Taking into consideration Spirit Airline’s current financial position and operational factors, a specific cost-cutting investment will be proposed in this paper. It is important to note, from the onset, that to remain relevant in an increasingly competitive business environment, entities must continuously embrace approaches that not only enhance their efficiency, but also reduce their costs. This is more so the case in the Airline business where competition for passengers continues to be tough – with entities adopting various strategies to win over the said passengers.
An ultra-low-cost carrier, Spirit Airlines remains one of America’s most competitive commercial airlines. To guarantee its place on this front, the airline ought to further cut its costs. This would effectively cement the airline’s position as the cost leader in the industry. In the words of Beers (2018), “the major expenses that affect companies in the airline industry are labor and fuel costs.”…… [Read More]
IPO of the company 'Spirit Airlines, Inc.'
Identify the company and its industry
The industry chosen for the analysis is the aviation industry, particularly a niche called the 'The ultra low fare air carrier'. This is a peculiar type of niche that other airlines especially the giants cannot enter into. From the time of it's founding the company under analysis -- Spirit Airlines has followed the principle of operating at low cost and keeping the passenger cost to the minimum which has been its major strategy. The company overview for Spirit Airlines, Inc. shows that by June 30, 2010, it operated a fleet of thirty one Airbus narrow-body aircrafts. The company was formerly known as Charter One and the new name Spirit Airlines, Inc. was assumed in 1992. It is based in Miramar, Florida. It has about two thousand employees and the CEO is Mr. B. Ben Baldanza. The company…… [Read More]
Based on internal and external assessment, this paper provides strategic recommendations for Spirit Airlines, Inc. Flying to more than 50 destinations in the Americas and with more than 100 aircrafts in its fleet, Spirit Airlines is one of the largest ultra-low cost airlines in the U.S. The paper is organized as follows. First, the two major issues or challenges facing the company are identified. Next, strategic options for addressing the issues are considered, clearly highlighting the advantages and disadvantages of each option. Based on the evaluation, recommendations for the two most viable options are presented. Finally, a brief plan for implementing the recommended options is provided.
Major Issues and Challenges
Though Spirit Airlines enjoys a significant cost advantage, it grapples with poor customer satisfaction. Indeed, the airline has been ranked as the worst airline in the U.S. in terms of pleasing customers. Customer complaints against the…… [Read More]
FedEx Express Airlines (Case Study)
In this case study, we will be looking at FedEx Express's hub airports. The airports will include Memphis International Airport (MEM) and Indianapolis International Airport. The focus will be mainly on capacity, traffic, and what is planned for the future of these airports.
FedEx Corporation is one of the largest companies in the courier industry. The company is renowned not just nationally in the United States, but internationally. FedEx Corporation belongs to the parcel service industry segment. The size of the industry segment is quite large in the sense that in the past fifteen years or so, consumers in America have spent beyond fifty billion dollars in shipping packages, parcels and also letters. Also referred to as Federal Express, the company is a big player in the segment and is positioned as one of the trailblazers in the industry segment (FedEx Corporation, 2014). The following…… [Read More]
Since its inception, Southwest Airlines has grown significantly to become one of the most reputed, low-cost, and longest-standing airline that offers the largest number of domestic flights within the United States. For more than four decades now, the company has been able to sustain its appeal to consumers and its low cost originator image, even though that discernment and view has now become more of an old tale than the present reality. The airline company has done well to increase and improve its market base all over the United States; however, it lacks presence in the international market.
SWOT Analysis is a valuable and convenient tool employed for understanding a firm's strengths and weaknesses, identifies the opportunities available for the organization and the threats it faces. In the business realm, an organization can utilize this technique in order to attain a sustainable share in the market. The company…… [Read More]
By the turn of the century, though, these low-costs carriers had become profitable or at least had significantly reduced their losses due in large part to concomitant increases by major carriers that were increasing their prices in response to decreasing yields and higher energy prices (Doganis 2001).
By and large, passenger traffic across the board increased significantly prior to September 11, 2001 and all signs indicated it was continue to increase for the foreseeable future. For example, according to Janda, Flouris and Oum (2005), global air passenger traffic increased from 1.573 trillion revenue-passenger-kilometers (RPK) in 1985 to 3.394 trillion in 2000, representing a 116% increase during this decade-and-a-half period, or an average annual compounded growth of 5.26%. Furthermore, between 1985 and 2000, air freight traffic grew at even faster rate than passenger traffic (Janda et al. 2005). These authors also emphasize airlines are directly affected by the larger economy in…… [Read More]
And many have got successful too in earning the market share. The emerging competition by new companies is a growing threat for the company and it should be tackled properly to avoid any future disturbances.
In order to further describe the competition Southwest Airlines is facing a Competitive Profile Matrix is designed. The following Competitive Profile Matrix tells about the tough competitors which are in a good position to have an edge over Southwest Airlines. It tells about the strengths and weaknesses of other competitors in contrast with Southwest Airlines.
Factors Weight Southwest Airlines United Airlines Delta Airlines Ratings Score
Score 1. Low fares.15 4.60 3.50 4.60 2. Customer Service.15 2.30 4.60 3.50 3. Employee Relations.15 4.60 3.50 3.50 4. Rate of Expansion.10 2.20. 4.50 4.50 5. Marketing.15 4.60 4.50 4.50 6. Finance Structure.15 4.40 4.40 4.40 7. Management Policies.15 4.60 4.60 2.20
EXTERNAL FACTOR EVALUATION MATRIX
The external…… [Read More]
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 ollin King and Herb Kelleher, the company is committed to "providing highest level of customer service with pride and caring" to its varied market segments ranging from leisure travellers to freight transportation. The two most important stakeholders for the company are its employees and its customers. Southwest Airlines owns 520 different types of aircrafts and serves 411 cities and 63 million customers at 59 airports in 30 different states within the United States with its nonstop air travel service (Southwest Airlines Inc., 2010).
The major reason for company's 35 years of phenomenal…… [Read More]
Another initiative is to continue the work of integrating AirTran. This will allow the airline to expand their network to fly to more destinations and spread their low fares even farther (Gary's Greeting, 2012).
Southwest's initiative to refurbish their cabins is being called "Evolve: The New Southwest Interior." For the average customer, the differences probably won't be so obvious which is why Southwest is calling this an evolution rather than a revolution. The tones of brown and blue will be familiar, but with a closer eye, one will be able to see the changes. The changes will include:
Modern Cabin Design: The new design incorporates natural, earthy tones combined with Southwest's iconic Canyon blue and clean, aluminum accents for a more modern, fresh appeal. The redesign is inspired by Southwest's past with a nod to the future.
Lighter and More Comfortable Seat: The redesigned low-profile seat is more durable, made…… [Read More]
outhwest Airlines (WA) has been a strong growth company for the last 40 years mainly due to its focal point on cutting costs. outhwest Airlines (WA) follows the Cost Leadership trategy in terms of Porter's four generic strategies and is the epitome of Blue Ocean trategy in its simultaneous pursuit of differentiation and low cost (Kim & Mauborgne, 2009.
That WA is cost-focused is evident from Liang et al.'s (2009) analysis of strategies that a company uses to differentiate itself. A successful company stands out by its association in the public's mind, and WA certainly stands out. Rollin King and Herb Kelleher's objective was: "If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline" (The Rise of outhwest Airlines) and its name,…… [Read More]
Classic Airlines Case
Classic Airlines is going through a period that will shape the future of the company. The competitive landscape is evolving and operations and marketing have not kept pace meeting the needs of their target market. As a result some of their key stakeholders and loyal customers have been attracted to the services of competing airlines. This has had significant implications on the bottom line as the organization has been impacted by poor sales and decreased revenues. Additionally, the company has simultaneously had to deal with negative publicity, declining stock prices, as well as increasing prices for fuel which has affected the entire industry.
Classic Airline's executive management team has mandated that a fifteen percent cost reduction is vital to stabilize the position of the company and should be executed within the next eighteen months. To examine the current position of the company a nine step decision making…… [Read More]
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 eturn on Investment (OI), eturn on Assets (OA), and eturn on Equity (OE).
Sustaining and Strengthening the Culture Given Strategic Decisions Made
The case study shows that while Southwest excels with their culture from a purely customer service standpoint, their leadership and management of maintenance, repair, overhaul and support has been a weakness that in 2007 became a liability. Southwest had failed to create a culture of transparency and accountability to the point of whistle-blowing in its maintenance organizations. As a result…… [Read More]
That is primarily due to the spirit of teamwork the company instills on human workforce. Another reason for success in this regard is the maintenance of certain rules and principles followed by everyone: the CEO, Vice-Presidents, pilots, flight attendants, and receptionists. For example, flight attendants do not necessarily wait until people from a specific department come in and clean up the plane seats; they do the task on their own if they have to. Pilots start carrying bags if they see there is a need for that. They do not as, a general rule, avoid responsibility, which allows different parts of HR systems work together. SW also ensures teamwork that avoids conflicts between different parts by encouraging cross-departmental collaboration and training. For example, pilots participate in the recruitment process, helping to hire other pilots. SW developed a dynamic training program to ensure smooth HR management across different systems. New flight…… [Read More]
Classic Airlines Marketing Solution:
In addition to being the fifth largest airline company across the globe, Classic Airlines has a fleet of over three hundred and fifty jets that operate in approximately 240 cities with over two thousand daily scheduled flights. Since its inception about twenty-five years ago, the airline company has grown into an organization that consists of 32,000 workers. In the year 2006, the company not only made sales worth $8.7 billion but also gained a profit $10 million as a result of the bumper sales. egardless of these sales, Classic Airlines is not an exception to the challenges that existing airlines have encountered since 2007. Actually, despite making these abundant sales in 2006, the airline experienced a 10% decrease in its share prices because of the growing uncertainty about flying. This growing uncertainty did not only affect Classic Airlines but also affected the general stock prices of…… [Read More]
The company should focus on expanding its service trans-North America, and should further look into the possibility of launching trans-Atlantic operations. The company at the same should start dealing with Boeing for the purchases of advanced aircrafts.
The company should emphasis more on providing insurances of the passengers.
The advertising campaign should be evolved with new spirit irrespective of how well the come performs; the advertising campaign should be in run.
The employer has to be pushed, and it is important for the executives to work and handle the employee in cordial and healthy environment i.e. fun and love.
The present CEO and his secretary have renewed their commitment towards achieving all possible alternatives, and have taken concrete measures in this regard.
The company has to handle it rival with more convincing manner, it is equally important to avoid repeated court battles.
The company should start expanding…… [Read More]
Classic Airlines (CA) must compete in a dynamic 21st century global economy with a limited budget and the prospects of limited capital resources. Therefore, profit maximization becomes a function of performance management of fiscal, customer, and facility operations. Streamlining of operations will not only save on internal operating costs, the analysis will also remove processes that do not add value and to which customers may not want to experience in the first place. For example, "I know you may need to automate customer service control costs, but there should always be the option to talk to a real person." (Boyle, 2004)
The program membership into the company frequent flier program is 80% business travelers and 20% leisure travelers
. Core operations and customer service practices should be centered around the expectations of this class of customer. The process with respect to the trip a business traveler expects to receive on…… [Read More]
Southwest Airlines Analysis
Established in 1971 by Herbert D. Kelleher and several business partners, Southwest Airlines has secured a strong position in the airlines industry over the last 35 years. Southwest and its wholly owned subsidiary, Air Tran, serve a combined 103 destinations in 41 U.S. states, the District of Columbia, the Commonwealth of Puerto ico, and six near-international countries (Johnson, 2011). Both entities combined offer over 4000 daily flights. The Southwest Airlines corporate vision and self-concept is "America's low-cost, low-fare airline" (West-Grubbs, 2005). This is more than an espoused philosophy -- it's part of an operational model that is permeated throughout all business operations.
Short "peanut" flights are the airline's specialty. Southwest operates almost exclusively with only one type of plane in its fleet -- the Boeing 737 -- a quieter, more fuel efficient, and easier to maintain model which has helped reduce costs. Profit potential is the driving…… [Read More]
There are many different pathways to success for companies, and as a result successful organizations can have distinctly different cultures. This paper will examine a couple of different companies – Southwest Airlines and Koch Industries, to examine their different cultures, and how those cultural differences have emerged, and support the overall business objectives of those two organizations.
Culture of Southwest Airlines
The Southwest Airlines culture is one of the more celebrated organizational cultures in business. The company is based around \" A warrior spirit, a servant\'s heart and a fun-loving attitude.\" A focus on fun-loving is more to the day-to-day, as the servant emphasis, but the warrior heart showcases that employees at Southwest are expected to rise to the challenges that they face, and overcome obstacles in their service (Makovsky, 2013).
These values are even reflected on the company website. For example, this month the Star of the Month…… [Read More]
For short haul routes, customers have the option of driving or even taking the train. There are often low switching costs associated with driving. As the hassles associated with flying have increased, switching has increased as well. hile flights on longer routes are faster, there is often a price-performance tradeoff. The longer the flight, the lower the threat of substitutes.
The intensity of rivalry is high in the airline industry. There is little to differentiate airlines. Each airline has high fixed costs. Exit costs are high, as each airline has high fixed costs and only operates in the airline industry. In addition, the industry is subject to intermittent overcapacity. In addition, the service is highly perishable -- an empty seat cannot be resold later. This spurs intense competition to fill airplanes. ith low switching costs and a low diversity of rivals, there is a high degree of rivalry.
The airline…… [Read More]
An Examination of Southwest Airlines
Globalization and Technology
Application of the I/O Model
Application of the BV Model
Mission and Vision Statement
Southwest Airlines has been one of the aviation industry's success stories; founded in 1967 the airline pioneered the low cost carrier model, and grew organically leveraging a first mover advantage (Morrison, 2001). The airline now operates approximately 3,600 flights every day, employees 45,009 staff and with the acquisition of AirTran in 2011 it became the largest domestic U.S. carrier (Southwest Airlines, 2014). The airline has grown, but in recent years the airline industry has seen significant constraints on growth due to the maturity of the industry in the U.S. along with the economic influences constraining growth (IATA, 2014). However, this does not mean there is not room for growth; to assess ways in which the firm may improve and understand the position of…… [Read More]
start an analysis of Southwest Airlines and its success story is the company's mission statement. According to the company's website, the company's mission is "dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit"
If we take a brief look at this mission statement, we may find that, differently from many of today's companies, Southwest's mission is not profit maximization, but achieving customer satisfaction through the quality of the services provided. Additionally, the mission statement refers to the joint collaboration and mixture of Company Service and Company Spirit, in the sense that one cannot truly operate and exist without the other. A friendly and efficient working environment is, in Southwest's opinion, a key towards achieving the highest level of customer satisfaction.
The generic strategy for Southwest relies on several important pillars, some of them deriving from the mission statement. The…… [Read More]
As the value proposition that the company was based on, the attractiveness of flying when it is equal to or less than the cost of gasoline for the comparable trip has helped to create a unique niche for this airline. Their reliance on regional airports within 500 miles of each other has also contributed to the unique value proposition being realized for millions of customers a year.
Southwest Airlines Internal Analysis
SWA is well-known for its ability to keep costs down by concentrating on smaller, less expensive and less congested airports in conjunction with relying only on one type of aircraft, which is the Boeing 737. It has been well-documented that SWA achieves significant training and maintenance cost reductions as a result of relying on a single type of plane (Southwest Airlines Investor elations, 2009). Standardization on a specific type of jet has also enabled the company to streamline and…… [Read More]
Customers complain of smaller cramped seats and hence an uncomfortable flight experience. This is because Southwest wants to accommodate as many passengers as it can in one flight and its seats are thus smaller than those found in other airlines. This is especially uncomfortable for those who need extra space due to physical challenges.
The other weakness of Southwest is its customer on-plane experience. Owing to the cost concern, Southwest put as many seats as possible in the planes and only single class seat, economic. It means that the size of a seat in Southwest's airplanes is smaller than a seat in other airlines' aircrafts. Thus, there are some customers could feel uncomfortable with the smaller seats because those customers' physical issues, like the football players. Therefore, the Southwest might loses the business of those customers with special issues.
The threats always come from external environment. And external environment…… [Read More]
The following definitions may be helpful.
Category 1 APUs are installed where in-flight auxiliary power operation is necessary. Category 1 APUs are usually required for essential APU installations. These APUs have been shown to meet all of the test and analysis requirements of the Minimum Performance Standard (MPS) of TSO C77b, Appendix 1.
Category 2 APUs are installed where in-flight APU operation is not necessary (non-essential installations).
Both Category 1 and Category 2 APUs are acceptable for non-essential APU installations. Category 2 APUs are not required to meet all of the test and analysis requirements that Category 1 APUs are subjected to. (See TSO C77b, Appendix 1, for the detailed requirements). (Category 1 and Category 2 APU, 2005). (See Appendix a for another example of an APU)
History (may need something different for this part - raw research) significant early demonstration was of the first liquid-fueled, fuel cell APU on…… [Read More]
When we are discussing the airline industry and the companies involved here, we need to differentiate between two periods: before the attacks of 11th of September 2001 and after the attacks, because the changes in the economic, social and political environment were so tremendous that they have changed everything radically, both in perceptions and in actions.
efore September 2001, Continental had had a troubled period during the 80s and at the beginning of the 90s, characterized by heavy losses, periods of economic default and bankruptcy. The coming of Gordon ethune, president and COO, later elected CEO, changes began to take place within the company. These changes generally acted on four different plans: financial, marketing, product and people/employees. The success was almost immediate, with increasing value added for the customer, a better atmosphere in the work place and a different attitude from the employees, stimulated by subsequent bonuses and prizes.…… [Read More]
culture in an organization using Southwest Airlines as a model. It uses Geert Hofstede Four Dimension of Culture to analyze the company and provides an over view of how the company's policies enable it to secure a top position in the industry. It uses 5 sources in MLA Format.
Globalization has changed the way people do business today. Factors like strategies, resources or capacity to produce has become secondary to business agendas. Instead today businesses and businesspeople are more concerned with how they can achieve the maximum productivity and prosperity through alliances. These alliances often span far and wide, pilfering to foreign cultures. Often the alliances prove beneficial to the companies because of observation and approach companies take to deal with partner company's culture. On the other hand there are also cases where the alliances have resulted in losses because partner companies fail to understand each other's culture. For instance…… [Read More]
The cost to run an airline is not cheap by far. Millions and millions of dollars are being spent every. In fact, the Middle Seat requested U.S. Airways and referring firm Oliver Wyman to crunch airline expenditures down to the percentages that an individual passenger earns, taking a difficult look at expenditures of running an air company. With that said, this essay will explain what expenses and costs face today's air industry and also evaluate what the current fuel costs due to the industry and how they affect the ticket prices and the patrons' flying occurrences.
Fuel and Labor
Research shows that Fuel is considered to be the most vital operating expenditure of a commercial airline (28%), the next is by labor (25%). Furthermore, studies show that Labor represents about 75% of all non-fixed prices of airline procedures (Airlines for America, 2015). Downsizings are therefore the first strategy…… [Read More]
Practically, the company's management has succeeded to give the employees the feeling that it is not only their job that matters, but them as persons as well. This attitude usually leads to the feeling that the reason for which one comes to work and does his job properly is not the obligation, but his personal satisfaction and pleasure. I consider that all big companies should adopt a policy as such and give their employees the feeling they are highly appreciated and valued.
On the other hand, it is clearly enough that the financial benefits are of great importance as well, because this is the ultimate end of any path in developing a career. Thus, as mentioned above, the fact that the company rewards its people for bringing improvements inside must be a successful policy, as people are practically motivated to do their job and are encouraged to contribute more to…… [Read More]
One of the criticisms
A resource-based view of the firm:
A report on Southwest Airlines to the Board of Directors and CEO
We can be proud that Southwest Airlines has been able to weather the ups and downs of the 21st century economy even while other carriers have struggled. Our airline is a budget, regional carrier with an edgy attitude and an almost cult-like following amongst its loyal patrons. However, consistently sustaining a value-enhancing corporate culture from year to year can be a challenge. This paper will enable Southwest to have a better sense of its internal resources as well as external threats. It will offer a resource-based view (BV) analysis of Southwest Airlines' superior competitive position followed by a SWOT (strengths, weaknesses, opportunities, and threats) analysis.
Southwest began as a regional carrier that gradually has tried to expand its offerings nationally and internationally. It pioneered budget-based flying,…… [Read More]
All of the employees on an airplane, for example, could form themselves into a vertical bargaining unit if they chose, the unit including stewards and stewardesses, as well as pilots. Similarly, in a school, teachers, janitors, and office staff could all form a vertical unit. In contrast a horizontal bargaining unit unites all those who perform similar work. The fact that the pilots at Spirit Airlines belong to a pilots union that includes pilots from other airlines means that they constitute a horizontal bargaining unit. As well, teachers in the Chico school could form a horizontal bargaining unit if they joined with other teachers at different schools, and even in different districts. Members of a bargaining unit agree to work together because they share common interests and goals. Bargaining units appear either as elements of unions or as workers uniting for a common purpose. An entire union is also frequently…… [Read More]
Port Everglades is a predominantly industrial area, with a container port and cruise ship port. Overall, however, noise levels at FLL for all airlines are below the federal standards.
The effort to manage noise pollution at FLL is ongoing. The airport authorities have submitted Noise Mitigation Principles to the FAA and are awaiting feedback on a preferred alternative for noise mitigation. The Broward County Board of County Commissioners also has a consultant to implement the noise mitigation program forthcoming.
The growth of FLL has mirrored growth in the region. The population of South Florida is expected to grow a further 25% by 2020. This will increase the strain on FLL. The lands adjacent to the airport are all developed, so there is little room for expansion. The 9R/27L runway, for example, cannot be expanded to accommodate jet traffic because of the course of I-95. Therefore, flights on the 9L/27R…… [Read More]
During the year 1972, the All Houston service was transferred to Houston's Hobby Airport from Houston Intercontinental. This move was prompted by Kelleher who said that after all why customers have to drive 45-minutes to take a 40-minute flight. With several illustrious years, the year 1977 saw SWA carrying its fifth million passengers and its shares are listed in the NYSE as "LUV." In 1978, Kelleher took the reigns from the outgoing President Lumar Muse and becomes the interim CEO and the Chairman of the Board. SWA's airline N52 is named as the "Herbert D. Kelleher" to honor the co-founder of the airline. In the later part of the year, Kelleher is given the post of permanent Chairman of the Board. ("We weren't Just Airborne Yesterday: Times flies when you're having fun," 2007)
The year 1982 saw Kelleher become the permanent President, CEO and the Chairman of the Board for…… [Read More]
you pick 2 companies write their motivation techniques. I pick intrinsic motivation and extrinsic motivation. And compare companies. Do papers have database, searches people pulled web. You find UOPHX Website writes companies listed, pick.
Motivating employees at two companies:
Ben & Jerry's versus Southwest
Motivational theories by their very nature address companies in a fairly generic, prescriptive format. However, two corporations exist that continue to be very successful, after many years of impressive financial growth, seem to break all molds, yet confirm one of the most noteworthy theories regarding what motivates employees -- intrinsic vs. extrinsic motivation. Ben & Jerry's began as a small company based in Vermont that, despite or because of its ethical ideals, has become an integral part of American culture. Ben & Jerry's changed the way Americans consume ice cream, shifting the focus from quantity to quality. Southwest Airlines is a largely regional airline…… [Read More]
corporate culture at outhwest Airlines. Provide concrete examples of how its culture is displayed.
The mission of outhwest Airlines tells it all:
We are committed to provide our employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of outhwest Airlines. Above all, employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every outhwest customer. (About outhwest. southwest.com http://www.southwest.com/html/about-southwest/index.html)
The corporate culture in A is epitomized by a sense of 'goofiness' and fun leading colleagues to not only maintain a friendly environment amongst themselves but to also seep these good spirits down to clients. Employees, for instance have been allowed to work in pajamas for a day and rocking chairs are placed by meetings. Employees are respected. They are referred to as 'people', and the…… [Read More]
Investing in Each Other: Southwest's People-Management Strategy
Southwest Airlines' overall people-management strategy is focused primarily on achieving good customer relations (Gallo, 2013). The basis of good customer relations, however, is good employee relations. When employees feel valued by employers, that value is passed on from employees to customers, so goes the theory according to Southwest founder Herb Kelleher (Gallo, 2013). It is, in effect, a top-down strategy of appreciation and "spirit of mission." The spirit of mission at Southwest Airlines is defined as a "warrior spirit" -- a cumulative effort by the entire workforce designed to facilitate a family-like atmosphere all the way around, from management to subordinates to customers: all are treated like members of one big family -- such is the basic environment in which the airline's people-management strategy is situated (Gallo, 2013). However, as researchers reveal, there is even more to the Southwest story. At the heart…… [Read More]
Business - Management
Southwest Airlines is the nation's low fair, high customer satisfaction airline. It mainly serves short haul cities, offering single class air transportation, which aims for the business commuter as well as leisure travelers. "The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit" (About Southwest, 2010). Southwest's mission statement expresses its core competency in its dedication to the highest quality of customer service. Their strategy is explained for providing this high quality customer service by providing warmth, friendliness, individual pride and company spirit. What their mission statement does not state is the organization's strengths, values and purpose. They also don't explain what the organization is trying to accomplish. These are two very important things that should be included so that the mission statement would be complete.
Southwest Airlines uses…… [Read More]
Organizational Behavior and Teamwork
Southwest Airlines, Inc. has become an example of notable success. One reason for its significant achievement is its application of Reinforcement Theory to its employees. These applications have resulted in a highly motivated workforce, which is intimately tied to Southwest's success among business leaders. Even so, not even Southwest can satisfy its employees' needs according to Maslow's Hierarchy; rather, Southwest can only give some raw materials for satisfying those needs.
Are Southwest Airlines Inc. leadership and policies fulfilling Maslow's Needs Theory stages?
Abraham Maslow's 5-stage needs theory, developed in the United States during the 1940's and 1950's (Chapman, Abraham Maslow's Hierarchy of Needs, 2010), includes the following stages: biological and physiological needs; safety needs; belongingness and love needs; esteem needs; and self-actualization (Chapman, Abraham Maslow's Hierarchy of Needs, 2010). The most basic needs that are basic to survival and are at the bottom…… [Read More]
Terrorist Attacks on New York City
Consumer ehavior and Risk
Terrorism and Consumerism in the Melting Pot
How has September 11 Impacted Americans
Economic Impact of terrorism
Outlook for the New York Economy
Examination of the Effects on usiness
Regaining Consumer Confidence
Recommendations for Further Studies
Survey of Consumer Patterns After The September 11 attacks on the World Trade Towers
Survey Results presented Graphically
Store Owner Interviews
The Impact of the Terrorist Attacks on New York City: One Year Later Chapter 1
The attacks on the World Trade Towers on September 11, 2001 threatened the American People's sense of security in a way that had not been felt since the attack on Pearl Harbor. To say that the attacks changed the lives of many people would be an understatement. The attacks literally brought the country to a halt for nearly three days. It can…… [Read More]
According to these airlines, the public can help by contacting their Congress people.
According to the airlines in question, there are in fact (or have been) regulations in place in order to discourage the phenomenon of uncontrolled speculation and manipulation in world markets. These have however been weakened or removed, resulting in the rapid rise of fuel prices today. The claim is in fact that rising demand and diminishing supply cannot account for the rise in oil prices that have been experienced over the last year.
Alexandra Marks (2008) also addresses the role of the Government in encouraging higher fuel prices. According to airline industry experts and analysts, Congress is not doing enough to curb speculation. If this is not done very soon, according to these experts, the aviation industry could face a collapse in the not very far future, that is in danger of crippling the economy of the…… [Read More]
Business - Management
Strategic Management Process/Vision, Goals, Objectives
"The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit" (Southwest Airlines, 2011).
A mission statement defines the company's purpose and primary goals. Its main function is internal to classify the key measure or measures of the company's achievement and its prime viewers are the leadership team and the stockholders. A good mission statement should: express the core competency of the business, including the organization's strengths, values and purpose, state the organization's overall strategy for determining long-term success, explain why they organization exists and explain what the organization is trying to accomplish (Mission Statements and Vision Statements, 2011).
Southwest's mission statement expresses its core competency in its dedication to the highest quality of customer service. They explain their strategy for providing this high quality customer service…… [Read More]
In the case of electronic ticketing, while the overall risk of the actual process of electronic ticketing has proven to be minimal for implementation, it is still very important that we run risk evaluation tests in order to see if the integration of the model of electronic ticketing will gel into out company structure as well as it has for other business structures.
Each of these eight areas is established throughout the process of any project management. In the very first stage of initiation, keeping in mind the phenomenon of electronic ticketing and its history, it will be very important to establish an integration program and a scope dimension in order to make clear the overall implementation process of the new technology across the company. Developing a business case here will therefore serve the purpose of defining the integration strategies and the overall potential scope of the technology within the…… [Read More]
Dierct Air - Management & Marketing Mistakes
The following case study employs the array of industry metrics discussed above to determine major factors that contributed to Direct Airways filing for Chapter 11 bankruptcy during the time period from 2007-212. This time period was chosen because SEC filings at that time available, providing valuable insight into the stark differences between the two airlines. Direct Airways was a major U.S. carrier that was founded in 2001 and operated for 7 years until it fell into bankruptcy in 2001. This terminated an unrestrained years for Direct Airways, which filed for Chapter 11 bankruptcy last year of 2012 (Jayanti).
I understood that already the subject of a federal investigation by transportation regulators, the outdated charter service Direct Air long ago would soon may be facing a far-reaching investigation of its finances by the bankruptcy trustee (Bomkamp). The lawyer governing Direct Air's bankruptcy went ahead…… [Read More]
In fact, he is not taking any salary or bonus until Continental becomes profitable again (some experts think that could come about this year). Work culture is extremely important to him. He says, "I am a huge believer in the work culture here,' Mr. Smisek says. 'We call it "working together" but what I like to say is that we treat people "like your momma taught you to" - as we would like to be treated'" (Lemer, 2010). Smisek is candid and not afraid to speak out about government rules and guidelines, and he is frank and honest about what he can and cannot do. He is a strong leader because he makes his point firmly, is trustworthy, and cares about the airline he manages.
Gary Kelly is also passionate about his airline and its success. When asked how he sees the future, Kelly responds, "So, it remains to be…… [Read More]
Qantas Carbon Footprint
Qantas corporate governance statement mentions that Qantas has an appropriate corporate governance structure to ensure the creation, protection, and enhancement of shareholder value (Qantas, 2012). Based on this statement alone it seems as if Qantas does not promote a triple bottom line or any other measure of sustainability in the summary of their corporate governance strategy. Other firms in the airline industry make a stronger dedication to social and environmental issues in their corporate governance. Continental for example has significantly more mentions of such causes as well as a plethora of various projects to address these causes (Continental Airlines, 2012). Although Qantas does address such business functions later in their document, their corporate governance strategy seems to be more focused on shareholder value than a more balanced scorecard.
In response to pressures to mounting pressures to address ecological concerns about issues…… [Read More]
Assessing the Culture of Southwest Airlines
airline to never declare bankruptcy and stabilize its customer base during recessionary periods over the last ten years, Southwest Airlines has consistently been able to translate their unique vision, mission, and values into consistently profitable performance (hoades, 2006). The mission statement of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit (Strategic Direction, 2005).
The culture of Southwest Airlines is highly egalitarian in nature, designed to enable a high degree of information and knowledge exchange due to the flat layers and small span of control (Hardage, 2006). The founders of Southwest deliberately constructed an organizational structure contributes to rapid collaboration and openness of communication (hoades, 2006). The culture is also anchored in the highly non-conformist nature of the founder and CEO Herb Kelleher who infuses an…… [Read More]
Chassidic fundamentalist environment in a part of Williamsburg in Brooklyn NY. She lives with her parents but has often been thrown out of the house and has other times tried to run away. She is 19 years old, and works fulltime as a nursery teacher, a job that she detests and that her mother forced her into. She has minimal independence skills, little social maturity, i.e. developmentally behind her age in comparison to 'normal' American society, although has an IQ that I suspect is quite high. Given her lack of secular subjects, all of Ellie's knowledge comes from books that she acquired from the library when she, benign thrown out of the house, found her refuge there at night. Ellie is totally ignorant therefore of some subjects, such as math and geography, but has a knowledge of others, such as Latin and Greek that others her age would not have.…… [Read More]
Considering Kelleher's leadership of Southwest, I believe that he falls in the "team leader" quadrant for the simple reason that he emphasized the importance of both task and relationships, led by example and built an organizational culture, which encouraged people to realize their full potential.
4. Southwest believes that employees come first. However, unlike many other organizations, this is not merely a slogan at Southwest that the company pays lip service to. It lives, breathes and practices the philosophy through aligning its systems, structure, policies, and procedures so that employees know that they do truly come first. More important, the leaders at Southwest lead by example so that employees come to learn what the right thing is and that the company truly believes in encouraging its people to "do the right thing." Southwest also lets its people know that they come first through ensuring that they have all the information…… [Read More]
Leadership Self-Assessment Analysis
In the wake of the corporal scandals of Enron and the Arthur Anderson Company, there have been increased calls for strong ethical leadership. Leadership had always been regarded as a key factor in ensuring the effectiveness of any organization. However, new models are also being developed to challenge the limitations of the prevailing classical theories of leadership.
This paper argues for a tempered approach, one that combines effective leadership with good management. Both factors are important, since over-managed and under-led organizations tend to lose sight of their goals. By the same token, while charismatic leaders can lead their organizations to high levels of success, the lack of management skills means that such victories do not last in the long run.
The growing awareness of corporate and white-collar crime has likewise presented new challenges to the classical leadership model. Organization leaders should now be wary of lawsuits the…… [Read More]
role of Islam as a unifying force
Perhaps more than any other religion in the world, Islam has put to work its less obvious sense in order to unify the peoples sharing the same belief. Through its art, its common language and its judicial system that has the Koran teachings at its base, Islam was a unifying force among the Arabic peoples of the Arabic Peninsula, Northern Africa and the Middle East.
There is a short discussion I would like to address here and that is to identify the differences between culture and civilization. This will help us see how religion LO is included in this set of concepts. From my point-of-view, religion LO can be considered an element of civilization through its cultural component. If we exclude Marxist ideology that argue that civilization is but a certain level that culture has attained and make no distinction between the two,…… [Read More]
This project is expected to greatly enhance the countries' economic interdependence with its neighbors (Owen, 2000).
Currency and its rate with U.S. Dollar. The Qatari iyal (Q) is the official currency; the Q is divided into 100 dirhams (A Dictionary of Business, 1996).
Major industries. Major industries include crude oil production and refining, ammonia, fertilizers, petrochemicals, steel reinforcing bars, cement, and commercial ship repair (Qatar, 2005).
Telephone system. Telephones in use: 184,500 (2003 est.); general assessment: modern system centered in Doha. Tropospheric scatter to Bahrain; microwave radio relay to Saudi Arabia and UAE; submarine cable to Bahrain and UAE; satellite earth stations - 2 Intelsat (1 Atlantic Ocean and 1 Indian Ocean) and 1 Arabsat (State of Qatar, 2005).
adio broadcast stations. AM 6, FM 5, shortwave 1 (1998) (State of Qatar, 2005).
Television broadcast stations. Qatar has one television broadcast station (plus three repeaters) (2001) (State of…… [Read More]
administered a culture survey (e.g., the OCI) to all store employees (a.k.a. "crew members") and management, do you think espoused culture as described by management would match the culture expressed by the employees? Why or why not?
I think it likely that the espoused culture as described by the management of Trader Joe would match that expressed by the employees as a whole since, as the article indicates, employees receive intensive training during which they are likely imbued with culture expectations on n overt and covert level. More so, Trader Joe has its culture explicitly delineated and customer service is emphasized. The employee of Trade Joe who wishes to retain his or her position - and who does not given the attractive compensation, the difficulty in retain a job today, the opportunities 'at the end of the tunnel' and Trader Joe's fun and positive working environment -- would seek to…… [Read More]
Henry IV Part
There are many fears people have for the unknown. However, the confidence a leader has when facing unknown risks sets him apart. That is an aspect ichard Branson the Chief Executive Officer of the virgin group understands and takes to his advantage. He faces the risks coming his way with confidence as he drives his team towards the achievement of his company goals and objectives. For ichard Branson, there is always a positive end to every challenge faced, and that drives him courageously to face any difficulties. ichard Branson has managed setting up standards for a vast range of virgin logo. He has a vast empire, entertainment industries like Virgin records, telecommunications ventures like Virgin Mobile and airline business such as Virgin Atlantic Airways (Lambert, 2012). The major aim for ichard is self-achievement. This is a part of life; he has reached through several challenges.…… [Read More]
Comparing Krugman's and Marriott's Attitude Towards Labor
Paul Krugman (1998) has argued labor is treated as a commodity under capitalism, with employees treated as cogs in a machine and no consideration is given to their needs. By contrast Bill Marriott argues that for his firm; Marriott Corporation, employees matter, and that when they known they are important to the employer, who will listen to their concerns and ideas, they will be happier and deliver better service for their employers. These two approaches appear to be diametrically opposed, with one arguing there is a dehumanizing of workers, the other emphasizing the value from embracing the human elements of the employment relationship.
There is a plethora of proof that employees may be treated as commodities, with employer simply seeking to maximize the benefit they obtain from their labor. It may be argued that this was the core motivation behind the well-known…… [Read More]
"In India, there are no Big Macs because the Hindu people don't eat beef. However, they have the Maharaja Mac, which a Big Mac is made of lamb or chicken meat. There is also a vegetarian burger, the McAloo Tikki" (Adams 2007). However, despite the fact that McDonald's must face what may seem like insurmountable challenges, like selling its 'burgers' in a nation like India where a high percentage of the population is vegetarian or does not eat beef for religious reasons, it still holds to the same quality standards of standardized operating and assembly procedures. This enables the McDonald's style to be exported across borders, even when accommodations must be made.
Meyer similarly keeps a tight reign upon quality control at his organization. But it is quality that his obsession, not that "French fries had to be exactly 0.28 inches thick" (Schlosser 2005). While, "the McDonald's operations manual today…… [Read More]
world's economy continues to struggle it has become fashionable in some political circles to advocate the adoption of a type of tax described as a carbon tax as a method of minimizing spiraling government costs. Use of the word, "carbon," is somewhat misleading. The broad meaning of the carbon tax term is to define a tax that is designed to not only raise revenue but also change the behavior of a society's consumers (Baumol, 1972). The theory is to raise the cost of a good or service through the imposition of a carbon tax in an effort to offset the negative effects that the good and service causes. The most obvious example is the use of a carbon tax to fight the effects of pollution. The manufacturer who builds its plant next to a river and proceeds to dump its polluting by-products into said river would ordinarily not suffer any…… [Read More]
Ursula Burns, Chief Executive Officer at Xerox
Although many authorities agree that the glass ceiling is still in place, it is clear that it has at least been shattered somewhat with many women leading Fortune 500 companies today. Leading the charge has been Ursula Burns, chairman and chief executive officer at Xerox Corporation since July 2009, making her the first African-American woman to lead an S&P 100 corporation. This paper reviews the relevant literature to provide Burns' background, an analysis of her leadership style and philosophy and how they align with the corporate culture at Xerox, an examination of Burns' personal and organizational values and an evaluation concerning how Burns' values most likely influence ethical behavior at this company. Finally, an analysis of Burns' three greatest strengths and weaknesses is followed by a discussion concerning the quality that most contributes to this leader's success and an assessment concerning how communication…… [Read More]
Google's human resources strategies are effective. The objective of Google's human resources strategy is to attract the best workers in its industry and to retain them. Knowledge industries compete for the brightest workers by offering them a variety of enticements -- money, perks, benefits and opportunity to work on projects that interest them. It is basically H by highly intelligent, creative people for highly intelligent, creative people. The point is that Google needs to experience continuous innovation in order to maintain its position as industry leader in a fast-evolving knowledge industry. Thus, it needs to attract and find the brightest, most creative people. Google's track record speaks for itself in terms of success. It is one of the most valuable companies on the planet, dominates its industry, generates over $1 million in revenue and $200,000 in profit per employee (Sullivan, 2013). By any metric you can name, Google has achieved…… [Read More]
Profit Sharing and Other Incentives as Employee Development Performance Motivational Tools and the Relationship between Managerial Support and Employee Commitment to the Organization
The impact of profit sharing and other incentives on employee development and organizational growth is measured in various companies around the world. From Keller Williams to Southwest Airlines companies are utilizing incentives, such as 401ks, profit sharing plans, insurance plans, even pre-tax commuter benefits, because like Southwest they believe that their "greatest asset" is their employee (Southwest Report, 2010, p. 45). According to servant leadership theory, by offering managerial support that is designed to benefit and assist the worker, a higher degree of employee commitment to the organization can take place. Thus, companies such as Keller Williams promote mottos like "God, Family, Business" in that order to show that in their workplace environment what comes first is not business but that which is more important than business:…… [Read More]
2.0 Strategic Situation Analysis
In order to understand the nature of aircraft manufacture at Boeing, it is important to have a clear vision of how outsourcing plays into the manufacture of aircraft. Let us use the example of Boeing's Dreamliner. The following illustration explains how outsourcing plays a key role in Boeing's business strategy. These represent TIER 1 suppliers.
From here, the parts go to the plant in Everett and are assembled by TIER 2 suppliers as follows:
These two illustrations clearly help to develop an understanding of the relationship between TIER 1 and TIER 2 suppliers at Boeing.
2.1 SOT Analysis:
SOT analysis is a planning method used to evaluate a company's strengths, weaknesses, opportunities and threats. In a business analysis, all of these factors are analyzed for the company under study and their competitors. This analysis allows the researcher to see both…… [Read More]
Customer Value Funnel Approach. The reference appends four sources in APA format.
The "customer value funnel approach" (p. 153) is a highly significant implement for clearly comprehending and evaluating business mechanisms and other marketing-related critical situations. esides a priceless strategic marketing framework, this approach focuses on the satisfaction of customers, the main marketing target of various giants in the business industry to reap the benefits of high productivity and massive volume due to broad clientele. As Stanley Slater states "As marketers, we should be committed to the proposition that the creation of customer value must be the reason for the firm's existence and certainly for its success" (p. 153).
Hence for effective business practices and performance, customer values play a vital role and therefore all focal organizations must take into consideration all the four levels of the Customer Value Funnel approach just like Southwest Airline did when it began…… [Read More]