Southwest Airlines has experienced strong growth since 1971 due to its unique corporate culture and business strategy. It focuses on frequent, low-cost point-to-point flights and emphasizes employees, customers, and shareholders. Southwest creates a fun, informal work environment that values employees and builds loyalty. It has experienced success through low costs, high aircraft utilization, and excellent customer service due to engaged employees. However, Southwest also faces some limitations such as limited cargo space and reliance on a single airplane producer.
What doesn’t killyou makes you stronger SWA manage to keep the cream of the CLAN corporate culture created in 1971 due to the hardship and the anger caused by unfair tactics used by big competitors to destroy the company at birth simple business model but highly dependent on human resource performance and organizational culture which is not easy to achieve and sustain for competitors It is 28 years that the manager’s keep constant growth and focus on maintaining profitability without being obsessed to become the biggest or gain the highest market share at any cost.
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Business Strategy thatcompetes with surface transportation not other airlines short but on time, frequent, low-cost fares flights emphsizing on point-to-point routs with no central hubs concentrated on flying to airports that are under utilities and close to a metropolitan area
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Cultural characteristics ofSWA creates safe happy and fun place to work putting employees first then customers and finally shareholders SWA makes work fun and working place comfortable and people important offering stable work and personal growth environment creating loyalty, respect and caring attitude in employees the organization has a people oriented environment and extremely informal egalitarian creating social relation between all employees at all levels using other motivating and encouraging cultural and social events no employee is ever punished or judged trying to accommodate a customer
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Key Practices inHRM, Communication and Leadership Flixibility/unsable internal Started as SME friendly informal FAMILY any size company fast company Adhoc (not in what they do but in how they do it!) reward based on performance external Bureacracy (was THROWN away) Formal (Absolutly not) Regulations (they promote staff to break them) Procedures (you can make it better, do it) Hierarchy (Pilot helps with cleaning) Market corporate ( C ustomers) Not reward based on experience – helps anyone in need! reward based on performance People dignity is important to them stability
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Strengths of SouthwestAirlines Has experienced very fast growth since its inception in 1971. Offers credit based on the number of trips with the airline instead of the total miles traveled. Named the best low cost airline leader High capacity usage Carefully considers each applicant so that they are sure to hire the best employees which leads to excellent service for their customers. Offers reasonably priced travel packages with low frills and excellent customer service. Low cost approach to flights that has drawn consumers to their services. Excellent employee relations leads to higher ticket sales as they all work as a team. Purchased only Boeing airplanes to reduce costs in repairs and get a bulk discount on the purchase. It has a positive organizational culture and encourages a positive and warm employee culture By posting a profit for the 36thconsecutive year in January 2009, it known to be one of the most profitable airlines in the industry
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Limitation of SouthwestAirlines Does not offer segmented seating options. Space to carry freight and cargo is limited. Dependant on a single airplane producer. Scrutiny of potential employees based on personality before skill could be dangerous. They don't have baggage agreements with any other airlines so you can't connect to another carrier for an int'l flight.
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Lessons Learned SHARE MARKET AND INCREAS IT HAVE A MODEL FOR GROTH & EXPANSION WORK FOR LONG TIME WITH BUSSINESS STRATEGY ATTENTION TO STERATEGYOF ANOTHER COMPANYES ININDUSTRIAL FIELD HOW MANAGING COMPANY IN COMPETATIVE MARKET HAVE BIG GOLES FOR LONG TIME BEFOR STARTING & OPENING COMPANY ARENJING OF ALL THUNGS: RQUIPMENT, STAF CAPITAL…IN ECONME ESKIL MONITORING &CONTROL COSTS & INCOME EMPHASIZE CUSTUMER RELATIONSHIP ATTENTION TO EMPLOYESS, CUSTUMERS & SHARHOLDERS ALL TIME TOGETHER EMPHASIZE TO EMLOYESS THAT HAVING FUN AT WORK