Running Header: SouthWest Management

Southwest Management

Southest Management

Question number 1: What grade would you give Soutwest Management for the job it has done in crafting the company's strategy? What is it that you like or dislike about the strategy? Does Southwest have a winning stratgey?

I would give them an A. I do not think there is anything I can say I dislike about the strategy. They have been a very successful company and they take care of their employees as well as customers. Southwest has been able to resist threats from many different directions. The management team is always ready to fight back with a positive attitude. They have a great employee development program. They focus on the culture of the company and make it known what they are looking for and what they expect. They plan ahead and make sure each step is well thought out. Their cost approach is hard for rivals to meet or beat. They have been able to remain a low-cost airline and they treat their customers and employees well. This has played a big role in the company remaining successful for many years. People are looking for low prices every day, especially in today's economy. Whether it is shopping for a new car, buying groceries, or flying for business, or to see family everyone wants the best price. However, while low prices may be the customer's main concern, good customer service is also important. I think customer service is what keeps a customer coming back. I believe Southwest has a long-term, sustainable, winning strategy.

Question number 2: What are the key elements of Southwest'sculture? Is Southwest a strong culture company? Why or why not? What problems do you foresee that Gary Kelly has in sustaining the culture now that Herb Kelleher, the company's spiritual leader, has departed?

There are a few elements that factor into Southwest's culture. One of them is its focus on its employees as major assets and going the extra mile to let them know they are appreciated. Their slogan is “employees come first and then customers.” I think this says a lot about the company. It seems like it is the other way around with so many businesses. Employees are a major asset to a company and Southwest is not afraid to acknowledge that. Their focus is on their people and their culture. Their low cost fair advantage is another element of their culture. Something that I feel could be a problem for Gary Kelly is another airline trying to copy the company's culture and taking Southwest's ideas. However, I think if this did happen Southwest is still well established so it shouldn't cause any major problems with the company. Another possible problem is Gary's ability to bring his own ideas and style to the company and make sure the company can survive the constant changes in the industry. Often times in changing management a company may always look back at the way a previous manager did something and compare or think about the way ...