Category: Southwest Airlines

Herman Miller, Inc.

Given its position as a mass distributor of furniture products, Herman Miller needed to improve its marketing strategy to access a higher number of targetable market segments. Although cost cutting has been a historically reliable strategy in reviving profit levels, it may not help in maintaining competitiveness.

Some of the funds that had been invested in research and development would have been better suited in funding a more aggressive marketing strategy. For instance, creating infomercials for the new product designs can make a significant impact to the market’s acceptance of new product concepts in an affordable way.

The bargaining power of consumers is now much greater given the decreasing levels of demand that the furniture industry is facing. The bargaining power of suppliers has also increased since the cost of imported raw materials seems to have risen. This means that unilaterally all competitors in the market will be forced to give up the advantage of having better terms with suppliers.

There is a low threat of new entrants into this particular market due to the well placed market share that each successful firm has already accrued. The threat of substitute products and services is however the highest factor for competitiveness in this industry. The furniture industry faces a great threat in its corporate client base due to the increased spread of telecommuting as an option to the traditional office work desk culture.

One weakness of the company’s sales strategy was the excessive use of innovative product advancement to increase demand for their product line up. Again, the green marketing techniques that were used targeted minor segments of their clientele. The creation of a website and a 3-D design application for the residential market was highly commendable

The company’s growth seems to have grown volatile with increased debts but this drastically changed in 2010.

Southwest

The strategy used by Southwest Airline is heavily dependent on volume maximization. To achieve this, the firm took on a policy of charging highly competitive fares. Later on, adding promotional advertising into their marketing strategy helped them pull in a larger pool of customers.

The company chose to employing a set of attractive cabin attendants to serve travelers as a means of retaining and growing their customer. What would thus be recommended is the formulation of recruitment policies that encourage the advancement of personal talents and skills possessed by new employees in addition to attributes such as attitude.

New entrants in the airline business present a weak threat in terms of competition. This is chiefly because of the huge start up costs of even serving short interstate routes and secondly because of the power that existing firms use to block entry through legal intervention.

The threat of substitutes such as road and railway line is moderate due to the efficiencies provided by air travel as an alternative to connecting between destinations. There is a strong bargaining power owned by customers and this is shown by the effect that the lowered flight rates introduced by Southwest airlines had on the industry as a whole.

The main strength of Southwest’s sales and marketing strategy was that it had both cost differentiation and product differentiation angles. The fares charged for most flights were lower than those of all other airlines and in situations where these charges were contested, the firm improved on their product by adding offers such as the free scotch offer for Dallas Houston passengers who paid a 26 dollar fare instead of 13 dollars.

The quick ratio and the asset turnover ratio show improved performance by Southwest airlines in terms of its ability to settle debt and convert revenue from assets. On the other hand, a general increase in debt burden on stockholders can be observed as the firm expanded its operations.

Starbucks

Starbucks have a sales and marketing strategy that has focused more on delivering on quality and distribution channels. A nationwide advertising strategy would have helped in new market penetration operations e.g. in the case of the stores in Chicago. A management training program for employees in different Starbucks location would help improve the performance of stores and steer expansion plans faster.

The threat of new entrants is strong in the restaurant industry in general. It did not take a long while before Schultz himself had managed to match the success of Starbucks with his own start up.

The threat of substitute products is also strong due to the existing trends for consumption of other hot beverages such as tea and chocolate. Likewise, the bargaining power of customers is strong considering the many other options they have with substitute products. The bargaining power of suppliers is most prominent amongst the competitive forces. This is because of the high demand for quality coffee by consumers.

The firm’s quick ratio was at its lowest in 2007 and at its highest in 2009 showing that Starbucks is losing its liquidity. The asset turnover has been steady while the debt burden on stockholders has reverted to its former low which is a sign of improvement in the manner in which growth strategies are being financed.

Background Information

AirTran Airways was a former low-cost American airline with headquarters in Orlando Florida and operated hundreds of flights in Eastern and Midwestern United States. Currently however, the airline is a subsidiary of Southwest Airlines having completed a merger in March 1^st 2012 (Surhone 104).

Southwest on the other hand an older rival with more established business and headquartered in Texas. The company has been in business for over four decades and has established itself as a major domestic air transport company in the United States (Surhone 104).

Southwest Airlines-Airtran Merger

The merger between the two companies is more less an acquisition whose full transformation will take place gradually. When analyzed in detail, the Southwest-Airtran merger is a form of horizontal merger where one firm aims at eliminating competition through unification of the two to increase concentration in the said market effectively creating substantial market power.

In the merger, Southwest Airlines acquired AirTran holdings for $1.4 billion. The total value of the transaction according to the Wall Street journal was worth $ 3.4 billion including a $ 670 million cash payout by Southwest and assumption of slightly over $2 billion of AirTran debt. It is expected that by 2015, Southwest Airlines would have completely absorbed Airtran with a complete rebranding of the Airtran aircraft to Southwest colours.

Market definitions

Consumer substitutes

Consumer Substitutes are goods available to consumers in the market and that can be alternative choices for consumers or instance Southwest airlines and AirTran airlines services

Producer substitutes

Producer substitutes on the other hand are goods that offer alternative choices for producers and whose production is possible using similar resources for instance Boeing and Airbus aircrafts (Sherman, 66).

NAICS

NAICS stands for the North American Industrial Classification. It is a system of classification that authorities and businesses entities use to determine the particular economic sector of a business. According to NAICS for instance, the industry focused on in this paper is transport and warehousing.

S & P industry survey/data monitor

S&P industry surveys/data monitor are tools registered under the Standards and Poor’s trademark purposely to supply business information. The data-monitor publishes industry reports on all levels including country-specific, regional and global market information, segmentation, as well as forecasts. The S&P industry surveys are mainly US-centric and provide information on business trends, statistics and industry leaders (Sanghoee 89).

Geographical

This is the use of geographical segmentation in business to divide the market to different areas for a targeted reach of clientele. Specific products are tailor-made and targeted at geographic units such as countries, regions and cities. It includes localizing products according to the demographic and business dynamics of the areas involved.

Type of merger

As said earlier, the type of merger between Aitran and Southwest was a horizontal merger that was more or less of an acquisition on the part of Southwest Airlines. Ireland defines a horizontal merger as the joining together of two companies competing in the same market (73).

In this case, Southwest and Airtran were large airline companies, at least domestically, competing for the same market. Their joining together therefore represented a horizontal merger. However, considering Southwest Airlines acquired all the shares of Airtran and a complete re-branding of Airtran is part of the agreement, it is fair to conclude that the transaction was an acquisition.

Merger Motives stated by companies

Various management motives influenced the move by the two companies.

First, Southwest Airlines management reckoned that acquiring AirTran will soften competition while seeking to dominate the Eastern region. It is safe to conclude that some of the aims of Southwest Airlines were motivated by the desire to make use of their geographical advantage (Surhone 110).

Secondly, Southwest’s move enables it to consolidate and expand its presence in new higher-yield markets including Atlanta, D.C., Boston, Baltimore and New York. As a result, the merger will no doubt help Southwest Airlines in gaining access to more traffic and revenue which in the long-term translates to increased earnings (Surhone 115).

Third, Southwest sought to gain the capacity that with additional resources from AirTran, is able to plunge into international air travel business especially to the Caribbean and South America. The other benefit for Southwest is that the merger puts the company in a strong position financially which will easily cushion it from rising oil prices besides having enough cash for short-term investments.

Analysis of merger motives

Critical Analysis of Stated Motives

The above-mentioned motives suit Southwest Airlines in its quest to delve into international flights. It is important to note that the above motives can qualify as management benefits especially considering the change of administration that will take place in AirTran till a complete integration of the two companies take place.

There s consensus among scholars that any business decision corporations make is a risky gamble that may or may not pay off. In terms of competition acquisition of AirTran reduces the competition in a region Southwest has dominated for decades. However, there is need for the new company to concentrate on diversification of products to counter competition.

Additionally, Southwest management can now easily move to consolidate the both old and new markets to increase their market share, a crucial factor to long-term profitability in the company. The management is banking on the act that the airline services that both companies offer fall within the range of both consumer and airline substitute’s category.

Merger motive number one: Market valuation of firms

Some business analysts contend that considering the total asset base of AirTran, the price paid by Southwest was too low and it could have been influenced by the low valuation of the company’s stock (Ireland 78). However, the above assertion is not correct since AirTran’s stocks were correctly priced and reflected the true value of the company.

Merger motive number 2: How company management benefit from merger

One of the most important roles of mergers is to save poor performing companies from collapse through injection of fresh capital. Management also benefits from mainly through change of the personnel that run a company effectively putting in place new vision for the company. Mergers also help management in expanding companies hence they become better suited to counter competition from more established firms.

Market impact

Normally, the aims motivating mergers drastically alter the market dynamics of the concerned industry. In this case for instance, Southwest’s management estimates that the company will have almost slightly above 60% of the market in the Baltimore-Washington and 40% of the Orlando in the post merger market (Ireland 89). Additionally, in some of markets where airports are paired, the merger will result to a concentration that may be interpreted as a monopoly. According to the management of both companies, the merger will also affect price discounting and network structure of the industry especially on the routes where the two airlines operate.

Works Cited

Ireland, Duane. Understanding Business Strategy: Concepts Plus, New York: Springer, 2011. Print.

Sanghoee, Sanjay. Merger, New York: McGraw Hill, 2006. Print.

Sherman, Andrew. Mergers and Acquisitions from A to Z, New York: Taylor & Francis, 2010. Print.

Surhone, Lambert et al. Southwest Airlines – Airtran Airways Merger, New York: Routledge, 2011. Print.

SWOT Analysis

Southwest Airlines has strived to succeed in the aviation industry despite the challenges. From the case study, the economic challenges, insecurity threats, and market dynamics have affected the company tremendously. In fact, most organisations in the aviation industry have made considerable losses in the business realms.

This is a considerable provision in the context of customer service and organisation’s survival in the market. In regard to SWOT analysis, Southwest Airlines enjoys considerable strengths in the business arenas. The company has established, ratified, and embraced distinctive competitive advantages meant to outdo other contenders within the industry.

As indicated by the author, the company has enough resources to counteract its business dynamics despite the challenges. Also, it has a competent human capital with credible knowhow on how to tackle the market challenges. The company enjoys a strong brand having operated in the industry with excellence since its inception.

According to the case study provided, the company exhibits some weaknesses in the market spheres. It sluggishly launched international flights despite the demands to do so with promptness. Additionally, its approaches to the market dynamics have not been strategic enough to counter such challenges with equal measure.

For instance, the company took long to recover from the previous terrorist attacks, which destabilised the American aviation industry. The company has also established some business tactics, which can be copied by other rivals. This might disfavour it in the competition quarters.

From the case provided, Southwest Airlines has numerous business opportunities both locally and internationally. The market for the aviation industry is rapidly growing with numerous flights created to cater for the new customers. Additionally, the aspects of globalisation have enhanced the need for international flights, which Southwest Airlines can exploit to enhance its market presence and profitability.

It is vital to agree that the company can do better with the current market trends. Additionally, the new transport regulations created by the international community allows the company to establish, ratify, and operate numerous flights both locally and internationally. This is a considerable provision when scrutinised critically in the business contexts.

Another opportunity recognisable in this context is the encroachment and implementation of new technologies helpful in doing business. For instance, IT and the emergence of internet have helped in the realms of advertisements, online booking, payments, and spread of information about the company. Southwest Airlines has managed to embrace technology in its operations despite the costs incurred.

Consequently, its operations and global reach have enhanced in the recent past. It is vital to comprehend how the organisation has managed to streamlined its operations to conform to the global demands. Business threats to the company are also numerous. This is evident in the trade contexts. Firstly, competition has tremendously grown in the aviation industry.

Consequently, Southwest Airlines has lost numerous clients to its competitors. Additionally, the liberalisation of the aviation market has done more harm to Southwest Airlines in the context of its market presence. For instance, companies like JetBlue, Delta, AirTran Airways, and ATA Airways are prominent rivals of Southwest Airlines.

Another threat is the establishment and implementation of carbon tax laws. The company must resort to “clean energy” sources in order to remain relevant and environmental friendly. This might be costly since “biofuels” are very expensive and rare in the market.

Mckinsey’s 7s

From the case provided, Southwest Airlines can be subjected to the Mckinsey’s 7s to assess its prominence and success in the aviation industry. Evidently, the model relies on the ideology that, for an organisation to perform exemplarily, the 7 elements (Strategy, Structure, Systems, Shared Values, Skills, Style and Staff) should be realigned for mutual reinforcement.

For instance, the success of the company has involved various business strategies to counter numerous challenges encountered in the aviation industry. This is a critical observation in regard to the company’s accomplishments to enhance its operations. Additionally, the company has structured its operations and management provisions in a strategic manner.

The structure of its operations is in line with the values, systems, and skill of its workforce. This has allowed the company to register massive success in the past.

It is vital to comprehend the prowess demonstrated by this organisation in the realms of management and customer satisfaction. For instance, the company was ranked the best in terms of the customer satisfaction in 2006. This was due to the mutual realignment of its 7s for the success of its service delivery.

Another considerable provision is the company’s shared values. So as to achieve its business prospects and global limelight, Southwest Airlines has managed to revitalise its business styles in the aviation industry. Actually, this has occurred in collaboration with other elements so as to attain the mentioned success.

It is vital to understand the prospects frontend by this organisation in the context of its relevance and applicability. From the case study provided, Southwest Airlines managed to realign the 7s mutually for successful business operations despite the challenges.

Alternatives solutions

Evidently, the company has been resorting to alternative solutions when fronted by business challenges. For instance, terrorism crisis in 2001 destabilised the aviation industry; however, the company established fresh strategies to ensure that it remained buoyant in the market. Additionally, it has been improving its financial and business strategies to conform to the current globalisation demands.

These are evident in the case study provided as the company strived to establish its market foundation since its inception in the American market. Precisely, despite the internal and external business challenges, Southwest Airlines has always had alternative solutions to its operational hiccups. In order to operate globally and exhaust the local markets, novel business strategies and models have been integrated to guarantee success.

For instance, the aviation industry registered considerable losses in the recent past due to market instability, high operational costs, and revenue plunge; nonetheless, strategic companies (Southwest Airlines included) managed to survive the menace having adopted alternative solutions to the then problems.

Financial Analysis

The financial provisions of Southwest Airlines have exhibited consistent improvements despite the hassles. For instance, the company registered a net income increment of 8.9% in 2006 compared to 2005. The operating revenues and costs equally increased tremendously indicating how the company managed to grow despite the then stiff financial provisions. This is a critical provision when evaluated in diverse fiscal contexts.

Financially, Southwest Airlines has grown considerably; however, it has not attained its utmost limit. The company currently grows as it expands its flights to remote areas in order to clinch the niche markets in such areas.

Currently, Southwest Airlines is the 3^rd largest carrier in the world when considered in terms of customers and service provisions in the sector. The company has been profitable financially as indicated earlier. The consolidated income statement of the company shows considerable increments in various sectors.

Competitive Analysis

Southwest Airlines has been competitive in the aviation industry due to its novel products and well-established business strategies. From the case study provided, the author recognises that the company faces stiff competition from other companies like United Airlines, JetBlue, Delta, AirTran Airways, and ATA Airways among others.

It has managed to outdo these organisations due to its well-established business models and competitive advantages. It offers considerable and reliable carrier services to its clients. In fact, most organisations have been copying its business strategies despite the challenges. It is from this provision that the entire arguments lie.

The company began to offer longer and non-stop trips to Baltimore, Maryland, Las Vegas, and Nevada so as to capture a considerable market share. This move expanded in competitiveness within the American market.

The company remains the “lowest-cost” yet the most profitable organisation in the market. Precisely, the company has been competitive in its low-priced services, value addition, customer satisfaction, reliability, and credible business models.

Analysing the Company Today

Currently, Southwest Airlines is a stable organisation despite the market challenges. The company has established sustainable development programs within the aviation market.

Additionally, it has enhanced its carrier services to most parts of the world as it strategizes to enhance its global expansion and market presence. It business models are relevant and applicable in the current market as noted by the author in the provided case study.

Impressiveness & Grade

Southwest Airlines impressive story has made it a great case study for scholars, business practitioners and management students. Indeed, it is safe to argue that the company has achieved many of the critical ingredients required for success in the 21^st century workplace (Wright & Mujtaba, 2011).

In sampling some of the impressive stories that have molded Skywest to become a market leader, we cannot forget to highlight how the airline thought outside the box and churned out millions of dollars in profits by flying point-to-point direct routes instead of using the typical hub-and-spoke method, and how it thrashed its competitors by keeping low fares, motivating employees to serve customers better, and employing an aggressive fuel hedging policy to reduce operational costs.

Many companies believe that customers are a critical asset in their quest for profitability and competitiveness, but Skywest strategy underlines the critical importance played by employees in making satisfied customers. This strategy has worked wonders for Skywest as the company is now the largest airline globally by number of passengers carried per year, not mentioning that it boasts of the enviable distinction of being the only major U.S. airline that has maintained consistent profits over the years.

Lastly, it is enviable to see how Skywest minimizes fleet maintenance costs and benefit from acquiring new aircraft at favorable prices by sticking to Boeing 737 models (Thompson et al., 2011). Flowing from the above, Skywest’s management would get an A+ grade for a job well done, particularly in instituting the low-cost/no frills strategy and merging it with a strong organizational culture that not only treats employees as a royalty, but encourages innovation, creativity and empowerment.

The company has succeeded in attaining a complete fit between its strategic objectives and the organizational culture needed to achieve these objectives, hence its capacity to outperform competitors in the industry. Available literature underlines the importance of aligning an organization’s strategic approach with its organizational culture to achieve success (Yarbrough et al., 2011).

Skywest Airlines has been able to achieve this fit, and hence it can only be argued that the company has a long-term, sustainable winning strategy.

Implementing & Executing the Low-Cost/No-Frills Strategy

Skywest is cognizant of the fact that it must undertake a passionate pursuit of low operating costs if it expects to sustain its low-cost/no-grills strategy. To implement and execute this strategy, therefore, the company only uses one type of aircraft (Boeing 737) to keep maintenance costs down and benefit from acquiring the fleet at hugely discounted prices, not mentioning that Skywest was the first to employ the e-ticketing strategy with the view to minimize operational and labor costs (Thompson et al., 2011).

The company was also the first in the history of the U.S. airline industry to introduce a two-tier on-peak/off-peak pricing structure to benefit from customizable fares that serve divergent groups of travelers, but mainly the time-sensitive business travelers and the price-sensitive leisure travelers. Lastly, the company’s aggressive fuel hedging strategy has enabled the company to maintain low fares as it is minimally affected by the vagrancies in the oil market (Wright & Mujtaba, 2011).

In operating practices, it can be argued that the company’s simple in-flight service and point-to-point convenient flying has enabled it to minimize operating costs to a bare minimum, thus allowing Skywest to pass on the benefits to customers through low fares.

Additionally, owing to the fact that Skywest emphases flights into and out of airports in medium-sized cities and minimally obstructed airfields in key urban areas, the company has been able to maintain a 25-minute average turnaround time and reduced fuel consumption, hence ensuring that it does not use additional resources to put more aircraft on the routes as existing ones are utilized to the maximum.

Lastly, aviation analysts argue that Southwest’s point-to-point scheduling of flights has been instrumental in ensuring that operational and maintenance costs remain down, hence providing the airline with a competitive advantage over other airlines that continue to use the hub-and spoke systems (Wright & Mujtaba, 2011).

These benefits are passed on to the customers in low fares. In core values, it is clear that Skywest’s employee training program serves to induce critical values to employees that have enabled the company to implement and execute its low-cost/no-frills strategy.

For instance, the company’s flight attendants have been acculturated to clean up trash left by deplaning customers and otherwise getting the plane presentable for passengers to board for the next flight, hence removing labor costs that could have incurred in engaging the services of cleaning crews. Indeed, rival airlines have been forced to borrow this practice as a viable cost-cutting measure (Thompson et al., 2011).

Southwest’s Culture

Southwest’s corporate culture is guided by three foremost elements – LUV, fun and doing things differently or unconventionally. The company’s culture emphasizes the treatment of individuals, employees and customers with utmost dignity, compassion, love and respect, not mentioning that employees are always motivated through loyalty programs to maintain a fun-filled and entertaining behavioral orientation when interacting with customers.

Undoubtedly, Southwest is a strong culture company as it lays much emphasis on employees to adopt the ‘Southwest way’, which is guided by three elements, namely “…a Warrior Spirit, Servant’s Heart, and Fun-Loving Attitude” (Thompson et al., 2011 p. C304).

Employees who are unable to fulfill these elements are encouraged by management to seek employment elsewhere. However, Gary Kelly may face challenges in recruiting the right kind of personnel to spearhead these three critical elements that inform Skywest’s strong culture and competitive approach.

Grade & Best Execution Approaches

Southwest deserves grade A for aligning its strategic approaches with its corporate culture and employee concerns to achieve operational excellence.

All the strategy execution approaches and operating practices as discussed in section 2 of this paper have been critical in ensuring that the airline remains a market leader in the industry; however, it can be argued that its aggressive fuel hedging and one-plane-fits-all strategies have been influential in minimizing operational and maintenance costs, hence enabling the company to effectively execute its low-cost/no-frills business strategy.

The company’s employee-oriented management style, as well as a relatively happy workforce and strong culture, have also acted to take it to new heights as far as strategy implementation and execution are concerned. However, the company needs to enhance its market share in ever busy terminals to keep in tandem with current trends in the industry.

Weaknesses & Challenges

It is true that some weaknesses and challenges existed as of mid-2010 in terms of unstable global fuel prices, stiff competition, an accident involving a Southwest’s plane which overshot the runaway, as well as negative media publicity arising from Southwest’s failure to conduct mandatory inspections on their aircraft (Thompson et al., 2011). If not adequately addressed, such weaknesses may dent the company’s competitive advantage and safety record.

Southwest’s Acquisition of AirTran & Arising Strategic Issues

The acquisition of AirTran makes good strategic sense for Southwest, especially in its attempt to expand its market share by flying into new locations in the United States, Mexico and the Caribbean. This acquisition will assist Southwest Airline to strategically operate from Atlanta’s Hartsfield-Jackson International Airport, the busiest airport in the United States and the largest domestic hub previously not served by the company, implying more revenues from increased flights.

However, there exist some strategic issues and problems that need to be addressed for this acquisition to be a success. The foremost strategic issue, in my view, revolves around integrating the over 8,000 AirTran’s employees into Southwest’s corporate culture so that these employees could share in the same dreams and aspirations as set out by management.

The second strategic problem is grounded on the fact that Southwest will now have to deal with two types of aircraft models – Boeing 737 and 717s. Such a departure from the ‘one-plane-fits-all philosophy may in the long-term elevate aircraft maintenance costs for the company. Southwest’s management also needs to come up with ways to operate effectively and efficiently in busy, congested airports.

Recommendations for Practice

Consequently, the recommendations arising from this analysis include (1) exposing AirTran’s employees to a rigorous employee training program to internalize the culture and high standards set by Southwest, (2) conducting routine aircraft maintenance practices to avoid negative media publicity, (3) modifying the acquired AirTran facilities and aircraft to meet the safety standards set by Southwest, (4) investing more resources into talent management, innovation and creativity, training and development, as well as leadership development, and (5) continuing with the low-cost/no-frills strategy as Southwest Airlines chart its way into the future (Crews, 2010).

References

Crews, D.E. (2010). Strategies for implementing sustainability: Five leadership strategies. SAM Advanced Management Journal, 75(2), 15-21.

Thompson, A., Peteraf, M., Gamble, J., & Strickland, A.J. (2011). Crafting and executing strategy: The quest for competitive advantage: Concept and cases (18th ed.). New York, NY: McGraw-Hill/Irwin.

Wright, A., & Mujtaba, B.G. (2011). Southwest Airlines and management: Becoming an industry leader in the modern workplace. Journal of Research in International Business & Management, 1(4), 77-84. Web.

Yarbrough, L., Morgan, N., & Vorhies, D. (2011). The impact of product market strategy-organizational culture fit on business performance. Journal of the Academy of Marketing Science, 39(4), 555-573.

Introduction: The HR Management Specifications in the Southwest Airlines

This paper explores the expansion possibilities of the biggest American airline, the Southwest Airlines corporation, which possesses the employees friendly mission statement. Specifically, the work reviews the case AirTran Airways acquisition that will extend the organization and bring it to the international level.

Since the global amplification requires a recruitment of new workers, it is critical maintaining the primary values that are appreciated by the airline company within the newly-developed workspaces. Therefore, the primary objective of this study is to devise a consistent plan of organizations’ emerging that would correspond to the winning strategies of the Southwest Airlines.

The long tradition of the corporation’s success is long certified by the world-leading experts. According to the recent reports, all the attempts of the competitive companies, which tried to surpass Southwest Airlines through reducing the service prices, failed since it is hard to beat the principles of the company’s HR leveraging.

Thus, due to the guidelines of the airline’s corporate culture, the working process can be spoiled with seriousness and excessive persistence. Such an odd statement discloses the ultimate secret of the company’s effectiveness, according to which, only relaxed atmosphere, as well as exciting strategies, can guarantee the high quality of the work (McElhaney, 2010).

SWOT Analysis: Human Resources Perspective

The planning that has to be developed by the Southwest Airlines should include the peculiarities that define the general HR treatment within the corporation. Otherwise, the company may lose its primary success and recognition. According to Srinivasan, the major advantage of the airlines is its profit-sharing regulation for employees (2014).

Therefore, the main strength that may be incorporated into the SWOT analysis of the newly created organization is its attractiveness for the workers. The corporation that is famous for providing its employees with decent wages and positive mood is extremely successful among the specialists in the sphere.

The expansion plan has its weaknesses, though. Thus, due to the reports of the Southwest Airlines’s employees, they have long forgotten how it feels to work for the sake of receiving a paycheck (Analyzing Southwest Airlines, 2012). Instead, the achievements of the staff’s members are driven by their love and commitment to the company.

The approach is extremely unusual for the majority of technical specialists in the world since the professionals in similar spheres tend to be result-oriented rather than enjoy the process. Therefore, it may come problematic for the newly employed workers to accommodate to the new system. Accordingly, the lack of commitment may disrupt the corporation’s success.

The significant opportunity that should be prioritized in the HR SWOT analysis is a chance for the Southwest Airlines to establish the new level of relations between the employees and administration. The corporate culture that is based on trust and positive thinking provides an opportunity for the reformation of HR treatment throughout the world.

Finally, the threats of the extension planning represent the wrong interpretation of the corporation’s employee-driven strategies. In other words, the relaxed work may be perceived as neglect.

Examining the HR Expansion Possibilities: General Recommendations

The merging of two airline corporations typically accounts for the loss of competition. Moreover, due to the outcomes of scientific investigations, such alliances usually lead to the general enhancing of the average income for the companies (Brueckner, 2001). Nevertheless, in the cases of negative cooperation strategies, such expansion can result in the harm both to passengers and the workers.

Since both airline corporations possess high rating and are quite popular among the customers, it is crucial maintaining the work principles of two companies throughout their joint functioning. The task is relatively easy, for both the Southwest Airlines and the AirTran Airways provide the low-cost flights.

Still, it is acclaimed that compensation plans and employees program are more successful with the former’s workers than those with the AirTren’s employees. The reason for the discrepancy is a finance-driven strategy that was employed by the latter corporation. Consequently, it is recommended to create a standard HR plan for the merger organizations that would be oriented to the Southwest Airlines’ values.

Recruiting Tasks Analysis

The newly devised strategy planning of the merger organizations must include the HR tasks regulation. In other words, it is critical for the management of new companies to establish the effective employee selection process, which would ensure the further prosperity of the corporations. First, due to the originality of the airlines’ corporate cultures, there is a need to verify the psychological suitability of the workers.

Thus, the employers must ensure that the new human responses will be able to perform their duties in a relaxed and joke-driven atmosphere. Second, the managers handle verifying the professional skills of the employees. Specifically, it is important to check their knowledge of the technology devices that are operated by the merger organizations (HR in the airline industry, 2013).

Finally, the companies’ administrative organs are accountable for verifying the vulnerability to stress among the workers, for the aviation sector is prone to emergencies and damaging breakages.

Expansion Outcomes Evaluation Metrics

The primary results of the merger companies’ work should be evaluated on the basis of performance metrics, which includes such parameters as cost efficiency, customer ratings, and targets verification. The first point accounts for the quantifiable outputs of work. They may be measured on the basis of the mathematical model, which combines the general outcomes estimations within both companies.

If the result of calculation shows that the corporations’ outputs were not reduced in the newly founded organizations, the outcome is positive. Second, the new airline units have to be rated by the customers of the member corporations as well as the new clients, which are attracted by the merger organizations.

Again, the level of ratings should not fall behind the average assessment results of both the Southwest Airlines and AirTran Airways. Finally, the target estimation should be conducted by the administrative organs of both companies, which handle the corporate culture aims and work objectives. In other words, it is critical creating the shared goals for the mergers so that they collaborated in concord.

Conclusion: Aligning the HR Functions in Two Organizations

According to the SWOT analysis that provides the general assessment of mergers’ functioning, there is a need to align the HR functions in terms of corporate culture understanding.

Therefore, it is crucial to hire not only the new employees but to relocate a part of old staff into the newly formed structures so that to ensure that the hired workers will have a chance to learn from airlines’ professionals. Moreover, the administrations of expanded units are responsible for the selection of recruitment strategies, due to which the values of both corporations will be preserved.

References

Analyzing Southwest Airlines. (2012). Web.

Brueckner, J. (2001). The economics of international codesharing: An analysis of airline alliances. International Journal of Industrial Organization, 19(10), 1475 1498.

HR in the airline industry. (2013). Web.

McElhaney, B. (2010). Southwest Airlines case study: Using human resources for competitive advantage [Press release]. Web.

Srinivasan, M. (2014). Southwest Airlines operations – a strategic perspective [Press release]. Web.

Introduction

Organizational culture is “a system of shared meaning held by members that distinguishes an organisaion from other organisations” (Rao 292). In this paper, we will discuss the organizational cultures of two successful companies, “Southwest Airlines” and “Koch Industries”. We will compare these two cultures, investigate the cultural challenges that the companies would face if they decided to merge, and offer a way to avoid the possible clash between them.

The Organizational Culture of “Southwest Airlines”

The organizational culture of “Southwest Airlines” is built around three core principles: “Warrior Spirit, A Servant’s Heart, and Fun-LUVing Attitude” (Klein 36). These include perseverance, innovation, egalitarianism, family relationships between the company’s employees, passionate teamwork, high-quality customer service, and an easy-going, informal attitude to work (Klein 36-37). Therefore, “Southwest Airlines” can be evaluated according to Rao’s list of features of organizational cultures in the following way (Rao 292-293):

1. Innovation: is encouraged.
2. Attention to Detail: more attention to general results than to details of working process is paid.
3. Outcome Orientation: more attention to the performance of a team rather than of a single individual is paid (Klein 37).
4. People Orientation: is people-oriented, provides light atmosphere at work and cares about its employees, e.g. by giving them salaries that are among the highest in the industry, and constantly organizes training and learning opportunities; never practices layoffs, even during crises (Klein 37-38).
5. Team Orientation: is team-oriented, encourages evaluating teamwork rather than individual work (Klein 37).
6. Aggressiveness: the atmosphere is not aggressive; employees are expected to have family-like relationships.
7. Stability: is not aimed at maintaining traditional values and hierarchies, preferring innovation, informality and egalitarianism.
8. Radical Change: innovation is encouraged, but no stress on radical change is present.
9. Customer Orientation: aims to provide customers with very low-cost, high-quality service.

The company’s culture is dominant; its “core beliefs and values… are widely embraced and demonstrated by employees and are a key factor in its success” (Klein 36). Therefore, the company, according to Rao’s definitions, has a strong organizational culture, is organic (workers are allowed to adjust themselves to the environment) and participative (communication flows not only downwards, but also upwards) (Rao 294-295).

The Organizational Culture of “Koch Industries”

The organizational culture of “Koch Industries” employs Charles Koch’s philosophy of “five integral parts: vision, decision rights, knowledge processes, virtue and talents, and incentives” (qtd. in Hornsby and Goldsby 417). We can evaluate it according to Rao’s model in the following way (Rao 292-293):

1. Innovation: is strictly innovation-oriented (Hornsby and Goldsby 417; Koch 80).
2. Attention to Detail: pays attention to each employee’s general performance and results (Hornsby and Goldsby 417-418).
3. Outcome Orientation: is outcome-oriented; rewards “people according to the value they create for the organization” (“Koch Industries, Inc.” par. 5).
4. People Orientation: is not strictly people-oriented; rewards for individual performance and professional qualities (Hornsby and Goldsby 417-418).
5. Team Orientation: is not team-oriented, pays attention to a single employee’s performance; important decisions are made by staff members with the highest “comparative advantages” (Hornsby and Goldsby 417).
6. Aggressiveness: encourages high competition among staff members, rewards them according to their effectiveness (Hornsby and Goldsby 417-418).
7. Stability: holds to traditional values; maintains hierarchies; unequivocally states the role and standards of behavior for each employee; promotes “humility” and “respect” towards superiors (Hornsby and Goldsby 417-418).
8. Radical Change: supports radical change. The company’s CEO C. Koch advises to “embrace change, envision what could be, challenge the status quo, and drive creative destruction” (Koch 80).
9. Customer Orientation: aims towards “customer focus” (Hornsby and Goldsby 417).

The company is likely to have various subcultures inside it, for it is a conglomerate of many different organizations. According to Rao’s definitions, the culture is mechanistic (includes supervision, control and flow of authority) and authoritarian (decisions are made by those who have “the highest comparative advantage” (Hornsby and Goldsby 417)) (Rao 294-295).

“Southwest Airlines” and “Koch Industries” Merging

Comparison, Probable Challenges, and Possible Solutions

Now let us compare the two organizational cultures and consider what could happen if “Koch Industries” decided to purchase “Southwest Airlines”.

Here is what the cultures have in common according to Rao’s scheme (Rao 292-293):

1. Innovation: both organizations encourage innovation;
2. Attention to Detail: both companies are inclined to pay attention to an employee’s general performance rather than details of their work (although in both businesses at least some positions require high level of attention towards details);
3. Customer Orientation: both companies are customer-oriented.

On the other hand, there are more aspects of organizational culture which differ in these two companies:

1. Outcome Orientation: the airlines company pays more attention to results of teamwork, whereas the industrial one keeps an eye on each employee’s performance.
2. People Orientation: “Southwest Airlines” is directly people-oriented, providing its employees with the highest salaries in the industry, encouraging family-like relationships between workers and caring about them; on the other hand, the personnel in “Koch Industries” is highly hierarchized, cared about and paid strictly according to their performance.
3. Team Orientation: the first organization focuses on teamwork, the second one demands individual success;
4. Aggressiveness: the airlines company encourages light relationships and mutual support between workers; the conglomerate promotes tough rivalry.
5. Stability: the first company is much more value-innovative than the second one.
6. Radical Change: the airlines encourage only innovation, but the other company’s CEO advises to practice “creative destruction”.

We should also point out that “Southwest Airlines” has a dominant organizational culture which is strong, organic and participative, whereas the organizational culture of “Koch Industries”, in Rao’s terms, is likely to be not dominant, and is mechanistic and authoritarian (Rao 294-295).

Therefore, if “Koch Industries” decides to purchase “Southwest Airlines”, significant clashes between the two cultures are probable to happen. The airlines team is likely to be frustrated with rules of “Koch Industries” imposed on them. These rules would turn a friendly, easy-going atmosphere into an atomized, strictly hierarchized, highly competitive environment of the “war of all against all” (the new ambience appears to be likely to be perceived as such), where the employees would have to cope with the sudden rivalry of their yesterday’s friends.

Piccolo and Bardes observe that culture “is generally a pervasive and important determinant of employee behavior and the most common reason otherwise attractive mergers fail to meet even modest expectations for sustainable financial performance” (n. pag.). A strict imposition of “Koch’s” rules is, therefore, likely to result in a failure. On the other hand, there often exist several different organizational cultures within the same firm (Piccolo and Bardes n. pag.). We believe that, for the merger to be successful, “Koch Industries” should recognize that “Southwest Airlines” is already one of the most successful companies in the airlines industry (Klein 35) and show flexibility by allowing its organizational culture to exist as what Rao calls a subculture (293).

Conclusion

As we have seen, the organizational cultures of “Southwest Airlines” and “Koch Industries” differ substantially: the first one, in Rao’s terms, is strong, organic and participative, whereas the second one is mechanic and authoritarian (293-294). On the other hand, “Koch Industries” allows for existence of subcultures; therefore, it is possible to take advantage of this feature to avoid a cultural clash that is probable to result from the merger of these two companies.

Works Cited

Hornsby, Jeffrey S., and Michael G. Goldsby. “Corporate Entrepreneurial Performance at Koch Industries: A Social Cognitive Framework.” Business Horizons 52 (2009): 413-419. ScienceDirect. Web.

Klein, Gerald D. “Creating Cultures that Lead to Success: Lincoln Electric, Southwest Airlines, and SAS Institute.” Organizational Dynamics 41 (2012): 32-43. ScienceDirect. Web.

Koch, Charles. The Science of Success: How Market-Based Management Built the World’s Largest Private Company, Hoboken, NJ: John Wiley & Sons, 2007. Print.

Koch Industries, Inc. – The Five Dimensions of MBM. n.d. Web.

Piccolo, Ronald F., and Mary Bardes. “Chapter 13: Cultural Due Diligence.” The Art of Capital Restructuring. Ed. H. Kent Baker and Halil Kiymaz. Hoboken, NJ: John Wiley & Sons, 2011. n. pag. Web.

Rao, P. Subba. Organisational Behaviour, Mumbai, India: Himalaya Publishing House, 2010. Print.

Southwest Airlines (SWA) has remained a market leader in the airline industry dominating the domestic travel segment. The airline’s cost-cutting measures, exceptional customer service, positive organizational culture, and low-fare business model are the key pillars of its success. SWA’s measures to contain operational costs include cross-utilization of its workers to maintain low labor costs and improve turnaround time, operating without hub-and-spoke arrangements, e-ticketing, and focusing on short hauls, among others.

The SWA’s overall corporate strategy focuses on operational efficiency as a source of distinct advantage. It executes this strategy through innovative management style and unique organizational culture. Its unique organizational culture entails new-hire celebrations, customer service training, advanced training, ‘Red hearts and Luv’, and mentorship programs for employees. SWA maintains good relations with its staff and employee unions, which eliminates costly industrial actions. Its unionized employees exhibit enthusiasm and extroverted personalities that characterize the Southwest spirit.

HR practices have played a big part in SWA’s business success. Herb Keller, the airline’s former CEO (1981-2001) exhibited an engaging management style and commitment to his staff and customer service saw the airline reach new heights in the industry. The SWA’s HR practices of training and mentoring of new staff, supporting employee initiatives, e.g., fuel conservation by pilots, and maintaining positive labor relations have been critical to its success.

SWA has recorded steady growth even during turbulent times in the industry. However, challenges related to increasing business rivalry, operational costs, and rising passenger demand threaten its competitive position. It faces stiff competition from low-fare operators like JetBlue and newly merged airlines like Continental/United with may diversify into the low-cost niche (Pisano 11). The airline plans to acquire larger aircrafts (737-800s) to meet rising passenger demand. In my view, SWA’s core competencies lie in the measures to contain operational costs, focus on customer service, and innovative HR practices.

The strategies are a source of competitive capabilities for the airline, enabling it to weather shocks in the market. For this reason, I am optimistic that SWA will weather its present challenges to continue recording sustained success in the future. In my opinion, the airline’s previous success in achieving operational efficiency is a critical success factor in its future growth. Higher operating costs, including labor and fuel costs, reduce profit margins. Therefore, measures to cut costs will help SWA improve its operational efficiency and profit margins.

Works Cited

Goold, Monroe and Allen Campbell. Strategies and Styles: the Role of the Centre in Managing Diversified Corporations. Oxford: Basil Blackwell, 2007. Print.

Hofstede, Geert. Culture’s Consequences: Comparing Values, Behaviors, Institutions, and Organizations across Nations. Thousand Oaks, CA: Sage Publications, 2001. Print.

Pisano, Gary. Creating an R&D Strategy. Boston, MA: Harvard Business School, 2012. Print.

Rodriguez, Robert. “Diversity Finds its Place.” HR Magazine, 51 (2006): 56-61. Print.

Sims, Robert and Mike Schraeder. “Expatriate Compensation: An Exploratory Review of Salient Contextual Factors and Common Practices.” Career Development International 10.2 (2005): 98-110. Print.

Williams, Steve. Making Better Business Decisions: Understanding and Improving Critical Thinking and Problem Solving Skills. Thousand Oaks, CA: Sage Publications, 2008. Print.

Southwest Airlines faced a problem of under-staffing, which adversely affected its operations as compared to rival companies. Stabilizing staff was the primary process to curb overworking of employees; for instance, out of 500 required employees, 321 were available. This calamity prompted available personnel to work more hours, and this accrued demoralization, and boredom in service delivery. Suggestions from employees were also heeded to make work easier in the company; for instance, an agent suggested a sitting arrangement in the gate that would make traffic flow efficiently—the adaptation of this suggestion improved the turnaround process. To improve flight turnaround time, Southwest Airlines ensured there were different gates for flights taking off and landing to reduce congestion and complication. Moreover, baggage transfer may be improved through acquiring large cargo transporting machines and hiring much-qualified staff to attend to baggage during offloading and loading of flights.

Southwest Airlines are different from other planes in that they have a wide array of benefits to workers who attend to planes before take-off. Rival companies use little time on the ground, thus reducing costs and physical stress. Nonetheless, companies that practiced the “hub and spoke” system use more time serving companies because of the short distances between towns. Southwest Airlines need to have planes that serve neighboring towns to increase trips. Moreover, it should reduce its fares relatively lower than rival companies, for instance, United States Airlines.

Human resources play an instrumental role in protracting operations of Southwest Airlines. Different departments ranging from ramp agents to baggage handlers need qualified staff that should be readily available during take-off and landing. At first, the shortage of staff led to the delay of flights and overworking of the employees. Recruitment of new personnel fast-tracked process of service delivery leading to the realization of profits and the company won the “Triple Crown” award. Concisely, an increased number of staff led to delays, mishandled bags, and fewer complaints. Moreover, it should reduce its fares relatively lower than rival companies, for instance, United States Airlines.

Barilla SpA (A)

In exhibition 12, distributor’s order patterns differed day-to-day due to market demands, and inventory levels in their enterprises. Distributors’ sales volume dictates whether the stock would be finished on time or not thereby, affecting their ordering time. Delivery times of Barilla SpA (A) also affect distributors’ forecasting, for example, distributors orders stock every Tuesday but Barilla SpA (A) delivers the goods from Wednesday to Tuesday. It is, therefore, tedious to gauge the amount of stock that should be on the shelves before the next delivery arrives. Natural calamities, customer tastes, and preferences, and stock turnover cause fluctuation order quantities in Barilla SpA (A).

Brando Vitale’s JITD proposal geared towards knowing the main channels of distribution that Barilla SpA (A) products pass through specifically, small independent shops and supermarkets. This reduced losses that occurred when excess goods were manufactured, and not purchased. Moreover, it reduced the transport costs because products were transported to the main warehouse and distributed to the supplies. The payment was also made easier because distributors used electronic payment and order systems; therefore, increasing efficiency. Barilla SpA (A) could gauge its market segment, and forecast on its future operations. This proposal should, therefore, deal with clients in terms of first-come-first-serve to avoid favors and discouraging potential distributors. Products should be manufactured according to the demand to avoid waste and losses.

Human resources cared for the needs of employees by solving disputes that arise during work. Supervisors represented the managers in bolstering healthy relationships among employees, and this increased the yield of the company because employees were happy for freedom given while on duty. Airlines processes are the most sensitive activities indulged by workers in South West Airlines. Landing and take-off are expected to take the utmost 15 minutes; therefore, prompting workers to do their duty immediately flight arrives, for instance, loaders, cleaners, and service engineers. Hub versus modes is the best way the company can amass funds by slightly changing its flight patterns to small cities like Manchester. Hub mode ensures that flights carry full customers to different cities.

Barilla was trying to control stock to customers’ premises, but this interfered with their confidentiality and customer service delivery. Stocking of goods in warehouses discouraged potential customers when stock is not delivered in time. Barilla, however, should only deliver goods to customers at market price but not engage in knowing prices they advance to their respective customers. Delay in the supply of goods makes the businesses undergo unwarranted losses, and this makes it hard to order products since supply is protracted from Tuesday to Wednesday.

Just In Time Distribution makes it easier for Barilla to manage high demands for products that retailers need. Further, this distribution channel reduces the chances of fraudulence since a company may cut supply to a competitor, thus winning back their customers. Nonetheless, the distribution of products in time provides on-time service delivery to minimize costs incurred by retailers, which ultimately downsizes their profit margins.

Strategic Planning and SWOT Analysis

Part A

Vision and mission statement

The vision of Southwest Airlines is to expand its domestic and overseas operations. The company strives to achieve this by being the largest and most profitable airline. Reducing the operating costs of the company would enable it to achieve its vision. Also, Southwest Airlines strives to improve the productivity of its employees. This would enable the employees to offer high-quality services to passengers.

The mission of Southwest Airlines is to provide high-quality services to its customers. Also, the company strives to provide a stable work environment for its employees. The company strives to ensure that its activities are sustainable. This would reduce the impact of their activities on the environment. Southwest Airlines strives to conserve natural resources. The company also endeavors to give back to the communities within which it operates.

SWOT analysis

Strengths

Southwest Airlines uses a standardized fleet of aircraft. The standardized fleet reduces aircraft maintenance and other operational costs.

Southwest Airlines has a strong brand, which is easily recognizable. The company has been in operation since 1971 (Noble, 2007).

Southwest has a dedicated workforce. The airline puts the interests of its employees first. This improves their commitment and productivity.

Weaknesses

Southwest Airlines does not have a first-class section. This makes it lose customers who wish to receive first-class service. Also, Southwest Airlines does not offer inflight meals.

Southwest Airlines has various strategies that strive to reduce labor costs. The airline requires employees to perform multiple jobs simultaneously. This creates a stressful work environment.

Opportunities

Southwest Airlines concentrates on its niche market. The airline does not have extensive involvement in the freight business. Expansion into this market segment would increase the profitability of the airline.

The growth of the Latin American market promises to improve the profitability of Southwest Airlines. The company would benefit the most from the growth in this market due to its ability to offer low prices and high-quality services.

Threats

The airline industry has intense competition. United Airlines is one of the major competitors in the international market.

Southwest Airlines has to comply with various government regulations. This may pose several challenges to the airline.

Strategy map

Southwest Airlines strives to expand internationally. The company intends to use several strategies to increase its presence in the international market. Codesharing is one of the major strategies that the company intends to use to venture into the international market. Below is the strategy map of Southwest Airlines.

Internal and external forces

Internal forces

The ability to offer high-quality services would determine the competitiveness of Southwest Airlines in international markets. Southwest Airlines strives to ensure that its employees are highly motivated. This enables the employees to provide high-quality services.

The type of aircraft that the airline uses would determine the efficiency of its operations. Southwest uses a standardized fleet of aircraft.

External forces

Government regulation is one of the major external factors that affects Southwest Airlines. The airline has to comply with various government regulations. This may pose several challenges to the airline.

The prevailing economic conditions affect the profitability of Southwest Airlines. Poor economic outlook would reduce the profitability of the company.

Southwest Airlines operates in a highly competitive environment. This necessitates the company to undertake several changes regularly.

Part B

When might it be useful to perform a “self-SWOT” analysis?

The self-SWOT analysis enables individuals to determine their strengths and weaknesses. This enables them to determine how to take maximum advantage of the opportunities and resources that are available to them. People usually conduct a self-SWOT analysis when that face threats, challenging situations, or constraints that may hinder their ability to achieve certain objectives. Finances, time, and resources are the major constraints that an individual may face.

What information might you glean from such an analysis?

The self-SWOT analysis enables individuals to determine their strengths, weaknesses, opportunities, and threats. This may help formulate short term and long term goals. It enables individuals to determine their career direction and objective. Making a meticulous list of the positive and negative traits enables individuals to attain their goals easily. The list enables the individuals to have a clear picture of where they stand. Also, self-SWOT analysis enables an individual to take maximum advantage of their strengths and opportunities when they face threats that may reduce their ability to attain their objectives. The self-SWOT analysis also enables individuals to determine their weaknesses. This enables them to make use of the available resources and turn their weaknesses into strengths. This helps them to achieve their objectives easily and within the shortest period. The self-SWOT analysis also enables individuals to determine the skills that they need to attain their objectives (Hayton, Biron & Christiansen, 2012).

How might you use the idea of having employees perform “self-SWOT” analyses in operational management?

Project managers use SWOT analysis during decision-making and strategic planning. SWOT analysis enables the project managers to determine the most efficient method of implementing various projects within the company. It is important for project managers not to overlook any aspect of the organization during the formulation of the SWOT analysis. Project managers may ask the project team members to conduct a self-SWOT analysis. This helps them to determine how to allocate various tasks within the project. The allocation of the tasks should consider the strengths and weaknesses of the project team members. Also, self-SWOT analysis facilitates the formulation of strategies that would help project team members to convert their weaknesses to strengths. Conducting a self-SWOT analysis is vital to the ultimate success of the project since the project team members are the employees who undertake various project implementation activities (Simons, 2010).

How might using “self-SWOT” be beneficial in managing teams?

Teams perform most tasks within an organization. Therefore, SWOT analysis should consider the team dynamics. To develop a SWOT analysis that would help in managing teams, organizations should designate a project team leader who would help in determining the skills of individual members and groups. Project team leaders should ensure that they divide stakeholders of the group into small groups. This enables the members to participate in the group activities. Project team leaders should instruct the team members to create a SWOT analysis using the design they understand. The project team manager should provide approximately 30 minutes for the group members to brainstorm and determine their strengths and weaknesses (Hill & Jones, 2009). This enables the SWOT analysis to support valuable discussions within the group. Using the SWOT analysis in this manner enables an organization to manage teams more effectively.

References

Hayton, J., Biron, M. & Christiansen, L.C. (2012). Global human resource management casebook. London: Routledge.

Hill, C. & Jones, G.R. (2009). Strategic management theory: An integrated approach. Mason, OH: Cengage Learning.

Noble, P. (2007). Evaluating public relations: A best practice guide to public relations planning. London: Kogan Page Publishers.

Simons, R. (2010). Seven strategy questions: A simple approach for better execution. Boston, MA: Harvard Business Press.

Discussion

It should be noted that aviation industry is a quite complex area of business. Multiple cases have occurred when both customers and airline employees have exhibited improper practices. The purpose of this paper is to review a situation that has recently taken place on board of Southwest Airlines.

Reaction of Southwest Airlines

It can be argued that Southwest Airlines have addressed the situation under analysis correctly and adequately. According to the case, the woman claimed that she had an allergy to animals and asked the flight attendants to remove the pets from the board. However, the individual did not provide evidence to prove her health condition, and the employees needed to deplane her (“Passenger is escorted off Southwest flight,” 2017).

Nevertheless, the woman refused to leave the aircraft, and the police officers had to use their physical force to remove her from the plane. The video of this accident reveals a person who is extruded by two strong men, which seems rather radical (CBS North Carolina, 2017). Nonetheless, the decision made by the airline’s workforce was reasonable since they could not jeopardize the health of the woman; therefore, they were forced to deplane her instead of risking her well-being (as well as receiving charges if the woman died of allergy during the flight).

In addition, the policy of Southwest Airline clearly states that “a Customer (without a medical certificate) may be denied boarding if they report a life-threatening allergic reaction and cannot travel safely with an animal onboard” (“Passenger is escorted off Southwest flight,” 2017, para. 4). If they did not meet this guideline, the company would break their corporate policy. Moreover, the woman did not agree to leave the plane; thus, the flight attendants had to invite the police.

It was the responsibility of the woman to leave the plane as requested by the officers. Since the individual did not meet this requirement, the police representatives had to act in accordance with their regulations (Guffey & Loewy, 2015). Apart from that, the woman’s behavior not only disturbed the peace but also could result in increased expenses for other customers. If the officers had not removed her from the plane, the flight might have been delayed causing inconvenience and financial losses to other passengers.

Woman’s Title

The statement made by the woman has hurt her case. First, all passengers should be regarded equally. Therefore, the individual’s academic background did not imply that she should be treated with a greater degree of respect. Moreover, the woman’s title poses a great liability on her. She should have shown the way a respectful and tolerant person with high ethical and moral standards should handle such complex situations (Guffey & Loewy, 2015).

Nonetheless, the woman has shown her disrespect towards other passengers and violated the requirements imposed on all the customers. Therefore, her professional title did not coincide with the exhibited behavior. Apart from that, the airline has apologized for the application of physical force to the woman (“Passenger is escorted off Southwest flight,” 2017). In her turn, the woman did not tender an apology to her fellow passengers for violating their peace. Therefore, it can be assumed that her academic background has served as an aggravating factor. The woman’s claim implied that she should be treated with respect because she is a professor and that her words could be taken for granted, which were wrongful assumptions.

Conclusion

Thus, it can be concluded that the case of Southwest Airlines is rather complex. On the one hand, the use of physical force applied to passengers seems improper. On the other hand, the airline, as well as the officers, have acted in accordance with their policy requirements. Moreover, the workforce ensured that they did not put their passenger in danger and did not allow the woman to cause inconvenience to other clients.

References

CBS North Carolina. (2017). VIDEO: Woman dragged off Southwest Airlines flight. Web.

Guffey, M. E., & Loewy, D. (2015). Essentials of business communication (10th ed.). Boston, MA: Cengage.

Passenger is escorted off Southwest flight. (2017). Web.