Case Study: Southwest And Air Tran Merger
1. Nova Southeastern University
2. H. Wayne Huizenga School of Business & Entrepreneurship
3. Assignment for Course: ISM 5014 – Enterprise Information Systems
4. Submitted to:
5. Submitted by:
6. Date of Submission:
7. Title of Assignment: Southwest and Air-Tran Merger
8. CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course.
9. Student 's Signature: ___
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This case study allows you to explore real world cultural issues related to the merger of two companies that basically offer the same services, but have two very different organizational structures and cultures. Note, one video has been provided here, there are many more on youtube as well as a number of articles you can find via additional research.
1. INDIVIDUAL ESSAYS: To complete this assignment, submit an individual essay.
Essays are generally two-three single spaced paragraphs. PLEASE DO NOT attach your essay and/or answers! Post them within the text area on the discussion board.
ESSAY
Southwest Airlines acquired AirTran Airways on May, 2011 for an estimated transaction value of over $3 billion. Since then, both airlines have been working hard to provide a top-notch, seamless travel experience for their customers. The purchase adds new additional destinations previously not served by Southwest including cities in the Caribbean, Mexico, and Atlanta, Georgia, which was the largest U.S. city not served by Southwest. Hopefully by the end of 2014, all AirTran planes will be completely incorporated into the Southwest brand forming a single network and reaching to 97 destinations in the United States, Mexico, and the Caribbean. (Southwest® & AirTran® Network Connectivity, …show more content…
On the other hand, AirTran is not known for sharing these aspects of corporate culture, instead it is characterized for having a more traditional airline culture. (Moreno, 2011)
3. What problems could arise due to the different perspectives of both airlines towards online reservation systems? What do you recommend the managers do to solve these problems?
Both perspectives must be backed by its own profit produced in numbers in order to make the right decision. Even though the comparison cannot be made on an apple to apple basis, since Southwest Airlines is a bigger company with higher annual revenues, the correct approach should be to follow whatever industry trends are being adopted. If customers like to reserve tickets through websites such as Expedia or Travelocity, and not only Air-Tran has shown positive outcomes, but it also has turn into a very common practice by customers, then Southwest should seriously consider to incorporate this method of reservations to its current
2. H. Wayne Huizenga School of Business & Entrepreneurship
3. Assignment for Course: ISM 5014 – Enterprise Information Systems
4. Submitted to:
5. Submitted by:
6. Date of Submission:
7. Title of Assignment: Southwest and Air-Tran Merger
8. CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course.
9. Student 's Signature: ___
***************************************************************** …show more content…
This case study allows you to explore real world cultural issues related to the merger of two companies that basically offer the same services, but have two very different organizational structures and cultures. Note, one video has been provided here, there are many more on youtube as well as a number of articles you can find via additional research.
1. INDIVIDUAL ESSAYS: To complete this assignment, submit an individual essay.
Essays are generally two-three single spaced paragraphs. PLEASE DO NOT attach your essay and/or answers! Post them within the text area on the discussion board.
ESSAY
Southwest Airlines acquired AirTran Airways on May, 2011 for an estimated transaction value of over $3 billion. Since then, both airlines have been working hard to provide a top-notch, seamless travel experience for their customers. The purchase adds new additional destinations previously not served by Southwest including cities in the Caribbean, Mexico, and Atlanta, Georgia, which was the largest U.S. city not served by Southwest. Hopefully by the end of 2014, all AirTran planes will be completely incorporated into the Southwest brand forming a single network and reaching to 97 destinations in the United States, Mexico, and the Caribbean. (Southwest® & AirTran® Network Connectivity, …show more content…
On the other hand, AirTran is not known for sharing these aspects of corporate culture, instead it is characterized for having a more traditional airline culture. (Moreno, 2011)
3. What problems could arise due to the different perspectives of both airlines towards online reservation systems? What do you recommend the managers do to solve these problems?
Both perspectives must be backed by its own profit produced in numbers in order to make the right decision. Even though the comparison cannot be made on an apple to apple basis, since Southwest Airlines is a bigger company with higher annual revenues, the correct approach should be to follow whatever industry trends are being adopted. If customers like to reserve tickets through websites such as Expedia or Travelocity, and not only Air-Tran has shown positive outcomes, but it also has turn into a very common practice by customers, then Southwest should seriously consider to incorporate this method of reservations to its current