Southwest Airlines

History of Southwest Airlines

On February 20, 1968 the Texan Aeronautical Commissions approved plans to fly in 3 states, the c5eators are Rollin King and Herb Kelleher Expanded through 1980s to 1990s by 1993 Southwest Airlines could fly in 34 states in 15 states They also expanded into new destinations California, Northwest, Florida, East Coast The competitors could not keep up, 500 pound cockroach that was too big to stamp out: While the airfare was dropping the traffic went up tremendously, in 1994 United started a shuttle service, the large air carriers were feeding traffic into transpacific and transcontinental routes, they could not keep up Was the first airline to achieve the Triple Crown, they had five difference Triple Crown dedicated to the Employees of Southwest Airlines for their excellent achievements.

Vision and Mission

Vision

To have a conservative increase growth, capitalize and cutback schedules of other airlines. To continue expanding conservatively in long-haul success

Mission

The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. To give ordinary people the opportunity to fly. To the employees We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer.

Corporate Culture

Tickets must be bought from the airline itself, the phone or online Extra Rapid Rewards
- frequent flier program - credits for online booking users only

Customers are assigned to a boarding group depending on check-in time

- find their own seats on the plane Colorful boarding announcements and crews that burst out in song instead of no video entertainment Meal service is less than on historically full service airlines

Opportunities and Threats

Opportunities First airline on the web Only in 58 cities expansion to other cities Lowest cost-preavailableseat out of all airlines Booked online 13.6% more than American Airlines Top-ranked website in customer satisfaction among travel sites

Threats

Jet Blue Competitors caught SW strategy New Tax System New Security measures Aviation insurance costs Terrorists Attacks Severe decrease in customer air travel

Why should I go by Southwest Airlines

Hire Attitude Train Skills Immerse Everyone in the Culture Immediately Keep 'Em Learning People Give as Good as They Get Find the Kid in Everyone Do More with Less Luv 'Em in Tough Times Do What's Right Nurture the Corporate Family

Why should I work ?

FUN emphasized! Family emphasized! - Caring for employees emphasized! - Customers emphasized! - Identify with fellow employees (as internal customers!) - Ten-year Labor agreement! (81% unionized) - Aggressive under-dog spirit!

Employees Love to work there!!

Southwests Values, Philosophy, and Spirit

These are three basic values (the culture) or philosophical pillars at Southwest Airlines:

Value 1: Work should be fun ...it can be play . . . Enjoy it. Value 2: Work is important ...dont spoil with seriousness. Value 3: People are important...each one makes a different. Beliefs:

Organizations are transparent Family and Hugs

People at Southwest

- Hard-working (94 employees per plane vs.. Americans 160 and United 160 - Industry average of 130; serves 2,500 passengers per employee Vs. United and American average less than 1,000) - Motivated - Have FUN - fun place to work - Treat employees as internal customers - Employees are comfortable - Fundamental business philosophy is that employees come first! - Not a lot of employees!

South-West Airlines
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Competitive advantage Internal customers Leadership Work-culture Management style Trust Family spirit
To be cont

South-West Airlines
Open sharing of information Training Collective bargaining Flexibility Discounted stock purchase Creative spirit Lay-offs

Why is Southwest Successful?

Because of its Internal Business Environment and/ or Execution Systemsthe Causes:

Culture, Core Values, Philosophies and Principles (Vision Direction) Effective Management of its Workplace (Level 5 leadership) Effective Exemplar Structures, Systems and Processes (fit between elements of the Execution System)

Integrated Low Cost/Differentiation Strategy

Low Cost Use a single aircraft model (Boeing 737) Use secondary airports Fly short routes No meals 15 minute turnaround time No reserved seats No travel agent reservations Differentiation Focus on customer satisfaction High level of employee dedication New flight services for business travelers (phones and faxes) S.W.A.s Culture, Values, Philosophies & Principles