Essay on Hrmn 400

1816 Words Sep 20th, 2015 8 Pages
hrmn 400 | ASSIGNMENT 4 FINAL ASSESSMENT | Southwest Airlines Case Study | | Temony McNeil | 3/9/2014 |


Southwest Airlines is a very aggressive company striving to increase its competitive advantage in the market without compromising the core values that have been set to differentiate itself from its competitors. It’s only by keeping the values of working hard, having fun, and treating everyone with respect that Southwest Airlines and its affiliates will continue to be an award winning organization. Southwest Airlines has been known to create a synergy between the multitude of personalities and behaviors which make up its workforce. Southwest has benefited from its successes by being able to acquire other
…show more content…
Although reduction of force is the least positive impact on organizational performance, it’s an unfortunate by-product of restructuring. By taking a preemptive approach to restructuring, the executives of Southwest will not be forced to take extreme measures to return the business to a sound footing prior to acquisition.

Financial Analysis
The acquisition of the new airlines will result in Southwest incurring excessive debts from the new entities. In order to mitigate the damages and release cash, Southwest will need to look at the fixed assets that can be immediately disposed of through sale. Although there will be debt incurred, Southwest airlines will acquire its new ventures with the goal of growing its brand and saturation. It is impossible for Southwest to achieve any growth unless it continues to develop a strong core business practice in order to help fund all growth initiatives spawning from the acquisitions.
Human Capital
There will be an expected reduction in the workforce resulting from the acquisition. Management of the parent company should expect a 20% reduction of corporate staff during the transition. In order to reduce the interruption in business, Southwest should space the reduction over a three year period. This allows for the staff members of the newly acquired company to maintain a sense of normal while

Related Documents