1. Southwest Airlines
Case Analysis
Sandra Guzman
Lisa Ikkanda
Laura Lopez
Gerame Wong
Dr. Chandler - MGMT 449
Summer 2012, Tuesday, Wednesday, Thursday 8:00 a.m.

2. Problem
• What recommendations would we make to
Southwest CEO Gary Kelley after the
acquisition of AirTran for the Company to
remain successful heading into 2011?

3. Recommendation 1
Building an Organization Capable of Good Strategy Execution
• Choose a company strategy that best executes
the goals and objectives of Southwest Airlines
after comparing the strategies of AirTran and
Southwest
• Rationale: It is crucial to keep only one
strategy to avoid decision making dilemma.
• Objective: Strategy decision making will take
3–5 years.

4. Recommendation 1
Execution
• Step 1: Put together a talented management team.
• Step 2: Allocate sufficient resources.
• Step 3: Institute policies and procedures.
• Step 4: Strategy needs to relate to Southwest culture.`
• Step 5: Strategy needs to support Southwest
organizational structure.
• Step 6: Exercise strong leadership.
• Step 7: Employee decision-making authority.
• Step 8: Install information and operating systems.
• Step 9: Tie rewards and incentives to the strategy.

5. Recommendation 2
Managing Internal Operations
• Implement the best practice operational
activities among AirTran and Southwest that
will help Southwest maintain low-cost
leadership and high employee and customer
satisfaction.
• Rationale: Effective operational strategies will
improve Southwest Airlines’ core competency
• Objective: Execute within 3 years after
acquisition

6. Recommendation 2
Execution
• Step 1: Measure effectiveness
• Step 2: Select the most effective (Voting Process)
• Step 3: Create and improve policies & procedures
• Step 4: Implement best practice operational
activities
• Step 5: Re-evaluate effectiveness

7. Recommendation 3
Corporate Culture and Leadership
• Integrate AirTran Company into the Southwest
culture
• Rationale: Southwest is a more established
airline and is the low-cost leader in the
industry
• Objective: Focus on teaching AirTran
employees about the culture within 3–5years

8. Recommendation 3
Execution
• Step 1: Compare and contrast the core
competency for both companies
• Step 2: Identify actions and behaviors for the
new culture
• Step 3: Identify problems and find solutions
about Company policies, operations, or
management
• Step 4: Identify and execute visible and
forceful actions

9. Figure 12.2 Steps to Take in Changing a
Problem Culture (p. 406)
Compare and contrast the core competency of both companies
Step 1 Compare and contrast effective strategies and key success factors
for both companies
Keep employee morale high
Step 2 Provide excellent customer service
Be the industry leader of low-fares
Employee feedback through blog (Nuts about Southwest) and
Step 3 annual surveys
Step 4 Substantive: Attend Southwest’s University for People
Symbolic: Hold ceremonial events (annual awards banquets)

10. Culture of Southwest
Warrior Spirit A Servant’s Heart Fun-LUVing Attitude
• Work Hard • Follow The Golden Rule • Have FUN
• Desire to be the • Adhere to the Principles • Don’t take yourself
best • Treat others with too seriously
• Be courageous respect • Maintain
• Display urgency • Put others first perspective
• Persevere • Be egalitarian • Celebrate successes
• Innovate • Demonstrate proactive • Enjoy your work
• Customer Service • Be a passionate
• Embrace the SWA Teamplayer
Family

11. Culture of AirTran
Our Guiding Principles Our Values
• Safety • A total commitment to safety
• Courtesy • Compliance with regulatory
• Pride standards
• Teamwork • Technical excellence and
• Innovation continuous learning
• Cleanliness • Honesty, trust and integrity
• Anticipation • Respectful responsibility for
resolving issues
• Results
• Acting with purpose and urgency
• Hard work
• Fun
• Profit