Strategic Objectives Of Southwest Airlines

Superior Essays
1. OPERATIONAL PLANNING

Strategic plans are of vital importance to a business. The most commonly used type of plans are tactical plans and operational plans. These two plans are framed to implement the strategy of a firm. It is essential to understand the elements of these plans so as to develop and implement the strategic goals and objectives.
Operational planning is the process of planning strategic goals and objectives to tactical goals and objectives. Operational plans are devised with reference to the strategic plans. It explains how, or what portion of, a strategic plan will be put into operation during a given operational period. The strategic plan is about setting a direction for the organization, devising goals and objectives and
…show more content…
Strategic, Tactical, & Operational Goals: Southwest Airlines
4.1 Strategic Goals.
The strategic goal of the top line management of Dallas-based Southwest Airlines was to ensure the profitability of the airline, following the general strategy of (a) minimizing the cost and fares and (b) offering a superior on-time arrival record. Focusing on the services of a single airline, Boeing 737s was one of the most important strategic decisions that Southwest had made.
The air hose had a tough time during 2008-2009 recessions just as its rivals. Amidst these troubles, the airline succeeded in attaining its strategic ends. Conception of a strong corporate culture was another strategic decision made by the airlines
Tactical Goals.
The key tactical goal before the Southwest middle level managers was to cut short the costs and to keep the fare at low charge per units. For instance, the organization cut costs in its maintenance plan by performing more work on a plane when it’s in for a check instead of getting it in three different
…show more content…
In addition, as mentioned, the airline is religious about turning planes around in exactly 20 minutes, so that on-time departures are more apt to produce on-time arrivals. Although the airline is about 83% unionized, turnaround is helped by looser work rules, so that workers can pitch in to do tasks outside their normal jobs.
Operational Goals. First-line managers also make sure that seat assignments (boarding passes) are not given out until an hour before the plane is due to leave to make sure that the maximum number of passengers will be on hand to fill the seats available. Recently, Southwest has thrived on being the only U.S. airline that lets passengers check two pieces of luggage for free, a policy that also helps lines move more briskly.
5. OPERATIONAL PLANNING FOR A MANUFACTURING COMPANY
In case of a manufacturing business, an operational plan is absolutely vital because of the intrinsically complex and detail-intensive operations. The operational plan must address several key items for successfully sketching the operations of a manufacturing business.
5.1 Facilities and

Related Documents

  • Superior Essays

    The Airline industry is characterized by strategic management and competitiveness. The paper seeks to provide information concerning the impacts of the changes in technology and globalization on the airline industry. Furthermore, the paper would also integrate the resource based model and the industrial organization model to try and determine the above average returns witnessed in the Airline industry. The paper seeks to analyze a case involving the Southwest Airlines.…

    • 1083 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Analysis of “A Tale of Two Airlines” “A Tale of Two Airlines” is a short article written by Christopher Elliot. Elliot, a well-known author and journalist, writes for National Geographic Traveler, MSNBC, Tribune Media Services and the Washington Post and is an experienced traveler. “A Tale of Two Airlines” was published in National Geographic Traveler in the December 2012/ January 2013 issue, which is significant because these months are very busy months in terms of travel. People fly regularly during these months because of the holidays. In this article, Elliot compares and contrasts two major airlines: Southwest Airlines and Spirit Airlines.…

    • 791 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Southwest Airlines Key Strategies Business Level strategy. Business level strategy is a process in which an organization focuses its core competencies on satisfying their customers, it details actions that should be taken to provide maximum value to the customers and gain competitive advantage over the firm’s competitors within an industry. Southwest Airlines employs a cost leadership business strategy which focuses on competing for a wide range of customers based on price of the goods or service being offered. Southwest Airlines is truly loyal to this strategy and that can be seen in the company’s low cost strategy initiative. Southwest Airlines has been able to maintain its pricing strategy by controlling several internal efficiencies such…

    • 900 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    The term strategic refers to things that are significant or necessary in relation to a plan of action; thus, the strategic role of operations management in business is to play a part in ensuring that the goals of the organisation are met. This means that the operations manager will have to be involved in the growth of the business’s goals so that the operations department knows what resources and production methods are needed to meet these goals. Cost leadership Cost leadership refers to the strategies to create goods or services at the lowest possible cost whilst they are still acceptable to customers. By reducing the costs of manufacture and distribution, a business will be able to increase an advantage over competitors. Qantas main costs…

    • 747 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    For my financial performance discussion of Spirit Airlines, I have reviewed and analyzed several standard airline performance measures from four years at the beginning, and four years after completing the transition to an ultra-low cost carrier (ULCC) strategy. Since the early 90’s, Spirit gradually expanded primarily along the eastern United States and into Latin America. In the years following September 11, 2001, Spirit struggled like many other airlines and was on the verge of bankruptcy, which is when CEO Ben Baldanza began integration of the ULCC concept (Nicas, 2012).…

    • 712 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    The chain of Command in the policing, meaning in ranks from officers to sergeants, lieutenant, captain, major, assistant of chief, and the chief. Strategic planning: Simply is the identification of goals and objectives and determination in how they going to accomplish and how are they going to do it? Planing is a base strategy plan and common in the traditional department. Generally has two components. First departments attend calls as traditional, little emphasis is placed on the problem identification or the problem solving, is more status quo policing.…

    • 110 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    Catastrophic and heartbreaking are the two words to represent the year of 2001 for many Americans. The 9/11 terrorist attacks caused major emotional, and economic impact around the globe. The American airline industry suffered significant economic and social loss, leaving major airline companies on the verge of bankruptcy. While most airline companies were financially and emotionally suffering, the Southwest airline appeared to be at its most successful and profitable period. Indeed, Southwest’s successful performance during difficult times makes many individuals wonder how the company was able to accomplish what it seemed unachievable by most carriers.…

    • 816 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Why Southwest Hospitality, compassion, and quality are all words that come to mind when I think of Southwest Airlines. Travel is something that I have been fortunate enough to experience throughout my life, domestically and internationally. Whenever I have the opportunity to take Southwest Airlines, I know I am in good hands. It’s that kind of trust that makes any travel experience more than just getting from point A to B. What is unique about Southwest, is that that level of compassion and care can be seen not only through the service, but also the people that make up and fly Southwest.…

    • 601 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    Southwest airlines has several unique qualities that help distance itself from their competitor. The overall corporate strategy of Southwest Airlines is based on the following three internal operations pillars. Human Resources Management One of the important quality that sets Southwest Airlines apart is their unique emphasis on work culture and worker attitude. Human resources is an intangible resources that can indeed be leveraged into a distinct competitive advantage. Southwest Airlines’ strategy is that they manage to train workers to do the task and hold the skills that are required, but a person’s attitude is not something that easy to change.…

    • 1398 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    This current paper attempts to consolidate the various frameworks presented in the literature of strategic management that will improve the overall performance of the companies better. The first paper discusses the issue of airlines Southwest, and the first successful operation of the company low-cost carrier in the United States of America. Caused two cases the problem is one of the Southwest Airlines experience, which was to some extent linked to the management of the new leadership appointed in 2001. This difficulty is a major change in the culture of the southwest, high fuel costs and wages. As these problems are also associated with the expansion of business southwest.…

    • 976 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Executive Summary Operation management is one of the important activities to determine the success of the company. As known for all, the operation management in any kind of business is the key activity for the organization. In this paper will discuss the operation management and process design of Carrefour, Carrefour is the second largest retail supermarket in the world, and we will investigate the fact in spite of the severe competition that exists in the retail industry. The company was able to make its mark on the globe and achieved impressive success by regulating the operation management function.…

    • 998 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Furthermore, their operations management maintains its focus on electric czars. A focus like this optimizes the organizational capacity for innovating products. 2. Quality Management. The main objective in the strategic decision are of operations management is to satisfy customer’s quality expectations.…

    • 936 Words
    • 4 Pages
    Great Essays
  • Improved Essays

    Strategic planning is a development in a business that is comprised of goal planning that are short and long in term. The formality is incorporated when goal planning is developed with a set mission statement along…

    • 1170 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    Task 1 a) Why business tends to give significance to the operations management? (1.1) 1.1.1 What is Operation Management (OM)? Operation Management is an activity of organizing the resources which are linked to the production and delivery of products and services (Iris). The mangers of operation management have a primary duty of processing the input into the output.…

    • 3964 Words
    • 16 Pages
    Superior Essays
  • Improved Essays

    To build a successful organization it is essential to have strategic and operational plans in place to achieve the organization goals. Developing plans In terms of planning, goals and objectives are key components and consist of specific, measurable, achievable, relevant, and timely (S.M.A.R.T) goals. Goals should be measurable, have substantial evidence when accomplished, therefore written, and clearly define.…

    • 806 Words
    • 4 Pages
    Improved Essays