1. Is there anything that you find particularly impressive about Southwest Airlines?

There are several things that I like about Southwest Airlines The first is its large fleet of 527
aircraft, all of which are Boeing 737. In addition, I like the implementation of the strategy of the
low cost airlines. The company has been able to understand the cost structure in the Airlines
industry, has been able to understand customer needs, and has been able to deliver a remarkable
value based product to its customers. I have been impressed by the manner in which the Airlines
has been able to implement the low cost model of airlines. Southwest Airlines has also shown
flexibility in addressing the needs of its customers. It has now decided to go in for 737-800
because they would improve scheduling. Southwest Airlines has been successful because it has
eliminated services that were not valued by the customers and instead provided customers with a
relatively lower cost option.

2. What grade would you give Southwest management for the job it has done in crafting the
company's strategy? What is it that you like or dislike about the strategy? Does Southwest have
a winning strategy?
Southwest Airlines management deserves to be given an A grade for developing a winning
strategy. Southwest Airlines strategy begins with its HR strategy of recruiting personnel that are
high quality, are trained well and their performance is well managed. In addition, the strategy
focuses on improving high level of employee productivity and aircraft productivity to reduce
costs and make profits at the same time. The strategy also includes strategic code sharing with
other airlines.
I like this strategy because it is a clear-cut cost leadership strategy. This strategy is designed to
bring additional profits to Southwest Airlines. I like this strategy because it works both during the
expansion phase of the business cycle as well as during the recession stage of the business cycle.
This strategy is a winning strategy.

3. What are the key policies, procedures, operating practices, and core values underlying
Southwest's efforts to implement and execute its low-cost/no frills strategy?
Southwest Airlines key policies are low costs, low fares, frequent flights and fast expansion into
new cities. The company has also been favored because it has entered into hedge contracts for
 low cost fuel. This has been instrumental in keeping the profits of the airlines up even when the
profits of competitors have been falling. The company has the operating practices of efficient
operations, lower costs and attention to customer service. The core values of Southwest Airlines
are keeping its product and process simple. In addition, Southwest Airlines controls costs, gets
top-ranking customer service ratings, and using path breaking technology in online booing and
electronic ticketing. Southwest Airlines has implemented its low cost/no frills strategy though a
high degree of teamwork, communications and coordination among functions. It is the people
that have been the key to successful implementation.

4. What are the key elements of Southwest's culture? Is Southwest a strong culture company?
Why or why not? What problems do you foresee that Gary Kelly has in sustaining the culture
now that Herb Kelleher, the company's spiritual leader, has departed?
Southwest Airlines has a strong culture that keeps its workforce happy. It keeps its workers
satisfied. it is a freewheeling culture. The culture adds to the reputation of the company. It has
fostered a positive corporate culture. The culture is one of innovation and simple procedures. The
culture promotes communication and close coordination.
The company has a strong culture. The reason is that there is a strong reputation of the company's
culture, the culture keeps the employees satisfied, and keeps the turnover rate of employees low.
There are likely to be some changes in the culture given that Herb Kelleher has gone. It is
expected that greater control systems will be put in place so that the workforce becomes more
focused on the business objectives of Southwest Airlines.

5. What grade would you give Southwest management for the job it has done in implementing
and executing the company's strategy? Which of Southwest's strategy execution approaches
and operating practices do you believe have been most crucial in accounting for the success
that Southwest has enjoyed in executing its strategy? Are the any policies, procedures, and
operating approaches at Southwest that you disapprove of or that are not working well?
Southwest Airlines management gets the top grade for the job it has done in implementing and
executing the company's strategy. The implementation has been done so successfully that other
airlines have adopted the Southwest Airlines model. The strategy execution approach of keeping
 things simple and delegation of authority/responsibility to employees has been crucial in
accounting for the success of Southwest Airlines.
There are some policies or procedures that I do not approve of are the policy that requires obese
passengers to buy two tickets. In addition, I have read reports that Southwest Airlines is cutting
costs on maintenance that could lead to accidents. Further, the security on plane is so low that
passengers have to overpower fellow passengers if there is misbehavior.

6. What weaknesses or problems do you see at Southwest Airlines?

Southwest Airlines has several weaknesses. It must maintain high passenger usage of its flights
or else it can lead to serious financial problems. The financial report of Dec 31 2009, shows that
the sales revenues, net income from operations, and net income have declined. The net income
has declined from $675 million in 2007 to $99 million in 2009. Financial weakness can bring
Southwest Airlines down. It should be avoided by Southwest Airlines.

7. What recommendations would you make to Gary Kelly?

There are several recommendations to Gary Kelly. He must ensure that the ticketing process is
not entirely mechanized and customer representative staff should address promptly the concerns
of flyers. In addition, Southwest Airlines must be more flexible in increasing the number of flight
on routes where there is higher demand and also reduce flights on routes which are less
frequented. It appears that Southwest Airlines has set about cost cutting instead of cost
controlling. This can only lead to poorer customer service. Southwest Airlines has a good record
with no major accident. This can be maintained though good maintenance. He should not cut
costs on maintenance.

References:

Southwest Airlines: Southwest Airlines Destinations, Southwest Airlines Flight 1248, Southwest
Airlines Flight 1455, Airline, Herb Kelleher
Books Llc
General Books LLC, 2010
Southwest Airlines
Corporations That Changed the World
Chris Lauer
Greenwood Pub Group, 2011

The Southwest Airlines way: using the power of relationships to achieve high performance
Jody Hoffer Gittell
McGraw-Hill Professional, 2005

www.southwest.com/