An evaluation of the four functions of management within Southwest AirlinesAccording to Edward de Bono "an expert is someone who has succeeded in making decisions and judgments simpler knowing what to pay attention to and... Creativity involves standing out..." Southwest Airlines has done just that, in a world of high competition and drastic change, it has paid close attention to the needs of its customers, thus succeeding when many others airlines were going bankrupt. In a time of national tragedy (9-11), this airline banded together to develop ideas to keep them from going bankrupt, as many of their business rivals have suffered. With the motto "Time flies when you're having fun!" (www.southwest.com), Southwest Airlines has managed, through rapid change, diversity and e-business solutions, to maintain a loyal customer base and move forward at the same time. The airline industry is fragile and particularly vulnerable due to increasing safety demands, cost of fuel with limited resources, highly expensive industry, highly regulated industry and labor intensive industry. Despite the vulnerability of this industry, Southwest Airlines has managed to survive against the odds, when larger airlines have been forced to merge, have suffered massive employee layoffs, and some even when struggling. It is interesting to examine how Southwest Airlines has survived rapid changes while currently recognizing a growth spurt. How long can a business survive the rapid change in technology while increasing customers. The requests, while remaining creative, produce innovative solutions that often determine the success of the business. Despite these underlying difficulties, after 9/11, Southwest was the only major airline not to ground any of its fleet or lay off any of its employees. We were able to borrow enough money to maintain liquidity because: • Our costs were lower than those of our competitors. • Our balance sheet was better than that of our competitors. • Our debt per aircraft was lower than that of our competitors. • Our customer service was better than those of our competitors. (www.southwest.com) These are all important factors for the survival or business of Southwest Airlines. Another factor of 9/11 that created a huge change was the increased security measures of the already struggling airline industry. It is an understatement to say that the events of September 11, 2001 changed the lives of all Americans and especially our relatively unlimited ability to travel by air. Everything we knew has changed as a result of the diabolical efforts of a small number of people, and new procedures, while still evolving, will likely remain with us forever..
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