Southwest Still Flies High
Assignment
On
Principles of Management
Course – 102
Title: A case study on Southwest Airlines management process.
Submitted To
Group – K
Roll
Name
Q: Name at least two things that Southwest is doing efficiently. Name at least two things that Southwest is doing effectively. In what ways do efficiency and effectiveness support each other at Southwest? In what ways do they contradict each other?
Answer:
Efficiency at Southwest Airlines: Efficiency or being efficient in business terms means using an organization’s resources (Human, Finance, Physical and Informational) wisely and in a cost effective way. Efficiency is using managerial skills to minimize losses and reduce expenditure while maximizing the organization’s profits. From this perspective Southwest Airlines has shown efficiency in a couple of factors. This are-
Point-to-point schedule
Standard aircrafts
Carefully chosen routes
Carrier operation
Point-to-point schedule:
Southwest did not adopt the hub-and-spoke system preferring a short-haul, point-to-point schedule instead.
Carrier operation: The carrier operates out of smaller, less expensive airports in many major markets.
Effectiveness in Southwest Airlines:
Effectiveness in business terms means making the right decisions and successfully implementing them. Southwest Airlines have shown effectiveness in the following parts-
Successful low-cost carrier
Use of human resources
Successful low-cost carrier:
Southwest Airlines is one of the biggest low cost carriers in the world. It uses less capital than any other carriers in United States and maintains their low-cost idea intact. Analyst’s estimates that major carriers would need to reduce expenses by 18.6 billion to match up its low cost performance. Most other of its competitors can not effectively manage their carriers to counter against Southwest’s strategies. So, it has successfully achieved most of its goals and is a step ahead in the competition.
Use of human
On
Principles of Management
Course – 102
Title: A case study on Southwest Airlines management process.
Submitted To
Group – K
Roll
Name
Q: Name at least two things that Southwest is doing efficiently. Name at least two things that Southwest is doing effectively. In what ways do efficiency and effectiveness support each other at Southwest? In what ways do they contradict each other?
Answer:
Efficiency at Southwest Airlines: Efficiency or being efficient in business terms means using an organization’s resources (Human, Finance, Physical and Informational) wisely and in a cost effective way. Efficiency is using managerial skills to minimize losses and reduce expenditure while maximizing the organization’s profits. From this perspective Southwest Airlines has shown efficiency in a couple of factors. This are-
Point-to-point schedule
Standard aircrafts
Carefully chosen routes
Carrier operation
Point-to-point schedule:
Southwest did not adopt the hub-and-spoke system preferring a short-haul, point-to-point schedule instead.
Carrier operation: The carrier operates out of smaller, less expensive airports in many major markets.
Effectiveness in Southwest Airlines:
Effectiveness in business terms means making the right decisions and successfully implementing them. Southwest Airlines have shown effectiveness in the following parts-
Successful low-cost carrier
Use of human resources
Successful low-cost carrier:
Southwest Airlines is one of the biggest low cost carriers in the world. It uses less capital than any other carriers in United States and maintains their low-cost idea intact. Analyst’s estimates that major carriers would need to reduce expenses by 18.6 billion to match up its low cost performance. Most other of its competitors can not effectively manage their carriers to counter against Southwest’s strategies. So, it has successfully achieved most of its goals and is a step ahead in the competition.
Use of human