Southwest Airlines
Essays

The book Guts: Companies That Blow the Doors off Business-as-Usual, by Kevin and Jackie Freiberg, is essentially a "how to" book centered around making a company a success with creative thinking put forward by fearless…

Southwest Airlines was founded on the premise that an airline needs to put its customers and their needs at the center of all operations, and further create a customer experience that is highly differentiated, memorable and sought-after by passengers. Southwest has surpassed even its own initial expectations in these areas. The culture of Southwest galvanizes the employees, customers, stakeholders, suppliers and partners into a cohesive value chain all aimed at keeping costs down and increasing lifetime customer value through loyalty (Krames, 2003). Due to its excellent control of costs and aggressive use of fuel hedging, all supported by a very customer-centric, positive culture, Southwest is the only U.S.-based airline to never file for bankruptcy protection, much less ask for a government handout (Rhoades, 2006). Southwest is one of the most unique service businesses in the world due to its ability to translate a core set of values exemplified by a whatever it takes attitude of service to the passenger, friendliness, individual pride, and Company Spirit (Strategic Direction, 2005). Southwest Airlines employees are empowered to take any action that is ethical and legal to ensure customers' satisfaction (Hardage, 2006). The uniqueness and highly differentiated nature of the Southwest culture is also attributable to the thirteen core values that founder and CEO Herb Kelleher put into place with the company was founded (Freiberg, Freiberg, 1996). He wanted to create a culture of accountability, transparency and trust, in addition to allowing employees to be themselves as well. Mr. Kelleher also believed that when employees were fulfilled in their work, they would be willing to go the extra mile for customers as well (Krames, 2003). All of these assumptions turned out to be correct, and led to the definition of the thirteen values the company is based on. These thirteen values include seeking out low cost yet high value solutions to customers' challenges and problems; relentless pursuit of profitability; family; fun; hard work; individuality; ownership; legendary service; egalitarianism; common sense and good judgment in serving customers; simplicity; and altruism. These values are so critical to the success of the company that new employees are screened using procedures to see if they value them, while also submitting to a 360-degree evaluation cycle within six months of being hired (Hardage, 2006). Southwest is serious about keeping their culture highly focused on the thirteen core values, while also ensuring their new hires have an immediate and very clear idea of what it means to be passionately focused on customer satisfaction. No other airline comes close to Southwest's commitment to cultural excellence.

Economic value added is net profit, or it could also be framed in terms of cash flow. The cost of doing business simply the business' cost structure. Net profit is the earnings that go beyond the cost of doing business,…

While all businesses strive to attain profitability, there are those market and industry factors that force organizations and businesses into cost leadership strategies. The intent of this analysis is to explain which…

Microsoft Office Access is a multi-user relational database management system. It is designed to allow user to quickly assemble, display, and share data with others while protecting the privacy of the data and ensuring…

This paper offers a RBV (resource-based view) of Southwest Airlines, followed by a SWOT analysis. Southwest has sustained a competitive advantage by offering low-cost flights with an unusually high level of service, compared with its rivals. Its aggressive fuel-hedging program has also generated a competitive advantage for the firm. It is attempting to address potential weaknesses by offering international flights.

The paper explores the concept and use of derivative tools such as forwards, futures, options and swaps. The subject is examined by looking at the way Southwest Airlines has used derivatives in their active hedging strategy. The potential motivations so hedge as well as potential motivations are discussed. The paper finishes by looking at the results achieved by Southwest Airlines hedging strategy.

Performance is measured in a number of ways. Financial performance is common, but there are other measures of performance as well that can be utilized. Internal performance measures are common to most businesses, and…

Gaining market share in many market segments requires battling competitors on a daily basis to gain new customers and keep existing ones. The use of attack strategies needs to be part of a broader strategic market plan…

Both Ben & Jerry's and Southwest Airlines share many similarities in the ways that they motivate employees. Both use internal as well as external motivational strategies. They use a Theory Y approach, in which employees are assumed to be desirous of seeking self-fulfillment at work as well as a paycheck, and have created unique corporate cultures that serve customers better because employees are more loyal and are happier at work.