Southwest Airlines Case Presentation
Management Control System Case
UPDEPO
By
Bert Enriquez JR
Background
Southwest:
of
June 18, 1971: Headquartered at Love Field in Dallas, it began flying with three Boeing 737 serving following Texas cities: Dallas,
Houston, and San Antonio
2002: Recognized by Fortune magazine as the most admired
Airline Company and listed in “100 Best Corporate Citizen” by
Business Ethics
2004: Total operating revenue of $6.5 billion and 31,000 employees. Evaluation
Problem:
1. What is Southwest’s Strategy?
2. What is the basis on which
Southwest build its competitive advantage? 3. How do Southwest’s control systems help execute the firms strategy ?
Framework for Analysis
Mc Kinsey 7s Model
Strategy
Staf
Style
Structure
Shared values The framework is based on the theory that the success of a company can be seen thru the integration and linkages of the diferent
Systems
elements of its activities that are mutually reinforcing and goal congruent with the
Skills
Hard Elements
Soft Elements
Strategy
Structure
Systems
Shared Values
Skills
Style
Staf
mission of the company
Source: Mindtools.org
Southwest Hard Elements
Southwest
Strategy
Corporate Level Strategy
• Single Industry: Airline Travel
Business Unit Strategy
• Hold : Star ( High Market Share and High
Growth Rate)
Product or Service Strategy
• Low Cost
Value Proposition
Which
Customers
?
What
Needs?
At What
Price?
What End users? Which
Products?
Premium?
What
Channels?
Which
Features?
Which
Services?
Discount?
Source: Joan Magretta, “Understanding Michael Porter: Essential Guide to Competition and Strategy” , Harvard Business Publishing 2012
Southwest Value Proposition
Which
Customers
?
What
Needs?
At What
Price?
Frequent
Business
travelers
Economy
Minded
Pleasure
Traveler
On Time and
Convenient
Low Cost
Travel
Cost
Efective
Discount
Comparative Value
Chain
Supply
Chain
Traditional
Airline
Southwest
Airline
Marketing
Operations
Market Driven
Ticketing
Agents
57 minute
UPDEPO
By
Bert Enriquez JR
Background
Southwest:
of
June 18, 1971: Headquartered at Love Field in Dallas, it began flying with three Boeing 737 serving following Texas cities: Dallas,
Houston, and San Antonio
2002: Recognized by Fortune magazine as the most admired
Airline Company and listed in “100 Best Corporate Citizen” by
Business Ethics
2004: Total operating revenue of $6.5 billion and 31,000 employees. Evaluation
Problem:
1. What is Southwest’s Strategy?
2. What is the basis on which
Southwest build its competitive advantage? 3. How do Southwest’s control systems help execute the firms strategy ?
Framework for Analysis
Mc Kinsey 7s Model
Strategy
Staf
Style
Structure
Shared values The framework is based on the theory that the success of a company can be seen thru the integration and linkages of the diferent
Systems
elements of its activities that are mutually reinforcing and goal congruent with the
Skills
Hard Elements
Soft Elements
Strategy
Structure
Systems
Shared Values
Skills
Style
Staf
mission of the company
Source: Mindtools.org
Southwest Hard Elements
Southwest
Strategy
Corporate Level Strategy
• Single Industry: Airline Travel
Business Unit Strategy
• Hold : Star ( High Market Share and High
Growth Rate)
Product or Service Strategy
• Low Cost
Value Proposition
Which
Customers
?
What
Needs?
At What
Price?
What End users? Which
Products?
Premium?
What
Channels?
Which
Features?
Which
Services?
Discount?
Source: Joan Magretta, “Understanding Michael Porter: Essential Guide to Competition and Strategy” , Harvard Business Publishing 2012
Southwest Value Proposition
Which
Customers
?
What
Needs?
At What
Price?
Frequent
Business
travelers
Economy
Minded
Pleasure
Traveler
On Time and
Convenient
Low Cost
Travel
Cost
Efective
Discount
Comparative Value
Chain
Supply
Chain
Traditional
Airline
Southwest
Airline
Marketing
Operations
Market Driven
Ticketing
Agents
57 minute