Question

Southwest airlines ? Using insights from Chapter 9 and my lecture, discuss how Kelleher’s early leadership molded Southwest’s culture and how this enabled the firm to provide high-quality services at low prices. Identify some ways in which Southwest has departed from his initial vision and discuss one or two actions that Kelly must take to deal with recent challenges

Answer 1

The southwest's culture realized that the employees of the firm are the first customers and passengers are the second, it means employees are considered as an internal customers.Which in a way a way to gain business as they people you are paying to work are also paying you back for your services.Practices lile these increased the number of flyers in return reducing the cost , the other factors like low cost /low fare travels made a massive increase in the number of flyers resulting in reduced cost.Frequent flights with small or no haults no frills and on time arrivals are all the factgors which lead to increase the number of flyers and in return increasing revenue and becoming a moderate low price flyers.Kelly always considered his employees as initial custoners and was always a friendly CEO.He would always be a pary of the crew and make his employees friendly and interacted with them on all occasions.Kelly always believed in three policies which made him depart from his initial vision.

They are-

Lowest cost in the industry .

The best customer service.

Intangibility.

Kelly has a very good set of value to work upon but in todays fast moving life and the increased competition can cause a lot of threats to his values as a business.The best customer service can only be provided when there is sufficient money to put in the resources required for it.

Lowest cost can only be possible with revenue, if there are no passengers to fly who can a company cater the lowest price .Wich high amount of competition there is great threat of being washed away in the market and on top of that providing the lowest fare with best facility is not possibel, either the firm will fade away in debt to it will collapse soon.