MANAGEMENT ASSIGNMENT Southwest Airlines is known for their organizational cultu

Question

MANAGEMENT ASSIGNMENT

Southwest Airlines is known for their organizational culture. It is considered one of the key factors contributing to their success. They are ranked 8th in 2017 as “Most Admired Companies in the World” and ranked 13th “Best Employer in 2016”.  

1. Describe Southwest’s organizational culture. How has the culture contributed to their success?

Southwest is also known for its proven business strategy. They believe in a sustainable future where there is balance in their business model between shareholders, employees, customers and other stakeholders. As a result and unique in the airline industry, they have maintained 44 years of consecutive profitability. They ranked 1st in “Lowest Number of Complaints” in 2016.

2. The company developments as seen in the “Flash Forward” beginning in 2010 have been significant. Review those accomplishments. What are some of the key elements of their strategy as seen in these developments? How has the original strategy been altered to achieve those results?

3. Describe how Southwest’s planning process helped establish their organizational objectives, business model, address problems, adapt to changes in the environment and remain successful.

Explanation / Answer

Southwest Airlines works on the principle of putting its employee first, customer second and stakeholders last. Organization believes that if employees are treated with respect they will take care of the customers well and happy customers means profit and satisfied stakeholders.

Southwest airlines has empathy build in the customer service. They have kept their turnaround time and operating cost low. This has helped them increase their profits and remain profitable since its inception

Part II

Southwest Airline is looking to expand to new markets and fly out of more airports by acquiring their low cost competitors. It would increase their routes and may also give them first international flights to carribbean. They have managed to be profitable by focusing on their process and reducing turnaround time. It has become one of the largest carrier in the USA now. Original strategy to serve a mid size market and fly within USA will be changed when Southwest airlines takes international routes to nearby countries.

Part III

With growing fleet and routes, southwest Airlines would have to work hard on maintaining their organization culture and keep up the customer satisfaction. The way employees go through the selection process and training is the first way to keep the culture intact and customer service upright.

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