Oneof the strategic issues entails having a culture favoring employees.Employees are an integral part of an organization. When employees arevalued, they help in enhancing the productivity of an organization.The secret behind maintaining a culture that favors employees is thatemployees become motivated a move that increases productivity ofemployees. Through Southwest Airlines valuing its employees, it ispossible to enhance its productivity. Enhancing the productivity ofthe airline through viewing employees as an important part of theorganization is critical in increasing the revenues of Southwestairlines and attaining growth. Although an increase in the number ofemployees made the organization experience some challenges due toemployees becoming aggressive, it is critical to value employees andattend to their issues. Thus, in order to continue experiencinggrowth, it is important for Southwest airlines to continue valuingits employees. This is because employees can help the airline inincreasing its productivity and revenues.
Anotherstrategic issue was the acquisition of AirTran. Acquiring anotherfirm is important because it helps in achieving growth. Throughacquiring another firm, it is possible to achieve growth since theairline can be in a position to acquire customers of the acquiredfirm. Customers are an important part of any business since it is dueto customers that an organization is capable of earning revenues.Apart from acquiring customers of the firm, the acquiring firm canalso benefit from the market positions that the business used to ply.When Southwest airlines acquired AirTran, it was in a position tobenefit from taking the routes that AirTran used to fly. This wasimportant for the airline because it was in a position to increaseits revenues. For instance, through acquiring AirTran, Southwestairline was in a position to provide services in Atlanta. Increasingflights that the organization used to fly helped in increasingrevenues of the organization. The move to acquire AirTran was animportant step towards attaining growth for Southwest airline.
Besides,another critical strategic issue that the airline considered involvedthe issue of low cost. Price is usually a determinant for the revenuethat an organization will earn. An organization that charges highprices for its services is likely to sell less of its servicesbecause customers are not willing to pay high prices for services.However, when an organization charges low prices for its services, itis more likely for the organization to earn more revenues becausemost customers would prefer buying services from the organizationbecause of low prices. Therefore, through pricing its services lowly,Southwest Airlines was in a position to earn more revenues which arecritical for growth.
Inaddition, another strategic issue concerning Southwest airlines isits leadership. Leadership is exceedingly important in determiningthe performance of an organization. Although bureaucracy is animportant element, sometimes ignoring bureaucracy may help inmotivating employees. Communication is an important element when itcomes to leadership. Communication helps in ensuring that employeesget informed of what they are expected to do. For instance, throughcommunication, it is possible for a leader to make employees informedof different issues in an organization such as learning of pendingprojects and what is expected of them. The leadership of SouthwestAirlines was critical in ensuring that the organization performed.For example, through ignoring bureaucracy, the leader ensured thatthere was free flow of information at all levels. This gave morale toemployees a move that ensured that the organization increased itsrevenues and performance.
Inorder for the airline to continue performing, it is important tocontinue with the culture of valuing its employees. Placing employeesat the heart of the business is an important thing because it canhelp in motivating them, leading to an increase in the productivityof the organization. Besides, valuing of employees can help theorganization in earning more revenues because employees would be in aposition to serve customers with enthusiasm. There is nothing goodfor an organization than its employees having an interest to servecustomers. Thus, maintain the culture of keeping its employees at theheart of the business is an important aspect to the airline. Anotherrecommendation is that the organization should continue cultivatinggood leadership in order to experience growth in its revenues.Leadership is everything to the organization because with badleadership, the organization would not be in a position to grow itsrevenues. Good leadership would ensure that there is communication intime, which would aid in good organization of the airline. Althoughthe leadership of the organization ignores bureaucracy, there is needfor the organization to have some bureaucracy. Bureaucracy wouldensure that there is good flow of information at different levels ofthe organization. Lack of bureaucracy in the organization may makethe organization seem un-orderly in executing some of itsresponsibilities. When there is some bureaucracy to be followed, itwould be very easy to carry out some functions such as bringing in anew policy into working.
Case21 Southwest Airlines: Is LUV Souring or Sour