Diversification Strategies



Diversification Strategies

Introduction

Southwest airline is the largest airline in the United States. It is most low cost carrier. Southwest Airlines started functioning in 1971. Greater part of the success of the Southwest is due to the eagerness of its management to be advanced. The fundamental philosophy of operations of the Southwest is large number of flights and low fares for the passengers. Management of the Southwest has developed a culture where workers are considered as the strength of the company. The benefits it provides to its workers include: character building of workers for decision, and profit sharing. The Southwest combines in contemporary techniques of management, such as permitting love to play an important role in the functioning of the airline, and celebrating various revolutionaries. The stock ticker sign of the company is LUV (Kim, et.al, 2003).

In the industry of airline, where greatly dependant process of working spans various operations, not only divergences are norm, these are possibly to have great aggravated effects. The people in various operations conquer various worlds of thoughts that formulate shared coordination critical. Even though many divergences are disparaging and to be ignored, Southwest Airline believes productive attributes exist, as a result resolving and identifying disparages is a mean of consolidating relationships that stimulate efficient proficiency.

Determine how Southwest Airlines' corporate culture differs from other airlines.

The culture of the organization can be described in terms of some characteristics such as attention to detail, innovation and risk taking, people orientation, outcome orientation, aggressiveness, team orientation, and stability. Culture of the Southwest Airlines possessed all these characteristics. Southwest Airlines have a strong culture which is widely shared and intensely held. Strong organization culture of the Southwest Airlines has enhanced the consistency of the behavior (Chatman & Cha, 2002). This consistency is minimizing the turnover rate. Culture of the Southwest ...