In the real world, corporate organisations are confronted with challenges that need to be dealt with smartly in order to maintain the company’s branding and a positive image. Below we’ll learn through some examples as to how organizations have been able to deal with perplexed issues or rather dooms and solve them with vigour, thus shining remarkably through them.
SOUTHWEST AIRLINES AFTER 9/11...
James Parker, the CEO of Southwest Airlines met with a crisis situation during Sept 2001, in wake of 9/11 attacks. Due to the Sept 11 terrorist attacks with hijacked passenger planes, the airlines were grounded as people were afraid to fly. Parker wondered if domestic airline industry would even survive.
Amidst those chaotic conditions, Parker had to make pressing business pressing business decisions, like what to convey to customers who wanted to cancel their reservations and demanded refunds. In such a calamitous situation confronting the entire airline industry and in the crunch of time for doing economic analysis to figure out the after effects, Parker took some major decisions based on his gut feeling for the most important factors.
As a result, some customers accepted a credit for a future flight. Some devoted customers even sent money through envelopes to help save the airlines. Customers were generous enough and repaid the kindness shown to them by the Southwest employees.
Outcomes of above decisions:
Southwest remained profitable
Could offer job security to its employees
Its Market Cap exceeded all major competitors combined...
Southwest succeeded partly because all employees worked towards this bigger goal of serving customers and not just restricting themselves to doing their jobs. ...
During Parker’s tenure, Southwest was named as one of the U.S. three most admired companies, one of the U.S. three most admired companies, one of the U.S. best corporate citizens, one of world’s most socially responsible companies and worldwide airline of the year.
What pivotal decisions were taken by Southwest Airlines? What is the corporate sutra behind it for all of us?
Also, In Starbuck Crisis and Under Armour (Apparel Sponsor of the U.S. Speedskating Team), what were the corporate challenges faced and smart moves taken? What were the hidden corporate sutras in them?
To know all this and furthermore, read the complete article in the Dec'16 edition of English Akhand Gyan Monthly Magazine.