Amid all the turmoil in the financial markets, rising energy prices and a gloomy economy, Southwest Airlines is still very good and survive the fact remains his leadership in the business community. This success in the highly competitive market for air travel is simply done by looking at the basics of business profitability and customer satisfaction, which is the basis for a successful business for decades. Although it is almost impossible to deal with all these lessons in great detail in an article like this, at least we can not touch a few of the here and now, he could potentially use in their own company to profitability and increase customer satisfaction.

Control of costs. Southwest manages the cost of very effective. They pay tax for the pilots, flight attendants, mechanics and baggage handlers are on the low rung of the pay scale in comparison with others in the same field. Southwest managed its maintenance costs by a limited number of model variants and leave their engines and aircraft. This allows interchangeability of parts, the inventory levels are relatively low. In addition, pilots and maintenance personnel need to know about a million different pieces of equipment, learning and training costs can be reduced. The same concept can be applied to other companies in terms of efforts to keep the costs under control.

Take the time to a minimum. Southwest Airlines had the lowest response time of all the major airlines in terms of time between the unloading and reloading of the aircraft for another start. These aircraft on the ground, he was unproductive in terms of income and should be kept to a minimum. The same concept can be used if the bus carrier or oven. Ovens are usually loaded with parts to be processed and the time to explain parts and then start the next batch should be a minimum.

Purchase of raw materials in advance for the best prices. Southwest fuel in bulk for sale when market prices are low. Then they can very effectively compete. Similar strategies were used by Proctor and Gamble seventy years ago with the purchase of raw materials. Similar concepts can be used if you are in the steel production, construction activity or activities in making plastic bottles. Raw materials procurement is one of the weakest links in organizations in general, and very costly mistakes that occur in one step.

Empower people. This is one of the biggest lesson that any organization, large or small, can learn from Southwest Airlines. Workers in the West do not have the personnel manual. Instead we have the general principles of personnel with instructions to break if necessary, to achieve. This high level of promotion of the employees at all levels of society that truly focuses on customer satisfaction, which is key to revenue growth and increased profitability. Most companies have centralized decision making, and strict control of staff competence, and is often counterproductive in today’s rapidly changing business world.

 

 


Article Source: book airlines