The paper "Fast-Cycle Capability for Competitive Power" Is a great example of a Management Case Study. Southwest Airlines has been one of the largest airlines in the US, which recorded profitability for 31 consecutive years. This case study focuses on the role of its dynamic chief executive officer (CEO) Herb Kelleher in helping the company become successful while discussing the future challenges that the airlines may face, together with providing various strategies for mitigating such issues. Further, the role of its new CEO, Gary Kelly is also being analyzed in this paper. To what do you attribute the success of Southwest Airlines? Southwest Airlines started its business in 1971 in the state of Texas has become one of the largest airline companies in the US.
On average till 2004, the company flew approximately around 65 million passengers per year covering around 59 cities and 30 states (Schroeder et al. 2011). Having expanded its business to mostly all the states at the present times, the company enjoys favorable customer response with all services provided to the client. The success of Southwest Airlines was predicted by the competitive advantage that the company enjoyed over the last three decades.
With not many companies in the industry, it was able to gather the market share pretty well (Wild 1980). Along, with the competitive boundary, the management style which was unusual by the company with the CEO Herb Kelleher. He helped the company stride through the unique management style aiding it to hit the bottom-line positively. The unique or perhaps unusual negotiation skills helped the company establish business deals very uniquely. This also helped the company in creating a newer approach to either win new mandates or allying with other companies for navigating into new ventures.
As an example, for settling the dispute to use the slogan which was 'Just Plane Smart', he arm-wrestled with Kurt Herwald, who was the chairman of Stevens Aviation, who had laid the claim that the slogan was made by their company. The concept of taking on with the competition was very unique to his style and made it sure that he is able to keep his peers busy as well. Analysts opine that the 'disarming' behavior or style that was followed by Kelleher was another reason that helped the company to stride through the problems and helped it in staying profitable with earning profit for 31 consecutive years (Hill 2000; Sasser et al.
1978). Southwest Airlines: A Brief Profile Founded in: 1971 Headquartered in: Texas Average no. of passengers flew per year: 65 million Area of operation: 59 cities and 30 states Profit trend: Earning profit for 31 consecutive years Kelleher was also known for his unusual approach and often times appeared in varied get-ups and performed during the company functions. Once the masked as Corporal Klinger - M*A*S*H Television- for exhibiting the feeling of unity among the mechanics who were working beyond the normal time for the company so that they were able to achieve the target.
The concern when exhibited by CEO instantly brought the loyalty amongst the staff. Being very aware of the fact that employees had to be kept motivated, he made several attempts to make sure that he is able to win the loyalty as well as the trust of his team so that the set targets could be achieved and the company is able to remain in positive throughout.
While motivation and creating an environment of harmony is one of the most essential responsibilities of the CEO, Kelleher was able to achieve both and make sure that employees are constantly kept agile by organizing parties and get-together. By keeping the morale high, he was able to make sure that all his plans were appreciated by the people and were fully engaged in realizing the common goal set by the company (Murdick et al. 1990).
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