Southwest Airlines Executive

Presentation

Sweet N Salty 16
College of Integrative Sciences and Arts, Arizona State University
OGL 355: Leading Organizational Innovation and Change
Dr. B
November 24, 2021
 Agenda
● INTRODUCTION
● ORGANIZATIONAL STRUCTURE
● LEADERSHIP
● ENVIRONMENTAL ANALYSIS
● SWOT ANALYSIS
● COMPETITIVE ADVANTAGE
● GOING GLOBAL
● RECOMMENDATIONS
● CONCLUSION
 Introduction
As an ORGANIZATION Southwest began

“In 1967, Herb Kelleher and Rollin King developed the initial Southwest Airlines® concept in a hotel bar in San Antonio. Their original business plan
consisted of a triangle drawn on a cocktail napkin— three lines connecting Dallas, Houston, and San Antonio” (Kelly, 2019, p.1)

They battled the Airline Deregulation in Act in 1979 but came out on top.

They had 54000 employees in 2019, serving 130 million passengers.

“Since day one, Southwest Airlines has stayed true to our low-fare brand, and, as a result, we have consistently grown throughout our history” (Kelly,
2019, p.1)

Purpose- Connect People to what’s important in their

lives through friendly, reliable, and low-cost air travel.
Vision- To be the world’s most loved, most efficient,
and most profitable airline.
(Southwest Airlines Co. 2020)
 Organizational Structure
ORGANIZATIONAL STRUCTURE

Southwest Airlines has a unitary structure, based on the use of business function as a basis for grouping
resources and activities.
 Leadership
CEO Executive Vice Presidents

COO Senior Vice Presidents

(Southwest Media, 2021)

 Environmental Analysis
Threats of New Bargaining Power of Bargaining Power of Threat of Substitute Industry Rivalry -
Entrants - Low Buyers - High Suppliers - High Products - High High

Large amounts Pricing plays a large Manufacturers have Ground transportation Niche market is
capital needed to role as buyers can as they are solely in provides low costs dwindling due to
enter industry compare prices easily the industry compared to air travel other low cost carriers
through the internet competing
Employees unionized
labor plays a large
role in airline industry

TARGET MARKET

Middle Class Families

Small Business Owners

Short Distance Travelers

Young Adults
 SWOT ANALYSIS
Strengths Weaknesses
● Low-cost option for travel ● No Commercial Alliances
● Non-stop flights all over the USA ● Route Structure
● Successful management strategies ● Fewer Passenger Amenities
● Loyal employees and clientele ● Relient on Boeing

Opportunities Threats

● Pandemic fades and travelers demand rises
● Low cost airlines charging a higher rate due to the
pandemic
● Reposition aircrafts to where they are needed to
better serve more customers
● Demand for aircrafts
● Other airlines following same price model
● Fuel costs
● New and changing health and safety protocols
● Industry legal and regulatory changes
 Competitive Advantage
“The People Department”- Southwest’s Competitive advantage.

Southwest defines culture as “The development, improvement, and refinement of the

originality, individuality, identity and personality of a given people” (Southwest
Culture, 2021)

"Our people are our single greatest strength and most enduring longterm
competitive advantage." (Kelly, 2020)

Resource Based POV includes Human resource assets. Those are “the skills, abilities
and competencies of an organization's employees” (Coulter, 2013, p. 31)
Going Global(Dylan)
 Recommendations
● Licensing to ship freight when planes ● Diversity- On the Governing Board
available. ● Update plane fleet
● Go Global with Guam
● Use Guam and Hawaii as stopping points into
further international expansion.
 Conclusion

Summarize the presentation and conclude recapping the recommendations, closing

remarks regarding this in the notes.
 References Pg 1
https://www.southwestairlinesinvestorrelations.com/our-company/purpose-vision-and-the-southwe
st-way

Kelly, G. (April 2019) Gary’s Greeting.

https://www.southwest.com/assets/pdfs/about-southwest/garys-greeting.pdf

Southwest Airlines. (2021) Culture.

https://www.southwest.com/html/about-southwest/careers/culture.html

Southwest Media. (2021). Senior Executive Leaders. Retrieved on November 17, 2021 from
https://www.swamedia.com/executives.
References Pg 2