Business Culture Essay

1337 words - 6 pages

Diego Rodriguez, Deema Alomar, Seungyeon lee
Case Analysis Southwest Airline final draft
Jennifer Uhler
BPE reading, writing research

Background Summary

Southwest Airlines based in Dallas was founded in 1967 by Rollin King and Herb Kelleher. It is one of the major domestic airliners which provides carrier and transportation service. This company has 35,499 employees and it runs over 500 Boeing 737 aircraft in 67 cities in the US. Southwest’s principal values are:
Providing low-fare and short haul service.
Offering the highest quality of customer service.
Putting a lot of importance on the fair treatment to its customers.
Building friendly relationship between ...view middle of the document...

Southwest Airlines main competitors are: Continental Airlines, USAir ways, Delta, United airlines, and American Airlines. As you can see in the table below, the current days have been really challenging for the industry. However Southwest has been able to increase its operating revenues.
Operating revenues
2 Q 2001
2Q 2000
United Airlines
ref. Rapid rewards at Southwest Airlines

Southwest decided to go public in 1977 with the ticker symbol LUV. The company gained $11,023 million in 2008, and today its stock price reaches $9.83. Its strategy as an egalitarian company has let the company achieve success. However some frequent passengers have raised some questions about the policy of avoiding preferential treatment for its loyal customers.

Major problem
The Southwest Airlines major problem is the threat to lose some of its frequent customers. The case illustrates two opposite kinds of frequent passengers:

The first one is William Mark, who loves almost everything that Southwest provides such as: the opportunity to come earlier and have a great seat, the absence of meals, and the ticket prices.
The other one is Liz Bast, who loves the policy of using minor league airports, but has complaints related to the ways of seat assignment, the rules about upgrading restricted tickets, and she wishes to have preferential treatment, especially because she flies more than 100.000 miles per year.
The customers like Liz Bast might be looking for another airliner company. Therefore, Southwest needs to figure out one strategy which helps to avoid this problem.

Contributing Factors:
The threat to lose some of Southwest’s frequent customers is caused by five factors:
Recheck-in baggage: Passengers with connected flight who are going to switch to another airline have to pick up their checked baggage and recheck-in with the next airline.
No assigned seats for passengers: Southwest used first-come first-served system in seats assignment, which means people who arrived first will get the better seats. This is an issue because passengers might easily change their preferences and fly with other airlines. For example, Liz Bast is a frequent customer of Southwest Airlines, but because she is always busy she comes late to her flights and the company cannot offer her the seat she wanted. Liz’s problem will be solved if she could book a specific seat and this service is not valid at Southwest Airlines.
Rewards count on trips number: there is no credit given to passengers on how many miles they flew, but free flights are offered according to the number of trips taken. Therefore, customers could choose Southwest Airlines for only short flights because the length of flight is not a factor in the company reward...

Other Papers Like business culture

Business Culture and Language Essay

524 words - 3 pages things at the wrong time sometimes, but it is a great learning experience. In business, especially when business deal with other international companies, culture has a great significance. Being familiar with different cultures is a huge advantage for the business when it comes to negotiating, discussing business plans, or just proclaiming a business friendship. The knowledge of various languages is a tremendous advantage, business wise as well

Culture and Business Essay

4179 words - 17 pages Culture and its implication on the international business management. Introduction Today, problems associated with global business management have been identified as factors that negatively impact the performance and productivity of multinational corporations and in turn, adversely affect regional and national economic growth The goal of this paper is to analyze the influence of culture in international business. The globalization of the

Germany Business Culture

2684 words - 11 pages EXECUTIVE SUMMARY In this report, through a very specific analysis of background of Germany and its culture, We can identify how these characteristics affect doing business with German. Germany is a great economic influence of the country in the world. In the whole Europe, Germany has the most powerful economy. Apart from that,Germany has the most advanced and efficient system of manufacturer. German pride their country on national

Japanese Business Culture

2013 words - 9 pages A. Executive Summary The material in this report will provide information on the diverse culture and business behaviors of Japan as this can prove to be a very important factor in dealing with Japanese business as to learn their customs and manners to further establish business relationships with them. It will include their culture that establishes themselves from the rest of the world which makes them so unique. B. Rationale for Japan

Business Culture In Japan

1837 words - 8 pages Business Culture in Japan “Different types of Corporate Culture” Michelle Hufman 20723 Submitted to Mr. Teruji Suzuki Date xx-01-2012 Academic Year 2011/2012 Semester: Fall «Japan's corporate culture is the product of uniquely Japanese social and Historical influences, so deeply rooted as to easily repel outside influences but Japanese corporations need to change their basic goals....» This essay will discuss nature of corporate

Business Culture Usa

1939 words - 8 pages Culture & Business in the usa Deliverable 2 Culture & Business in the usa Deliverable 2 Lotte Daniels – 0880763 Kinsley Nji – 0886397 Baris Yazici – 0882833 Jordi Ruijs – 0882261 IBMS203 - 24-09-2014 Lotte Daniels – 0880763 Kinsley Nji – 0886397 Baris Yazici – 0882833 Jordi Ruijs – 0882261 IBMS203 - 24-09-2014 Index Introduction 2 Hofstede’s dimensions in the United States of America 3 Power Distance 3

Business Culture and Strategy

2516 words - 11 pages , share price increased more than ten times its original value. In the late 1990s, JDW begun developed the budget hotel accommodation. The purpose of this report is analysis the organization strategy and culture of JDW plc. It should be set out the external environment, organizational culture, business strategy and change of JDW plc. 2. Findings. Section 1: External Environment. Social: J D Wetherspoon pubs have many

Business Culture of Chinese

2020 words - 9 pages from one another, and Arthur Chawell would have to gain more knowledge and understanding of the Chinese culture in order to maintain good business relationship. Table Of Contents Page No. Introduction 1 1.0 Etiquettes 1.1 Language 1 1.2 Greetings 1 1.3 Gifts 2 1.4 Dress 2 2.0 Potential Area Of Cross Cultural Miscommunication 2 2.1 Hierarchy 3 2.2 Behaviour 3

German Business Culture

2614 words - 11 pages German business culture tips Keep in mind most of this is copy and pasted and has not been reworded and extracted yet. Background of German business culture In Germany, much greater attention has been paid to academic, technical education and its value to business in general. Therefore, companies tend to be run by technical experts rather than lawyers and accountants and this is reflected in the high regard in which engineers are held by

Business Culture and Stratergy

1468 words - 6 pages to retain overall control of change, not letting the need to change alter company policies and methods. Question 2 Two major competing influences on the chosen change management programme within Alphabet Games are business goals and organisational culture. The report state “passion for software development still exists within the company as strongly as it did when it was established.. technology and consumer needs have driven the business

Business Culture in Spain

1213 words - 5 pages Starting a business in a foreign country requires the understanding of the country’s culture and etiquette. For instance, Spain has its procedures and regulations that businesses and organizations need to respect and follow to achieve success. First, companies need to learn the predominant language to communicate effectively on the foreign market. It is highly recommended to hire an interpreter. Building a solid business relationship is

Related Essays

Business Culture Essay

1400 words - 6 pages Introduction to Business 110/1 Student number: 140009376 Module Tutor: Glen Chapman Submission Date: 14/03/2014 TITLE: Compare and Contrast the four types of Business Culture illustrated by Charles Handy. Discuss which culture is appropriate for an innovative business Word count: 1327 words Despite not always being an intentional creation, every company has a culture, which evolves from the core values belonging to the business

Business Culture Essay

2489 words - 10 pages hand, there are also unsuccessful mergers due to the differences of corporate culture. Some factors of the difference of corporate culture that firms need to consider in acquisition and merger are executive compensation, business travel, work habits and styles, decision making process, and financial reporting system. Each of these factors of corporate culture will determine if a merger and acquisition will be successful or not. The secret of a

Business Culture In America Essay

259 words - 2 pages Business culture in America Americans take business very seriously. Professionalism and punctuality are expected. When doing business in America, expect a heavy reliance on facts and numbers. A scientific approach is the norm for all aspects of business, even the human relations department. When meeting business partners for the first time, American’s culture expect a handshake, not a hug. Address your business partner as "Mr." or "Ms

Business And Culture Essay

364 words - 2 pages Unit 1 Discussion Board American business holds up certain ethical standards as good business. When doing business with a variety of cultures, it is important to understand their perceptions will be affected by their culture. So what is culture? "Culture has been defined in a number of ways, but most simply, as the learned and shared behavior of a community of interacting human beings" (Useem & Useem, p. 169). A person’s culture can