South West Airlines Swot

SWOT:

Strengths:

* The key philosophy of the hotel was to provide high quality services at an competitive and cost effective pricing level.

* Targeting a Niche segment and implementing an unique business strategy of providing an unprecedented style of personal service to each guest. A unique concept of "no rules" for the guests.

* Employees were considered an integral part of the business, as an important asset. The employee right and the compensations provided to them reflected this .

* A very meticulous and evaluative selection procedure with an aim to select the best suited employees for the profile and aiming them to retain them for a long term. Recruitment was done on certain life themes like assertiveness, positivity, responsibility, pride and gestalt.

* Least amount of union interference in the hotel management decisions and operations. Except for the 9 engineers, none of the rest of the employees had joined any of the union.

Weakness:

*The basic organizational strategy with minimum middle management and placing more employees to serve the guests directly has proved to be flawed as there was a lack of discipline , confusion and reduced efficiency as adequate supervision of the lower level employees was lacking.

* Inefficiency and confusion resulting from the unstructured and random allocation of the employees.

* A very broad nature of the job increased the responsibilities of the associates.

* The attrition rate among the PVs was very high.

* The actual tips received by the PVs were significantly low in comparison with the expectations.

* There was lack of coordination and trust among various groups of employees and their interpersonal relations were tensed.

* Low occupancy of rooms and the frequency of arrival of guests created problems for a stable service team.

Opportunities

* A very unique service strategy of providing a PV to a guest in U.S. was unparalleled . There was product differentiation through the highly personalized service provided to the customer.

* The employees were trained very well. They identified the customer base into the lovers and the rejecters and hence had customer insight which could be put to use by providing better service to the targeted consumer.

Threats

*A strong threat of interventions from the unions, in case the management gets stricter with the employees.

* It was possible

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