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Presentation/PPT
27/08/2022
I need a response to the below Statement:
Southwest Airlines over the years experienced several changes, challenges and implemented strategic ways of managing the airlines for the best interest of the organization and employees.
Southwest Airlines, had one of the most profitable records during the early 1970s and even more, profits were recorded due to the unfortunate events of the September 11, 2001, terrorist attacks, Heskett (2013). Southwest Airlines strategically purchased Boeing 737 twin jumbo jets for $500,000 below the asking price from Boeing and thus Southwest became Boeing’s number one customer, Heskett (2013). Another strategic move was they provided customer-friendly service with a sense of humor, that other airlines were not providing. They lowered their airfares, hired top talent that would fit in the organization, employees who stood out were rewarded by having their names stenciled on the overhead compartment, Heskett (2013). In addition, their strategic planning kept employees happy and engaged by offering them stock shares and they created a unique “Culture Committee.” Its strategy further extended to the gates and offered a “10-minute turnaround” some things that other airlines could not compete with and employee turnover rates were low.
Some of their challenges were to keep rates low, but fair due to competing airlines such as JetBlue, Air Asia, and others were competing for low fairs and maximum profits. Another challenge they faced was that management had to sell one of their jets for a small profit, in order to survive the airline wars. After September 11, 2001, terrorist attacks their 10-minute gate turnaround strategy was no more longer an option, and passengers had to wait longer in-between flights, Heskett (2013).
Southwest Airlines experienced several downfalls and simultaneously profited from unfortunate events such as the terrorist attacks, which boosted profits but added extra security features which delayed passengers. Southwest Airlines is a large organization with over 58,000 “Warriors” serving 99 destinations, Benefits (2021). With such a large unionized number of employees, top management needs to find a balance on how to keep employees happy, unionized, provide fair treatment, and how changes in one department can affect another when conducting strategic planning. For an organization to succeed, the CEO must be actively involved in making the tough choices and trade-offs that define and support strategy, Daft (2013).
Reference
Benefits. (2021, March 5). Southwest. https://careers.southwestair.com/benefits
Daft, R. L. (2013). Management (11th ed.). Mason, OH: South-Western Cengage Learning. ISBN-13: 9781285068657
Heskett, J. L., & Sasser, W. E., Jr. (2013). Southwest Airlines: In a different world. Boston, MA: Harvard Business School. HBS No.: 910-419 http://gcumedia.com/digital-resourc
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