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Southwest Airlines: Culture, Values, and Operating Practices

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Jonathan Rojas

on 4 December 2012

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Transcript of Southwest Airlines: Culture, Values, and Operating Practices

1. Is there anything that you find particularly impressive about Southwest Airlines? Case 20 :
Southwest Airlines in 2010: Culture, Values, and Operating Practices 2. What grade would you give Southwest management for the job it has done in crafting the company’s strategy? What is it that you like or dislike about the strategy? Does Southwest have a winning strategy? 4. What are the key elements of Southwest’s culture? Is Southwest a strong culture company? Why or why not? What problems do you foresee that Gary Kelly has in sustaining the culture now that Herb Kelleher, the company’s spiritual leader, has departed? 6. What weaknesses or problems do you see at Southwest Airlines as of mid-2010? Grade: A
Hiring
Management Style
Operations
Southwest Airlines: Winning Group 3 Nicholas Torrente
Jonathan Rojas
Jesus Cruz
Carlos Garcia Culture
Employees
Management
No-Lay-Off policy 3. What are the key policies, procedures, operating practices, and core values underlying Southwest’s efforts to implement and execute its low-cost/no frills strategy? Southwest’s uses one type of aircraft
Southwest’s ticket-less way travel
Flying in and out of medium sized cities
Southwest’s point to point scheduling
The assigning of each passenger a reserved seat
Southwest’s flight attendants were assigned to pick up the trash
Southwest does not have a first class section
No baggage transfer services
Southwest in 2001, started converting from cloth to leather seats 5. What grade would you give Southwest management for the job it has done in implementing and executing the company’s strategy? Which of Southwest’s strategy execution approaches and operating practices do you believe have been most crucial in accounting for the success that Southwest has enjoyed in executing its strategy? Are the any policies, procedures, and operating approaches at Southwest that you disapprove of or that are not working well? Implemented Fuel HedgingThey added vertical winglets for performance and efficiencyEnhanced management information system First key element is keep the employee happy
Second element keep customer happy South west’s culture is a strong one. It’s all about being out going(Luv), having fun, and giving good customer service.
The problem that Gary kelly is going to have is having the same passion that Herb Kelleher had for that culture. Like in any business its hard to have the same intensity of emotion for a business like the person who started the business because the successor doesn't know what it took to get to that point. 7. Does the AirTran acquisition make good strategic sense for Southwest? 8. What strategic issues and problems do Gary Kelly and Southwest executives need to address as they proceed to close the deal with the AirTran acquisition and contemplate how best to integrate AirTran’s operations and AirTran’s employees into Southwest? What recommendations would you make to Gary Kelly and Southwest executives as the company heads into 2011? Southwest’s culture

Friendly and happy employees

Low Fares and No baggage fees. Continue to maintain its low cost strategy and friendly culture.

Train the new 8,000 employee to Southwest Culture.

Eliminate AriTran's transitioning Facilities and operations.
Management fully commitment to instilling company culture
Management encourages employees to come up with ideas
Employees considered the companies greatest Asset
In light of these, we give Southwest an A! Improve fuel hedging predictions, to avoid huge losses like in 2009
Address safety concerns to maintain reputation for “Safest Airline”
Look into cutting high costs of labor, by structuring salaries similar to other airline competitors Improve fuel hedging predictions, to avoid huge losses like in 2009
Address safety concerns to maintain reputation for “Safest Airline”
Look into cutting high costs of labor, by structuring salaries similar to other airline competitors
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