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Business Policy and Strategic Management - Assignment Example

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Summarization Southwest airlines is an exemplary destination for both scholars and practitioners when strategy and innovation are talked about. It amalgamated the concepts of cost leadership and differentiation to place its similar products in the extensive competitive market…
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Business Policy and Strategic Management
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Business Policy and Strategic Management

Download file to see previous pages... The employees are not binded by formalities and teams are cross-functional. Secondly, Southwest does not provide too much personalization in its services which keeps its cost low and also provides for standardization in services. Although high end facilities are not made available to the employees, but standard services and low cost is what makes Southwest an exceptional case amongst the airline competitors. Weaknesses Southwest suffers from certain internal management limitations which arise from leadership incompetency. Lately the organization had suffered dramatic shift in the way culture was managed by its leaders- from Herb Kelleher to Gary Kelly. Loss of relationships, affection and cultural match took place which was worsened by the externalities of increased safety demands, fuel prices and customer complaints. Recommendation Southwest has always thrived on the motto of providing services to the customers at rock bottom prices which its rivals could not. To sustain this feat, it is recommended that southwest should concentrate on its human resource development. Till date, its workforce strategies and strengthened human capital had garnered it the much needed reputation and profitability. In the future also, it needs to develop its employees by means of cross-departmental training and encouraging them to come up with greater innovation. ...Download file to see next pagesRead More
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