Case 20

CASE 20

Southwest Airlines in 2010: Culture,

Values, and Operating Practices

Assignment Questions

1. Is there anything that you find particularly impressive about Southwest Airlines?

2. What grade would you give Southwest management for the job it has done in crafting the company’s

strategy? What is it that you like or dislike about the strategy? Does Southwest have a winning strategy?

3. What are the key policies, procedures, operating practices, and core values underlying Southwest’s efforts

to implement and execute its low-cost/no frills strategy?

4. What are the key elements of Southwest’s culture? Is Southwest a strong culture company? Why or why

not? What problems do you foresee that Gary Kelly has in sustaining the culture now that Herb Kelleher, the

company’s spiritual leader, has departed?

5. What grade would you give Southwest management for the job it has done in implementing and executing

the company’s strategy? Which of Southwest’s strategy execution approaches and operating practices do

you believe have been most crucial in accounting for the success that Southwest has enjoyed in executing its

strategy? Are the any policies, procedures, and operating approaches at Southwest that you disapprove of or

that are not working well?

6. What weaknesses or problems do you see at Southwest Airlines as of mid-2010?

7. Does the AirTran acquisition make good strategic sense for Southwest?

8. What strategic issues and problems do Gary Kelly and Southwest executives need to address as they proceed

to close the deal with the AirTran acquisition and contemplate how best to integrate AirTran’s operations and

AirTran’s employees into Southwest?

9. What recommendations would you make to Gary Kelly and Southwest executives as the company heads into

2011?