CASE 13 SOUTHWEST AIRLINES: HOW HERB KELLEHER LED THE WAY The U.S. airline industry experienced problems in the early 1990s. From 1989 through 1993‚ the largest airlines‚ including American‚ United‚ Delta‚ and USAIR‚ lost billions of dollars. Only Southwest Airlines remained profitable throughout that period. Herb Kelleher‚ cofounder of Southwest Airlines in 1971 and until recently its CEO‚ pointed out that “We didn’t make much for a while there. It was like being the tallest guy in a tribe
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History of the Company Southwest Airlines was founded by Rollin King and Herb Kelleher and was incorporated in 1967. The airline launched its first route in 1971‚ servicing Dallas‚ Houston and San Antonio. By 1975 Southwest went public on the American stock exchange. By 1979‚ the airline was flying outside of Texas to New Orleans and expanded its service to the West Coast in 1982. Beginning in 1990‚ Southwest’s revenues exceeded one billion dollars‚ making it a major airline company. On May 2‚ 2011
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Southwest Airlines started out as a very small company that was established in 1967. At that time‚ they had only three airplanes and twenty-five employees. Southwest now is one of the most successful major airlines in the United States. With the mission of “dedication to the highest quality of customer service delivered with a sense of warmth‚ friendliness‚ individual pride‚ and company spirit” (About Southwest‚ n.d.) has allowed the company to grow to 694 aircraft and 46‚000 employees (Hitt‚ Ireland
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QUESTION 1 Refer to the case on “Johnson Turnaround” in Appendix A. The newly appointed CEO of Johnson Pte Ltd.‚ Encik Azmi‚ is tasked with the design and implementation of a turnaround strategy for the company. An effective turnaround strategy consists of assisting the company to identify‚ develop and implement initiatives that increase profits and market share‚ or position the firm to raise needed capital. The objective of the turnaround initiative is to focus on areas of business risk
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Southwest has made an organization out of providing low-fare‚ short haul routes between city pairs. It has concentrated specifically on offering low-fares on all of its flights by maintaining its no frills attitude and high frequency of flights. This has afforded Southwest Airlines with the lowest cost structure in the industry. Southwest has created a niche for itself by flying a network of flights between smaller U.S. cities that average just one hour apart. This has differentiated them from
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to mold its image‚ communicate with internal and external stakeholders and sustain a long-term positive reputation. For example‚ on July 22‚ 2013‚ Southwest Airlines Flight 345 suffered a collapse of its front landing gear while landing. Their PR team did a great job on how to handle crisis through social media. After the accident happened‚ Southwest comes out and response
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Analyzing Southwest Airlines using the Congruence Model Company’s Strategy: Southwest’s strategy is to improve efficiency in its operations and pass cost saving to its customers by offering them low and competitive prices. Southwest Airlines is dedicated to providing the highest quality of Customer Service delivered with a sense of warmth‚ friendliness‚ individual pride‚ and company Spirit. Analyze each key element of the company separately based on the congruence Model Organization Structure
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Business Turnaround Case Study: Starbuck’s Successful Implementation of Business Turnaround Identify a company that has overcome a crisis situation Starbucks is an American global coffee company and coffeehouse chain. It is the largest coffeehouse company in the world‚ operating across 62 countries and having a chain of 20‚891 stores across them. Starbucks serves hot and cold coffee based and refreshment drinks‚ pastries‚ snacks and sandwiches. Starbuck is one of the companies that have
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The objective of my report is to analyze the external environment in "Ryanair-’Southwest" of European airlines" case‚ which is very important factor for the firm’s formulated effective strategy. The external environment consists of a wide array of economic and sociopolitical factors. It is the specific market arenas that the organization has chosen in its strategy; it provides the business opportunities to the firm and it’s also a source of threats or forces that may impede the successful implementation
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Southwest Airlines: Organizational Commitment and Communication Paper Communications for Accountants COM/530 Southwest Airlines: Organizational Commitment and Communication Paper Southwest Airlines’ strong organizational culture is reflected in its mission as shown in its website: “dedication to the highest quality of Customer Service delivered with a sense of warmth‚ friendliness‚ individual pride‚ and Company Spirit.” Southwest is a company that not only excels in customer service
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