group7 southwest case

8/11/2019 Group7 Southwest Case

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Group 7: Team Members

Souvik Dey- FT153079

Minna Maria Thomas - FT153020

Ranjith Raman- FT153009Apoorv Mohan- FT153058

Vishal Gupta- FT153098

Nipun Sahrawat - FT153037


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Executive Summary

Southwest was founded in 1971 with a fleet of three Boeing737 aircraft. Headquartered at Love Field in Dallas.

the airline followed a strategy of low fares, few frills, andexcellent customer service.

Under the leadership of co-founder and CEO Herb Kelleher,Southwest thwarted all the challenges built up by the rivals,ultimately building a highly successful business with auniquely committed workforce.

By 1994, the airlines success hadproduced many smallerimitators such as Kiwi and Reno Air.

Big players like Us Air, continental also follow the same suit.


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The new competitive threat had brought down the stock price.

Analysts questions the sustainability of the southwest airlines

competitive advantage.

On September 17, 1994, Ann Rhoades,VP of People forSouthwest, was asked to assess the companys current positionin context of the new competition and gauge whether

Southwests widely successful human resources practices couldbe copied.


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SWOT Analysis

Strength: A great working climate for employees.

Employees are having excellent rapport among them.

Employees have the routes to air their grievances within thecompany and concerned authority resolve those issues.

It is profitable and having a strong financial position.

It always keep surplus cash in hand to finance new ventures.

Culture and image within the company are widely preferred bythe customers.


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Opportunities

Some fraction of the company not yet galvanize with the

principal philosophy of the company.

It caters the market segment that others dont. So, It can expandin that segment in a continued slow fashion.

There are other local and regional airports that would be

suitable for south west business requirement.

It can go for limited partnership like code sharing which

enable the firm to get into new market.


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Competitive Advantage

High aircraft utilization.

A standardized fleet.

Charismatic leadership.

Low fares.

Excellent customer service.

An attractive frequent flier program.

Innovative marketing,

Strategic human resources management


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a performance-focused organizational culture.

and lean operations.

Human resources practices

Shaped shareholder value by means of low turnover, high

productivity, and excellent job satisfaction.

Designed cross-functional work coordination.

Promote organizational culture that emphasizing "LUV" and

"FUN" in a way which is aligned with the airlines business

strategy.


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"FUN" refers to the company's belief that employees should

enjoy themselves at work and its commitment in creating an

atmosphere that encourages customers to have fun.

"LUV" refers to the organizations core values of respect for

individuality and genuine concern for employees.

Selection of right candidates that fit the organization.

Creation of right training programme for the employees.


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Conclusion

Rhoades should focus on continued improvement of

Southwests already verified strategies, with an eye toward

addressing the fresh challenges from opponents. Preserving the

airlines culture of employeeparticipation and enthusiasm that

has contributed so considerably to Southwests success should

be among the highest goals.

group7 southwest case

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