This paper will dwell on the management policy and strategy of an airline company (Southwest Airlines) that has been in the industry for a long period of time. This paper seeks to provide a clear understanding on the business strategy and management policy, which the company is implementing in their entire business operation.
Therefore, the following will be discussed:
History of Southwest Airlines
Strategies of the firm
Statement of Mission and Vision
Brief assessment of the organization
Design Management Strategic plan
Moreover, with the use of all these information about the Southwest Airlines, this paper will work to formulate new recommendation in management policy and strateg plan that were to use in a span of three to five years for the company operation.
History of Southwest Airlines
Southwest Airline is one of the most successful airline companies that have been a provider of quality air transportation services for trippers’ world wide (“We Weren’t Just Airborne Yesterday,” n.d.). In a sense, the Southwest Airlines is known for its fantastic customer service, which the entire firm believes that their customer is main reason of their uniqueness among any other leading airline companies (“We Weren’t Just Airborne Yesterday,” n.d.).
Technically, the Southwest Airlines had started as little local airline firm in Texas. Years have pass and the early small airline company in Texas is now one of the largest and strongest airline company in the entire United States (“We Weren’t Just Airborne Yesterday,” n.d.). At present time, Southwest Airline now flies to 63 vast cities all around the country and transports an estimated 100 million travel passengers per year in a 3,300 daily routine (“We Weren’t Just Airborne Yesterday,” n.d.).
It has been 36 years have passed when both Rollin King and Herb Kelleher reunited and settle on to put up a profound type of Airline Company (“We Weren’t Just Airborne Yesterday,” n.d.). Initially, they started with a single straightforward concept, which is to fly or transport their customers and passengers to their desired destination on time at the very least probable air fare under their unique as well as finest customer service (“We Weren’t Just Airborne Yesterday,” n.d.).
Mission and Vision of Southwest Airlines
According to Colleen Barrett – the current president of Southwest Airline, they believe that their Mission Statement is a significant piece of communication due to their belief that it communicates their vision as a company through their employee (“Collens Corner,” n.d.). Apart from just flying aircraft and transporting people or their customer to their desired destination, Southwest Airline focuses to implement their company Mission Statement and provide their passenger or customer a totally different air transportation service (“Collens Corner,” n.d.).
The mission and vision statement of the entire Southwest Airlines is divided in two major subdivisions. The first subdivision of their Mission Statement depicts the dedication of Southwest Airlines to provide the finest quality customer service for their passengers done with friendliness, a sense of warmth, individual pride and company spirit (“Collens Corner,” n.d.).
The second part tells the commitment of the Southwest Airlines to provide their employees a secure working environment with equal opportunity to learn and grow personally (“Collens Corner,” n.d.). These include the program of the firm to develop creativity and innovation to improve the effectiveness of the Southwest Airline (“Collens Corner,” n.d.).
Therefore, the mission and vision of Southwest Airlines focuses to provide their customers and passengers with a sense of warmth, friendliness, individual pride, and Company Spirit, serve as their promise and steadfast to honour each and everyday of their service (“Collens Corner,” n.d.).
Strategies of Southwest Airlines
The Southwest Airlines had been the first air companies to put-up a web page through their “southwest.com”, which is considered to be one of the finest strategic move of the firm to create a direct link to their Client’s computer and transmit live updates of the hottest information (“We Weren’t Just Airborne Yesterday,” n.d.).
Essentially, Southwest Airlines had been a strategic innovator in airline industry, on which the firm had pioneered plenty of strategic steps. Moreover, the company had leaded the way to established many strategic techniques like – ticket less travel, senior fares, and same-day air freight delivery service (“We Weren’t Just Airborne Yesterday,” n.d.).
In a deeper strategic analysis of the firm, Southwest Airlines had benefited well on their key strategies. The company has its conservative growth model, which the company refuses to expand quickly, rather only embraces development on a perfect time when there are available resources already (“We Weren’t Just Airborne Yesterday,” n.d.). In addition to this, the lower cost policy of the firm is one of the profound strategies of Southwest Airlines that been the main reason of the company’s edge over their leading competitor (“We Weren’t Just Airborne Yesterday,” n.d.).
Nonetheless, the Southwest Airlines commitment to provide their employee the equal treatment and affection is one of the brilliant firm strategies to ensure their finest quality customer service and lead the entire airline company to garner the most positive customer feedback on their service (“We Weren’t Just Airborne Yesterday,” n.d.).
Management policy and strategy recommendation
Given the fact that Southwest Airlines implement effective management policy and strategy, this paper works to design and developed a new reliable company management information system or better known as the MIS. It is to ensure the consistent growth of the company, determine probable rooms of change to explore and better handle the company’s future challenges.
Strategic Mission and Vision
The mission of this strategic plan is to verify new areas of change for the company to broaden their customer reach, marketability and research for new destination or their flight for their clients. Also, this management strategic plan is design to sustain and protect the growth of Southwest as an airline company together with its present management strategy.
This strategic plan will hold the vision of making the Southwest the only low cost airline to serve the largest flight in different destination across the globe including the rarest places. This strategic plan envisions Southwest Airlines to be the major and consistent achiever to meet the satisfaction of the customer and its market.
Internal Analysis ; External Analysis
There is no question with regards to the ability of Southwest Airlines to accomplish and meet their business goals and objective. The record of events show that the company is competent enough to meet their company missions as stated in their previous and present management strategy. With the company’s customer and employee oriented management strategic plan, it is a fact that Southwest’s ability to respond for both internal/external change and challenges is unquestionable. Thus, this strategic plan will help the company to broaden their reach, marketability and profitability.
Strategic Plan (SWOT Analysis)
The strength of this strategic plan is that this will give the edge for Southwest Airline to do research to areas of improvement and new places to fly and will enable the firm to further improve their management.
Weakness is that it will take some time and effort to establish a reliable MIS to do comprehensive. This will incorporate acquisition of new technology, specifically the web connections.
The opportunity of this strategic plan is the probable company acquisition of modern technology that is useful to improve not just the information system, rather the entire data gathering and communication system of the company.
The implementation failure,on the other hand, is a possible threat of this strategic management, as to improper application of this order may cause inverse effect on the company.
Strategic Plan Goals
On the first year, this strategic plan aims to establish a reliable information system, which will focus to data gathering. This is to ensure all the information to be collected is factual and well supported by facts. On the second year, this strategic plan will line up the collated data of change – like new probable destination of flights, in-depth company analysis, comprehensive report of direct competitor and customer survey of the company. This is to determine key information and ares that were in need of change and modification. On the third year, this strategic plan will formulate effective company actions to achieve the goal of the company with the help of the gathered informations that will be measured through comprehensive ewaluation of the implemeted new policies and stragtegies.
Long term objectives
There are two long term objectives of this strategic plan. First, is to protect and sustain the growth of Southwest Airlines in terms of marketablity, profitability and maintain the company’s ability to meet the satisfaction of their customer. Second, is to further improve the present management strategy of the frim to maintain its competitiveness in airline industry competition.
In the end, this paper gave definite information that despite the success of Southwest as an airline company, modification of a reliable MIS or mangement information system is an effective strategic plan towards further improvement and growth of the company. With this strategic plan, the company’s growth and strategies will be protected as well as maintained. With all the information above, it is fair enough to say that Southwest Airlines had implemented profound and effective management policy as the key towards their success.
“We Weren’t Just Airborne Yesterday,” (n.d.). Retrieved July 8, 2008 from http://www.southwest.com/about_swa/airborne.html
“Collens Corner,” (n.d.). Retrieved July 8, 2008 http://www.southwest.com/about_swa/about_swa.html