Presentation for FAU Fall 2010 Introduction to Management and Organization. College of Business. Dr. Barry Axe.

2. Team Introduction Sandra Rachel Justin Blaise Michael Southwest Airlines Case Study 9-2-2010, Slide 2 Presenter: Michael Hammer

3. Southwest Airlines Case Study 9-2-2010, Slide 3 Today’s Flight Plan Takeoff Trivia! Overview of Southwest Herb Kelleher – Founder of Southwest SWA Management Structure SWA Top Management SWA Middle Management SWA Lower Management SWA Market Update Presenter: Michael Hammer

4. Takeoff Trivia! What is at the center of the Southwest logo? What is the stock ticker for Southwest Airlines? Southwest Airlines Case Study 9-2-2010, Slide 4 Presenter: Michael Hammer

5. Company Overview Southwest Airlines Southwest Airlines Case Study 9-2-2010, Slide 5 Presenter: Michael Hammer

6. Basic Facts 3,300 Flights per day 35,000 Employees 69 Destinations in 35 States ~10.5 Billion Revenue/year Southwest Airlines Case Study 9-2-2010, Slide 6 Southwest Airlines. (2010, May 23). Southwest Airlines Fact Sheet. Retrieved September 1st, 2010, from Southwest.com: http://www.southwest.com/about_swa/press/factsheet.html Presenter: Michael Hammer

7. Southwest Airlines Case Study 9-2-2010, Slide 7 Southwest vs. Airline IndustryIATA Data as of 2008 Volvo Aero Services. (2009, January 5th). Southwest vs Airline Industry comparison. Boca Raton, FL, USA. Presenter: Michael Hammer

8. Doing Business the SWA Way Southwest Airlines Case Study 9-2-2010, Slide 8 Freiberg, K. L., & Freiberg, J. A. (1996). NUTS! Austin, TX: Bard Press, Inc. Presenter: Michael Hammer

9. Herb Kelleher Southwest’s larger than life founder..… Southwest Airlines Case Study 9-2-2010, Slide 9 Presenter: Blaise

10. Who is this guy? Go Get-um Attitude Hands-off Management Style Eye for Efficiency And the Eye of the Tiger? Seriously, that’s him in the picture… Southwest Airlines Case Study 9-2-2010, Slide 10 Freiberg, K. L., & Freiberg, J. A. (1996). NUTS! Austin, TX: Bard Press, Inc. Presenter: Blaise

11. The Herb Napkin Southwest Airlines Case Study 9-2-2010, Slide 11 Freiberg, K. L., & Freiberg, J. A. (1996). NUTS! Austin, TX: Bard Press, Inc. Presenter: Blaise

12. The Malice in Dallas Southwest Airlines Case Study 9-2-2010, Slide 12 Freiberg, K. L., & Freiberg, J. A. (1996). NUTS! Austin, TX: Bard Press, Inc. Presenter: Blaise

13. Management Structure Southwest’s Southwest Airlines Case Study 9-2-2010, Slide 13 Presenter: Michael Hammer

14. Southwest Airlines Case Study 9-2-2010, Slide 14 Upper Management Middle Management Lower Management Southwest Airlines. (2010, July). Southwest Leadership & Organizational Chart. Dallas, TX, USA.

15. Management Processes, Roles and Skills at Southwest Southwest Airlines Case Study 9-2-2010, Slide 15 Learning, C. (Producer), & Learning, C. (Director). (2010). Effective Management Pilots Southwest Airlines [Motion Picture]. Presenter: Michael Hammer

16. Top Management Southwest’s Southwest Airlines Case Study 9-2-2010, Slide 16 Presenter: Justin Boone

17. Southwest Airlines Case Study 9-2-2010, Slide 17 Southwest Airlines. (2010, July). Southwest Leadership & Organizational Chart. Dallas, TX, USA.

18. Top Management’s Priorities Southwest Airlines Case Study 9-2-2010, Slide 18 Planning Where are we going? Decisions How do we get there? Company Image What should people think of us? Presenter: Justin Boone

19. Four Management Functions in SWA Top Management Southwest Airlines Case Study 9-2-2010, Slide 19 Learning, C. (Producer), & Learning, C. (Director). (2010). Effective Management Pilots Southwest Airlines [Motion Picture]. Presenter: Justin Boone

20. Top Management Decisions Southwest Airlines Case Study 9-2-2010, Slide 20 Nashville Business Journal. (2007, November 9th). Southwest introduces 'Business Select' tickets. Retrieved August 30th, 2010, from BizJournals.com: http://www.bizjournals.com/nashville/stories/2007/11/05/daily31.html Presenter: Justin Boone

21. Middle Management Southwest’s Southwest Airlines Case Study 9-2-2010, Slide 21 Presenter: Sandra Whitler

22. Southwest Airlines Case Study 9-2-2010, Slide 22 Southwest Airlines. (2010, July). Southwest Leadership & Organizational Chart. Dallas, TX, USA.

23. Four Management Functions in SWA Middle Management Southwest Airlines Case Study 9-2-2010, Slide 23 Learning, C. (Producer), & Learning, C. (Director). (2010). Effective Management Pilots Southwest Airlines [Motion Picture]. Presenter: Sandra Whitler

24. Priority Skills for SWA Middle Managers Southwest Airlines Case Study 9-2-2010, Slide 24 Execute Plans Analyze Data Provide Advice Motivate Inform Learning, C. (Producer), & Learning, C. (Director). (2010). Effective Management Pilots Southwest Airlines [Motion Picture]. Presenter: Sandra Whitler

25. Successful Middle Management at Southwest Jeff Martin Ordered to increase fleet efficiency. Researched Software Upgrades New Software Purchased Saves Fuel Saves Time Fewer Delays Southwest Airlines Case Study 9-2-2010, Slide 25 McCartney, S. (2010, April 1st). A Radical Cockpit Upgrade Southwest Fliers Will Feel. Retrieved August 30th, 2010, from Wall Street Journal Online: http://online.wsj.com/article/NA_WSJ_PUB:SB10001424052702303338304575155813404043090.html Presenter: Sandra Whitler

26. Lower Management Southwest’s Southwest Airlines Case Study 9-2-2010, Slide 26 Presenter: Rachel Navarro

27. Lower Managers Ramp Supervisor Head Mechanic Lead Flight Attendant Customer Service Supervisor Dispatch Supervisor Southwest Airlines Case Study 9-2-2010, Slide 27 Freiberg, K. L., & Freiberg, J. A. (1996). NUTS! Austin, TX: Bard Press, Inc. Presenter: Rachel Navarro

28. Four Management Functions in SWA Lower Management Southwest Airlines Case Study 9-2-2010, Slide 28 Learning, C. (Producer), & Learning, C. (Director). (2010). Effective Management Pilots Southwest Airlines [Motion Picture]. Presenter: Rachel Navarro

29. Priority Skills for SWA Lower Managers Southwest Airlines Case Study 9-2-2010, Slide 29 Interpersonal Technical Responsibility Leadership Emergency Decision Making Learning, C. (Producer), & Learning, C. (Director). (2010). Effective Management Pilots Southwest Airlines [Motion Picture]. Presenter: Rachel Navarro

30. Successful Lower Management at Southwest Karen Sand Customer Service Supervisor Multitasking Interpersonal Skills Technical Skills Southwest Airlines Case Study 9-2-2010, Slide 30 Learning, C. (Producer), & Learning, C. (Director). (2010). Effective Management Pilots Southwest Airlines [Motion Picture]. Presenter: Rachel Navarro

31. Market Update Southwest Southwest Airlines Case Study 9-2-2010, Slide 31 Presenter: Michael Hammer

32. What happened to airlines in 2010? Air Travel is recovering. Some competitors (Frontier, Easy Jet) did not survive the recession. Southwest Airlines Case Study 9-2-2010, Slide 32 IATA. (2010, July 28th). International Traffic Charts. Retrieved August 30th, 2010, from IATA.org: http://www.iata.org/whatwedo/Documents/economics/InternationalTrafficCharts.pdf Presenter: Michael Hammer

33. The New Competitors Jet Blue Almost as Large Inexpensive Bags Fly Free Virgin America Inexpensive Luxury Feel Premium Options Seats, Food, Drink, Bags Free! Flight Blogger Tweet – “SWA feels like a bus compared to the personal limo of VA” Southwest Airlines Case Study 9-2-2010, Slide 33 Associated Press. (2009, August 16). Southwest vs. JetBlue: Battle for Boston begins. Retrieved August 30th, 2010, from eTurboNews.com: http://www.eturbonews.com/11084/southwest-vs-jetblue-battle-boston-begins Presenter: Michael Hammer

34. What is Southwest trying to do? Resist the urge to rapidly expand. Capped Fleet Growth Set a goal of 15% ROI (Pre-Tax). Research new revenue sources. Paid food selection. Inflight entertainment Southwest Airlines Case Study 9-2-2010, Slide 34 Associated Press. (2009, August 16). Southwest vs. JetBlue: Battle for Boston begins. Retrieved August 30th, 2010, from eTurboNews.com: http://www.eturbonews.com/11084/southwest-vs-jetblue-battle-boston-begins Presenter: Michael Hammer

35. Conclusions Effective Management is always a Southwest advantage. SWA is more effective than the newcomers. In 2020 Management Students will still talk about Southwest. Southwest Airlines Case Study 9-2-2010, Slide 35 Presenter: Michael Hammer

36. SWA Culture in Action Southwest Airlines Case Study 9-2-2010, Slide 36 Presenter: Michael Hammer

37. Related items Southwest Airlines Case Study 9-2-2010, Slide 37