Southwest Airlines Co. – 2007
On the brink of airlines’ market share battlefield, many of the companies failed to launch new strategies and price controls because of fuel prices, market requirements and safety issues. Along with the history of low price policy that Southwest Airlines started to implement decades ago, the recent challenges and soaring competitive behaviors made that company pass huge obstacles. Southwest Airlines manifested the new growth in Texas air carrier businesses and located itself on the top of carriers’ prime ranking (Southwest Airlines). In this case the concept will be depicted and insights made on that topic. This will be done by starting with the organizational structure of that corporation and classifying many aspects of the entire growth and the difficulties of Southwest ending up with chartings and contribution graphics of company’s activities done last years. By analyzing all the consequences and in-depth research of the financial, hierarchical and structural management of Southwest Airlines, many decisional revelations will be discovered and exposed thoroughly. Theoretically, all the targeted issues that could evolve all the strategic workouts of that company cannot bypass the key solutions without highlighted marks. Southwest Airlines should be more decentralized organization Nowadays, all companies are taking a strategic view on whether or not to decentralize or centralize, and which system is more eligible for them. Centralization of organization is the strategy of assigning and transferring decision-making authority and ability to higher levels. On the contrary, decentralization is the transferring of the latter to the lower levels (Adampieniazek). The first challenge started by an air carrier’s investment adviser, Rollin King, who firmly offered the flight between three big metropolis cities in Texas. Rollin King convinced the organization’s supreme board that by achieving this goal of consequent...
Cited: Pieniazek, Adam. “Centralization vs. Decentralization.” 24 May 2007.
.adampieniazek.com. 21 Apr 2009.
“We Weren’t Just Airborne Yesterday” www.southwest.com. 20 Apr 2009
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