Case Study on South West Airlines Example | Topics and Well Written Essays - 2250 words

On South West Airlines - Case body of work ExampleThe company is likewise a fun place for people to work and is regarded very extremely by employees. There are many aspects of this success of southwestern Airlines. In this essay we will save a SWOT analysis alongside with an analysis of porters five forces. This will also include the financials of the company. The organizational culture of the company and its operations and leadership will be discussed. Issues the company is facing currently will also be discussed and recommendations will be made. SWOT Analysis south-west Airlines Southwest Airline has displayed cost leadership in the airline industry by turning cost durability into profits. The culture of the company is also in line with the core values of the airline. Below an in learning view of strengths, weaknesses, opportunities and threats facing the company will be taken. Strengths The most impressive thing about Southwest Airlines is its financial records. The comp any is yet to report a loss on its balance sheets and this is a mammoth achievement considering the ups and downs airline industry in US faces. Since 1972 the company has given annual returns of around 25%. This shows the impressive performance of the company. The airline believes in friendliness and love in customer relationships as salutary as employees. One of the main reasons of success of the company is its employees. The favourable culture of the company illicit the best(p) out of every employee of Southwest and that is why innovative ideas are given by lower and tenderness level employees. This is one of the reasons of Southwest Airlines success. The management of Southwest Airlines has done an amazing handicraft in crafting its companys system. The strategy of cost leadership has done wonders for the company and I in person think that the idea of being cost effective in the airline industry great. Usually airlines suck up long operational costs so they do not go for such a strategy entirely Southwest has shown the world that this can be done. This strategy has proven itself to be a amiable strategy. Southwest Airlines reported a profit of USD178 million in 2008 (Bloomberg, 2011). This was the time when recession had badly knockout the US economy but still the company was able to reap profits. The operating expense of the company hold in not grown significantly even during recession. Operating expenses were $1,280 million in 2007 while in 2008 they grew to $1,385 million. Also the revenue in 2008 increased as compared to 2007. In 2007 revenue figure was $9,587 million and in 2008 it grew to $11,023 million. The CGS also has grown accordingly, in 2007 it was $7,235 million and in 2008 it was $8,590 million (Bloomberg, 2011). This shows that the costs of Southwest have not increased significantly. The company has tried to differentiate its policies from its competitors by doing everything in its own way. Employees were not fired in tough tim es, cost cutting was given attention rather than value addition, flights for shorter routes was started and a friendly work culture was introduced in the company. All this was not the usual trend in the industry but this became the basis for Southwests success. The company has proven that conventional thinking has led many airlines into huge loses (Freiberg & Freiberg, 1997). One of the operating practices in the company is to schedule more flights a day and pilots work an min more than in other airline companies (Mouawad, J. 2010). The company also pays its