Assignment Case Study Example | Topics and Well Written Essays - 750 words

Assignment - Case Study Example The challenges that southwest airlines faces are due to the competition. The mission of Southwest Airlines is â€Å"dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit†. Unlike other competitors, Southwest Airlines places employees’ satisfaction as one of the priorities for the successful business. The company follows a â€Å"loose-tight design† for the operations and decision making. The company has a tight policy and procedures in place for the cost control mechanism and scheduling. However, a rather informal structure is used to limit the scope of work of each employee. Southwest airlines give harmony to the employees to gain experience by their own creative thoughts and ideas. Employees are not limited to a single procedure in which they can get their job done. They are treated as ‘humans’ rather than machines. The financial analysis of the company reveals that company has performed well for numerous years. The net profit figure of 182.6 million in 1995 has risen up to 207.3 million in 1996. The low-cost model and low-fare are the basis of the success that Southwest Airlines enjoy. The aircraft that southwest Airlines use has 243 coach seats as compared to the American’s airlines having 635 seats. The flight meals are cut down as a part of the low cost model Southwest Airlines follow. The short-haul airline, Southwest, does not provide luxury seats and finds services like meals during the flight as unneeded. It rather emphasizes on lowest possible fares and costs to attract more customers who want to travel for shorter distances like from one city to the other. If we try to find out the major challenges that Southwest confronts, it can be noticed that Southwest Airlines has more power over the suppliers when it comes to quench its need of services and products that suppliers bring. Similarly the customers are less