 annual surveysStep 4 Substantive: Attend Southwest’s University for People Symbolic: Hold ceremonial events (annual awards banquets)
  10. 10. Culture of SouthwestWarrior Spirit A Servant’s Heart Fun-LUVing Attitude• Work Hard • Follow The Golden Rule • Have FUN• Desire to be the • Adhere to the Principles • Don’t take yourself best • Treat others with too seriously• Be courageous respect • Maintain• Display urgency • Put others first perspective• Persevere • Be egalitarian • Celebrate successes• Innovate • Demonstrate proactive • Enjoy your work • Customer Service • Be a passionate • Embrace the SWA Teamplayer Family
  11. 11. Culture of AirTranOur Guiding Principles Our Values• Safety • A total commitment to safety• Courtesy • Compliance with regulatory• Pride standards• Teamwork • Technical excellence and• Innovation continuous learning• Cleanliness • Honesty, trust and integrity• Anticipation • Respectful responsibility for resolving issues• Results • Acting with purpose and urgency • Hard work • Fun • Profit

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