Southwest is the leader of all of the airlines in the United States for its ability to attract customers based not only on its low-fares and exceptional service, but also on its ability to change and evolve as it needs to. Southwest takes good care of it employees as well as it pays well in fact it pays higher than the industry, this factor encourages the workers to go out of the box and devise such methods and techniques that differentiate them among other airlines. For example, they use leather seats and in-flight entertainment system for almost the same fare. Moreover, the company has retained majority of the employees with itself as well as it has paid high salaries even above the industry, and this factor generates the sense of not only monetary rewards, but a signal that the airline cares for the employees. James Campbell (2007) explained that emotional competence assists the healthy leader to be optimistic, positive, and compassionate in their actions and behaviours. Two Ways to Fly South: Lan Airlines and Southwest Airlines, OptiGuard, Inc.: Series A-Round Term Sheet, Lemon Tree Hotels: Opening Doors For Everyone, Kamoa-Kakula Copper Investment Opportunity. They are encouraged to offer extraordinary service and their judgments are trusted, whether they are flight attendants or engineers. The profit sharing plan is an example. Similarly, the airline gives an extra-ordinary customer service, which has become the key distinction for the company. The pricing set by the airline is very low, only higher than the two local competitors which makes it unique. Southwest Airlines Company is a Dallas-based passenger airline that concentrates its operations in the United States, with only a few destinations in the international markets (six destinations in the international market). Few low-cost competitors that fly internationally (JetBlue, Virgin Atlantic), Code-sharing with other airlines can save costs of expanding into this market by themselves, International destinations are desirable places to visit for leisure, Uncertainty of economy – not so much money for holiday travels, High fuel costs (not a current issue, but perhaps in the future). It gives the employees the power to decide and devises such methods and a technique that reduces their service time, hence makes them efficient. Southwest claims, “Ownership is the result of believing that you can make a difference, then acting on that belief in everything you do.” Southwest empowers its employees to solve service problems in a timely manner without asking supervisors for permission. In recent years, the global price of oil has caused many airlines to collapse as airlines were forced to raise ticket prices and lose customers. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. Southwest airlines started the business by developing a differentiation strategy. Southwest has a lean structure and informal code of conduct. Similarly, the company played on the element of cost leadership; as it offered low prices that at that time it became difficult for the company to communicate the price as the real price and not the sale price. Mgmt & Organizational Behavior (MGMT … Before changes, the top management was very close to its employees and personally contacts them and celebrates their birthday and events. A five to six hours transcontinental flight with no food and movies would be very boring. Southwest Airlines Case Analysis Case study analysis on Southwest Airlines case for Professor Kohn. Presented By Swagat Sen Gupta 48-B Akshat Jain 60-B Pooja Katiyar 31-B Namit Kewat 23-B Amit Tripathi 6-B Background • In 1966, Herb Kelleher, Rollin King and John Parker formed the company. Please place the order on the website to order your own originally done case solution, Southwest Airlines: In a Different World, Spanish Version. Southwest Airlines tries to save money by simplifying its operating process. Regardless of the choice of entertainment, Southwest would have to pay a lot of money in order to entertain its passengers on long haul flights-and the fares would also increase. Studies explains that organizations could maintain vigour, productivity, and their competitive edge though top management and executives who are healthy, strong, and talented (Gowing et al., 1998). Southwest Airlines stewardesses always let passengers enjoy their journey by telling some interesting jokes and stories, which make many customers enjoy their flight, despite lacking other forms of entertainment. Every employee infects each other with an extreme sense of joy and satisfaction; therefore as a result, customers are also influenced by the employees’ delight and are, consequently, may also feel happiness. Strong financial position: The finances of southwest indicate a $2.3 billion cash flow in the year 2016 and $2 billion return to shareholders through dividends and buybacks. Unions played a great role in the game and were becoming more aggressive in expressing their frustration. In his study, James Campbell (2007) defined courage as “the capacity to act, even in the presence of adversity, fear, and danger”. It lets employees know the profit of Southwest is not only the president’s concern, but also related to your employment security. He explained that of leader is unhealthy then it is not possible to make employees healthy, as leader healthy is the heart of organizational health. The Goolsby Leadership Model shown in Figure 1 elaborates key dimensions of Integrity, Courage, and Impact. The motto is, “Employees are hired for attitude and trained for skill.”. In the case of Southwest, the culture was set by the CEO himself as an example. Studies indicated that the other dimension of integrity is emotional competence, which concerns the integration of thought and emotion, goes to the authentic characteristic of self-awareness (Boyatzis and McKee, 2005). Management. Due to rising oil costs, and other factors such as a weak economy (leading to poor ticket sales), many different airlines went bankrupt and were subsequently absorbed by other airlines. (1998) argued that Organizational health is three-dimensional framework that takes into consideration healthy employees and healthy organization. Since 20… In his study, James Campbell (2007) explained that authentic leaders are “who they say they are”; which mean that there is a consistency between their values, their intentions, their beliefs, their promises, and their actions and behaviours.

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