Southwest Airlines in 2008

Qu: With respect to the case study Southwest Airlines in 2008 what are the key policies, procedures, operating practices, and core values underlying Southwest's efforts to implement and execute its low-cost/no frills strategy? Which of Southwest's strategy execution approaches and operating practices do you believe have been most crucial in accounting for the success that Southwest has enjoyed in executing its strategy?

Southwest airlines have a number of key policies, practices and core values that enable them to effectively execute their strategy. Most importantly, the airlines focus on its people and culture along with a focus on the core values of LUV and fun creates an environment in which employees can effectively implement the strategy. The family type culture and approach to recruiting employees with the right attitude ensures a low turnover for the company and an attitude that fosters employees helping out wherever they are needed is a great example of cross-functional systems enabling strategy implementation as identified by Beer (2000).

The strategy of gradually expanding into new geographic markets and adding flights to areas where other providers were cutting back have helped ensure Southwest achieves high levels of market saturation in its current markets. Combined with curtailing flights on marginally profitable routes these strategies have enabled Southwest to gain better productivity from their fleet of aircraft.

Strategies focusing on low operational cost methodologies such as single model aircraft fleet and fuel hedging have enabled the airline to effectively implement its low-cost strategy.

A strong focus on vertical communication within the organisation along with a relatively flat structure and approachable management team enables the organisation to become aware of issues and address them in a timely manner. This cultural aspect also allows the organisation to discover and implement