Analysis of Southwest Airlines

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Analysis of Southwest Airlines

Module: Business Management

Vanessa Eelma
Alyssa Julianna Farkas
Thomas Schillinger
Peter Lukacs
Attila Radvanszki
Adam Radvanszki

29th November, 2010

Word Count : XXXX

Contents
1.Introduction3
2.Literature Review4
2.1General Introduction of Theories Used4
2.2SWOT Analysis4
2.3External Factors4
2.4Organizational Structures4
2.5Hofstede’s Theory5
2.6Cultural Elements5
2.7Motivation5
3Analysis of Southwest Airlines5
3.1Industry5
3.2Company’s Overview6
3.3SWOT Analysis7
3.4External Analysis8
3.5Organizational Structure8
3.6Hofstede’s Theory9
3.7Organizational Culture9
3.8Motivation10
4.Conclusion and Recommendations11
5.References11
6.Appendices13

1. Introduction
The chosen company for the analysis is called Southwest Airlines. It’s operating in the tourism industry, providing air travel. The company’s main differentiating attribute from its competitors is the main reason for our choice. The business is known for its cabin crew and outstanding customer service. This is proven by numerous prizes and awards that the company has won in the last three decades. In 2008, TIME.com ranked the company as the #1 Friendliest Airlines. According to their website their aim is: “To get the passengers to their destination safely and comfortably with a laugh or two along the way”. It is their attitude that caught our attention and encouraged us to analyze it in a deeper matter. The organization allows their employees to be innovative and individual with their daily tasks and duties. This ensures a pleasant work environment for the employees who then provide a good service to the customers. One of the qualities of Southwest airlines is „to do things differently”- meaning - for example - the explaining of safety regulations is made more entertaining by the cabin crew’s rapping while the customers are clapping along with the beat. A clip on Youtube of the described scenario got over 300 000 views and put the Southwest Airlines in the media light. This shows how outstanding organizational thinking and great human relations in treating the employees as individuals and letting them contribute with innovation can create an authentically friendly image and trough that, differentiate from the competitors on the market and achieve success. We believe that Southwest Airlines is a very successful company in its industry, and will continue being it if the organization’s management sticks to this spirit and open minded way of thinking. 2. Literature Review

2.1 General Introduction of Theories Used
To strategically analyse an organization, there are certain analytical techniques that come in handy. Firstly, we have chosen the SWOT analysis to evaluate the internal and external components. More closely, we look into the details of the external factors to see how the business is affected by them. Secondly, we decided to get insights into the company’s structure and decision making process. Thirdly, we decided to analyse the cultural effects and factors through Hofstede’s theory. We also go into more details to comprehend the company’s national culture. Last but not least, we decided to see what kind of motivation systems are used in this company. 2.2 SWOT Analysis

According to Tatum (2010), the SWOT Analysis is a strategic planning tool that includes external and internal factors and is utilized by businesses and other organizations to ensure that there is a clear objective defined for the project or venture, and that all factors related to the effort - positive and negative - are identified and addressed. The process of SWOT involves four areas of consideration: strengths, weaknesses, opportunities, and threats. 2.3 External Factors

External factors of a business organisation can be divided into two parts: Macro-environment and Micro-environment. Macro-environment...
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