What are the similarities and dissimilarities between the cultures, values, and beliefs of Southwest and AirTran airlines
Student 1: Priyanka
1. Discuss the layers of culture that are evident in this case. Why do you think Southwest has preferred to grow organically over its history?
Southwest wants to focus on fewer portions, that way they can cater to customer needs more hands-on. According to Forbes, Southwest has better customer service than Delta, simply because they are more personal when handling their customers’ issues. They can do this because of their focus on organic growth, rather than quick mass-growth. Focusing on fewer things at a time is one of their advantages.
Taking on AirTran’s thousands of additional employees will be difficult if Southwest wants to make this merger a smooth transition. Southwest will need to educate all of the new employees on the “Southwest way” of going about things to maintain the Southwest brand image and service level. The two companies’ cultures differ, so organically growing into this merger is the best way to retain the feel of Southwest. Mass-growth is difficult for any company to adapt to, so Southwest must proceed with caution while figuring out all of the kinks that are inevitable with a merger. ( Wade, C. T. (2018))
2. What are the similarities and dissimilarities between the cultures, values, and beliefs of Southwest and AirTran airlines? Where would you expect the differences to be most difficult to manage? Why?
I would expect the differences to be most difficult to manage when talking about customer service. Southwest has been known for there over the top customer service while not saying AirTran does not, they just are not at the same level. This might be slightly different to handle because one company might care more about profits and puts customer service down lower, while the other could care more about keeping returning customers. Both companies have the similarity of wanting to create a fun flying environment for their customers and how having loyal crew members and employees that are happy and enjoying their work environment will keep customers coming. One large difference is their reservation systems. AirTran outsources it and Southwest likes to keep its customers on their web page when buying tickets. I think it will be most difficult to manage employees when doing a merger. There are so many policies and rules each company has that the employees get used to, so when two companies merge they have to agree on what policies they are going to integrate from each other’s companies or will they just create all new ones. ( Weisstein, F. L. (2019))
3. What problem could arise due to the different perspectives of both airlines toward online reservation systems? What do you recommend the managers do to solve these problems?
When merging two companies executives need to guarantee a seamless transition. This ensures that consumers and employees are having a smooth change and have a cohesive reservation system. I believe that the Southwest’s reservation system should be used for both companies because they bought AirTran. It may be a challenge at first to train employees of AirTran to Southwest standard but in the end, it would create an easier transition for both consumers and employees. This could disadvantage some customers if they elected to use the other online system. The outcome could be confusion and frustration for customers. Managers need to ensure that all employees are trained properly. To solve the issues on reservation, they should operate 24/7 monitoring the reservation process to check whether the customer experiences any disruptions or not. And answer the customer’s complaints as soon as they can. So, they need to establish the new principles and terms of the reservation including cancellation, baggage claim, and more to overcome any confusion in the reservation. (Hubbard, S. M. (2019))
4. What would you recommend managers to do to ensure a smooth integration of the information systems given the cultural differences?
The information systems should focus on efficiency and effectiveness standards. Ease of use would be important when designing the user interface. Retain familiar features, as much as possible, and require the least amount of business process change. Open and constant communication is imperative for a smooth transition. Assess the results at regular intervals, and make changes as required.
Reference:
Wade, C. T. (2018). How cultural responsiveness informs the development of and decision-
making about K-12 ELA curricula: A mixed-methods approach.
Major, W. L., & Hubbard, S. M. (2019). An examination of disability-related complaints in the
United States commercial aviation sector. Journal of Air Transport Management, 78, 43-53.
Andersen, P., & Weisstein, F. L. (2019). The Effects of Airline Mergers on Consumers’
Perceptions of Services and Behavioral Responses. Journal of Consumer Affairs.
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Student 2: Suresh
Organizational Strategy and IT
Mergers mainly involve the integration of several strategies with the intent of ensuring that the involved parties achieve competitive advantage within the market. As established in the case of Southwest Airlines and AirTran, some factors that need to be understood before an engagement in a merger. Firstly, the cultures of the two organizations need to be contextualized and understood before the establishment of a strategy. The beliefs and the values of an organization, therefore, need to be in tandem to their information systems. Southwest Airlines as established in the case maimly relied on an organizational culture that focused on ensuring that the customer’s experiences were improved, efforts that were directed towards ensuring that the clients are always comfortable and are in a position to interact with the employees during a flight (Pearlson, Saunders, Galleta, 2016). On the other hand, AirTran Airlines mainly established a culture directed towards ensuring that the airline was a cost leader in the market besides ensuring that its clients were safe. These elements, therefore, remain crucial in ensuring that mergers achieve their goals.
1. The layers of culture as established in the Case Study
Culture as alleged in the views of Pearlson, Saunders, Galleta (2016) plays a significant impact on an organizations information system. Culture is, in this case, divided into different phases. As established in the case of Southwest Airlines, the organization’s culture was based on the need to ensure that the firm’s employees and clients enjoyed their flight experiences, an approach that mainly saw the organization ensure that its flights were as comfortable as possible. As for AirTrans, it is essential to note that the organization mainly established strategies directed towards being a cost leader, mainly involving the provision of low-cost fares to its clients. It is equally essential to note that the cultures of these two organizations had some similarities that include the need to ensure that their customers got the best experiences out of their services.
2. Similarities and Dissimilarities Between the Cultures, Values, and Beliefs
AirTran and Southwest Airlines remain some of the leading ventures in the market. Given this, it is essential to note that these organizations share several beliefs, cultures, and values; evident in their efforts directed towards ensuring that their client’s needs are met and satisfied at all levels. Besides this, Southwest Airlines as established in the case focuses on the creation of a business environment that allows the employees and the customers to bond and have the best experiences during their flights (Pearlson, Saunders, Galleta, 2016). AirTran, on the other hand, values the need to focus on the provision of low-cost fares to its clients, an approach that has significantly played a role in reaching more clients.
3. Problems the Could Arise Due to the Different Perspectives of Both Airlines
In regards to the problems that may arise, it is essential to note that these airline companies have varied approaches in regards to the use of reservation systems. Southwest Airlines, as established in the case mainly used the Sabre and Amadeus systems in its ticketing, an aspect that is done through the firm’s website and the telephone. On the other hand, AirTran uses the Navitaire system in its reservation process (Pearlson, Saunders, Galleta, 2016). In this case, it is essential to note that the use of a different system may significantly inconvenience the clients who are used to a specified reservation system. Besides this, the organization may lose its clients to other leading airlines within the industry as a result of this, thus significantly affecting their revenues. The firm’s managers, therefore, need to focus on approaches directed towards maintaining their reservation systems.
4. Recommendations to the Managers
In regards to the differences in the two organizations cultures, the managers, therefore, need to take into account the need to construe effective strategies that may increase the firm’s competitiveness in the market. Besides this, the organizations may need to conduct assessments on their systems to understanding their information system needs before resorting to the choice of an effective system that meets the organization’s technological needs (Pearlson, Saunders, Galleta, 2016). Lastly, the managers of these organizations may need to establish a corporate culture that embraces the use of technology, detailing the need to institute the training of the employees regarding the use of these technologies in enhancing their performance.
Reference
Pearlson,K.,Saunders,C.,
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Answer preview What are the similarities and dissimilarities between the cultures, values, and beliefs of Southwest and AirTran airlines
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