Introduction to Business

1
Introduction to Business
2
BusinessWeek

• Southwest
• Dressed to kill Competitors
• Group 3

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Summary

• Southwest is the most profitable U.S
  airlines company.
• After Kelly joined, he brings more profit
  for Southwest. ( though change business model)

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Southwest Dressed to kill
Competitors

• Kelly joined Southwest The
• reason that Southwest is the most
• profitable airline company
  Growth
• opportunities Shaking things up
• by Kelly Southwest become
• bigger and stronger.

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Question 1Why is Southwest the most profitable
U.S airline company?

• Because Southwest, with the lowest costs and the
  strongest balance sheet, appears to be
  permanently shifting the balance of power to
  low-cost carries.

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Question 2How is Gary Kelly changing
Southwests business model to keep the company
profitable?

• By growing, Southwest averages in new,
  lower-paid employees and spreads its costs over
  more seats.
• At the same time, it is pushing for higher
  productivity from its already highly efficient
  workers.

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Question 2

• Southwests pilots say theyre being asked to fly
  70 hours a month, up from about 65. Pilots at the
  traditional carriers average less than 60.
• They can promote arguably better products,
  including assigned seats, business class, and
  seatback televisions.

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Question 3In what ways has Kelly changed
Southwests organizational structure to help
improve relationships with the companys
employees?

• He realigns his management group to improve
  accountability and cooperation between
  departments.
• Kelly created a new department focused on labor
  relations and now meets quarterly with union
  leaders to discuss finances and strategy.

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Question 3

• Hes also insisting that all employees get
  regular scorecards on productivity and
  profitability measures.

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The End