Assignment #5. Corporate Culture/Leadership Actions
Corporate Culture/Leadership Actions for Strategy Implementation
Veronica M. Peterson
Strategic Management - Bus 599
Dr. Donny Bagwell
June 14, 2010
Discuss the corporate culture at Southwest Airlines and how it leverages its culture to achieve a competitive advantage. Southwest Airlines culture has set them apart from other airlines and companies. Their culture is living the Southwest Way, which means one must have a warrior spirit, a servant’s heart and a fun-LUVing attitude. Another important company value is getting excellent results, which includes: focusing on safety, ...view middle of the document...
It is born and bred in each individual according to his or experiences, attitude, and genuine desire to succeed -- both personally and professionally. Service does not start at the beginning of each work day, nor does it ends when you go home. It is a very real part of you...it's your company; your success; your future."
Forged over 26 years, Southwest's culture has been a source of sustainable competitive advantage. A Bankers Trust analyst put it this way: "Southwest has an indefinably unique corporate culture and very special management/employee relationship that has taken years to cultivate. Employees have long had a significant stake in the company; employee ownership and employee contribution to wealth creation are not ideas that are alien to the workforce of Southwest Airlines since it is emphatically not 'just a job.' Then, too, the relationship is not merely spiritual-the employees have come to trust the only company that has a record of 23 consecutive years of earning stability combined with an impressive record of stock appreciation unmatched by virtually any company...within or beyond the airline industry. The pilots are well compensated relative to the industry average, and they understand that. The challenge was to find creative ways to tie together the fortunes of the company with those responsible for it without risk or destruction of shareholder value...and, unlike the employee groups at other major airlines, the Southwest pilots understand that."[i]
Southwest Airlines has become known for it culture. It thinks of it self at customer service organization that flies airplanes. Its culture attracts top performers who in turn deliver consistent profitability. One way to maintain their culture, Southwest Airlines is very zealous about its hiring practice. They look for positive attitudes, good sense of humor, and team oriented persons.
Evaluate the company’s financial performance by calculating and interpreting the profitability ratios. (operating profit margin, net profit margin, return on total assets, return on stockholders equity).
|Revenues - Operating expense / Revenues |
|Operating Profit |Revenues |Operating Expense |Revenues |Total |
|Margin: | | | | |
|2009 |10.35 |81 |10.35 |2.523913043 |
|2008 |11.02 |606 |11.02 |-43.97092559 |
|2007 |9.86 |421 |9.86 ...