cost. As fuel dropped in price‚ Southwest was stuck with its contracts at higher prices. Southwest airlines began flying in 1971 after having to have to fight in court over restraining orders not allowing the new carrier to fly. Both times‚ Herb Kelleher pleaded his case before the Texas State Supreme Court and won. The very next day Southwest Airlines had its inaugural flight on June 18‚ 1971. Southwest is a short hop no frills or seating flight. Its hops are less than 500 miles and its employees
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Southwest Airlines became one of the most admired airlines in the world based on their dedication to their customers and the corporate strategies their leadership instituted. Their leadership created a different corporate culture that CEO Herb Kelleher and his company are devoted to the philosophy of putting employees first (Govindarajan‚ pg. 115). In doing so‚ Southwest was able to instill a management control system that relied on their employees and empowered them to achieve the overarching
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In 1992 Southwest Airlines was the only major airline in the US to post a profit. In 1993 the same airline outperformed its competitors. The CEO‚ Herb Kelleher stated the primary and most challenging SWA goal is to offer great service at low cost. SWA was able to meet and exceed this goal by competing using a new-game strategy. They sought to restructure the airline’s business to match company strengths. Instead of adapting to the way that other airlines operated‚ they created their own set
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Over the years‚ Southwest has been a financial leader in the airline industry‚ and much of this success is attributed to the same strategy and values that Herb instilled when first founding the company. That said‚ it is only a matter of time before the competition catches up. Similar with other disruptive technologies‚ which Southwest’s strategy can be labeled as‚ eventually competitors will mimic or get
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Answer (1): Southwest had much lower cost than its competitors and was able to crush the competition with its low price strategy . Answer (1) part 2 In the early 1970s‚ when Herb Kelleher and a partner sketched a business plan on a cocktail napkin‚ they had no idea that Southwest airlines would become the most successful U.S.Airline Southwest’s strategy was the complete opposite of the industry’s conventional Wisdom Its planes flew from point to point rather than using the major airlines
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Materson‚ J.T. (2009). Communicating in small groups: Principles and Practices (9th ed) Gittell‚ J.H.‚ (2003). The Southwest Airlines Way. Using the Power of Relationships to Retrieve High Performance Lee‚ William.‚ 1994. A Conversation with Herb Kelleher. Organizational Dynamics. Retrieved from The University of Phoenix eBook Collection Database PR Newswire.‚ 2011. Southwest Airlines Honored as One of the Top 50 Best Places to Work in 2012‚ a Glassdoor Employees ’ Choice Award Robbins‚ S. P.
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important benefit‚ employees will be provided the same concern‚ respect‚ and caring attitude within the organization that they are expected to share externally with every Southwest Customer. Southwest uses an unorthodox leadership style created by Herb Kelleher. The basic idea is that the organization works like an upside down pyramid. The upper management is at the bottom and supports the front line employees‚ who are the experts. This strategy works for Southwest Airlines because management decisions
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References: 1. Lussier‚ R. N.‚ & Achua‚ C. F. (2010) 4e. Leadership: Theory‚ application‚ skill development. Mason‚ OH: Thomson/South-Western. 2. Hall‚ A.(2007). Entrepreneurial leadership: A Profile of Herb Kelleher and Southwest Airlines. Retrieved from http://www.arichall.com/academic/papers/om8107-entrepreneurial-ldrs.pdf 3. Bass‚ B. M.‚ & Reggio‚ R. E.(2006). Transformational leadership. New Jersey‚ NJ: Lawrence Erlbaum Associates‚ Inc. 4. Bass‚ B. M
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Southwest Airlines Over 35 years ago‚ Rollin King and Herb Kelleher decided to create a different type of airline. They began with the simple notion: If you get your passengers to their destinations when they want to get there‚ on time and at the lowest possible fares‚ and make darn sure they have a good time doing it‚ people will fly your airline. They were right (Southwest Airlines‚ 2004)! What began as a small Texas airline has grown to become one of the largest airlines in the United States
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Introduction ‘Strategic human resource management (SHRM) is concerned with the development and implementation of people strategies which are integrated with corporate strategies and ensure that the culture‚ values and structure of the organization and the quality‚ motivation and commitment of its members contribute fully to the achievement of its goals’ Armstrong (1991‚ p.81). While human resource management (HRM) focuses on the potential and actual productive value of ‘human resources’ (HR) to
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