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southwest airlines case study

southwest airlines case study

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Published by Peerzada Musaddiq

southwest airlines case study, musadiq dangiwacha iper
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southwest airlines case study, musadiq dangiwacha iper
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Categories:Types, School Work
Published by: Peerzada Musaddiq on Mar 29, 2010
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Presented to:

Prof. Yogesh Jadhav

Presented By: Peerzada Mussadiq Amit Dewani Ajay K. Dwevedi Bhumika Kothari Shalom S. Singh

people will fly your airline. • Business model was simply: “If you get your passengers to their destinations when they want to get there.Introduction • Southwest Airlines was established in 1971 in Texas with 3 planes and routes between Dallas. and make darn sure they have a good time doing it.” • Today Southwest Airlines is the 4thlargest airline in the United States servicing 58 cities with a fleet of 366 planes and is on its 29thstraight year of profitability. at the lowest possible fares. on time. Houston and San Antonio. .


5 flights per gate (Industry average = 4. .0) • Planes average 10.5) Differentiation •Focus on customer satisfaction •High level of employee dedication •Flight services for business travelers.Competitive Advantage. Scope: Low Cost •Use a single aircraft model (Boeing 737) •Use secondary airports that are under-utilized and close to metropolitan areas •Fly short routes •No meals •15 minute turnaround time no hub necessary avoids delays •Planes average 11 hours in air (Industry average = 8.

Organizational Culture Southwest’s Values. Philosophy. Value 3: People are important... frequent flying) • Success Factors (per the Company’s behavior): Employees come 1st Customers – 2nd Shareholders – 3rd .don’t spoil with seriousness. Enjoy it..it can be play . Beliefs: Organizations are transparent Family and “Love” -Simplify the operations (no meals. Value 2: Work is important .each one makes a different. no seat assignments. . . and Spirit Value 1: Work should be fun ....

their behaviors speak louder than words!! • Flat/Lean organization structure. concern. respect within the organization as outside (with customers) • Catastrophe fund for employees • Celebrations (for achievements) • Contests • Lots of companies say “employees are important” -however.Organization: Stable working environment (never had a layoff) • People orientated culture (informal egalitarianism) • Equal Opportunity for learning and personal growth • Creativity and innovation encouraged and rewarded • Same caring. Effective Management of its Workplace •Assets are managed and low variable costs • Focus on Human Capital .unleash their innovation and increase their capabilities •Everyone receives a “raise” on his/her birthday •High level of employee trust •Rewards and Recognition .

•New government regulations that make operations costlier . •Annual airline security costs have increased.SWOT ANALYSIS STRENGTHS •Low price tickets • Low operating costs • Good customer service • High frequency service • Productive pilots & crews •In 2003 posted a profit for the 31st consecutive year WEAKNESSES •No international flights •No segmented seating •Dependent on a single producer •Carry a small amount of freight and cargo OPPORTUNITIES •International markets • Longer flights • Can use better plane models for much better services STRENGTHS •Decline of leisure travel due to economy and terrorism since September 11th •Gas and oil price fluctuations.

PEST ANALYSIS Political: Government aid after 9/11 attack New government regulations Economical No layoff Operating cost Economical crisis due to terrorist attcak Social People trust SW Employee trust Technological Other planes can be used with better technlogy .

.Mickenseys’ 7S Model 1) Strategy A set of actions that you start with and must maintain. work are organized. They hire for attitude and develop for skills. Flat and lean organization structure Effective management and Workforce 3) Systems All the processes and information flows that link the organization together. Communication between upper management and employee is so easy. egalitarian treatment for all 4) Style How managers behave. SW start with its core values and beliefs that they maintained like no layoffs etc 2) Structure How people and tasks. Style of Keheller was supportive and motivating his employees 5) Staff How you develop managers (current and future).

Competitive advantage that they have . on time.” Employees are the internal customers. and make darn sure they have a good time doing it. at the lowest possible fares. 7) Skills Dominant attributes or capabilities that exist in the organization. and all that values that shapes the destiny of the organization. 6) Super ordinate Goals Longer-term vision. “If you get your passengers to their destinations when they want to get there.7 S MODEL CONTD……. people will fly your airline.

 One airline had its own unique approach to the crisis.Conclusion .“  Southwest Airlines was able to operate their business relatively undisturbed. It was only in the poor economic conditions that suddenly Southwest Airlines' method of operation became the ideal model for its competitors. .. It was felt that avoiding layoffs in the face of a dramatic decline in demand would jeopardize short-term prospects. the airline industry cut the number of flights by 20% and laid off 16% of their workforces.  "It's part of our culture.. That's what we've tried to do. Southwest avoided layoffs (no-layoff policy) and stuck to its mission of caring for its employees.  To reduce their losses. We've always said we'll do whatever we can to take care of our people.


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