Values Statement Southwest Airlines example essay topic

Southwest Airlines The original vision of Herb Kelleher has helped to make Southwest Airlines profitable for over 32 years now. As the company moves forward, they will need to find innovative new ways to retain and increase their customer base, and remain competitive. This paper will discuss the concepts that have made Southwest unique from the start; and how the company can continue to increase their successes through a new strategic plan that follows their original mission, but enhances the services that Southwest offers to their customers. Background In 1971, Herb Kelleher started Southwest Airlines.

He recognized a need in the airline industry for "no frills" low-cost flights, and quickly filled that niche. Although they started off small, by 1989, Southwest was considered a major airline. Today they are the fourth largest U.S. domestic customer airline (SWA 2001 Annual Report). One of the most important and strategic philosophies that Mr. Kelleher instilled in his employees from the start is, "We tell our employees we are in the Customer Service business- we just happen to provide airline transportation" (web).

Mr. Kelleher wanted to create an extremely different flying experience from other airlines, where customer service did not seem to be as important. Southwest Airlines brought a new brand of humor, warmth and a feeling of family to the flying experience. When Southwest first began flying, the flight attendants wore bright red-orange hot pants and lace-up go-go boots, and served "Love Bites" (peanuts) and "Love Potions" (drinks). They used "Love Machines" for customers to purchase tickets, and the small fleet of Boeing 737 aircraft was referred to as "Love Jets". This trademark style eventually even led to the ticker symbol on the New York Exchange being listed as LUV (web).

These strategies were a break from the norm in air travel at the time and consequently lead to the company's success today. Thirty years later, innovation is still the strategy that will aid the company in maintaining that success. Goal of Strategic Plan Continued longevity is the main goal of this strategic plan. Throughout the years, Southwest Airlines has done an incredible job of maintaining growth, job security, profit earnings and overall success in the airline industry. The company has thrived in a capital intensive industry where posting profits is not a common characteristic.

Southwest's performance has been the subject of many articles chronicling their continued success. After over thirty years of top performance, they must look towards new strategies to continue this growth. Complacency in their strategic planning would be very dangerous, as competitors continue to try to recover from 9/11 with their own strategies. Southwest must now be proactive in selecting innovative ideas that will protect them from current competition, and provide new entry points into the market.

One strategy that was analyzed was expansion into the global market. This would afford Southwest access to a much larger customer base. However, there were many negative possibilities that could happen if a global strategy were adopted. Southwest might not be able to maintain the high level of customer service in all areas of the world. There would also be many barriers to overcome and many financial risks involved in going global. Their focus, resources and energies would be much wider spread, perhaps so wide that they could lose focus of the core values that make Southwest customer service and employee loyalty like no other airline.

These issues outweigh the positive values that could come from a global undertaking. In order to achieve the goal of continued longevity, Southwest Airlines should look toward untapped niches in their existing flying areas, and try to build on their customer base. Increasing their load capacity through additional offerings and choices would give them growth without major capital investments at this time. The Plan One way that Southwest could expand in their own market area is by offering an alternative or bonus to the current "no frills" flight. One of their competitors, Jet Blue, is already offering a lower cost, luxury flight. After only 3 years in business, they are already getting notable attention in the business world for this concept.

According to the Jet Blue CEO, David Nee leman, the company set out with a mission to "treat passengers like customers", in an industry, Neel man believes, often sees passengers as an annoyance (CBS News). This concept is very similar to what Kelleher wanted for Southwest. However, instead of the "no frills" and low prices offering that Southwest has perfected, a Jet Blue passenger will get low fares, all-leather seats and live, 24-channel satellite television. The old adage of taking a good idea and doing it better seems to prevail in Jet Blue's strategy. Southwest should look at what their successful competitors are doing and do it better as well. Since the Jet Blue concept is so similar to Southwest, it will not be a major undertaking to expand on current offers with minor luxuries and more choices.

Key Issues To stay one of America's most admired companies in the world; Southwest's strategy will need to focus on the eight key issues; o Social responsibility o Innovation o Long-term investment value o Use of corporate assets o Employee talent o Financial soundness o Quality of products / services o Quality of management Each of these areas above have been an important part in maintaining the success of Southwest and keeping them among the elite for many years, and in order to continue moving the company in a positive direction it is imperative to maintain the same high standards that they have become accustomed to. Revised Mission Statement At Southwest Airlines, there is a strong sense of dedication to customer service as well as employee satisfaction. The logic seems to be that the two are interconnected, resulting in happy employees and satisfied customers. Each part directly impacts the other. The company's mission statement follows: The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit (web). This mission statement encompasses all the important characteristics of a good business strategy, and has proven to be successful.

Considering that a business is sustained by the retention and growth of its customer base, Southwest has included in the statement how they intend to accomplish that goal. The statement first communicates that the mission is "dedication to the highest quality of Customer Service". It is this customer service that has set them apart from the competition. The mission is then followed by how the service will be delivered, "with a sense of warmth, friendliness, individual pride, and Company Spirit". This is what has made Southwest Airlines a phenomenal success internally as well. Employees are happy, and therefore treat the customers better.

So to improve on this mission statement would require adding another aspect to the vision that focuses on adding to customer satisfaction. One way to accomplish additional customer satisfaction is through more customer choice. The company has already become a huge success story by offering "no frills" flights for less, but that was at a time when the alternative was expensive first class flights with major airlines. The price differences were so significant, that the cheap, "no-frill" offer was accepted by customers with open arms.

Now, however, with the evolution of luxury flying for less, Southwest needs to evolve their offerings to offer an even higher level of quality customer service. The new mission that will encompass this new strategy will read: The mission of Southwest Airlines is dedication to the highest quality of Customer Service by offering alternatives for unique customer preferences, or (by offering a variety of flight options that cater to our customers unique preferences, and) that are delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. Vision Statement Southwest's Airline believes that sharing core values makes life much easier. There is less confusion, and everyone knows the type of people that are wanted on the team as they pursue their dreams. Honesty is one of their key values. It is Southwest's vision that through "positively outrageous" customer service, pro-ductility, and efficiency, the company will continue to grow in a positive direction.

Southwest in visions that the next time you need fun, dependable, and affordable air travel for a trip across your state, your region, or this country, they hope you will think Southwest Airlines. Values Statement Southwest Airlines works hard to uphold the core company values. The three core values are: 1. Work should be fun - even playful - so enjoy it 2. Work is important - don't spoil it with seriousness 3. People are important - each one makes a difference These values could, and probably should, apply in many business environments, where doing the job often overshadows doing the job in a manner that will result in repeat business (Financial Executives International).

Since these core values already support the current and future vision and mission of Southwest, no recommendations will be made to change these core values. Conclusion Today, most major airlines are forced to watch in awe at the continued longevity that Southwest airlines has had. Herb Kelleher's vision of a low-cost, "no frill" airline, with happy employees and great customer service, has helped to make Southwest Airlines profitable for over 32 years now. Going forward, the company will need to find new ways to expand on that original vision, without losing the core value of the company. This paper has discussed the original vision and why it made the company so successful. It has also analyzed a way to increase customer base and satisfaction, by adding value and choice to their current offering.

This new strategic plan will allow Southwest to keep their original vision, but enhance everything that their mission statement already stands for.

Bibliography

CBS News: Jet Blue: Flying Higher? Retrieved July 28, 2003 from the World Wide Web: web Southwest Airline Co.
2001 Annual Report.
Retrieved July 28, 2003 from the World Wide Web: web Southwest Airlines: About SWA Retrieved July 28, 2003 from the World Wide Web: web Southwest Airlines: The "LUV Airline" Retrieved July 28, 2003 from the World Wide Web: web Financial Executives International: Corporate Values Stimulus for the Bottom Line, Retrieved July 28, 2003 from the World Wide Web: web.