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Article
Publication date: 1 December 2004

Gene Smith

The attached paper describes the keys to success for Southwest Airlines, including its approach to quality management. Southwest did not implement a formalized “quality management…

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Abstract

The attached paper describes the keys to success for Southwest Airlines, including its approach to quality management. Southwest did not implement a formalized “quality management program.” Numerous companies in the USA have implemented formalized “quality management programs” and they failed because they were “programs of the month.” Implementing “quality” throughout a company is not the result of a formalized program but requires a cultural change in the way daily activities are conducted. The requirement of “doing it right the first time” must be integrated into the daily activities or culture of the company. The chairman of the board and president of a company must establish the tone for quality in not only what they communicate but also in their daily actions. Quality must be ingrained in the overall business model and strategies of a company. Southwest is very effective in integrating the importance of quality in its overall business model, strategic plan and its daily operational activities. Southwest did not engage outside consultants to develop a “quality program” but its style, culture and emphasis on quality were implemented in Southwest’s daily activities by Herb Kelleher, Chairman of the Board, and his management team.

Details

Measuring Business Excellence, vol. 8 no. 4
Type: Research Article
ISSN: 1368-3047

Keywords

Book part
Publication date: 1 January 2012

Manuel A. Hernandez, Anirban Sengupta and Steven N. Wiggins

Firms with linear pricing offer their customers the same price for each unit of a good or service. Anything else is nonlinear pricing. Nonlinear pricing in imperfect markets…

Abstract

Firms with linear pricing offer their customers the same price for each unit of a good or service. Anything else is nonlinear pricing. Nonlinear pricing in imperfect markets indicates a fundamental asymmetry in information between firms and consumers. Consumers are commonly expected to exhibit quality- or quantity-preference differences and have different reservation values for different product attributes. The firms, however, cannot observe consumers' preferences. When complete information regarding preferences is not observable, nonlinear pricing strategies with firms offering a menu or schedule of prices allow consumers to sort themselves according to their own preferences, resulting in market segmentation.

Details

Pricing Behavior and Non-Price Characteristics in the Airline Industry
Type: Book
ISBN: 978-1-78052-469-6

Article
Publication date: 1 June 1998

Ulla K. Bunz and Jeanne D. Maes

In an era in which adapting to change means survival, it is important to study what successful organizations have done. While the airline industry in the USA has not made thriving…

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Abstract

In an era in which adapting to change means survival, it is important to study what successful organizations have done. While the airline industry in the USA has not made thriving financial headlines, one small company has been able to satisfy its customers completely and achieve a place among the Fortune 500 in a relatively short period of time. In three steps, this article examines what Southwest Airlines has done to reach this level of achievement and maintain its excellent employee and customer relations. First, the company is defined as “excellent” according to the criteria established by Peters and Waterman. Second, management‐employee relations, organizational training and strong leadership are identified as the sources of employee motivation. Third, loss of strong leadership and organizational structure are discussed as possible future problems influencing motivation and service. The article closes by pointing to Southwest Airline’s concept of service as the true source of motivation and excellence.

Details

Managing Service Quality: An International Journal, vol. 8 no. 3
Type: Research Article
ISSN: 0960-4529

Keywords

Article
Publication date: 1 January 2006

Astrid Wargenau and Deborah Che

This research investigated wine tourism development and marketing in southwest Michigan, a longtime viticultural, but emerging wine tourism region. The aims involved discovering…

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Abstract

Purpose

This research investigated wine tourism development and marketing in southwest Michigan, a longtime viticultural, but emerging wine tourism region. The aims involved discovering the motivations, expectations, and successes of Southwest Michigan Wine Trail member wineries in developing horizontal and vertical alliances.

Design/methodology/approach

Semi‐structured, in‐depth interviews were conducted with individuals in charge of the wineries’ marketing activities (i.e. marketing directors and members of the marketing departments, winery owners). These interviews were recorded and transcribed. Activities fostered through the horizontal and vertical alliances were identified.

Findings

Alliances along the Southwest Michigan Wine Trail have furthered the development and marketing of wine tourism. The trail's member wineries have formed strong horizontal relationships, which include joint advertising, promotion, and production. They have also built vertical relationships with tour operators, lodging businesses, and restaurants that promote individual wineries as well as the wine region. Wine tourism has provided wineries with another sales outlet and established the wine region as a destination.

Originality/valve

This study contributed to the limited literature on the development and marketing of wine tourism in Michigan and in other emerging wine regions in the United States. For those working to further such rural/agri‐tourism, this research indicated that there is considerable growth potential through an increased presence in restaurants and in packaging with accommodations. Adding new specialized wine tours, wine festivals,geographical target markets, and a focus on wine education on‐site and at educational institutions can expand wine tourism and sales.

Details

International Journal of Wine Marketing, vol. 18 no. 1
Type: Research Article
ISSN: 0954-7541

Keywords

Article
Publication date: 1 September 2006

Dawna L. Rhoades

The purpose of this paper is to describe the success of Southwest Airlines in the USA

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Abstract

Purpose

The purpose of this paper is to describe the success of Southwest Airlines in the USA

Design/methodology/approach

The paper outlines the history of Southwest since 1967 and how the airline set new standards in customer service and employee satisfaction while recording records of unbroken profitability.

Findings

Southwest understands its market and has consistently implemented a strategy that has proven successful in capturing that market in the face of stiff competition.

Originality/value

The paper offers insights into how anyone can emulate the success of Southwest – if one is willing to invest the time, effort, and energy necessary to ensure that mission, goals, processes, policies and people are all aligned.

Details

Managing Service Quality: An International Journal, vol. 16 no. 5
Type: Research Article
ISSN: 0960-4529

Keywords

Case study
Publication date: 20 January 2017

Elliott N. Weiss and Marlene Friesen

This case details the history of Southwest Airlines from its inception in 1971 until 2004. The case provides details of Southwest's business model and reasons for its success. It…

Abstract

This case details the history of Southwest Airlines from its inception in 1971 until 2004. The case provides details of Southwest's business model and reasons for its success. It ends with a description of the company's competitive pressures in 2004. The case can be used for a course in service operations or strategy.

Details

Darden Business Publishing Cases, vol. no.
Type: Case Study
ISSN: 2474-7890
Published by: University of Virginia Darden School Foundation

Keywords

Article
Publication date: 5 July 2011

Michael E. Raynor

The standard explanation of Southwest's success is that it applied a low‐cost competitive strategy. This paper aims to address this issue.

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Abstract

Purpose

The standard explanation of Southwest's success is that it applied a low‐cost competitive strategy. This paper aims to address this issue.

Design/methodology/approach

The paper argues that Southwest was actually employing a disruptive strategy. Financial data show that Southwest's results were highly variable during the time it was growing into a national carrier.

Findings

The paper finds that Southwest's disruptive strategy of innovative operational cost reduction did not produce striking financial returns until it adopted more efficient aircraft, which made its fuel costs competitive.

Practical implications

Cost efficiencies alone do not make a firm a disruptor. What is required is the combination of a low‐cost business model and enabling technologies.

Originality/value

This paper points out that managers should learn to see operational innovations and cost savings in the context of disruption, not just price advantage.

Article
Publication date: 1 April 1999

George P. Laszlo

The foundation blocks for quality in a customer service organization are management commitment, customer focus, and employee involvement; operational and administrative aspects…

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Abstract

The foundation blocks for quality in a customer service organization are management commitment, customer focus, and employee involvement; operational and administrative aspects are built on these basic issues. This article presents a detailed analysis of how a major customer service organization was built to succeed and continues to improve by applying quality management principles. The example presented is Southwest Airlines, whose employees see themselves not as an airline with great customer service but as a great customer service organization that happens to be an airline. This case study is examined within the framework of the model used by the Canada Awards for Excellence, the internationally recognized quality award program in Canada for more than ten years.

Details

Managing Service Quality: An International Journal, vol. 9 no. 2
Type: Research Article
ISSN: 0960-4529

Keywords

Article
Publication date: 1 April 2005

Reviews the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies.

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Abstract

Purpose

Reviews the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies.

Design/methodology/approach

Scans the top 400 management publications in the world to identify the most topical issues and latest concepts. These are presented in an easy‐to‐digest briefing of no more than 1,500 words.

Findings

Southwest Airlines have the combined market capitalization of all other US‐based airlines put together. How have they accomplished this? The economic climate over the past four years has not been kind to airlines, so how has the company which did not lay off any staff following September 11, 2001, remained top of the pile? By seeing their employees as the top customer, allegedly.

Practical implications

Provides strategic insights and practical thinking that have influenced some of the world's leading organizations.

Originality/value

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to digest format.

Details

Strategic Direction, vol. 21 no. 4
Type: Research Article
ISSN: 0258-0543

Keywords

Article
Publication date: 3 August 2015

Ifeanyi Adigwe and Josephus Oriola

– This paper aims to understand job satisfaction as correlate with organizational change among personnel in computerized-based special libraries in Southwest, Nigeria.

Abstract

Purpose

This paper aims to understand job satisfaction as correlate with organizational change among personnel in computerized-based special libraries in Southwest, Nigeria.

Design/methodology/approach

The study used a survey approach in collecting data. The population of the study comprised all intermediate and senior personnel of the special libraries in Southwest, Nigeria involved in the study on grade levels 06 to 17. Based on the 180 response sample drawn, 148 responses were received from the survey.

Findings

The degree and level of satisfaction derived from one’s job is sine qua non to the level of productivity obtained in due cause. Job satisfaction varies from individual to individual and from place to place. Although, organizational change is the basis for spontaneous increase of job dissatisfaction. Findings of the study revealed that organizational change is seen as a precursor to influencing job satisfaction of employees but the level of job satisfaction of employees depend on the impact of organizational change.

Research limitations/implications

It should be noted that a number of limitations exist relative to this research, the review of which should both place the research findings discussed, in an appropriate context and thereby suggest direction for future research. This study focused on employees attitudes in special libraries in six states of the federation at one time. Considering the fact that a very wide and varying cultural environmental differences which without doubt affected personnel dispositions in many different ways.

Originality/value

This paper differs from the previous literature in presenting statistical evidence to confirm the relationships between job satisfaction and organizational change and a range of potential outcomes.

Details

The Electronic Library, vol. 33 no. 4
Type: Research Article
ISSN: 0264-0473

Keywords

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