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..you've got to take time to listen to people's ideas. If you tell someone no, that's and act of power and, in my opinion, an abuse of power. I don't want to constrain people in their thinking" (71).
Today the biggest asset Southwest Airlines has is its employee loyalty. Always considered to be valued employees over profit and money and this is exemplified by the fact that the airline has never had a lay off of any kind - with the exception of laying off three employees early in the business but hired them back in a short amount of time. Southwest's company loyalty to their employees has made them stronger organization and has saved them a significant amount of money. Trust and security shown by Southwest employees is evidenced in how they do their job. There definitely exists a bond of loyalty that is hard to break, as the employees know they have a future in the good times as well as the bad times. In addition the management segment of the airline believes front line employees are the most important assets of the airline. In fact Kelleher management...
Another significant aspect of employee loyalty within Southwest Airlines is the company's willingness to make the employee part owner of the airline itself, namely in providing employees a stock option plan. Today the employees now own 10% of the company's outstanding stock. All in all, the seemingly limitless employee loyalty is clearly evident in the airline's day-to-day operations of the airline as they go out of their way to make sure the airline stays on time to continually accommodate the traveling customer. There is no doubt that the success of Southwest Airlines is a reflection of the company's goals and management style.
Works Cited
Huey, John. "Outlaw Flyboy CEO's, Two Texas Mavericks Rant About the Wreckage of the U.S. Aviation Industry." Fortune 13 November 2000: 237-52
Katrina, Brooker. "What it Took to Make Southwest Airlines a Great - if Wacky - Company. How Did He Do it?" Fortune 28…
Works Cited
Huey, John. "Outlaw Flyboy CEO's, Two Texas Mavericks Rant About the Wreckage of the U.S. Aviation Industry." Fortune 13 November 2000: 237-52
Katrina, Brooker. "What it Took to Make Southwest Airlines a Great - if Wacky - Company. How Did He Do it?" Fortune 28 May 2001: 62-85
Southwest Airlines: The corporate culture of the LUV airline Southwest Airlines is known for a unique corporate culture that is particularly distinctive, in contrast to its competitors. Southwest Airlines has "a raucous corporate culture that is the exception in the grim airline industry" (Bailey 2008). From the Airline's inception, its founder and chairman, Herbert D. Kelleher ensured that there was "a startling amount of office hugging and kissing in lieu of
Southwest Airlines has been a model of success for the past forty years. It is a success based on company values, on low prices, on business innovation, and on the quality of the service, among other elements. The company built on these values and used an adequate promotional campaign and strategy to build brand loyalty. Today, many of the company's clients use its services because of what is known as
The secondary gross margin measure, Gross Margin after Depreciation, shows the costs of having a rapidly growing infrastructure to support new routes and the purchase of additional planes over the five-year period. The reduction Gross Margin after Depreciation would be flat or slightly down during a strong economic period as well. This measure of gross margin indicates that the capital investments that are often amortized over seven years as
There are many examples of this throughout the company's history, all pointing to the fact that employees who have a strong sense of ownership and wiliness to sacrifice for the greater good. Southwest's ability to translate cultural values into financial performance while embracing, even attacking change, in their industry is what fuels their profitability. Through the worst recession in 40 years, Southwest has been able to generate positive Return
Southwest's interest coverage is comfortable, at 3.909. Southwest's operating leverage is high, as they are in a low margin business. They had a negative change in EBIT over the period, as did AMR, despite both having higher sales. Southwest's combined leverage is 1.505, much stronger than AMR, which suffered a huge decline in earnings per share despite having higher sales. 10) the weighted-average cost of capital for Southwest is 0.56%.
Southwest Airlines Organizational Culture Analysis of Organizational Culture at Southwest Airlines Application of the OCP Framework Developing Organizational Culture at Southwest Airlines Implementation of Organizational Culture Organizational Culture as an Important Determinant of Organization's Success Southwest Airlines is a world renowned air travel company and a low cost leader in airline industry of USA. Formed in 1971 by Rollin King and Herb Kelleher, the company is committed to "providing highest level of customer service with