StudentShare solutions
Triangle menu

Human Resource Management and Business Strategy - Case Study Example

Not dowloaded yet

Extract of sample
Human Resource Management and Business Strategy

Herb Kelleher and Rollin King, Southwest's founders, wanted to provide frequent, low-cost service in busy markets of less than 500 miles. Instead of considering other airlines such as United and Continental as competition, Southwest considered the automobile and bus service as major competition. Southwest's flights were typically point-to-point - nonstop from originating airport to destination airport, although connections were available for customers who wanted them.
By the late 1990s, Southwest was the world's richest and most profitable major airline, while other players like United, Continental suffered heavy losses in an industry that had grown mature and highly saturated. Southwest's growth was driven by growing demand for the product that Southwest delivered so well: reliable low cost travel. Consumer behavior shifted towards greater price sensitivity in the early 1990s, motivated by a downturn in the business cycle and made possible by increasing corporate control over business travel. The shift appeared to affect business travelers as well as leisure travels, partly through corporate directives to cut down travel costs. While other airlines were wondering what to do, Southwest Airlines was well positioned to benefit from the increasingly price-savvy customer that it had helped to create.
The purpose of this case study is to study how this competitive advantage was created by Southwest Airlines by leveraging its human resources. The structure that the report will follow will comprise of answers to two questions which deal with identifying how human resources can become a source of sustainable competitive advantage and how to deal with problems as the company becomes bigger and older.
Question No. 1
How did Southwest use Human Resource Management practices to ensure the success of their business model
Business Model
According to Langdon (2003), the "business model," is a comprehensive description of business as an integrated system functioning in an intimate relationship with the broader market. In this concept, the individual components of an organization do not matter as much as the way they work together to enable the organization to create value and deliver it to customers.
A business model is therefore a description of a whole system, a combination of products and services delivered to the market in a particular way, or ways, supported by an organization, positioned according to a particular branding that, most importantly, yields a particular set of strong relationships with present and future customers. Further, a business model describes how the experiences of creating and delivering value may evolve along with the changing needs and preferences of customers.
The Business model of Southwest is simply: "If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline." The main elements of Southwest's business model as stated above are:
1) Customers -who are they
a) Short haul business travelers who want to get there when ...Show more

Summary

The U.S. airline market was deregulated in 1978. The virtues of the move, though long debated, had become more than self-evident by the mid-1990s: With the government no longer dictating ticket prices and in-flight menus, airfares dropped 40 percent in real terms between 1978 and 1997, saving travelers an estimated $20 billion a year and more than doubling the total number of passengers…
Author : hmonahan
Human Resource Management and Business Strategy essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the case study on your topic
"Human Resource Management and Business Strategy"
with a personal 20% discount.
Grab the best paper

Related Essays

International human resource management
The report has been designed to analyze the best strategies that can be implemented in order to refine the HR functions for the International Committee of Red Cross in order to meet the international standards of HR practice. ICRC is a global non-profit organization working for the revival of humanity from both natural and human made catastrophes.
14 pages (3500 words) Case Study
Human resource management strategy

According to the research findings, it can, therefore, be said that after the economic downturn is ceasing, many small businesses are now witnessing an increase in their revenues. However, they have a dilemma, which is deciding between using these extra revenues to expand the business and increasing their employee’s salaries.

3 pages (750 words) Case Study
Strategic Human Resource Management at IBM
The importance of human resource can never be overstated. John Purcell further highlighted the importance of employees in his research which emphasized the huge role played by the company’s workforce as “strategic partners.” This research strongly supports the highly economist viewpoint of Grant.
2 pages (500 words) Case Study
Strategic Human Resource Management: McDonalds
This business strategy of the company is referred to as the blue ocean strategy. It entails targeting of customers who have preference over quick service restaurants as opposed to traditional restaurants. Value innovation is what keeps the business strategy from other known management tools.
9 pages (2250 words) Case Study
Human Resource Management in Appar8us
In 1992 a medical engineering company acquired the UK subsidiary .The Swedish subsidiary was set up in 1994 employing 300 staffs. In 1997 a new plant was set up in France employs 250 staffs. The Appar8us has good approach towards International Human Resources Management., The Director of Human Resources , Jane Ford believe that IHRM is able to complement the new business strategy and is also possible to solve the problem in the overseas subsidiaries.
8 pages (2000 words) Case Study
Human Resource Management and Building Employee Loyalty
For the above mentioned purpose it is very important that Xeleco pay attention to their human resources, so that they can retain their employees. This report gives an over view of Xeleco's human resources and their strategies for retaining employees. The Human Resources management system converts inputs, such as skills, abilities, motivation, potential, working time and vacancies, into outputs to produce improved skills, increased motivation, reduced absenteeism, reduced labour turnover, reduced accident rates, increased effectiveness and suitability-filled vacancies.
11 pages (2750 words) Case Study
Human Resource Management Case Study
Its annual sales of 43.1 billion and profits of 2.235 billion make it the 59th largest corporation in the world, the biggest retailer in the U.K., and the best performing retailer in Europe (Fortune, 2006). This three-part paper analyses the extent to which Tesco's success can be attributed to a unique HRM system that supports its corporate strategies and combines the systematic discipline and execution characteristic of an 83-year old business with the entrepreneurial and liberal practices typical of a start-up business.
12 pages (3000 words) Case Study
Human Resource Strategy
Consequently, such employees are expected to contribute towards improvement of the company's performance. Reward systems form a critical part of best practice policy because they still fall under human resource strategies. The organisation to be examined is John Lewis Partnership.
11 pages (2750 words) Case Study
Human Resource Issues for Business
These points were the recommendations made to address the HRM problems identified in the case. The recommendation was adapted from the work of existing scholars such as Kotter, and Gilbreath. The field of human resource (HR) management is one of the many interesting area of research that has witnessed a paradigm shift within the last few decades (Huselid., 1995).
10 pages (2500 words) Case Study
Human Resource Management Case Analysis
The communication system and some of the company systems are also in question. The employees have the freedom to communicate to any member of the company without restrictions. The open door policy might seem as a good strategy but is
5 pages (1250 words) Case Study
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation