CASE DISCUSSION

ON
SOUTHWEST STILL FLIES HIGH
Presented by Falunida Vanu
Waresa Sharmin

STRATEGIC ANALYSIS OF THE CASE

Southwest Airlines was very successful and competitive firm that

rated one of the companies in USA.

Southwest clearly defines its existing purposes, which is to

provide the lowest fares for business and leisure travelers
traveling between states.
Instead of competing with large-scale airlines to fly international
routes, Southwest focuses on point-to-point interstate short
trips, and more on maximizing the profitability than focusing on
market share.
This strong vision outweighs the allurement of international flight
market, keeping Southwest airline concentrated on its own niche
to gain profit.

QUESTION 1
Name at least two things that Southwest is doing efficiently.
Name at least two things that Southwest is doing effectively.
In what ways do efficiency and effectiveness support each
other at southwest? In what ways contradict each other?

EFFICIENCY AT SOUTHWEST AIRLINES:

Efficiency is using managerial

skills to minimize losses and
reduce expenditure while
maximizing the organizations
profits.
From this perspective
Southwest Airlines has shown
efficiency in a couple of
factors.

Point-to-point schedule
Standard aircrafts
Carefully chosen routes
Carrier operation

EFFECTIVENESS AT SOUTHWEST
AIRLINES:
Effectiveness in business
terms means making the
right
decisions
and
successfully implementing
them.
Southwest Airlines have
shown effectiveness in the
following parts

Successful low-cost carrier

Use of human resources

QUESTION 2
Based on information in the case, describe the managerial
skills that Colleen Barrett and Jim Parker use in their Jobs at
South west?

MANAGERIAL SKILLS

CONCEPTUAL

Point-to-Point schedule
instead of hub-and-spoke, Use
of less expensive airports in
many major markets,
One type of jet (Boeing 737)

HUMAN

The leaders of Southwest are

not in a prominent or
unreachable position that is
direct communication of
every employee with their top
management

MANAGERIAL SKILLS

TECHNICAL

One type of jet(Boeing 737),

Extensive training of every
employee, no-layoffs policy,
generous profit sharing

QUESTION 3
Neither Colleen Barrett nor Jim Parker has a formal
education in management. Explain then how they can be
effective managers. Would formal education help them to be
better managers? Why or why not?

EFFECTIVE MANAGERS

They will be the

effective managers by
their interpersonal
skills, verbal
communication and
through optimistic
view.

Interpersonal skills: Jim Parker as

counsel and Colleen Barrett as
human resource manager.
Verbal communication: Southwest
never face labor strike because the
management sits down personally to
negotiate every union contract.
Optimistic view: We arent in the
airline business; we are in the
customer service business and we
just happen to fly by Colleen
Barrett

THANKS TO ALL