case study in business strategy

8/8/2019 Case Study in Business Strategy

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Faculty DevelopmentProgrammeOrganized by: Institute of Management Consultants of India at

Symbiosis University , Pune

Conducted by:

Dr. Prashant Kale

Rice University(Strategic Management)

November 22, 2010

Attended by: Ashish Dasharathi, Placement Executive



Topic

Case study method of learning

Case study reflecting on South West Airline’s(SWA’s) strategies leading to value creation,economic growth and above par

performance in the backdrop of below parperformance of most other companies in theperiod 1991 - 2001.



Objectives of faculty developmentprogram

Conduct case study discussion

Understand challenges involved in casestudy method of learning



Method of case studydiscussion

A two page case study was provided at the start of discussion with tenminutes spared to reading the case study thoroughly.

The case study included theoretical description of South West Airline’sbusiness aspects, people factor and data of it’s operations (15minutes turnaround time, 40 to 55 % ticketing through agents ascompared to industry average of 80 %, $ 6 to $ 8 airport charges perpassenger against an industry average of $ 10 etc.)

Performance numbers such as profit, cost components and operatingmargins of other airlines were provided to substantiate the discussion.



Case Study Discussion – keypoints

Key factors contributing to phenomenal success of South West

Airlines were discussed

Audience participation was encouraged. Discussion wasallowed to flow freely but not much deviating from the topic.

Video of South West Airline’s actual flight experience, trainingactivity and fun experience was shown

Reasons as to why it’s business model is difficult to copy wereanalysed



Key observations about SWA

It is the only airliner to have made no losses in it’s over 30 years of business. It’s performancehas been consistent, presently it is the biggest airliner in USA.

It caters to traffic of secondary airports only. Most of it’s cost savings have come frominnovative approaches towards many little aspects of aviation business

It has defined it’s competition. SWA does not compete with major airliners, instead it focusedon converting non fliers to fliers, stayed below radar in it’s initial days and grew unhindered.

Many of South West Airline’s small cost savings are individually equivalent to it’s profit.

Intertwined activities collectively form a business value chain which is difficult to copy.

Highly passionate employees form a major factor in it’s success. People enjoy the company of their CEO who is a fun loving person. This is reflected in lowest attrition in the industry.



Challenges in case studybased learning

A case study matures with time. If case study is of a recent

topic, then it might not be backed up with sufficient data.

Consensus comes out of debate. But, case study discussionshould reflect on nurturing the ability to think through asituation.

Keep surprising the audience as they will see right through if apattern emerges out of the teacher’s methods.

A mentor conducting case study should be comfortable withthe process of conducting case study discussion.

Rigorous discussion is possible only if you have a back up of data such as profit, loss, revenue or performance.



Thank you

Ashish

case study in business strategy

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