This Study Resource Was: Organizational Structure of Southwest Airlines

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Running head: ORGANIZATIONAL STRUCTURE OF SOUTHWEST AIRLINES
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The organizational structure of Southwest Airlines.
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ORGANIZATIONAL STRUCTURE OF SOUTHWEST AIRLINES
Southwest Airlines is one of the most successful airlines in the industry. The mission
statement of the organization is the dedication to the highest quality of customer service
delivered with a sense of warmth, friendliness and resource management. The company is
committed to providing employees with a stable working environment with the opportunity for
learning and personal growth. The organization structure of the company is unique to enhance its
operational strategy. The company is committed to innovation and creativity.
The organizational structure for Southwest Airlines is regarded as functional. There are
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three different layers of management. The values of the company are considered to be core in the
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operations of the company. the core values include quality, reliability, action, communication,
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and feedback. Job specialization is vital in the operations of the company. To reduce the
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turnaround time, pilots working with the airline often help with cleaning which is the rate with
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other carriers. The Organizational structure of the company promotes centralized decision-
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making processes. The company is a low-cost carrier with international operations (Crishty,
2017). As a result, it has an organizational design that is representative of a business

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configuration that enables the corporate headquarters of the airline to control all areas of
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operations. In the structural system, the company has a rigid hierarchy that addresses the
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concerns of management. The corporate structure helps to facilitate the administration of the
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company.
The company has a U-form organization structure. The unitary system helps to control
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the operations of the airline such as finance and marketing. The corporate structure is in
businesses that seem to maintain strong central control on the operations of the company at top
level strategic management at top-level strategic management in organization headquarters. A
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major characteristic of the U-form structure is having a centralized hierarchy where senior
executives of the company make decisions regarding the operations. The organization structure
of the Airline was expanded after a merger with Air Tran (Milliman, 2016).
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Comparing the organization structure of the company with that of Delta airlines, there
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are notable differences. Delta airlines is a competitor to Southwest Airlines also operating mostly
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in the domestic market. Delta's structure has a complex organizational structure. The company
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has a different department which is operated differently. There are, however, some similarities in
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organizational structures. Both airlines have a hierarchical structure where the senior executives
of the two companies make decisions regarding the operations of the company. Employees of the
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company are also treated well to enhance their productivity (Beltina, 2020).
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SWOT analysis of Southwest Airlines
The strengths of Southwest Airlines include the fact that it is the leading carrier in the
country. Southern Airlines is the leading domestic carrier in the country. With the company
expanding to other countries, it will enjoy economies of scale. Another strength of the company
is the fact that it has a large and efficient fleet. One of the main reasons that the company is the
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leading carrier in the country is the fact that it is a low-cost carrier. To maintain low-cost
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operations, the airline ensures that it has an efficient fleet to fly customers to different
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destinations in the country. Southwest Airlines has over 750 aircraft in its fleet. The company
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uses aircraft models that save fuel to reduce the cost of operations. Another strength of the
company is operational efficiency. The company not only uses fuel-efficient aircraft but also
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focus on different aspects to improve operations. Unlike other airlines that use the hub and spoke
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model of operations, Southwest airlines use a point-to-point service model which helps to
improve efficiency. The lower prices provide the company with a competitive advantage. other
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strengths of the company include a focus on customer service and healthy profit margins.
The weaknesses of Southwest airlines include the fact that the airline has limited
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international operations. Although the company is the leader in the domestic market, many
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customers are frustrated to keep changing carriers when they are used to using a similar carrier.
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The other weakness of the company is operational costs affecting net income. The company has
been able to capture a larger market share by lowering sots. However, the operating costs of the
company have kept rising thereby affecting net income.
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There are different opportunities that Southwest airlines can explore. Some of the
opportunities include strong air travel demand. There has been a strong rate of growth in air
travel. The company can expand its operations in the North American region to meet the
increasing demand. There is an opportunity to tap the North American market by expanding
operations beyond domestic travel (Pratpat, 2020). Another opportunity is a partnership with
international brands. Southwest Airlines can partner with international brands to fly customers to
different parts of the country where the customers have come from different countries where
Southwest Airlines does not operate. diversifying services is also an opportunity for the
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company. Southwest Airlines can expand its cargo department instead of focusing on passenger
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flights.
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Some of the threats facing the company include competitive pressure. There is intense
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competition in the airline industry. Other than prices, airlines compete on reliable services and
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customer services. with competition from other low-cost carriers such as Delta and Jet Blu,
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Southwest has to be conscious of the threats.

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References
Bettina, M. (2020). Managing Safety Risks in Airline Maintenance Outsourcing. International
Journal of Aviation, Aeronautics, and Aerospace, 7(1), 7.
Chishty, N. (2017). Southwest Airlines’ successful economistic, cost-leadership strategy
examined in light of Paul Lawrence’s renewed Darwinian theory: An analysis. Journal of
Global Business Insights, 2(2), 115-123.
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Milliman, J. F. (2016). Southwest Airlines: How internal marketing pilots success. Marketing
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Management, 10(3), 14.
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Pratpat, B. (2020) Southwest Airlines. Retrieve from https://notesmatic.com/2020/01/southwest-
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airlines-swot-analysis/
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1

Running head: ORGANIZATIONAL STRUCTURE OF SOUTHWEST AIRLINES

operational strategy. The company is committed to innovation and creativity.

2017). As a result, it has an organizational design that is representative of a business

level strategic management at top-level strategic management in organization headquarters. A

SWOT analysis of Southwest Airlines

company have kept rising thereby affecting net income.

Southwest has to be conscious of the threats.

Bettina, M. (2020). Managing Safety Risks in Airline Maintenance Outsourcing. International

Journal of Aviation, Aeronautics, and Aerospace, 7(1), 7.

Chishty, N. (2017). Southwest Airlines’ successful economistic, cost-leadership strategy

examined in light of Paul Lawrence’s renewed Darwinian theory: An analysis. Journal of

Global Business Insights, 2(2), 115-123.

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