Wednesday, September 7, 2016

A case analysis On South west Airlines/ MBA Capstone


Introduction and Background
 Southwest airlines is one of the largest  low cost carrier in this earth which has been headquarters in Texas, U.S. the case describes us about the history of more than 45 years as it was established in 1967 with the different name and the name now given was adopted in 1971. They have one of the highest employee record of almost 46000 employee till December 2014 they not only have more employees but they also operate in a very high flame they almost have 3400 flights per day, it is one of the highest carrier of passengers in U.S. they have been giving their sir services to more than 41 states and in about 93 destinations. They are one of the largest operator with largest number of employees record in worldwide thy have widened themselves to 737 with over 650 in service only.
It uses Boeing 737 as their main source as per the information it has made them the largest operator among many airlines service providers. It only has more than five hundred Boeings with their operation in more than 93 cities only in U.S. they have earned goodwill relating with their cost, affordability and fun environment they have excelled themselves in customer service.
The core values of Southwest airlines as per my understandings are:
·         Low cost service
·         Excellent customer service
·         Environment friendly
·         Corporate social responsibility
·         Equality treatment to every customer
Current operating strategy of southwest airlines
They have always made them focused on two things as their main operating strategy one is customer service and another is low cost making them focus on two important factors they have excelled the market with competitive advantage on their side. the main competitive advantage becomes their low cost and legendary service to their valuable customers as while undergoing he case I came to know about some of the strategies they have used to excel the market and to gain competitive advantage which are:
·         They have reduced the traffic delays at the airports and increased the convenience for customers
·         Clear strategy to reduce their time at airport
·         low cost ticketing
They have always provides high quality of customer service to their valuable customers. They have been honored with the awards many times above them they have got Triple Crown award for 24 times as they have got the best performance on among three sectors one is customer service, on time performance and the least but not last for the baggage handling. These three are always important when you are travelling somewhere.
To maintain their relationships with their customers they also send valentine cards, birthday cards to their customers and they are creating a bond with the customers with the emotion attached with the south west airlines they have create, maintain their relationships with customers.

            As to gain the competitive advantage they have always used many models and strategies in the market some of them are as follows:
·         Low cost conventional
·         Have fun together
·         Treat employees as their family
·         Hiring employees who fits on the job the most
·         Involvement of employee on various activities of the organization
·         Solid growth
·         Refunds to their customers
·         Customers needs and desires are carefully examined
So, the southwest airlines have made them stronger through their customer’s service and the careful examination of their works, as they have excelled on their activities including their staffs and clicking with their emotion.
Culture and people empowering to the success of southwest airlines
Going through the case I have gained an important sight of culture and values of SWA as they have followed the transactional leadership who values for the individual expression rather than collective. The management always carries a friendly and fun environment with their environment so that the employee would feel themselves as the core part and the service and the ideas could be generated efficiently. The top level managers in the SWA keep up to date with their employees through creating comfortable environment for the employee. The interaction is made in the regular basis, they have very comfortable management cycle, to motivate their employee they have a good reward system, CEO of the SWA is treated equal to their staffs, decentralized power system, fun working system and a very lively environment in the office has made the culture of the SWA to their performance. While going through a case, success of SWA depends on their culture the most, the adoptive and the friendly culture of the SWA has led them attached with heir core values and the core values is the main source of the organization success.
As per their culture I have highlighted some major points of the SWA which are:
·         Casual dress code
·         Strong guidelines to every employee for their cor values
·         Industry norm
·         Field visits
·         Profit sharing plan and the reward system
·         Pension plans
People empowering success of SWA
For every organization people acts as the very important factor for their success. Employees, customers will define about the organization values and they are the one to take organization into another level. they are the one to make the organization excel on the markets and to excel the competition so, how SWA has used people as their success factors and how are they related with their success to answers the question I would like to first give a small background of how employee for the SWA are chosen.
They are always careful on selecting employee for them as they only select those employee which are very core to their values, the candidates best fit to the values are selected. That shows how careful are SWA to recruit them as their family.
Carmine Gallo on his article named Southwest airlines motivating employee through purpose more than a pay check explains that the vision and purpose are two different entities and both are made clear on their employee perspective in order to gain the both .co’s customers and competitive advantage. Their happy employees which are friendly with their customers service and more than happy to serve and Satisfy them in the article it is shown that how in 43 years of time the employs not only customer service providers but also pilots, and other staffs are equally clear with their purpose and the way more than helpful to their customers in terms of service. So they are also known as customer service champs.
So with the people who are always striving for improving their knowledge, abilities, skills and their service, culture and to create more loyal customers? Having those motivated employee will always be a treasure to any organization and so implies to south west airlines the importance of people and the clear distinction between their purpose and vision has always made them motivate to work more and serve more which has made SWA a better than any competitors they got.
Social Management approach
Key performance indicators
Apart from the question of the case I myself is adding this topic because while researching SWA I found it interesting to reads and to write about what I understand as a social management approach to value their key operations and the strategy south west airlines to nurture long term relationship with their customers they have gained some of the factors like:
Community
They have always remained devotee to their customers and the committee they are developing ways to help them and to serve communities through many ways. Community relations and charity relations are the two teams they have added to serve community.
Avoiding corruption and anti competitive behavior
They strive to maintain the clean and transparent work environment so that the corruption and anti competitive behavior environment could be eliminated. low fare and high quality services to the customers is the prime focus.
Public policy
Adopting new laws and regulations. Behaving properly with laws and regulations with the government come under this section, in the simple way ethical business is the policy for the SWA.
Compliance
They have been compiling with laws, regulations within the states and communities they serve. They follow policies and procedures in order to perform their task.
Concluding South west Airlines with their operations
As concluding the case and the southwest airlines I came to know a lot about them and their strategies this is how I am gained an insight of how can we gain competitive advantage through ways like low cost leadership they are the perfect example of how to excel the market with the quality and the low cost service besides that some of the best things southwest airlines have with them and been keeping and nurturing with them those factors are as follows:
·         training and development
·         Customer focus
·         Leadership
·         Performance management
·         Team players and team works
·         Commitment of their employee
·         Friendly work environment
·         Mission and aligned strategies
·         Communication
As having so much of competitors all around them are running successfully and on their gull phase. The weakness is overcome through the practice and their experience and they are stronger with their strategies which has led them gain competitive advantage, they are the market leader. The constant adaptation to the new demands and wants of the customers has made their values stronger to touch and to be with their customers. The core vision and the values of the SWA have brought success to the airlines in these 45 years of time.
Southwest airlines are set as the example to the other entrepreneurs, students and business persons to set their values it teaches how we should focus our strategies so that it can excel the market. The focus strategy and their main 2 co’s customer’s service and competitive advantage which has made them successful. They have always focused on making a low cost and affordable ticketing to the customers and they have also focus on giving high quality of services to their customers.
Their low cost strategy and high quality product and service has attract many customers to come and be on the 100 million satisfies customers not only this according to the data the errors have been minimized year after year and the service has been added year after year which proves that they are committed to give the excellent service and the friendly service to their customers.


Bibliography

Agrawal, G. R. (2009). Emerging Human resources Management. Kathmandu: M.K. Publishers.
Agrawal, G. R. (2010). Strategic Management. Kathmandu: M.K. publishers.



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