1) southwest case teaches that a company should never move away from the operati
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Question
1) southwest case teaches that a company should never move away from the operational approaches that made it profitable in the first place A) True B) False2) southwest fast turnaround reduced expenses because it allowed to use less planes to service their customers A) True B) False For the exclusive use ot Y. Sherhan, 2018. HAR VAR D BUSINESS S CH O o L 9-910-419 REV JANUARY,2013 Southwest Airlines: In a Different World CEO of On a bright day in October 2008, Gary Kelly, Executive Chairman, President, and Southwest Airlines, listened his Dallas, Texas, office. They were arguing for and against Southwest's possible acquisition of slots and gates that the bankrupt ATA Airlines had vacated at LaGuardia terminal in New York City Executives from both Marketing, and Scheduling argued for going into LaGuardia. T Properties and Legal worried about getting the slots. Those in Oper delays. Kelly was not surprised by the vigor of the discussion. He recognized that such a move further test just how far Southwest could expand its network to meet the needs of its Customers. It represented just one of many decisions that the team would have to make in the context of its continuing efforts to transform Southwest's strategy in the face of rising costs, stiffer low-far competition, and changing Customer needs and behaviors. intently to the arguments of those seated around the conference table in hose from ations were concerned about would Background Once considered an upstart in the airline industry, Southwest had grown to become the airline the most US. customers with the most flights and seats, but to only 64 US. cities to which targeted its service. In the process, it had come to stand for, in the words of Kelly, Southwest outstanding, passionate, caring Customer Service combined with an efficient, simple, low-fare Customer experience provided with high reliability and operating expertise." Founded in 1967, Southwest's operations were delayed for nearly four years due to lawsuits that competitors brought to block the new carrier's entrance into the Texas intrastate market. Since its first ight in June 1971, Southwest had compiled the most consistently profitable record in the world's airline industry. By 2001, shortly after September 11, the airline's market value exceeded that of all other US, air carriers together, suggesting the dominance of the strategy developed over time by Southwest's founders, Rollin King (an investment counselor and pilot), Herb Kelleher (Southwest's attorney), and Lamar Muse (former CEO of another small airline who became Southwest's first operating President and CEO). By then, Southwest had literally changed the rules by which air carriers worldwide operated and competed. By 2008, many airlines had been created based more or less on the Southwest model, including Air Asia, Air Deccan, Go Airlines, Spice-jet, and Indigo in Asia; Ryanair and Easy-Jet in Europe, and JetBlue, Ted, and Song (since merged back into Delta) in the US Throughout the case, the words Customer and Employee are capitalized. This is the practice at Southwest Cases are
Explanation / Answer
1) southwest case teaches that a company should never move away from the operational approaches that made it profitable in the first place
FALSE
Explanation- everytime marketplace changes, company also have to change accordingly as they would be vanished from the market.
Fine example for this situation is Nokia, nokia store stubborn and does not change its operating system which directly lead to the bankruptcy of Nokia company and acquisition by Microsoft.
2) Southwest fast turnaround reduces expenses because it allowed to use less planes to service the customers.
TRUE
Explanation- planes were able to make more trips using the fast turnaround system reducing the number of planes which directly reduces the overall cost involved in operation of the services.
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