Case Southwest Airline

By:

Paya EBRAHIMI

Andre SHAHBAZIAN

Leila JANNATI

Mohammad Ali ABBASI

Our History and Culture in Pictures

What doesn’t kill you makes you stronger

SWA manage to keep the cream of the CLAN corporate culture created in 1971 due to the hardship and the anger caused by unfair tactics used by big competitors to destroy the company at birth

simple business model but highly dependent on human resource performance and organizational culture which is not easy to achieve and sustain for competitors

It is 28 years that the manager’s keep constant growth and focus on maintaining profitability

without being obsessed to become the biggest or gain the highest market share at any cost.

Business Strategy that competes with surface transportation not other airlines

short but on time, frequent, low-cost fares flights

emphsizing on point-to-point routs with no central hubs

concentrated on flying to airports that are under utilities and close to a metropolitan area

Cultural characteristics of SWA creates safe happy and fun place to work

putting employees first then customers and finally shareholders

SWA makes work fun and working place comfortable and people important

offering stable work and personal growth environment creating loyalty, respect and caring attitude in employees

the organization has a people oriented environment and extremely informal egalitarian

creating social relation between all employees at all levels using other motivating and encouraging cultural and social

events no employee is ever punished or judged trying to

accommodate a customer

Key Practices in HRM, Communication and Leadership

Flixibility/unsable

internal Started as SME friendlyinformalFAMILY

any size companyfast companyAdhoc (not in what they do but in how they do it!)reward based on performance

external

Bureacracy (was THROWN away)Formal (Absolutly not)Regulations (they promote staff to break them)Procedures (you can make it better, do it)Hierarchy (Pilot helps with cleaning)

Market corporate (Customers)Not reward based on experience – helps anyone in need!reward based on performance People dignity is important to them

stability

Strengths of Southwest Airlines

Has experienced very fast growth since its inception in 1971.

Offers credit based on the number of trips with the airline instead of the total miles traveled.

Named the best low cost airline leader

High capacity usage

Carefully considers each applicant so that they are sure to hire the best employees which leads to excellent service for their customers.

Offers reasonably priced travel packages with low frills and excellent customer service.

Low cost approach to flights that has drawn consumers to their services.

Excellent employee relations leads to higher ticket sales as they all work as a team.

Purchased only Boeing airplanes to reduce costs in repairs and get a bulk discount on the purchase.

It has a positive organizational culture and encourages a positive and warm employee culture

By posting a profit for the 36thconsecutive year in January 2009, it known to be one of the most profitable airlines in the industry

Limitation of Southwest Airlines

Does not offer segmented seating options. Space to carry freight and cargo is limited. Dependant on a single airplane producer. Scrutiny of potential employees based on

personality before skill could be dangerous. They don't have baggage agreements with

any other airlines so you can't connect to another carrier for an int'l flight.

Lessons Learned

SHARE MARKET AND INCREAS IT HAVE A MODEL FOR GROTH & EXPANSION WORK FOR LONG TIME WITH BUSSINESS STRATEGY ATTENTION TO STERATEGYOF ANOTHER COMPANYES ININDUSTRIAL

FIELD HOW MANAGING COMPANY IN COMPETATIVE MARKET HAVE BIG GOLES FOR LONG TIME BEFOR STARTING & OPENING

COMPANY ARENJING OF ALL THUNGS: RQUIPMENT, STAF CAPITAL…IN ECONME

ESKIL MONITORING &CONTROL COSTS & INCOME EMPHASIZE CUSTUMER RELATIONSHIP ATTENTION TO EMPLOYESS, CUSTUMERS & SHARHOLDERS ALL TIME

TOGETHER EMPHASIZE TO EMLOYESS THAT HAVING FUN AT WORK

LUV Shares in History