In order to provide low fare costs, the company has excluded the meal service from its flights, by serving beverages, crackers and other light snacks to the passengers during flights. Strong financial position: The finances of southwest indicate a $2.3 billion cash flow in the year 2016 and $2 billion return to shareholders through dividends and buybacks. The infrastructure of the firm is another key competency creating value for the customers. American Southwest Airlines CEO, Gary Kelly said the Web site is playing a major role in mitigating the rise in unit costs affected by high fuel prices. This posting is about the Stanford University, Graduate School of Business Case study focusing on Southwest Airlines as an example of leveraging human resources into a distinct competitive advantage. VAT Registration No: 842417633. (Jackson, 2005; Michie and Gooty, 2005; Wood, 2005). Employees uttered that the new management spend too much time in the back offices of Southwest while managers uttered that the feel their organization culture is at risk because of the actions taken by Southwest’s new management during negotiation with Unions. Stanford, CA: Graduate School of Business, Stanford University. In his investigation study, Thomas (2005) conducted an investigation study and interviewed 28 senior executives, he concluded that a wide variation in leadership concept, leadership attributes and leadership characteristics existed (Thomas, 2005). Airline can use Web site to publish – in a cost-effective way – public domain documents such as annual reports, product brochures, positions vacant, contact details and other important Airline information. Moreover, studies indicated that Character is very important to courage, and it may be defined as who you are when no one is looking (Murray, 1998). *You can also browse our support articles here >. In their study, Avolio and Luthans (2006) provide four sub-factors under authenticity factor, which are presented in Figure 1: self-awareness, transparency, positive psychological states, and personal integrity. 2. b. Southwest Airlines could increase the price benefiting from the fact that the strongest competitor is not in the market and the company still can be attractive with just $ … Southwest airlines value suppliers who have the same focus and look internally for ways to improve their processes and service, and willingly pass on cost savings. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. The culture was set open in the organization; the employees were regarded for the success of the airlines and got awarded every month. Southwest Airlines Case Study Analysis. The Goolsby Leadership Model shown in Figure 1 elaborates key dimensions of Integrity, Courage, and Impact. Show More. In his studies, Luthans (2002) and Luthans et al. Employees can connect with managers or even the president immediately whenever they want to deliver opinions and suggestions. Few low-cost competitors that fly internationally (JetBlue, Virgin Atlantic), Code-sharing with other airlines can save costs of expanding into this market by themselves, International destinations are desirable places to visit for leisure, Uncertainty of economy – not so much money for holiday travels, High fuel costs (not a current issue, but perhaps in the future). These two available solutions for the new management are directly contradicting southwest culture. 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