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
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for Competitive Advantage‚ 17th edition‚ Boston: McGraw-Hill/Irwin‚ p. C-406. [ 9 ]. Fairbank‚ K. and Kirkpatrick‚ J. (2001)‚ "A Tough Guy who Understood ’spirit ’”‚ The Dallas Morning News‚ 20 March. [ 10 ]. As quoted in Brooker‚ K. (2001)‚ "Herb. Kelleher: The chairman of the board looks back”‚ Fortune‚ pp. 62-76. [ 11 ]. As quoted in Freiberg K. and J. (1996)‚ NUTS! Southwest Airlines’ Crazy Recipe for Business and Personal Success‚ New York: Broadway Books‚ p. 15. [ 12 ]. As quoted in Thompson
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CASE STUDY Pixar: Animated Geniuses 1.) Problem: Pixar maintaining its position in the movie animation industry despite the forging alliance of major production companies. 2.) Facts of the Case: a.) Wild Brain inked a five-picture deal with Dimension Films‚ a unit of Miramax (owned by‚ of all companies‚ Disney). b.) Perhaps Pixar’s closest competitor is Dreamworks‚ headed by former Disney impresario Jeffrey Katzenberg and backed by media luminaries Steven
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Southwest Airlines‚ Herb Kelleher is credited with creating an organizational culture that unique in America today and which has propelled Southwest to the number one spot in the airline industry. Kelleher’s own values and beliefs of humor‚ altruism‚ concern for others and honesty is clearly defined within the people-oriented culture of this airline as is often displayed within its working environment. In “A Conversation with Herb Kelleher” (Organizational Dynamics‚ 1994‚ pg. 64-74) Kelleher states that
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operating costs‚ low fares‚ and customer pleasing service. (Thompson‚ pg.220) Southwest Airlines as had great success throughout the course of their existence. Having a rough start in 1967 seemed to be no match for the drive and tenacity of Herb Kelleher. Kelleher was an extremely smart man with a degree in philosophy‚ as well as‚ a law degree‚ both he achieved with honors. Southwest Airlines was led by man who believed in the true meaning of leadership and success through treating people well‚ employees
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spirit‚ fun‚ family‚ dedication‚ cost consciousness and so on. 3. How are these sources of competitive advantage produced and sustained by what the organization does and how it does it? Southwest’s leadership initiated building its culture. Kelleher and senior management team’s philosophy has permeated the organization. They uphold its culture of ‘having fun’‚ which leads to satisfaction of employees‚ its organizational solidarity‚ dedication and flexibility. His consistent efforts to promote
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Southwest Airlines Leadership at Southwest has grown the company. The leader has a strong personality and led the company to a great position. Herb Kelleher ’s business decisions and out of the ordinary and have had success beyond belief. Employee empowerment is needed to make any successful company. At Southwest Airlines‚ the empowerment has led the employees to lead themselves. They take pride in the actions. It allows them to get other involved and makes them more successful in the tasks
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implement and execute its low-cost/no frills strategy? 4. What are the key elements of Southwest’s culture? Is Southwest a strong culture company? Why or why not? What problems do you foresee that Gary Kelly has in sustaining the culture now that Herb Kelleher‚ the company’s spiritual leader‚ has departed? 5. What grade would you give Southwest management for the job it has done in implementing and executing the company’s strategy? Which of Southwest’s strategy execution approaches and operating practices
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on the success of the employees of the organization through the eyes of its past CEO Herb Kelleher. “We want to show them they’re important to us as who they are‚ as people. And by the way‚ one ramp agent - I have not disclosed this - sent me a note one day which I’ve never publicized‚ and I think you’ll understand why.” He said‚ “Herb‚ I finally got it. Your making work fun‚ and home is work.” (Herb Kelleher 2013) SWA was formed in 1971‚ to serve the inner cities within Texas but by 1998
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What strategies did Southwest Airlines developed earlier to gain market visibility? Southwest Airlines employed many strategies over the years with their fist strategy being ads run in the media. Southwest airlines utilized a number of campaigns including skimpily clad flight hostesses‚ free in-flight alcoholic beverages and a “Love” campaign using the tag line “Now There’s Somebody Else Up There Who Loves You” in an effort to attract passengers. (Leavenworth) Southwest Airlines developed a ground
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