Analysis 16 6. Improvement due to the initiatives 17 7. Alignment of initiatives towards strategic management 18 7.1 Towards Customer 18 7.2 Towards Environment 19 7.3 Towards Operations 19 8. Comparison with other organizations 20 Reference 22 1. Southwest Airlines Southwest Airlines officially started operating in Dallas 42 years ago. After they took off the first flight, there was a radical change in the ways the Americans used to fly. Southwest ruled the skies by introducing low fare travel, offering free whisky on board, go-go boots and undergoing rigorous expansion. The vision of the company was to provide the business people with a more efficient and faster way to travel at a much lower cost and rendering the personable service with smile and warmth. Southwest airlines have dealt in more domestic passengers than any other airlines. The company has grown with leaps and bounds and evolved as a strong organization but has retained the original vision. The company continues to provide low fare, excellent customer service and convenient flight schedules. The company has changed their products and services in order to cater to the changing taste of the customers. Not only the travelling habits of the customers have changed but also the short haul travel has declined. As a response to this the company has upgraded their fleet by refurbishing cabins and adding on board access to live Television and Wi-Fi. Apart from this the company has also introduced a series of new, sleek Boeing 737-800 aircraft to the convoy of longer flights. The company has acquired Air-Tran Airways and have undertaken the task of integrating the two airlines in order to form a bigger and stronger organization. Apart from this the company has also renewed their “Rapid Rewards Frequent Flyer program”. The management of the company has equipping the airline for international services and AirTran is providing the start to the company for offering its services to the destinations like Caribbean and Mexico. The company looks for innovative ways to provide the customers with more value and choices. Southwest Airlines has always been pioneer in providing better and new ways to fly. The airline has always provided low cost, friendly and reliable ways to provide value to the customers (Kelly, 2013). 2. Measurement and Control System The airline is leading amongst the major low cost airlines operating in the industry. The company has been affirming their position as low-fare not by harassing, annoying or making the customers expectation trivial but by launching ‘No Change Fees and Bags Fly Free campaign’. They are ranked first in Customer satisfaction by US Department of Transportation and ranked fourth in the Fortune 2011 list as the most admired company. To reach such a position the company has to follow several measures both in financial performance and customer satisfaction. Apart from this the company also uses the environment control system (Southwest Airlines, 2010). 2.1 Financial Measures The financial statement of the Southwest Airlines is prepared according to the generally accepted accounting principles (GAAP) followed in United States of America. The financial statement under GAAP requires reclassification and adjustment of unrealized non-cash items. This is important as a result of accounting obligation and selection under accounting declaration regarding hedging and derivative instruments. The company also provides
Company Analysis Name of the Student University Table of Contents Table of Contents 2 1. Southwest Airlines 4 2. Measurement and Control System 5 2.1 Financial Measures 5 2.2 Customer satisfaction measures 6 2.3 Environmental Measures 7 2.4 Control System 7 3…
Southwest Airlines Introduction The Southwest Airlines was established in 1966, a brainchild of Rollin King, an entrepreneur from San Antonio (Thompson & Gamble, 2011). The business was formally incorporated in 1967 with Herb Kelleher as a shareholder. The business was established to offer reliable, affordable, and convenient air transport services to customers, mainly business people who needed to travel between Houston, San Antonio and Dallas.
'First Break all the rules' is a remarkable book written by Marcus Buckingham and Curt Coffman. It is more than a book, in that it is an extensive research of eighty thousand manager's successful managers of various businesses large and small, with a resounding conclusion, that very often the best do things their own way even if it is different or against convention and that actually is part of what makes them stand apart.
The paper also attempts to present an in-depth analysis of the strategic alternatives available to the airline and make a suitable recommendation for improving the operational performance of the company. The study about Southwest Airlines becomes interesting in view of the fact that the airline has been profitable for a continuous period of 36 years.
Southwest currently operates only Boeing 737. Today, the company's operating fleet was composed of 537 Boeing 737 aircraft, each having 189 seats, with an average age of approximately 10.5 years. The average aircraft trip length is 639 miles with an average duration of one hour and 54 minutes.
He involved Herb Kelleher in his business and together they put together their efforts and money to start the business. In the beginning, Lamar Muse, an airline veteran, was brought in as CEO and later, Howard Putnam (1978-82) took charge. Herb Kelleher took over as CEO in 1982. Colleen Barrett has been the president and COO since 2001 and James F. Parker is the CEO. Gary C. Kelly replaced Parker in 2004.
There were three key reasons that have contributed to its continued success: human resource; customer service; and innovative cost effective strategy of operation. The organizational culture of the company is highly encouraging. It
The author states that southwest airline being one of the major airline companies in this country has been greatly affected by congestion. Factor that might have caused this problem is the increase in competition in the aviation sector. The researcher tries to find better solutions to improve the situation.
The airlines charged then $20 for one-way trip in comparison to $27 charged by other carriers. The SA was known for its famous tag line: "Now there’s Somebody Else up There Who Loves You" (394). Perhaps, that was the reason that routes between Dallas, Houston and San