treat customers and employees right as a way of ensuring job satisfaction including the retention of customers and the worker, as well. Through this culture, the company can differentiate itself from its rivals who do not have an effective and efficient customer service delivery (Solomon, 2012).
References:
Solomon, M (2012). What can you learn from Southwest Airlines' culture? Retrieved on 8th October 2016 from https://www.washingtonpost.com/business/on-small-business/what-you-can-learn-from-southwest-airlines-culture/2012/04/03/gIQAzLVVtS_story.html
Nisen, M (2013).Southwest's Founder Explains Why There's No Secret Behind Its Great Culture. Retrieved on 8th October 2016 from http://www.businessinsider.com/southwests-founder-discusses-its-culture-2013-1
2. The management of Southwest airline has a culture where all the employees are treated with dignity and also as the number one asset of the company. The workers are ranked first before the customers while the stakeholders are last. The concept in this particular strategy is based on the fact that treating employees right increases the probability of the customers being treated right. Consequently, it results in the growth of business, as well as profits. The culture is inclusive and fun and also commensurate with the core values of the firm. Competitively in the tough business arena, it provides the employees with benefits such as empowering them to make decisions, as well as, profit-sharing. It is a practice that has enabled it to operate a philosophy of low fares but lots of flight as a way of optimizing the bottom line of the company. Moreover, its leaders are willing to be innovative, and this encompasses the input of the employees who are at the frontline of operations.
The relationship fostered in Southwest airline has promoted its distinct organizational competency which enables it to have the ability to not only build but also sustain or rather maintain relationships that are characterized by shared knowledge, shared goals, and mutual respect. In fact, this is the primary driver of the culture, leadership, coordination, and strategy of the firm (Srinivasan, 2014).
According to Nisen (2013), since the employees have embraced the connections among them, it provides them with the leverage of effectively across of the company's functions.
The low-cost competitive strategy has contributed significantly to the success of the organization.
It is a strategy that has enabled it to position itself in the minds of the clients. Pursuing it has allowed the firm to sustain a relatively distinct advantage over the rivals. Moreover, the low-cost strategy allows it to have leverage through not passing additional fees to the clients. The culture has also contributed to the success of it value chain that has enabled it to perform cost effectively in comparison to their competitors. The service branch with regards to its value chain, it can double its recuperation cost through the announcement of customer savings. Competitive leverage emanates from the customers being made to comprehend the value that ticket prices that result in the increase in the company's market share. Therefore, the strategic operations of the company are aligned with the culture that the company has integrated within the organization that puts a lot of emphasis on the workers (Srinivasan,
2014).