Background Information
Southwest Airlines was founded in 1966 and incorporated in 1967 by Herbert Kelleher and rolling King. The name of the company was adopted in 1971. Southwest Airlines' business model is based on frequent flights on short routes with features of low fare and no-frills. The airline company has maintained its use of Boeing 737 aircraft. The company has maintained quicker turnaround times for flights and has operated on low maintenance costs. The company's headquarters are in Dallas Texas. Most flights by Southwest Airlines services between Dallas Houston and San Antonio (Airlines, 2016). The airline was unable to begin its commercial flights until 1971 due to lengthy legal battles. The company adopted love as the theme for real promotions when it started flying near downtown Dallas to love the field. The company maintained its commitment to fund and its flight attendants maintained casual uniforms. They offered passengers lollipops after cigarettes on flights were banned.
The study analyzed the culture of the values and operating practices of southwest Airlines in their fiscal year of 2016. The study will provide a brief history for the company and assess how the company is balanced duties to engage and socially responsible and sustainable business practices with economic responsibilities to shareholders. The study was also identified and critique the practice's policies and principles that the management used to implement and execute the company strategies. Southwest Airlines' system of incentives and rewards it promotes adept strategy execution and operating excellence in identifying the critical features of its corporate culture.
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Problem Statement
Southwest Airlines have been faced with environmental sustainability-related issues over the past few decades. This has dramatically affected its performance and profitability. In 2007 the federal airline administration signed an agreement with Southwest Airlines. The deal was to oversee the reduction of pollution levels caused by the company. Pollution is a significant challenge for the airline industry. Contamination from the airline's lead to increased emission of carbon dioxide gases into the air (Barr, 2016). The carbon dioxide gases are responsible for the destruction of the ozone layer and therefore leading to an increase in global warming. Southwest Airlines has engaged in initiatives that have helped in reducing air pollution. Some of these strategies include the use of engines that require less fuel and more use of clean energy by the airline company. Southwest Airlines majorly aims to reduce environmental pollution from the GTA missions. The airline develops our waste management department wing that is responsible for the conservation of fuel and resources and to mitigate father pollution by the airline company. The company has over the past few decades, increased its efficiency in developing and maintaining a sustainable environment through waste emission reduction strategies. The company has also involved other stakeholders and other airline companies within the United States of America to develop and maintain environmental sustainability. The company also trains its employees on the need to integrate with the community members in a bid to educate more and air pollution.
Company Analysis
Over the past decade, Southwest Airlines have been active at the forefront of environmental sustainability initiatives. The company has developed several stewardship programs as part of the sustainability initiative. The company also trains its employees and engage them in ecological sustainability goals. The company has also developed a group known as The Green Team which provides the recommendations and actions to be taken an environmental matter. The Green Team also acts as the company's ambassadors and sells out the company's objectives and goals within the whole airline industry. They are responsible for researching new methods of Environmental conservations.
Quantitative Analysis
Does Southwest Airlines have experienced profitability over the past thirty-three consecutive years? In the last financial year, southwest Airlines achieved 9-billion-dollar profitability as reported by the study conducted by the federal administration. The company has been able to maintain its reputation and high profitability based on its high-security records and outstanding baggage handling. They have also had no customer complaints. The company has also developed and maintained its brand image through its exceptional principles of Environmental sustainability. This has given its competitive advantages over its other Close competitors within its market. It has also improved its relationship with the customers through their strategical corporate social responsibilities. The company management has aligned all its strategies and goals to satisfy the needs of the customer and help in providing solutions to the challenges the customers face.
Proposed Solutions
One of the significant objectives of Southwest Airlines at the implementation of its cultural and Economic Strategy goals. Both the company’s social and economic goals are aligned with environmental sustainability and responsibility. All the company's profitability is integrated with efforts to conserve and protect the ecosystem. The company's business operations further demonstrate the company's inclusion of environmental and social concerns. Southwest Airlines engages several stakeholders with more teams to develop and implement environmental sustainability strategies. The company has developed energy-saving strategies and more use of green energy. The use of green energy is essential and effective in reducing the number of emissions within the industry. Most of the airlines are developed using modern technologies. This has given them a competitive edge above other traditional Airlines. The modern airplanes used by southwest Airlines also conserve energy during landing and takeoff. This has helped the company to spend less on fuel and thereby increasing its profitability.
Optimal Solution Analysis
Southwest Airlines company has developed initiatives to oversee the reduction and recycling of wastes. The management believes that waste recycling is one of the select areas they can take in conserving the environment. The company has successfully minimized pollution and increased its waste management efficiency throughout its business (Alamdari and Fagan, 2017). They have also introduced their recycling program that has seen the reduction and mitigation of recyclable waste from the environment. The company announced its mission to do away with paper and plastic tickets in the last financial year. The reduction of paper is a strategy for the green belt movement and conservation of trees. The company has built a positive reputation in the society through its strategical environmental conservation methods.
Implementation Plan
Southwest Airlines has maintained profitability over its thirty-three years in business. Stakeholders and investors should, therefore, invest in the company as it promises a high return on investment. Several managers have taken place in the United States airline Industries. Mergers ensure low-fare Focus and maintenance costs advantage. Southwest Airlines could use a significant strategy to expand into South America. This will enable the company to earn a small return on investment as it is increased and growing market for air travel in South America. Investors can, therefore, achieve more profits on the investment. The commercial industry has grown to be one of the most admired investment opportunities since the first flight in 1903. There has been increased and growth in both domestic and global GDP levels. There are several drivers of change that have affected the industry over the past few decades (Graham and Shaw, 2018). By expanding into South America, southwest Airlines are most likely to face all or some of these drivers of change. Some of the drivers of change include societal development economics technology environment politics. Examples of societal developments that might affect investments in the airline industry include demographic changes and urbanization. The state of the economy such as the price of oil and business Cycles in South America made effect the Business of southwest Airlines in South America. The environment policies, such as the regulation of noise pollution and air emissions, could also affect the Southwest Airlines business in South America.
Conclusion
Southwest Airlines was founded in 1966 and incorporated in 1967 by Robert Keller and rolling King. The company struggled with long legal battles before it could be allowed to take long commercial flights in 1971. The company has maintained the use of the Boeing 737 air flights due to its low fuel consumption. The company has always advocated for Environmental sustainability within the flight industry. They have been on the leading forefront in campaigning for Environmental conservation. The business has put notable efforts to develop sustainable development and environmental conservation goals. Southwest Airlines have maintained profitability throughout its 33 years of operation. The company's significant objectives have always been to implement its cultural and Economic Strategy goals. Both the company’s Economic and social goals are aligned towards creating a sustainable environment. The company proposed a ticketless system to help in the reduction of paper waste and the conservation of trees. They also introduced the use of green energy and low energy flights to reduce their costs and help in environmental protection. The company has been able to minimize waste through recycling and their ticketless service strategy successfully. The recycling program has made them achieve more profitability through appeal to its customers in its corporate social responsibility. The airline plans to expand into South America. More investors are there for the ability to invest in Southwest Airlines. Its expansion into South America will serve the growing demand for airline services and therefore increase its profitability.
References
Airlines, S. (2016). Southwest airlines co. 2015 annual report to shareholders [online]. Available from:< http://investors. southwest. com/~/media/Files/S/Southwest-IR/
Alamdari, F., & Fagan, S. (2017). Impact of the adherence to the original low-cost model on the profitability of low-cost airlines. In Low Cost Carriers (pp. 73-88). Routledge.documents/company-reports-ar/ar-2015. pdf>[Accessed 19 September 2016].
Barr, S. (2016). Environment and society: Sustainability, policy and the citizen. Routledge.
Graham, B., & Shaw, J. (2018). Low-cost airlines in Europe: Reconciling liberalization and sustainability. Geoforum, 39(3), 1439-1451.
