CORPORATE CULTURE

Corporate Culture/Leadership Actions for Strategy Implementation

Corporate Culture/Leadership Actions for Strategy Implementation

1. Corporate culture is defined as: "the moral, social, and behavioral norms of an organization based on the beliefs, attitudes, and priorities of its members." Every organization has its own unique culture or value set; however, most organizations do not consciously try to create a certain culture. The culture of the association is normally conceived automatically, based on the values of the peak administration or the founders of an organization.

Southwest Airlines expends a allotment of energy in sustaining its workplace culture. Southwest is the only major airline in the U.S. that has been money-making in each of the last five years. It furthermore has a good status as an employer.

2. The return on investment is the amount of revenue that the company realizes for every dollar invested in the operations of the company. This is important to determine the profitability of a company. A small company, who only see net income of $100,000.00, may be a smarter investment than a company who realizes one billion dollars, if the percentage of return is higher for the small company. That is, if the smaller company only spent one thousand dollars to make its profit, vs. the larger company spending 2 billion dollars, the smaller company has received a better ROI. In the case of Southwest Airlines (SWA), Delta, and JetBlue (JB), the ROI were compared. SWA showed an average of 16.76% ROI for the three year period ending in 2002. Delta showed an average of -3.58% ROI for the same period. (Bunz, 1998).

The ROI and ROE of a company is only the tip of the iceberg. These are two evaluations to start to get a picture of a company's worth. From these two evaluations, we show that SWA was better positioned for the future in the airline industry. We will need to look further into these three companies, and intend on looking at other methods throughout this evaluation.

3. Southwest Airlines is vigilant about maintaining its' culture. The behavior directions and boundaries are relatively clear and communicated often. although, this is not typical. I accept as true most associations operate with a diversity of cultures. This is especially factual considering the expanding worldwide mobility of persons and cultures and values.

There is some debate over whether companies should design their personnel policies and reward systems around cultural values. actually businesses ...