SOUTHWEST AIRLINES

Swati Mahajan(13PGHR55)
Aashima Dhull(13PGHR09)
T Pramod(13PGH56)

Tanmay Jain(13PGHR57)

Urnav Bagchi(13PGHR59)

Sareen Vadlamani(13PGHR60)

MAKING OF SOUTHWESTS
CULTURE
Began operations in 1971
Continental played politics to ensure southwest would
not get off ground and won to an extent
Led to the aggressive underdog spirit pervading the
company
Goal of keeping this spirit alive came in
Make Love, Not War became its core values
Seized the opportunity at the right time to expand in
california

CURRENT SITUATION
Present in airports that are underutilized and
close to a metropolitan area
Low fare, Low costs and frequent flights
80% customers fly non stop
11hrs 8 hrs/day, 10.5 (Avg)4.5flights/gate
Able to increase no of fliers between louisville to
chicago/week from 8000 to 26000
Profitable in every one of the last 21 years

COMPETITIVE ADVANTAGE
15 mt turnaround
$200000 for 50 hrs $100000 for 70hrs(SWA)
Volunteer to help customers
(SWA)81 employees/plane 157 or 152
Served 2443 customers/employee compared to
795 and 840 (United, American)
Very lean cost structure, Only one type of aircraft
used, point to point strategy

LEADERSHIP (HERB KELLEHER)

Real competitive advantage (For some)
Always ready to promote a party, Have fun
Employees look up to him (3000 gift cards)
Treat employees as family (Really mean it)
Steps to preserve and enhance SWA spirit

Work in a place where Elvis has been spotted

PEOPLE DEPARTMENT &

RECRUITING
People Department
Is like the keeper of the flame
Ann worries about maintaining culture
Recruiting
Hire people who form the fit (Very selective)
Teamwork and positive attitude is critical
Reject more than 95000 a year
Rejected people are handled very well

TRAINING
Southwest university of people
Proper training in place for everyone
Outbound training
Special executive training (Front line forum)

Work at a place where wearing pants is optional

WORKFORCE
89% unionized, Only one 6 day walkout in the
last decade
Flexibility to work more and earn more
One of the lowest paid CEOs
80-90% employees own ESOPs
Very young work force

COMPETITORS
Directly imitating their policies and procedures
Challenging their core values
Continental

Unsatisfied

customer base
Harsh and uncommunicative leadership style

United

Unable

to implement the low-cost model

Culture opposite to that of Sothwest

PROBLEMS

Internal

Increase

in number of employees was a threat to

existing organization culture
Imminent change in leadership

External

Competitive

threat

SUSTAINING ORGANIZATION
CULTURE

Look at recruits who

aspire to become a part of
the org
Values should be
consistent with org

Pre-selection

Socialization
Employee confronts the
reality of culture and
expectations or reality
may diverge
Members must work out
problems if any

If the employee is a right

fit then incorporate him
If he is not in acceptance
of the org culture then
reject him or do the
necessary

Incorporation/
Rejection

CHANGE IN LEADERSHIP

Colleen Barrett has potential and qualities to

take the charge of CEO
Reflected

the relaxed management style

Combination of den mother, management guru and
customer ombudsman
Has the required people skill since she also looks
after the HR

COMPETITIVE THREAT

To stay ahead of the competitors they need to

Have

consistency in low fares and customer service

Look into for innovation
Focus more on sustaining organization culture

THANK YOU