BUSN 2058 - Southwest Airlines: Service Management Case Analysis

This case study examines the success of Southwest Airlines, focusing on its service concept, business model, work environment, and customer engagement strategies. Founded in 1967, Southwest Airlines prioritized affordable services and a collaborative culture, fostering joint problem-solving and employee empowerment. The airline's unique 'love' theme and team-oriented approach contributed to a positive customer experience. Operational processes emphasized efficiency and customer participation, while tangible products included discount coupons and gifts. Recommendations for improvement include addressing the lack of in-flight food services and maintaining a balance between efficiency and customer comfort. The analysis concludes that Southwest Airlines' success stemmed from its dual focus on customer and employee satisfaction, creating a unique and sustainable competitive advantage. Desklib provides access to similar case studies and solved assignments for students.

Running head: MANAGING SERVICES
Managing Services
Name of the Student:
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Author’s Note:

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Table of Contents
Introduction......................................................................................................................................4
Service concept and the nature of service management practiced...................................................4
The business model of Southwest Airlines......................................................................................5
Work environment...........................................................................................................................6
Development of Culture..................................................................................................................7
Customer engagement.....................................................................................................................7
Operational processes......................................................................................................................8
Tangible products............................................................................................................................8
Recommendation.............................................................................................................................8
Conclusion.......................................................................................................................................9
Reference List................................................................................................................................10

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Executive Summary
Southwest Airlines is one of the popular and well-known Airline services. They have excelled in
providing excellent services to their customers. However, it must be noted that they have not
only been successful in serving their customers well but also their employees. Thus they have
followed both customer-centric and employee-centric approach. They not only focused on
serving their customers but also developed a feeling of personal touch, care, affection and a
sense of responsibility among their customers as well.

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Introduction
The service rendered by Southwest Airlines is one of the most popular Airline services as
it helps in understanding the needs and demands of their customers. Southwest airlines were
founded in 1967 by Rolling King and Herb Kelleher. It started its operation in 1971 covering
intrastate Texas cities, Dallas, Houston, and San Antonio. The assignment has dealt with the
various factors that resulted in the popularity of the Airlines and the future steps they must take
to survive the competition.
Service concept and the nature of service management practiced
Southwest Airlines make sure that the services rendered by them are afforded by the
customers belonging from different income groups of the society (Muduli and Kaura 2011). In
other words, the southwest Airline Company sets the price of their services at a very low and
affordable limit so that they can be used by the customers belonging from the business class and
also the ones belonging from the lower or the middle-income group customers. Job Shop
operation is one of the most important and useful kinds of service operation that helps the
organization to meet with the changing needs and demands of the organization. However, it must
be noticed that this system is tough for the organization as they have to follow a very hard and
fast rule and also follow the method of the constant improvement strategy. This might often
become very tough and also costly. However, efforts have to be made so that the company is
able to meet up with all the requirements of the customers. Joint problem solving was the culture
of Southwest Airlines. Southwest engaged in joint problem- solving exercises with those

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supplying everything from fuel to peanuts served on planes. Thus it can be said that the company
makes sure to put forward a joint, united and collaborative business method. A very unique
feature is that the Pilots often helped in carrying and also sorting the baggage and the luggage.
This is a very important and cooperative culture of the organization. All the employees come
together in order to get the work done. This is very useful for the company and they always try to
initiate a very good, supportive and helpful culture within their company.
The business model of Southwest Airlines
Southwest airlines were founded in 1967 by Rolling King and Herb Kelleher. It started its
operation in 1971 covering intrastate Texas cities, Dallas, Houston, and San Antonio. One of the
very unique aspects of the model of Southwest Airlines is the adoption of the love theme. This
shows that the organization has always been very passionate about helping the customers in
getting a very good company culture. The airline’s new president, Lamar Muse, adopted the
“love” theme for developing a very unique culture with all the passengers. This made sure that
the passengers boarding the flight are being able to get a very happy relaxed and cheerful time.
One of the unique features was the collaborative effort of solving all the issues. This approach or
method was known as the joint collaborative method
It was based at Love Field in Dallas. For executing the “love” theme, lots of efforts were
made so that the customers or the passengers are able to understand the care and the love that
SouthWest Airlines has for all their customers. Division of labor was also followed so that the
burden of tasks is reduced. This helped in understanding that joint and mutual efforts can help

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in sharing the burden of work for better production and better output of the organization. The
main motif or the main objective of the organization was that all the employees together have to
come forward and bear the burden of the entire work. Team late was developed so that the late
delivery of the assigned work can be scheduled and then efforts can be made in order to look
after those issues and also solve them. The other important aspect of the model is that they
always helped in supporting each other during hours of need, The Pilots were also present to
divide the work with the attendants of the flight (Farooq et al. 2018). They helped in picking up
and spring the luggage. One of the unique and distinguished features of the organization is that
none of them had the mentality of boasting off one’s hierarchy or supremacy.
The group-based approach or the collaborative culture was mainly imparted in order to
understand the propagation or the progress of the work. None of the policy can be carried on
properly unless there is a proper implementation, evaluation or monitoring plan. The interview
was done by including all the potential attendants of the flight and the crew. This was a strategy
used by the organization in order to understand the cooperation and the supportive helpful nature
that is present among the employees of the organization.
Work environment
The management and the leaders of the organization believed in imbibing fair company
couture. Thus they always followed an employee-centric ad also a company-centric culture.
However, it was made sure that all the employees working in the organization are able to enjoy a
happy and supportive environment. In order to ensure that the employees are happy, the
organization planned for a flexible shift. As per the opinion of Huff and Tingley ( 2015), the key

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factor behind the overall success and prosperity of the organization is the happiness that is
enjoyed by the people of the organization. All ground operations employees had one to two
weeks of technical orientation at individual stations before going to class in Dallas for a week to
study everything. The managers or the leaders of the organization made sure that they are
supporting their employees in all possible ways. In order to train their employees and to make
them job ready, the managers of SouthWest Airlines made sure that they are arranging for the
training and the development sessions.
Pilots sometimes handled baggage or helped cabin attendants in picking up the cabin
while gate attendants might be seen putting provisions on board for the departing flight.
Company’s main event of the year was the annual awards banquet, for which employees from all
over the system were brought to Dallas and honored for their length of service (Farooq et al.
2018). The company made sure that the customers are also being able to enjoy a proper
environment (Jochen 2016). Thus they developed such a facility that would help the customers to
easily board a flight for the second time if they somehow missed the first one. They made sure
that they are able to cater to the needs of both the employees and also the customers of the
organization (Manhas and Tukamushaba 2015). This must also be noted that the organization
also focused due importance to the discipline of the organization. In order to do that the
managers and the leaders of the organization made sure that the customers or the passengers are
asked to take up the responsibility of their own job. They had to carry their food and also their
own luggage. This helped in creating a sense of accountability. Pre-reservation or pre-booking
of seats were also not allowed. The seats for passengers were available on a first come and first
serve basis. Customers who arrived first and on time were entitled to get the best seat. Thus this
helped in inculcating a habit of discipline and punctuality.

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Development of Culture
"The main spirit was to do everything that was required to complete a task rather than
having a mentality that it is not my job." One of the other aspects of the organization is that the
South West Airlines have always helped in imparting the clan culture or the collaborative
culture. Clan culture is of the view that the entire organization has to work as a family or as one
single unified unit. They help in understanding about the power of unity that lies in the policy of
group work. This has been a very important aspect of the organizational model of Southwest
Airlines. Discipline and punctuality formed one of the key aspects of the organization. This
was developed in order to make sure that they are being able to appreciate the
Customer engagement
Southwest Airlines made sure that the customers are very much a part of the
organization. They made sure that the customers or the passengers are being involved not only in
the business decision-making processes but also in the celebration of the different festivals
taking place in the organization. In-Flight contests were conducted. This was mainly done in
order to see how many passengers could be fitted into the bathroom at one time (Rennung,
Luminosu and Draghici 2016). Holidays were celebrated with costumes and giveaways. The
interview sessions did not only include the employees but the customers as well. The interview
team comprised of the customers coming from the frequent flier category (Zameer et al. 2015).
These helped them in understanding the different kinds of issues that are actually being faced by

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the people traveling on board. However, at the same time, Southwest Airlines did not provide
any additional facilities like carrying the goods of passengers from or provide them the food.
They were asked to do all this work for themselves (Rennung, Luminosu and Draghici 2016).
However, on the one hand, it made the passengers disciplined and self-sufficient but on the other,
they might be offended as well. It helped the Airlines to focus their time and attention onto other
services. All these factors helped the Airlines to succeed in the long run.
Operational processes
In all, the process was very efficient, standardized and low-cost, allowing for quick
turnaround and low fares. Customers were part of the process and taking their roles willingly.
However, it must be noted that as the Flight did not provide any food to their customers, this
could turn out to be a major problem. There can be some elder or senior citizens and also
children traveling in the flight. It surely would have been a problem for them if they did not get
timely food for the entire course of their travel. It must be noted in the same context that
SouthWest Airlines were trying to save time for other important aspects of their operation.
Southwest’s turnaround time had grown to an average of 24 minutes, a figure that was expected
to be at least 30 minutes. Though these factors helped in focussing over the quick performance of
the other activities it must be noted that they have to focus over these aspects in order to flourish
in the long run.
Tangible products
The tangible service or the tangible components in the service of Southwest Airlines
mainly refer to the goods or the services that can be perceived by touch or can be felt. These
materials mainly include the products like discount coupons, vouchers, the colorful reusable

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plastic cards, and other such products. Apart from this, hampers and gifts that were given to each
of the employees in order to appreciate their efforts can also be termed as their tangible goods.
However, it must be noted that the intangible goods may not be felt but at the same time, they do
have some great significance. Southwest Airlines made sure that they are able to impart their
services to their customers by means of the intangible products as well.
Recommendation
 It is recommended that the organization pays due importance on the development of
online or digital apps. However, it must be made sure that there is proper security is
maintained in the online sites.
 They have to hire special network security experts who will be able to make sure that the
personal data and information of the customers are being mainlined properly.
 Cross-cultural competency sessions must be developed so that all the employees working
in the organization can get proper training. This will be helping them to get a proper and
larger customer base from the different parts of the organization.
 They have to develop online booking systems and also establish a 24*7 hour constant
customer service. Thus this will be very helpful in order to cater to the emerging needs
and demands of the customers.
 Timely food must be provided on flights so that they can cater to the needs of their
customers. Providing food to customers is one of the basic tenants of happy hospitality
service. Transferring baggage and the luggage of customers to the connecting flights. As

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these services are not very well developed in the Southwest Airlines they have to make
sure that they are working towards the initiation of all these processes.
Conclusion
Thus it can be concluded that Southwest Airlines is currently doing the same job in order
to survive in the competitive work environment. However, there are many other competitors who
are using all the possible and modern technologies in order to stay in the proper competition and
provide better and upgraded facilities to the customers. However, they have to make sure that
they are working over their drawbacks in order to cater to all the changing needs and demands of
the organization.

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Reference List.
Chen, C.F. and Wang, J.P., 2016. Customer participation, value co-creation and customer
loyalty–A case of airline online check-in system. Computers in Human Behavior, 62, pp.346-
352.
Farooq, M.S., Salam, M., Fayolle, A., Jaafar, N. and Ayupp, K., 2018. Impact of service quality
on customer satisfaction in Malaysia airlines: A PLS-SEM approach. Journal of Air Transport
Management, 67, pp.169-180.
Huff, C. and Tingley, D., 2015. “Who are these people?” Evaluating the demographic
characteristics and political preferences of MTurk survey respondents. Research & Politics, 2(3),
p.2053168015604648.
Jochen, W., 2016. Winning in Service Markets: Success through People, Technology and
Strategy. World Scientific.
Manhas, P.S. and Tukamushaba, E.K., 2015. Understanding service experience and its impact on
brand image in hospitality sector. International Journal of Hospitality Management, 45, pp.77-
87.
Muduli, D. and Kaura, M. (2011). Southwest Airlines Success : A Case Study Analysis. 2nd ed.
BVIMR Management Egde, pp.PP 115-118.
Rennung, F., Luminosu, C.T. and Draghici, A., 2016. Service provision in the framework of
Industry 4.0. Procedia-Social and Behavioral Sciences, 221, pp.372-377.

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Zameer, H., Tara, A., Kausar, U. and Mohsin, A., 2015. Impact of service quality, corporate
image and customer satisfaction towards customers’ perceived value in the banking sector in
Pakistan. International journal of bank marketing, 33(4), pp.442-456.