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Compose a 2250 words essay on Controllership Issues: SouthWest Airlines. Needs to be plagiarism free!Download file to see previous pages... This paper examines controllership in SouthWest Airlines, a
Compose a 2250 words essay on Controllership Issues: SouthWest Airlines. Needs to be plagiarism free!Download file to see previous pages...
This paper examines controllership in SouthWest Airlines, a major airline service in the United States of America. It tries to analyze and evaluate the problems in the strategic planning structures, management control, internal and external reporting system in the business. These three areas are selected because it gives a deep insight into the managerial accounting systems and practices in the organization. The Strategic Systems of SouthWest Airlines SouthWest Airlines is an American airline based in Dallas, Texas and it is the largest airline in the USA (SouthWest Airlines Website, About us). SouthWest Airlines is ran by a Board of Directors and a team of Managers who handle the routine activities of the airline. The Board of Directors is headed by a Chairman and the Management team is headed by a Chief Executive Officer (CEO). According to the airline’s website, the chairman of the board of directors is the same as the chief executive officer currently. From the formation to 2004, Herb Kellerher was in this position until Gary Kelly took over in 2004 (O’Connor 256).The Board plays a regulatory and supervisory role over the management team, which is charged with the day-to-day running of the company. According to Grant (7) a business begins by using its mission or primary focus as a yardstick for the creation of a corporate strategy. He goes further to state that corporate strategy includes vision, objectives and plans that are initiated from top level management for the long-term maximization of resources in the business environment. SouthWest Airlines’ mission stated on its website is “dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride and company spirit”. This mission is customer focused. According to Buller &. Schuler (78), SouthWest Airlines used this mission to create their basic strategy that they use to operate to this day. SouthWest Airlines from its inception as a local Texan flight company focused on a careful study of the customers’ needs. The used their knowledge to provide fast, safe, convenient and cost effective flights for people within the state. The SouthWest Airline took years to survey and find out more about other states and trends in their airline industry. They used a slow growth strategy called ‘go slow’ approach to carefully study and understand the markets in these select southern states (Robbins &. Judge, 256). They therefore became an interstate flier. Gradually, they studied all other states nationwide and made careful selection. In the process, there were cities that sought to pay SouthWest Airlines to fly to them but the company rejected some of these offers and only expanded to other states if and only if the management and staff thought it was wise and profitable to do so (Buller &. Schuler, 78). With a gradualist approach, they became a national airline company and flew all over the United States by 2000. Aside having a customer-oriented strategy, SouthWest Airlines has a very strong profit oriented motive that it seeks to honor through providing job security for its employees and growth in market share (SoutWest Airlines Website, About Us Page). The company seeks to enhance employee loyalty and motivation by providing an enabling culture for business to thrive successfully and also tie the remuneration of staff members to the profits of the company (Robbins &. Judge 257).