Southwest airlines strategic planning initiatives essay

Such cross-utilization and a long-standing culture of cooperation among labor groups translate into lower unit labor costs.

There are between 75 and projects in the works each year supported by approximately IT employees.

Southwest Airlines Strategic Planning Final Course Project

Passenger Demand The keep-it-simple philosophy has served Southwest well. The challenge is doing that without conceding the customer touch. It plans to test RFID technology sometime in It uses the strategy to keep its flights in the air more often and therefore achieve better capacity utilization.

Its fleet consists exclusively of Boeing jets. E-Ticketing The idea of ticketless travel was a major advantage to Southwest because it could lower its distribution costs.

Customers who use credit cards are eligible for online transactions, and today Southwest. Southwest has been able to successfully implement its fuel hedging strategy to save on fuel expenses in a big way and has the largest hedging position among other carriers. Having common fleet significantly simplifies scheduling, operations and flight maintenance.

Employee and Labor Relations Southwest has been highly regarded for its innovative management style. It means that from the top to bottom everyone does whatever he or she can to satisfy the customer.

Even though, Southwest is playing a little catch-up with other airlines such as Air Tran, Alaska and Champion Airlines, in many cases they are able leapfrog to more sophisticated applications easily having waited longer.

In comparison, Southwest has airplanes to consider and that represents an investment decision at a whole new dimension. Southwest has also been able to trim down its airport operations costs relatively better than its rival airlines. The employees reciprocate the respect, loyalty and trust that Southwest demonstrates.

Southwest employees are what differentiate its customer service from the other airlines. On a more technical level, each employee or group within Southwest has his or her own customer.

Southwest Airlines Strategic Analysis

It can then be concluded that the customer service that is inherent to Southwest is a part of its culture. This approach inspires people who would ordinarily only on occasion go out of their way to help someone, to become consistent performers that offer exceptional service all the time.

The bar code hardware to scan the boarding passes has been deployed.

But, how does Southwest Airlines stay profitable? The company affords the same respect to its employees that is provided to its customers. It became hard to pass higher fuel costs on to passengers by raising ticket prices due to the highly competitive nature of the industry.

Airlines that want to prevent huge swings in operating expenses and bottom line profitability choose to hedge fuel prices. Hiring Southwest hiring policy is unique not only within the airline industry, but also more broadly, and revolves around finding people with the right attitude that will thrive in the Southwest culture.

Southwest needs to be mindful of the fact that a certain approach that has been successful for its competitor may not be necessarily work to its advantage. The company uses very little off-the-shelf software. It maintains a relentless focus on high-performance relationships and its people-management practices have been the key to its unparalleled success in the airline industry.

These hiring criteria apply to all job functions since all Employees at Southwest play a customer service role. Southwest Airlines has the lowest costs and strongest balance sheet in its industry, according to its chairman Kelleher.

The low-fare carrier labor advantage is in much more flexible work rules that allow cross-utilization of virtually all employees except where disallowed by licensing and safety standards. Similar to Wal-Mart Stores Inc. Southwest wanted to replace its well known, brightly colored plastic boarding passes with an electronic system with bar-code paper boarding passes.

The answer is that it is not. There are many new technology initiatives being undertaken currently and some are in the pipeline. Carriers like Southwest have a tremendous cost advantage over network airlines simply because their workforce generates more output per employee.Southwest Airlines Operations – A Strategic Perspective.

By Mukund Srinivasan. Background: Southwest Airlines is the largest airline measured by number of passengers carried each year within the United States. It is also known as a ‘discount airline’ compared with its large rivals in the industry. Southwest Airlines Strategic Planning Initiatives Essay by gigi, March download word file, 5 pages download word file, 5 pages 1 votes 1 reviews5/5(1).

Strategy in an organization is achieved through organization structure, culture, people and control systems Buller & Schuler. (). Therefore, in looking at the strategic management design of Southwest airlines, this paper shall detail its organization structure, culture, people and control systems.

Southwest Airlines Operations – A Strategic Perspective

Book our famous low fares only on the official Southwest Airlines website. View flight status, special offers, book rental cars and hotels and more on Southwest Airlines Strategic Planning Final Course Project I will also emphasis the knowledge, skills, abilities, and there (Soaks) relative to the staffing process.


Southwest airlines strategic planning initiatives essay
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