Page 397 - Business Principles and Management

Case Study

SOUTHWEST AIRLINES: PROFILE OF A LEADER

Airlines have faced economic difficulties with rising fuel costs and increased
security standards. Whereas many airlines have faced bankruptcy and cor-
porate restructuring, Southwest Airlines has consistently maintained a high
level of success.
The mission of Southwest Airlines is “dedication to the highest quality
of customer service delivered with a sense of warmth, friendliness, individ-
ual pride, and company spirit.” The airline’s mission statement has always
governed the way the corporation conducts business. It highlights the
company’s desire to serve customers and gives direction for service-related
decisions. Southwest Airlines wants customers and investors to have confi-
dence in the airline and its employees. The airline has a strong commitment
to providing customers with safe, affordable, reliable, timely, courteous,
and efficient air transportation and baggage handling on every flight it
operates. Southwest is equally concerned with providing a fair return on its
shareholders’ investments. Southwest’s mission statement has led the way
to the best cumulative consumer satisfaction record in the airline industry.
Southwest Airlines is also committed to providing employees a stable
work environment with equal opportunity for learning and personal
growth. Since 1971, the airline has developed a culture that encourages
an entrepreneurial spirit in its employees. It emphasizes personal respon-
sibility, initiative, creativity, innovation, and the use of independent judg-
ment. Southwest Airlines is firmly committed to providing employees the
same concern, respect, and caring attitude within the organization that
they are expected to share externally with every Southwest customer.
Southwest is widely recognized as an outstanding corporate citizen. It
has been included on the “List of the World’s Most Socially Responsible
Companies” by Global Finance magazine. Fortune magazine has named
it one of the most admired companies in the United States and the world.

THINK CRITICALLY
1. Which groups of people are addressed by the Southwest mission
statement?
2. Why is it important for a company to have a sound reputation for
community service?
3. Why does Southwest Airlines pay so much attention to its employees?
4. What aspects do consumers rank when considering the value of an
airline?

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