Business Policy and Strategic Management Research Paper

Business Policy and Strategic Management - Research Paper Example Internal functioning at Southwest Airlines Southwest held the tag of low cost airlines in USA for so many years. However, some internal hiccups led to an unexpected change in its structure and internal functioning. It was considered one of the best companies to work for but increased labor costs and rising fuel prices turned these cordial relations into sour ones. While employees started complaining of low wages, Southwest also suffered as strikes and complaints by employees deteriorated the culture at and image of Southwest. Distanced employee relations and September 11 attack worsened the situation and customer complaints also started rising because of increased demands for safety in flights and long ticketing process. Emergence of other low cost competitors like JetBlue and AirTran threatened the very existence of Southwest Airlines because of which sustaining low prices became a daunting task for Southwest. One implicit reason behind such subtle transformation was the change in l eadership witnessed at Southwest. Herb Kelleher was the person who employees identified with. However, with Gary Kelly replacing Kelleher, problems started emerging as employees lost the bonding and affection they had with the company under the leadership of Kelleher (Katrina 2001).