KillCompanyDraft_A3

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Feb 20, 2024

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Group A3: Sailor Schwisow, Daniel Vedmed, Jack Wire, Valentine Kadang, Zongyuan Wang B Bus 475: Managing Innovation Due: Feb. 27 Kill the Company Paper Southwest Airlines is an American airline founded by Herbert Kelleher and Rollin King in 1966. They have a low-cost structure that allows them to offer low-cost fares to their customers. They achieved this by using Boeing 737 jets exclusively in their fleet. This reduces their maintenance and training costs while also focusing on efficiency and cost-saving measures. In terms of their fleet, they have a large route network all across the United States. However, they do not have many international destinations. They have also created a strong brand over the years with their reputation. Although, with their change in CEO, the company has quickly lost their reputation and culture that made them so popular. They were known for their friendly and efficient customer service which helped them gain and retain their customers even in the face of competition from other airlines. While Southwest Airlines has a large route network in the United States, its international presence is slim. This may make them unattractive to customers who want to travel outside of the United States. They also have an overdependence on Boeing 737 planes. As when the 737 MAX plane had to be grounded due to two plane crashes that killed several hundred people, Southwest Airlines had to ground the majority of their fleet. This caused Southwest to offer significantly fewer flights as well as cancel all of the flights that would have been on a 737 MAX plane. 1 | P a g e

The 737 MAX is not the only cause of flight cancellations at Southwest. The weather conditions also play a major role in canceling flights. For instance, during the winter, the runways are covered in snow and the planes are covered in ice. This time of year always makes their customers upset as it is the time of year when they are trying to fly out to see their family for the holidays. The customers don’t want to hear that their flight has been canceled and they are either stuck at home and cannot get to their family or they are stuck with their family and cannot get back home. The canceled flights are not the only thing about Southwest Airlines that upsets their customers. The airline is also known for losing people’s luggage and having long inconvenient customer service lines for their stranded customers to stand in. Southwest not only has tense relations with their customers, but with their employees too. Contrary to their past reputation. Their new CEO, Bob Jordan, has taken away their priceless culture and increased tensions between the company and the union. In addition, Southwest’s systems cannot support their efforts which causes chaos for the employees. There are not enough employees from schedulers to flight attendants to address all the issues that arise. We believe that we can kill this airline by continuing the relationship with Boeing by partnering with them to make a new sustainable and weather safe airplane. We will provide new systems such as luggage tracking to improve the efficiency of the airline for both the employees and the customers. We are going to implement trackers in the form of barcodes to track our customers' luggage so that luggage does not get lost in transit, which Southwest is guilty of. When the customer checks in their luggage, we will mark their luggage with the flight information such as 2 | P a g e

destination as well as a barcode to track where the luggage is throughout the customer's travels, similar to how you can check where your Amazon package is. The customer would have access to this information with the use of our company application. We will put new systems in place so that the luggage barcode is scanned each part of the journey to update its location. This would significantly decrease the chances of the luggage getting lost in transit while significantly increasing customer satisfaction. The system would scan the luggage as it is being prepped for transport, checked in and checked out. Therefore, the staff can be more focused on addressing the needs of customers. Such as by answering phone calls and helping customers with their questions and concerns. We are going to partner with Boeing to make a new fleet of airplanes. We are going to make the planes sustainable with no carbon fuel. As well as offer better quality seats and tray tables in addition to complimentary beverages and snacks on our flights. We will also change the material of the airplane from the original aluminum to a more military grade material that is weather safe. As the current aluminum Southwest airplanes can not fly in the snow or in bad weather conditions. As then, we would not have to cancel flights or waste time deicing our planes or clearing our runway. In terms of using military-grade materials, they are designed to withstand extreme conditions such as heavy wear and tear. This will make our airplanes more resilient and less prone to damage. They will also be able to withstand impact, turbulence, and other hazardous conditions. Using the lighter yet stronger materials will help to reduce the weight, which in turn improves speed and maneuverability. Using military-grade materials will also increase the 3 | P a g e

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lifespan of our aircrafts, unlike standard commercial airplanes with aluminum which require frequent replacements. We will utilize Hydrogen powered airplanes in order to remove harmful emissions from the equation. The first hydrogen powered aircraft was created in 1988, though it was done as a proof of concept, rather than a mainstream project. We will heavily rely on hydrogen in order to power our planes and it will be just as, or more cost effective than traditional aircraft fuel. Our new company would provide a better in-flight experience than Southwest. Quicker take off and boarding times due to the superior materials, customers would save time during these typically long and arduous situations. With our rewards system, our customers will be able to earn points with their flights to save money on future flights and rewards such as special drinks and snacks during the flight. In terms of our company management, one effective management practice that we will implement is networking. Connecting with new people to increase knowledge and diversity (Networks Lecture, How to Build Your Network). In order to achieve this, managers can provide professional development opportunities such as classes to show their employees that their growth and career progression is important to the company. This in turn creates a sense of loyalty and trust between the manager and their employees. Another effective management practice is creating a trusting and respectful culture (Pixar case). They will create this by having managers that model respectful behavior and set a positive tone for the company culture. Such as being transparent, communicating clearly, and valuing employee input. As when people work in a company with respectful and trusting relationships, it helps to unleash creativity which is currently missing at Southwest airlines. Their employees are 4 | P a g e

missing that loyalty to each other and the feeling of having their collective work be for and a part of something important. A place where they are encouraged and are supported by one another. Therefore, our managers need to encourage their employees to work together on projects to help build a sense of community and trust. This also helps to create opportunities for employees to learn from each other and collaborate on creative ideas. In addition, managers recognizing employee contributions and celebrating team successes can build morale and trust among employees. Fostering a sense of community and encourages employees to work towards common goals. Open communication is also an important management practice (Connections and Conversations Provide the Fuel for Innovation). As listening to employee feedback helps to build trust and respect. Especially with diverse teams, as they are key to bringing in new ideas. Employees will feel comfortable expressing their ideas, concerns, and will give feedback without fear of repercussions. Managers can achieve this by having their employees fill out anonymous surveys for feedback and to provide additional ideas and suggestions for the company. By implementing these management practices, the company will have a culture of trust and respect that empowers employees to be creative and contribute to the company’s success. As mentioned in the Pixar Case, creating a culture of trust and respect may help employees feel more connected to their work and each other. This will ultimately improve morale and productivity within the company. In terms of competition in the market, we are competing with other airlines such as Delta. They are consistently ranked among the top airlines for on-time arrivals and departures, and invest in upgrading their in-flight features. They invest in upgrading their planes with comfortable seats, entertainment such as movies, WIFI, and power outlets to enhance their 5 | P a g e

customers' travel experience. They also have a strong safety record, with a focus on regularly maintaining their aircrafts and training their staff to ensure passenger safety. Delta also has a program, SkyMiles, which offers a range of perks and rewards for their loyal customers. Including upgrades, free checked bags, and access to airport lounges. They also have made a commitment to reducing their carbon footprint by investing in more fuel-efficient aircrafts and carbon offsets to reduce their environmental impact. This makes Delta Airlines a threat to our company and innovative idea. These factors, among others, have contributed to Delta's positive reputation and customer loyalty. However, it's important to note that every traveler's experience can vary, and people should evaluate different factors, such as pricing, route network, and customer service, to determine which airline company best suits their individual needs. Our innovative idea of using military-grade metal in commercial aircraft has several advantages that can make us more competitive than Delta and other airlines. Firstly, the use of military-grade metal in aircraft construction can improve the safety and reliability of the aircraft, which can be a key factor for customers when choosing an airline. Customers are more likely to choose an airline that has a reputation for safety and reliability, and using advanced materials in the construction of the aircraft can help us build that reputation. Secondly, the use of military-grade metal in aircraft construction can result in cost savings for the airline. Reduced maintenance and repair costs can be passed on to the customers in the form of lower ticket prices, which can make our airline more attractive than Delta or other competitors. Additionally, the reduced weight of the aircraft can result in significant fuel savings, which can be passed on to the customers in the form of lower fares or other incentives. 6 | P a g e

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Another advantage of our innovative idea is that it can help us reduce our carbon footprint. The aviation industry is a significant contributor to greenhouse gas emissions, and using advanced materials to reduce the weight of the aircraft can help us reduce our environmental impact. This can be an important factor for customers who are increasingly concerned about the environmental impact of their travel choices. In addition to these advantages, our airline can differentiate itself from Delta and other competitors by offering a unique and innovative experience for customers. By using advanced materials in the construction of the aircraft, we can create a sleek and modern interior that can help us stand out in a crowded market. We can also leverage our innovative use of military-grade metal to create a compelling marketing campaign that can help us build our brand and attract customers. By leveraging these advantages and building a strong brand, we can succeed in a competitive market and become a preferred choice for customers. Our customers will receive increased safety as well as a more reliable and efficient air transportation system due to our military-grade materials. As having our fleet of aircrafts being of military-grade materials, it results in increased durability, safety, performance, longevity and reduced need for maintenance. With our use of sustainable fuel, in the context of the U.S. aviation industry, which is responsible for a significant amount of greenhouse gas emissions, the use of hydrogen fuel has the potential to significantly reduce the industry’s environmental impact. This is not only great for the environment, but it will also make our company popular By killing Southwest Airlines, we hope that other airlines will step out of their innovator dilemma. These companies have the potential to use emerging technologies, such as hydrogen fuel cells or other clean energy sources, to reduce their environmental impact and provide a more 7 | P a g e

sustainable form of air travel. Additionally, the competition that arises from the departure of a major player like Southwest Airlines could lead to new, more competitive pricing structures that benefit consumers. Overall, while the idea of "killing" Southwest Airlines may seem radical, it could ultimately lead to positive changes in the airline industry. By encouraging innovation and modernization, we can create a more sustainable and equitable air travel industry for the future. 8 | P a g e

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