Submitted by: Submitted by cloud9sbliss
Views: 58
Words: 513
Pages: 3
Category: Business and Industry
Date Submitted: 11/13/2014 09:04 AM
Sam Allen 11/4/14 Brian Eddy Case Memo SouthWest Airlines SouthWest Airlines provided short span trips for an affordable price during the time that Herb Kelleher was CEO of the company. With his extroverted personality her ensured that not only were his customers getting a good deal but that his employee were also enjoying their work as much as possible. After Kelleher retired and the position of CEO had to be decided again Greg Kelly stepped in to make some seriously drastic changes to the way the company operated from before. Some examples of changes that were made were maximizing efficiency more so than what was already efficient, offering amenities in exchange for a raise in price, frequent flyer bonuses and cocktail vouchers. It would seem that Kelly decided to take aim at the traveling business man demographic in terms of his changes to the company and probably recognized that the niche that SouthWest had was or was going to come into competition thus it would be a smart idea to adapt to the changing world around them and look into changing core aspect of the business such as flight routes, the considerations of flying to Mexico and other international routes. In my opinion this was a good move on Kelly’s part. The niche they had was certainly not a permanent cash cow and they had to make some changes in order to keep making money while prices of airlines trips would drop. It’s very common to see a business that’s loyal to employees and has a strong market hold to get caught up in traditions and not consider what will happen in the future. The factors that Herb Kelleher used to ensure his employees would be as profitable as possible were as follows: A strong relationship between manager and workers, flexible working hours for employees dependent on their individual situations, entitlement to 13% of the company’s stock and a leaned staff. Kelleher also made a point of never hiring large amount of ...