Analyze the company’s mission and vision statements against the performance of the organization. Then, evaluate how well the company lives out its mission and vision statement. Provide support from...

RUNNING HEAD: Capstone Project 13
Crafting & Executing Strategy
Student:
Amarsanaa Sharavdorj
Instructor:
Professor Robinson
September, 2012
1. Analyze the company’s mission and vision statements against the performance of the organization. Then, evaluate how well the company lives out its mission and vision statement. Provide support from the organization’s performance in your evaluation.
Mission and Vision
The Mission of Southwest Airlines
The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. (Southwest Cares, 2008)
To Employees
We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer. (Southwest Cares, 2008)
To Communities
Our goal is to be the hometown airline of every community we serve, and because those communities sustain and nurture us with their support and loyalty, it is vital that we, as individuals and in groups, embrace each community with the SOUTHWEST SPIRIT of involvement, service, and caring to make those communities better places to live and work. (Southwest Cares, 2008)
To Planet
We strive to be a good environmental steward across our system in all of our hometowns, and one component of our stewardship is efficiency, which, by its very nature, translates to eliminating waste and conserving resources. Using cost-effective and environmentally beneficial operating procedures (including facilities and equipment) allows us to reduce the amount of materials we use and, when combined with our ability to reuse and recycle material, preserves these environmental resources. (Southwest Cares, 2008)
To Stakeholders
Southwest’s vision for a sustainable future is one where there will be a balance in our business model between Employees and Community, the Environment, and our Financial Viability. (Southwest Cares, 2008) In order to protect our world for future generations, while meeting our commitments to our Employees, Customers, and Stakeholders, we will strive to lead our industry in innovative efficiency that conserves natural resources, maintains a creative and innovative workforce, and gives back to the communities in which we live and work.
Southwest Airlines is the United States’ largest carrier in terms of originating domestic passengers boarded, serving 68 cities in 35 states. Based in Dallas, Texas it operates more than 3,200 flights a day utilizing a fleet of 547 Boeing 737 aircraft and has nearly 35,000 employees. (Company profile, n.d.) Southwest Airlines Company facilitates a team-oriented culture by cross-training its employees so that they are capable of helping each other when needed. The company also places emphasis on training intact work teams.
It is also famous for their service culture. Employees are empowered to resolve customer problems in ways they see fit. Because employees with direct customer contact are in the best position to resolve any issues, employee empowerment is truly valued in these companies. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines (Our culture, n.d.). Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer.
Southwest Airlines is a company that has created a work environment where people can do their best work. Southwest is one of the few airlines that have maintained profitability since its beginning. And it has a good track record as an employer, taking pride in its position as a low-cost, on-time carrier that is perennially. Its founder and chairman, Herbert D. Kelleher, developed a mighty chip on his shoulder in the 1970s, as other airlines tried to drive the upstart Southwest out of business. Mr. Kelleher, now 76, channeled that, creating an us-against-them attitude that somehow made it seem fun to work harder than other airlines (Bailey, 2008).
2.
Assess how the organization’s strategic goals link to the company’s mission and vision.
One of the easiest ways to describe the culture in Southwest is “service culture”. This type of culture is not necessarily identified on OCP but this has been the practice of the company ever since, and has been one of the main foundations of their success. The employees went through an extensive training on how to treat the customers well, how to address the concerns of the customers. These employees are empowered by the knowledge and training that they gain from the company. Empowered employees are deemed important in a company like Southwest Airlines that is highly customer oriented.
The main feature of the service culture is finding a proactive method in solving the customers presented by the customers. With this culture, the employees are able to feel more engaged in the job that they have while trying to serve their customers that best way that they can. They can already handle customers even without being supervised.
3. Analyze the company’s financial performance to determine the link between the company’s strategic goals, strategy, and its financial performance. Detail your findings.
In 2009, the airline industry faced tumultuous year. The turbulence of the “Great Recession” led companies to restrict travel and forced leisure travelers to tighten their budgets, leaving little discretionary spending. Despite the economic collapse and the losses reported by most domestic airlines, Southwest reported its 37th year of consecutive profitability, a great feat during the “Great Recession.” (Southwest Airlines, 2009) They ended the year on a high note with a remarkable fourth quarter Performance that kept their...