Southwest Airline Strategic Analysis Essay

1385 Words 6 Pages
Southwest Airline Strategy Implementation

Executive Summary An analysis of Southwest Airlines strategic controls has been conducted in order to determine if these controls match, and or enhance, the companies design and strategy. The company structure, culture, and human resources have been taken into consideration. What was found, was that Southwest has a strong culture, which ties most of the strategies together. Supervisors and employees work side by side, which promotes trust and understanding. This analysis concluded that the strategies implemented by Southwest Airlines, does indeed fit the company strategy.
This analysis is of Southwest Airline’s strategic controls and if those controls coordinate with the
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Herb Kelleher (CEO of Southwest Airlines) describes Southwest as an “upside down pyramid”. The direct quote from Advance! Business Consulting is as follows, and accurately describes the fundamental structure of Southwest Airlines.
The quote reads, “ The organization of Southwest Airlines is best described as an upside-down pyramid – an organization very much in line with the way they want to do business. The upper management is at the bottom and supports the front line employees (>35000), who are the experts. Front line employees play a major role in the yearly business planning and operational budgeting which for a great part is done bottom-up rather than top-down. This is the fruit of co-founder Herb Kelleher's unorthodox leadership style, in which management decisions are made by everyone in the organization, not just the head executives. The company does not put much emphasis on structure; instead, employees are encouraged to think freely without constraints such as titles or official mandates” (Advance!).
Even though the company doesn’t put much stock in structure, it still is a formal entity. There is a hierarchal structure from CEO to employees. Herb cannot run the company with every employee making the decisions. The employees are empowered to make key critical decisions at their respective level, but they still answer to management. This design

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