Strategy Implementation Executive Summary Southwest Airlines is viewed to be one of the largest low-cost carriers, especially in the airline industry of the United States. The strategy of offering low-cost airline fares to the customers placed the organization in a strong business position as compared to others…
Introduction The main purpose of the paper is a complete investigation of the various significant strategies that have been implemented by Southwest Airlines in order to attain its desired business objectives. The analysis of the strategy implementation of Southwest Airlines will be conducted on the basis of the organizational design, key strategic control procedures, providing primary concern towards human resource issues and the cultural factors that are present in Southwest Airlines. Moreover, the effect of these significant facets upon the implementation of the strategy of Southwest Airlines will also be taken into account in this particular paper. Thus, it can be stated that the analysis regarding the implementation of the assorted business strategies of Southwest Airlines will be accomplished by acquiring a brief idea about the above mentioned facets of Southwest Airlines. Organizational Design of Southwest Airlines The organizational design of Southwest Airlines is known to comprise several areas that principally include the issues relating to control and authority, division of products, communication and potential market structures. Southwest Airlines emphasizes and possesses strong capability with regard to these significant areas. Due to the expansion of the business of Southwest Airlines, the organization follows a hybrid, complex, multi-divisional arrangement that is based upon vertical as well as horizontal differentiation and is quite concerned with maintaining a good relationship with the customers by offering them superior quality of service. The major reasons for Southwest Airlines to follow the multi-divisional organizational arrangement are the need for augmenting the competence of the organization, ensuring profitable growth as well as firm control. Moreover, according to the multi-dimensional organizational structure of Southwest Airlines, the organizational behavior is learnt to be controlled through an important aspect of internal upward mobility. This particular facet means that especially the divisional managers of the organization are usually groomed in order to enter the corporate world of Southwest Airlines. They are provided with attractive financial rewards in the form of incentives on the basis of their performance in order to get promoted to higher positions. Additionally, the organizational structure of Southwest Airlines is designed in such a way as to focus upon the demand of the consumers for the purpose of making effective decisions on the basis of their level of satisfaction and reaction (Dearinger, 2010). Key Strategic Control Systems of Southwest Airlines The most important key strategic control system of Southwest Airlines is about the establishment and the execution of point-to-point flights rather than employing the approach of “hub-and-spoke” mechanism. The application of point-to-point flights instead of utilizing hub or spoke arrangement is regarded as one of the vital airport hub strategies of Southwest Airlines. The other significant strategic control system of the organization is the application of online bookings for its large customer base through the website of the company. It has been apparent that a considerable amount of passenger revenue of Southwest Airlines is generated by the execution of online boo ...
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