Preview

Analysis of Southwest Airlines

Powerful Essays
Open Document
Open Document
2934 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Analysis of Southwest Airlines
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. Introduction 3 2. Literature Review 4 2.1 General Introduction of Theories Used 4 2.2 SWOT Analysis 4 2.3 External Factors 4 2.4 Organizational Structures 4 2.5 Hofstede’s Theory 5 2.6 Cultural Elements 5 2.7 Motivation 5 3 Analysis of Southwest Airlines 5 3.1 Industry 5 3.2 Company’s Overview 6 3.3 SWOT Analysis 7 3.4 External Analysis 8 3.5 Organizational Structure 8 3.6 Hofstede’s Theory 9 3.7 Organizational Culture 9 3.8 Motivation 10 4. Conclusion and Recommendations 11 5. References 11 6. Appendices 13

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



References: [Accessed on November 24. 2010] 1 2. Naylor, J. (2004), Management, Prentice Hall Financial Times, the United Kingdom 3 4. Nelson, B. (2002) “Motivation Matters : Southwest Employees LUV their job” Available from : ‹http://meetingsnet.com/corporatemeetingsincentives/meetings_motivation_matters_southwest/› [Accessed on November 24. 2010] 5 7. Southwest Airlines (2010) Available from: <http://www.southwest.com> [Accessed on November 23. 2010] 8 Available from: <http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=LUV&selected=LUV> [Accessed on November 23. 2010] 9 10. Heynold, Y. and Rosander, J. (2006) “A new organizational model for airlines” Available from: ‹https://www.mckinseyquarterly.com/A_new_organizational_model_for_airlines_1700› [Accessed on November 23. 2010] 11 12. “Organizational Culture and Management at Southwest Airlines” (2009) Available from: ‹http://www.docstoc.com/docs/9480710/Organizational-Culture-and-Management-at-Southwest-Airlines› [Accessed on November 23. 2010] 13

You May Also Find These Documents Helpful

  • Better Essays

    As far as the employee training is concerned, the employees are extensively trained so as such to ensure that they are able to satisfy the arising concerns and needs of the customers effectively and efficiently. They are actually made to practically exercise resolving complaints and other service problems on the spot. Moreover the employees are made to look professional and behave in a professional manner because they have to deal directly with the customer. One-on-one communication and query handling requires good communication and interpersonal skills to ensure the supreme satisfaction of the customers and their complaints. Otherwise; the demand for their product will eventually die out. The product that this airline is offering is a travel solution for the customers; with the standards set as the low airfares and high service standards. They provide attentive service to the customers in the sky and on the ground and see every flight as an opportunity to underpin and reinforce its reputation for a friendly service that caters to all the flight related concerns of the employees. Another point mentioned in the case is that this Southwest Airlines has a mission statement as: delivering the services with a smile shows that the airline genuinely cares about the customers.…

    • 1202 Words
    • 5 Pages
    Better Essays
  • Good Essays

    The primary objective of Southwest Airlines is to care, respect, and treat all employees (nearly 35,000) fairly and equally because Southwest has a strong belief that their employees are the key to success; “employees come first” (“Southwest Airline Employee Motivation,” 2011). With valuable employees, Southwest Airlines is one of the largest and most successful low-cost airlines in the United States. With valuable employees, Southwest Airlines has differentiated themselves from all of their competitors, providing the lowest fares with the highest quality of customer service.…

    • 5067 Words
    • 21 Pages
    Good Essays
  • Better Essays

    In October 1978, President Carter signed the Airline Deregulation Act. Prior to the signing of that act, the Civil Aeronautics Board had regulated airline route entry and exit, passenger fares, mergers and acquisitions, and airline rates of return. The deregulation gave all airlines more power to affect their financial future by allowing them to set their own fares, choose their service areas and acquire other airlines for expansion. After the economic fallout of September 11, eight out of the ten major airlines that controlled the industry in 1978 ended up filing bankruptcy. The three major airlines that survived – Delta, United, and American – controlled over two thirds of the domestic and trans-Atlantic air travel. The terrorists attacks of September 11, 2011brought to light the need to focus on better airline security, and new security measures were implemented to meet this…

    • 1219 Words
    • 4 Pages
    Better Essays
  • Better Essays

    Tanner, J., & Raymond, M.A. (2010). Principles of Marketing. Irvington, NY: Flat World Knowledge, Inc.…

    • 1125 Words
    • 5 Pages
    Better Essays
  • Best Essays

    Even with legal and financial problems in the beginning, “morale and enthusiasm remained high; company personnel displayed can-do attitudes and adeptness at getting by on whatever resources were available.”5 The key to success in the airline industry was not only low prices but market visibility. Southwest was willing to take risks to gain that visibility by employing gorgeous flight hostesses who wore colorful hot pants and knee-high boots which attracted customers, free alcohol to any ticketholder over 21 and their wildly popular “LUV” campaign. “Southwest reported its first-ever annual profit in 1973.”5…

    • 4181 Words
    • 17 Pages
    Best Essays
  • Satisfactory Essays

    Southwest Airlines

    • 474 Words
    • 2 Pages

    Southwest Airlines strict adherence to its mission to provide the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit is a key factor to the company’s success (About Southwest Airlines Co, 2013). The airlines ability to commit to employees to provide them with a stable work environment that ensures equal opportunity for learning and personal growth. Southwest prides itself on allowing all within the company to be creativity and innovative to help improve the effectiveness of Southwest Airlines. The most important benefit, employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer.…

    • 474 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Southwest’s relentless commitment goes beyond the lip service most companies uphold. From line level to the C-suite, everyone works hard to ensure customers feel they are the center of attention. Flight crew routinely exceeds passengers’ expectations to the point it has become routine. Attendants feel encouraged to be creative. They feel their duties entail not just standard tasks, but going further to ensure customers are entertained or engaged in other ways that would ‘infect them’ with Southwest’s positive energy. Senior management does its part by, for example, doing everything to keep prices as low as possible low and using fees for special services only as a last resort.…

    • 1257 Words
    • 6 Pages
    Better Essays
  • Better Essays

    Southwest Airlines employed many strategies over the years with their fist strategy being ads run in the media. Southwest airlines utilized a number of campaigns including skimpily clad flight hostesses, free in-flight alcoholic beverages and a “Love” campaign using the tag line “Now There’s Somebody Else Up There Who Loves You” in an effort to attract passengers. (Leavenworth) Southwest Airlines developed a ground crew turnaround plan that allowed them to add additional flights without the high expense of new plane purchases, even today their turnaround time is nearly half that of other commercial airlines. The idea of CEO Lamar Muse for system wide on-peak/off-peak pricing increased their passenger count and eventually became a standard across the airline industry. The company moved flights from an intercontinental airport where they were losing money to an abandoned airport with a closer vicinity to downtown destinations which doubled passenger traffic. In an attempt to fill empty seats, Southwest slashed its regularly priced fare in half, ran an ad against a competitor implying they were trying to run them out of business, and then offered complementary alcohol or ice buckets for those flying under the original fare price.…

    • 1429 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Over the past five years, Southwest Airlines has showed to be growing at a steady pace, with the exception of the economic crisis in 2009. As you could perceive in 2008 the company’s profit margin was 1.61%, in 2009 .96%, then in 2010 it when to a whopping 3.79%. Southwest Airlines continues to grow stronger year after year. Even with the economic crisis, Southwest continue to hire more and more employees. From 2008 Southwest had 35,499 employees. To 2011 it has 45,392 employees.…

    • 746 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Johnson, M. E. (2009, May 08). Enhancing Service at Southwest Airlines. Tuck School of Business at Dartmouth,…

    • 2454 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    When discussing airlines, one small but powerful name stands out; Southwest Airlines. This airline positions itself as different for a number of reasons. The most logical is that they are the only short haul, low-fare, high-frequency, point to point carrier in America. The airline flies to fifty eight cities in thirty states and they offer numerous flights to the same cities each day. This makes them very convenient for travelers. Southwest Airlines also values their employees very much. The airline prides itself in being a great place to work. They state that their people are wonderful. They reward the employees' productivity and treat them with respect. They have an excellent relationship with the employees and the labor organizations that represent them. Southwest also has a very strong customer service policy. The airline began the first profit-sharing plan in the U.S. airline industry. Employees own at least ten percent of the Company stock. The mission statement says "we always try to do the right thing". This has led the way to the airline industry's best cumulative consumer satisfaction record, according to the US Department of Transportation. They tell the employees that they are in the Customer Service business, they just happen to provide airline transportation.…

    • 653 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    From 1972 to 2002, Southwest Airlines stock returned more for their shareholders than any other stock in the same time period (Collins, 2006, Hospital Strategy IV: Southwest Airlines and thinking outside the box). Many companies have begun to take notice of the Southwest model; a model that allows Southwest to thrive while many of its contemporaries are faced with financial difficulties. The success of Southwest Airlines can be attributed to their structure. This structure has made it possible for Southwest Airlines founders Rollin King and Herb Kelleher to create a culture that was unique and ahead of its time: a people first culture. This culture is supported by Southwest 's human resource practices. Every aspect is dependant upon each other.…

    • 2390 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Sw Airlines

    • 3417 Words
    • 14 Pages

    There are many successful, leading edge corporations in the world. Some of them are Federal Express, Microsoft, and the Disney Corporation; however, none of these corporations compare to Southwest Airlines. Southwest Airlines is one of the most desired employers. "In 2003 alone, Southwest received more than 202,000 resumes of which only 908 were selected for employment" (Ivie, n.d., para. 7). One of the reasons that Southwest Airlines attracts so many potential employees is because of the benefits it offers. The benefits are not just monetary in nature, some of the most attractive benefits stem from the way Southwest Airlines treats its employees. The history and background of Southwest Airlines helps explains how the corporate culture of the company came about. The corporate culture remains the way it was first established because of the type of motivational strategies that Southwest Airlines uses to keep its employees motivated.…

    • 3417 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    Employee Satisfaction

    • 433 Words
    • 2 Pages

    Southwest Airlines with its simple philosophy that it would fly people directly to where they wanted to go, and when they wanted has become a leader in a very turbulent industry. Herb Keller founder and other industry analysts have said the reason for the success is its culture of the firm and its dedicated employees. Aspects of its people oriented culture include employees considerable freedom and responsibility and high level of employment involvement in decision making, Southwest also does a good job of hiring the right people, it also places an emphasis on training and flexibility in using of employee skills.…

    • 433 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Southwest Airline case study

    • 2348 Words
    • 10 Pages

    For the purpose of this study we shall be taking southwest airline as a case study, Southwest Airline is a major U.S. airline that primarily provides short haul, high frequency, point- to point, low fare service. Southwest was incorporated in Texas and commenced operations on June 18, 1971 with three Boeing 737 aircraft…

    • 2348 Words
    • 10 Pages
    Powerful Essays