Refreshment, so as to minimize the overhead expenses and save the Southwest Airlines excludes meals and provides for light snacks as inflight Major motivating factor of the workforce making it more flexible and The Airline’s Employee Profit-sharing plan which makes atleast 25% of theĮmployee’s share of the plan invested in Southwest Airlines stock, acts as a Teamwork is influential in efficient handling of operations. ![]() Hiring at the rate of only 3% of the job applicants interviewed, SouthwestĪirlines has the most thorough recruitment process which equips it with the Service a few years back which is now responsible for generating 46% of Technological resources, Southwest Airlines introduced the e-ticketing Implementing a new reservation system as a part of its endeavor towards By October 2013, Southwest Airlines has a large standardized fleet of 550 Industry it made a profit and earned an ROIC of 4%. Even in 2008, an awful year for the airline It made money every year and earned a Return on InvestedĬapital (ROIC) of 5%. (approximately 46 million shares) and distributing $22 million inĭividends. Shareholders through repurchasing $400 million of common stock In 2012, Southwest returned $422 million to Southwest Airlines had always managed its resources well including theįinancial resources. Identify the resources, capabilities, and distinctive competencies of Southwest Airlines. Serves relatively less-congested airports to achieve high asset utilizationĪnd reliable on-time performance (however later it had spread its ![]() Reduced a major fraction of its operating expense). A very successful fuel hedging program (long-term contract with oilĬompanies to buy fuel equivalent to $51 per barrel through 2009 that has Faster than average gate turnarounds to yield higher utilization rates. They have achieved this low cost leadership position in their industry by Southwest Airlines, being a Low Cost Carrier (LCC), is famous for its uniquelyĬompetitive low fares, which are often some 30% lower than most of its major How would you characterize the business model of Southwest Airlines? How does this differ from the business model used at many other airlines such as United and American Airlines? SECTION A, 1ST SEMESTER, BACHELOR OF BUSINESS MANAGEMENT (2013-2016) A FUNDAMENTALS OF MANAGEMENT CASE STUDY SUBMISSION OCTOA CASE STUDY ON SOUTHWEST AIRLINES Case Discussion Questions Q1. IMAD SHAHID KHAN (ROLL 27) | SIDDHARTH BHAGAT (ROLL 53) | SOUMYA SUMAN (ROLL 44) | ANSAI SONY (ROLL 7) (Text Book Page: 105) SUBMITTED BY: GROUP 10 FROM “STRATEGIC MANAGEMENT: AN INTEGRATED APPROACH” 9TH EDITION BY HILL & JONES (CENGAGE LEARNING)
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