southwest wiki case analysis
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1) The document provides recommendations for Southwest Airlines CEO Gary Kelley after the acquisition of AirTran to ensure continued success in 2011. It recommends choosing the best strategy between AirTran and Southwest, implementing best operational practices, and integrating AirTran's culture into Southwest's culture. 2) For strategy execution, it recommends building a talented team, allocating resources, instituting policies, relating strategy to Southwest's culture, and exercising strong leadership. 3) For operations, it recommends measuring effectiveness, selecting the most effective practices, improving policies and procedures, and re-evaluating. 4) For culture integration, it recommends comparing core competencies, identifying actions/behaviors for the new culture, addressing problems, and executing
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Southwest Airlines case analysis presentation (designing work organization - ...
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Group A8 analyzed Southwest Airlines. Southwest's mission statement focuses on excellent customer service delivered with warmth, friendliness and company spirit for both external customers and internal employees. The mission statement is simple but does not align fully with business strategy or reflect a vision for growth. Southwest has experienced great success through its low-cost strategy of operating fuel-efficient Boeing 737 aircraft on point-to-point routes, keeping fares simple, and focusing on volume over frills. It also emphasizes a unique, fun-loving culture cultivated through employee profit-sharing and development. However, maintaining this culture as the company continues to grow poses a challenge.Southwest Airlines Case Study
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Southwest Airlines prioritizes putting employees first to ensure good customer service. It aims to get passengers to their destinations on time at the lowest fares while providing a fun experience. Southwest operates over 500 Boeing 737 aircraft on more than 3,300 daily flights serving 58 cities across the United States. It has achieved profitability for 36 consecutive years through strategies like point-to-point routes, fuel hedging, and third-degree price discrimination.
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southwest wiki case analysis
- 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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.