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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Southwest Airlines in 2010: Culture‚ Values‚ and Operating Practices Summary Southwest Airlines was founded by Herb Kelleher in 1967 to provide low-cost service between Dallas‚ Houston‚ and San Antonio. Although the U.S. airline industry had lost money in 15 of the 30 years between 1980 and 2009‚ Southwest has reported profit every year since 1973. Southwest Airlines is considered to be the most successful budget airline in the U.S. Since 2000‚ the number of passengers flying Southwest has
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Southwest Airlines’ Corporate Strategy & Control System 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
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managerial derailment and failure Southwest Airlines strict adherence to its mission to provide the highest quality of customer service delivered with a sense of warmth‚ friendliness‚ individual pride‚ and company spirit is a key factor to the company’s success (About Southwest Airlines Co‚ 2013). The airlines ability to commit to employees to provide them with a stable work environment that ensures equal opportunity for learning and personal growth. Southwest prides itself on allowing all within
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Southwest Airlines Resources Tangible Resources Financial Resources - Southwest has always managed its cash well . In the financial year 2001 ‚ the airline had generated 64 ‚446 ‚773with an operating income of 821 ‚659 and a credit value very good Physical Resources - In all the cities it operates instead of having agents or computerized booking system Southwest has its reservation centre and vending machines at the airports . Previously Southwest only operated in cities near Texas ‚ but started
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Write-ups (Southwest Airlines) 1. What do you see as the issues the company is facing? The distance between the employees (The managers and the top management) has been increased. Before the leadership change‚ the top management was very close to the employees. That change causes a radical change in the company’s culture. Southwest experienced an increase in the fuel and wages cost. Southwest failed to maintain the perception of the Lowest-cost strategy and moved toward a profit-boosting strategy‚ which
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1) How does this company make money even when other airlines don’t? What are the most important contributors to its financial success? ANS: - Southwest airlines founded specially to create intrastate between Dallas and Texas and their main agenda is to provide services at low cost as compared to other airlines. Even it’s very competitive to achieve this goal but southwest succeeded by keeping operations simple and consistent‚ cost saving strategy and meet customer expectation(on-time) at low cost
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save fuel‚ and reduce engine maintenance costs and takeoff noise. - Fuel cost saving. Southwest effectively takes advantage of fuel hedging to buy fuel at lower prices. And to cut fuel cost Southwest also takes some other actions such as carrying less water for bathroom‚ and replacing passenger seats with lighter models. - Equipment and technology application and outstanding automation processes. Southwest has invested significant sums in facilities‚ equipment‚ and technology to efficiently process
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research is Southwest airlines. It has been one of the most successful airlines in the US‚ and with very high customer service ratings. This is very impressive to attain by such a small company in a very tough industry. Southwest is able to achieve such levels by having a clear mission of providing low-fare travel using a point-to-point system and not having a hub-based system. The company operates in relatively shorter routes and only maintains one plane type‚ its famous Boing 737. Southwest as an organization
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1. An Introduction to Southwest Airlines 1.1 Beginnings 1 1.2 Culture 1 1.3 Business Strategy 1 1.4 Success Factors
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