"Nuts!" Business Classics Presentation

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NUTS! NUTS! Southwest Airlines’ Crazy Recipe for business and Personal Southwest Airlines’ Crazy Recipe for business and Personal SuccessSuccess

Business ClassicsBusiness Classics

Presented By:Presented By:SOUTHWEST AIRLINESSOUTHWEST AIRLINES

Members:Members:

Pradip – TL, Prasanna, Kiran, Vandana, RajeshPradip – TL, Prasanna, Kiran, Vandana, Rajesh

Understanding

•The Book gives us a glimpses of Southwest Airlines extraordinary and Outstanding Strategies executed to achieve a global recognition in the Commercial Aviation industry.

•It suggests how a company like Southwest Airlines breaks the stereotypical industry norms and sets landmark success in its business

•The word “Nuts” is referred to the employees in Southwest Airlines who are enthusiastic, zealous and unconventional in nature and who execute work in an most outrageous way.

Success Factors

• Success Story of Southwest Airlines are observed from the following factors:

- Rock bottom lowest Airline Fares

- Hiring right People

- Most Productive Employees

- Excellent Customer Service

- Lowest Turnaround time

- Most Safest Preferred Airline company in the Industry

- Never say die attitude

- execution of work in a outrageous way - Esprit De Corps

- Consider themselves as crusaders with democratic spirit - they believe in the business of freedom

- Being Different

- Winning the employee trust

Background - South West Airlines:

- Its an idea of Rollin King, a San Antonio entrepreneur who owned a small commuter and his banker john parker.

- 1966 – Herb Kelleher a San Antonio Lawyer started feasibility study to start a new airline with Rollin King between three major cities that are Dallas, San Antonio and Houston due to their rapid economic growth.

- It was obvious that this new venture will start legal battle with other airline companies

- After Texas Aeronautics commission clearance to fly ,it had to undergo a lot of legal struggle with Braniff, continental and Texas international airline due to market saturation

- 1970 – Finally Southwest Airline got clearance from Supreme Court to fly

Choosing Right People

• Later Company recruited a brave man Lamar Muse, a veteran of airline business as a CEO

• He used all his contact and raised the money for buying planes and Hiring people

• Company made excellent operating procedures complying with FAA rules and regulations with the help of excellent top executives

Brilliant Moves

• Use of less busy Airport like Houston's Hobby airport

• Instead of using busy airports, the company gambled to use less busy airport, hobby airport which cost lesser compared to previous one

• Passenger load doubled as landing and take off were not congested

• 1979: After deregulation in airline industry, Southwest Airlines got interstate flying approval

• The Company came with innovative idea of offering permanent low fares and giving benefit to the people which include benefit to the retired customers

• Company has challenged the assumption that permanently low fares would cut the revenue.

• Company kept pricing structure such that it can efficiently get 100% occupancy in the air flights

• Company optimized its turnout time popularly called as 10 minute turn by efficient use of employees by motivating them to do so

• Company emerged as a maverick in the airline industry by setting completely new trend being positively outrageous and highly loyal and proud employees

• The company focused on profitability rather than market share.

• They avoided congested airport and controlled the cost

• Company used a very different strategy of flying point to point between cities and there by maximizing the use of aircraft and thereby minimizing time

• Company spent less time and money on ground so its flight could not be delayed

• They always try to compete with not only air carriers but they were competing with ground transportation to make flight more affordable effective and more affordable

• Instead of diversifying, the company focused on one type of aircraft Boeing 737 so that training of right from pilots, flight attendance to maintenance staff will be simplified and easily handled

• Company managed to make profit through the Gulf War and Recession in 1994 due to its very conservative strategies.

Recruitment Process

• Company sets the new kind of professionalism where attitude of the candidate is most stressed rather than aptitude

• Inherent attitude of the employees plays major role in recruitment process

• The Company introduced fun factor in to the recruitment as well as the work place, which helps go extra mile in whatever work they execute