Southwest’s CEO Garry Kelly Southwest Airlines is the most profitable in the airline industry. Most of theother companies look up to Southwest airlines as their major competitor. Garry Kelly, the CEO, is a major factor for the success of the company. According to the video, Kelly is a person of good character and seems eager to learn more leadership abilities. He is a person of high integrity and treats people right, whether employees or the customers. He appreciates the hard work of the employees and tries to nurture their work.
In addition, Kelly encourages teamwork, as seen in the video, through intermingling with the employees as part of their own (“Destination CEO Video Series”). Moreover, he appreciates the social fabric that binds the management, employees, and the clients of Southwest Airlines. According to the video, discussing is the primary management style of Kelly. He recognizes the feelings of the employees and tries to understand their motive for work. Kelly talks to the employees and asks them to undertake a certain role instead of commanding. He is more empathetic with the employees and the clients by paying attention to their styles of communication.
Such communication could be either verbal or nonverbal through understanding their gestures. Kelly shows small acts of kindness to the employees and the clients that go a long way in making the company a success. He is a hands-on CEO, as he chooses to fly with the rest of the passengers, just to have a feeling on their experience on the planes. There are various factors for the success of Southwest Airlines. One of the factors relates to the treatment and management of people.
The company treats people as the core assets that make it operational. Another factor is the effective management of resources. It employs its resources in the effective management of people since they are the core decision makers for the company. For instance, the company equips its staff with technical skills that aid them in achieving self-actualization in their profession. It also motivates the employees through a good remuneration that makes them aspire for the achievement of the company’s objectives. Moreover, the company’s organizational framework allows the maximum utility of the employees’ skills.
The company’s management ensures that the employees have the knowledge, ability, and the desire to work. The challenges of the company in gaining a competitive advantage include the rise in fuel prices. The company ensures that its costs are minimum, in order to lower its fares for maximum profitability. However, the rise in fuel prices leads the company in increasing the fares hence becoming a limiting factor in the achievement of a competitive advantage. The other challenge in the maintenance of the company’s competitive advantage is the early-retirement plans.
Most of the employees accepted the offer and the company constantly faces an increase in the cost of labor. The increase in such costs led to the formation of a strategy that could aid in achieving a competitive advantage. The company had to minimize the number of flights to less profitable areas and channel the flights to more profitable locations. Work Cited "Destination CEO Video Series. " Destination CEO Video Series. Web. 15 Feb. 2015. .