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Case Study
Southwest Airlines: Culture, Values and Operating Practices (in Thompson, A. A., Strickland. A. J. and Gamble, J. (2005) Crafting and Executing Strategy (Fourteenth Edition), McGraw-Hill, New York, pages C-636– C-664).
Tasks
The case study, prepared by Arthur A. Thompson, University of Alabama, and John E. Gamble, University of South Alabama, focuses on the rise to business prominence of Southwest Airlines, a regional airline with a low-cost no-frills approach.
Based on the case study, and on online and offline research into Southwest Airline’s current state, complete the following Tasks:
Task 1 - 20 Marks
Provide an analysis of the company’s:
• Potential resource strengths and competitive capabilities
• Potential resource weaknesses and competitive deficiencies
• Potential market opportunities
• Potential market threats at the time this assignment is undertaken.
Select suitable analytical tools from the text-book/course to help you structure your findings.
Task 2 - 20 Marks
On the basis of the critical factors identified in Task 1.
a) Draw conclusions concerning the company’s overall situation.
b) Suggest actions for improving the company’s strategy.
Task 3 - 30 Marks
Answer (in essay form) the following:
It has been said that “talented people in possession of superior intellectual capacity are not only a resource that enable proficient strategy execution but also a prime source of competitive advantage”.
Identify the various Human Resource practices of Southwest Airlines that collectively show the company’s focus on its employees.
State whether or not these practices have contributed to proficient execution of the company’s business strategy, right up to the present day. (Note: you will have to do some research to find out the company’s latest state of affairs).
Do you consider the staff and
References: 1. The Guardian, Ryanair cuts reclining seats; suitcases next to go, Sydney Morning Herald, 17 February, 2004, viewed 9 February 2007, 2 3. Thompson A A, Strickland A J, 2004, Strategy Management Concepts and Cases, 13th edn, McGraw-Hill, Irwin. 4. Moore J, 2006, Tribal Knowledge: Business Wisdom Brewed from the Grounds of Starbucks Corporate Culture, Kaplan Business, United Stated of America. 5. Freiberg K L and Freiberg J A, 1996, Nuts! Southwest Airlines ' Crazy Recipe for Business and Personal Success, Bard Press, United Stated of America. 6. Gross T S, 2004, Positively Outrageous Service: How to Delight and Astound Your Customers and Win Them for Life, 2nd edn, Kaplan Business, United Stated of America. 7. Sunoo B P, 1995, How fun flies at Southwest Airlines, Personnel Journal, June 1995, Vol. 74, No. 6, pp. 62-73. 11. Bennett, Randall D. and James M. Craun, 1993, The Airline Deregulation Evolution Continues: The Southwest Effect, Office of Aviation Analysis, U.S. Department of Transportation, May 1993, 12 17. Gross T S, 2004, Positively Outrageous Service: How to Delight and Astound Your Customers and Win Them for Life, 2nd edn, Kaplan Business, 1 September 2004, United Stated of America. 18. Robert Walberg, 2007, Southwest: Great airline, bad investment, Street Patrol, 11 Jan 2007, Appendix A 1998 Southwest Airlines begins new service to Manchester, New Hampshire on June 7, 1998. 1999 Southwest Airlines begins new service to Islip, New York on March 14, 1999 and to Raleigh-Durham International Airport on June 6, 1999