Southwest Airlines
In many ways, Southwest Airlines was not unlike any other start-up company in the United States at the time, a couple of visionaries with what they believed was a great idea out beating the street for the capital to give it a shot. This road to viability however, was not what the authors of NUTS! Southwest Airlines¡¦ Crazy Recipe for Business and Personal Success; Kevin & Jackie Freiberg, c.1996Broadway Books, really wanted to tell you. Sure, the founders of Southwest, Rolling King and John Parker choose to enter a business that was dominated by giants who tried to thwart the efforts at every turn. And yes, in the end, the little guy¡¦s who were soon to be big boys triumphed and won the chance to compete head to head. The real story however, is the story of way in which Southwest operated from the beginning and has never waned from since its inception, their strategy if you will, of which all of the most important components of success are housed. In the most generic sense, Southwest strategy is to provide the lowest fares with the most flights to any city that Southwest flies. That¡¦s the easy part! Sure, Southwest owes much of its success to the pursuit of this strategy. But as the book points out, being the low cos
„Y Take the competition seriously, but not yourself. The next component of Culture is Philosophy, ¡§your worldview or attitude toward life. The attitude and the feel of corporate communities are determined by corporate philosophy.¡¨(1) The book Nuts! Points out that Southwest Airlines¡¦ philosophy includes eleven primary attitudes: „Y It¡¦s difficult to change someone¡¦s attitude, so hire for attitude and train for skill. Most of the employees at Southwest believe that profitability is essential and that it drives the company¡¦s growth and is directly linked to profitsharing and to job security. Low Cost is absolutely fundamental to Southwest¡¦s operating strategy and employees continually look for ways to save without sacrifice. The company fosters intimacy and informality to build strong relationships and a fun work environment by treating employees like family. Southwest encourages its employees to not take themselves too seriously focusing on fun. Employees are encouraged to conduct business in a loving-manner. Southwest operates lean which requires everyone to do their part thus hard work is an integral part of their culture. Individuality is encouraged freeing employees up to be themselves and express their gifts and talents. Southwest allows their employees to participate in the financial benefits of ownership; when the company does well employees are rewarded. Respect and dignity is a cornerstone of Southwest¡¦s culture and the key to providing their unique brand of ¡§Positively Outrageous Service.¡¨ Southwest¡¦s executives are expected to do the things they ask other to do operating under the principal of Egalitarianism. Good judgement and common sense are expected and encouraged allowing the proper relationship of service before rules. The fast pace of Southwest¡¦s operations combined with the need for low cost bring to light the importance of simplicity and Southwest encourages its people to operate in a manner that maximizes simplicity. Finally, Southwest believes in giving back and fosters acts of good will and people who are ¡§other oriented¡¨. „Y Employees are number one. The way you treat your employees is the way they will treat your customers. Without a doubt, it is the cohesiveness, clarity, and communication of these fundamental, guiding principals that provides Southwest Airlines with its sustainable competitive advantage. Southwest Airlines is truly an organization that celebrates is rich history and battle born sprit, sticking too those guiding principles that made it a viable, no successful business right out of the gate.
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Approximate Word count = 2055
Approximate Pages = 8 (250 words per page double spaced)
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