Parnell (2014) defines organizational culture as the beliefs, behaviors, and values shared by members of a firm, which is one component used to implement strategic change (p. 296). Organizational culture describes the shared beliefs, values, and practices among the employees at an organization (p. 295). According to Quick (1992), Southwest Airlines’ corporate values are humor, selflessness, and luv (p. 47). Southwest Airlines’ website (n.d.) states that safety, warrior spirit, dependability, friendliness, and low costs are also held in high esteem (para. 4).
Parnell (2014) defines corporate strategy as the approach that a firm’s executives use to guide the firm’s direction (p. 151). The text discusses three different strategies: growth, …show more content…
184). Firms seek to compete by targeting a particular group of consumers or the mass market (Parnell, 2014, p. 184). Another way firms compete are by offering low prices or specialized products and services (Parnell, 2014, p. 184). According to Parnell (2014), the resulting competitive strategies described by Porter are: low-cost (no focus), low-cost (focus), differentiation (no focus), differentiation (focus), low-cost/differentiation (no focus) and low-cost/differentiation (focus) (p. …show more content…
Southwest Airlines offers its customer low-cost, no-frills air travel and is focused on budget-conscious customers. According to Parnell (2014), low-cost with focus firms must ensure the company controls costs in order to continue to operate while offering low prices, leaving it exposed price competition (p. 188). A firm that adopts an adaptive culture is more likely to accept strategic changes that are in-line with the firm’s values (Parnell, 2014, p. 296). In addition, the firm believes in loyalty and taking care of its people, which suggests that happy employees result in happy
Parnell (2014) defines corporate strategy as the approach that a firm’s executives use to guide the firm’s direction (p. 151). The text discusses three different strategies: growth, …show more content…
184). Firms seek to compete by targeting a particular group of consumers or the mass market (Parnell, 2014, p. 184). Another way firms compete are by offering low prices or specialized products and services (Parnell, 2014, p. 184). According to Parnell (2014), the resulting competitive strategies described by Porter are: low-cost (no focus), low-cost (focus), differentiation (no focus), differentiation (focus), low-cost/differentiation (no focus) and low-cost/differentiation (focus) (p. …show more content…
Southwest Airlines offers its customer low-cost, no-frills air travel and is focused on budget-conscious customers. According to Parnell (2014), low-cost with focus firms must ensure the company controls costs in order to continue to operate while offering low prices, leaving it exposed price competition (p. 188). A firm that adopts an adaptive culture is more likely to accept strategic changes that are in-line with the firm’s values (Parnell, 2014, p. 296). In addition, the firm believes in loyalty and taking care of its people, which suggests that happy employees result in happy