Southwest case analysis Essay -- essays research papers

Southwest has made an government activity out of providing low-fare, short haul routes between city pairs. It has concentrated specifically on offering low-fares on all of its flights by maintaining its no frills status and high frequency of flights. This has afforded Southwest flight paths with the lowest cost structure in the industry. Southwest has created a niche for itself by flying a mesh topology of flights between smaller U.S. cities that average just one hour apart. This has severalise them from their competition and avoided many clashes with industry giants who concentrate more on coast-to-coast flights. Kelleher, who is the president, lead and CEO of Southwest Airlines is the companies single biggest asset and driving force. Kelleher runs the company in truth tightly and makes all the major(ip) decisions through a very modify decision making process. This brings to light two potential problems. Firstly, how can a company such as Southwest airlines maintain such a c entralized organization in the face of growth. Secondly, how is this company going to come through once Kelleher is no longer running it.The problem that Southwest Airline is facing, is how are they going to survive in an aggressive industry without Kellehers leadership. It is a significant problem as the company is a emblem of Kelleher. However, unlike the company, Kelleher has a limited life-span and therefore the company forget in all likelihood outlive him. This problem therefore shoots some urgency as the taking over of Kelleher could be the airlines biggest problem. The consequences of Kelleher leaving could be that the company loses its bodied identity. Employees may not respond well to refreshful management. Customers may perceive that the company lead not be run in the same manner and result therefore lose its niche market. This could also apply to stakeholders, who will collar the departure of Kelleher as a serious decrease in the measure of the company. Compet itors may also try to take advantage of the company during this perilous period.Kelleher is the face of Southwest airlines, even going as far as starring in most of their TV commercials. He also in the flesh(predicate)ly maintains an excellent relationship with a virtually all-union workforce. He has single handedly minded(p) Southwest the lowest employees turnover rate in the industry. Kellehers personal motiva... ...with the reality of the firm.The implementation of this decision will require a merchandising campaign that will be used to phase out Kelleher. The major resistance will be from the employees who will be fearful of new management. This will be addressed by the management team reinforcing the corporate strategies to the employees and reiterating the fact that Southwest airlines will remain the same company and the employees should stand things to stay the same. The ramifications of this plan is that power within Southwest could become to alterd, therefore changin g the core competencies of the firm. In order for this plan to work it would require Assembling a team to head the marketing campaign, restructuring of upper management, and decentralize decision making. The objective is to redefine and restructure the upper management in such a way that the loss of Kelleher is manageable. This plans effectiveness will be measured by employee and customer satisfaction throughout the transition. The project will be concluded when the new structure has been phased in and the reaction to Kellehers departure is under control.