Southwest Airlines: Business Strategy Analysis and Recommendations

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Added on  2023/02/02

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This report examines the business strategies of Southwest Airlines, focusing on challenges related to labor costs, employee morale, and industry competition. The analysis highlights the impact of union representation and the need for strategic adjustments to maintain profitability. The report also explores potential solutions, such as expanding globally, forming partnerships, and prioritizing employee engagement. It considers the influence of external factors like changing COVID-19 regulations and the importance of a collaborative approach. The summary emphasizes the significance of employee morale and engagement in achieving the company's goals and maintaining a competitive edge in the airline industry. The report suggests a proactive approach to navigate challenges and capitalize on opportunities, ensuring the airline's continued success.
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Business strategies for each of the Three HRM implications
The premise that air transportation has decreased while expenditures have
increased indicates that airline businesses have financial difficulties. Furthermore,
Southwest Airlines has a significant union representation, which will only worsen the
issue. In addition, they have a significant effect on the labor costs that businesses will
incur. In this case, the corporation's leaders are in the midst of discussions designed to
ensure a salary freeze. Furthermore, advantages such as sick time and paid time off
will be limited. It is essential to recognize that this will influence the worker's growth,
involvement, and enthusiasm. On the other hand, Southwest is known for fostering
worker morale and involvement, which impacts the corporate culture. As a result, it
will be best if the organization takes a careful approach to the situation. Therefore,
Southwest will have to explore growing worldwide and locally to help spread the
increased costs.
There has been a weakening of COVID-19 regulations, which indicates that
the aviation movement will increase. The main reason for this is that virus
transmission has been limited to a certain extent due to vaccinations. As a result,
Southwest Airlines now has the chance to broaden its profitability. Nevertheless,
obstacles will continue to exist, resulting in corporate activities being disrupted from
time to time (Market Line, 2021). Southwest Airlines would be able to form a
corporate partnership if they embraced teamwork. Therefore, the corporation will
work with its rival companies so that they are aligned with the underlying approaches.
Additionally, the collaborative efforts will help gain a competitive advantage.
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Furthermore, collaborating with smaller aircraft can help Southwest Airlines
accomplish its objective.
Finally, the organization must provide chances for its personnel. Southwest
Airlines, in particular, will be required to focus on staff morale and involvement to
achieve its goals. In addition, Southwest Airlines' success is mainly due to the efforts
of its consumers and workers. Therefore, concentrating on personnel will help the
organization acquire a competitive edge.
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