And these are the consumers and the employees. They drive the organization and the top-level strategic managers have made it a point to identify the main needs of these classes of stakeholders and meet them.Factors that Caused Southwest Airlines to Embrace a People-Centered CultureFrom a critical review of the history of Southwest Airlines, it was formed at a time when the airline industry was steeped in state-control and state-ownership all over the world. This was in an era where the government had the sole authority over everything and the state defined standards for consumers and consumers had to accept it because states were sovereign.Therefore, as a private entity, Southwest Airlines had to grow and thrive in a way and manner that they could meet consumers’ needs and expectations. They also had to attract and maintain the most talented people. And since there was competition from the state-owned airline entities, there was the need for Southwest to identify what was best for these two classes of stakeholders and provide them accurately. Therefore, they embarked on a series of experiments and high-risk strategies like investing in cheaper airports that were not really popular nor considered to be primary. However, they were able to zone these airports and advertise the benefits like beating the traffic and punctuality. Southwest Airlines: Integrating Culture and Diversity in Decision Making.
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