Herb Kelleher Case Study.docx - CASE STUDY: HERB KELLEHER...

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1CASE STUDY: HERB KELLEHERLCHM 302Oral Roberts University2 August 2020
Brief History of the Person’s LifeHerbert David Kelleher or Herb Kelleher as he was more famously known was anAmerican Businessman and the former chairman of South West airlines. He was born onMarch 12, 1931 at Haddon Heights, New Jersey. He completed his schooling at HaddonHeights school and later pursued a Bachelor of Arts degree from Wesleyan University,Connecticut. He completed his Juris Doctor from New York University of law and moved toTexas to start a law firm.1He was a star athlete and student body president at both the schooland college level. He even considered the prospect of becoming a journalist after completinghis degree at Wesleyan University.2Kelleher spent 6 summers working at the factory floor ofCampbell soup Co. along with his father. He earned valuable experiences from those monthsof hard work and he once said “It was like getting a PhD in Industrial management.”3At a young age a Wesleyan trustee named Arthur .T. Vanderbilt inspired him to pursuelegal studies. Kelleher began his career in the New Jersey Supreme Court but he was greatlyinterested in beginning a start-up . His Texan wife encouraged him to pursue this deep senseof mission and he finally decided to move to Texas the practice law while looking foropportunities to begin a start-up. In 1966 along with a banking client named Rollin King hedecided to venture into the airline business. Their mission was to create a cheap airline thatwould connect Houston and San Antonio with a Dallas base. For years they had to fightagainst the existing competitors in Texas but after 5 years of litigation they were able to begintheir operation in 1971 as South West airlines.This airline company went on to model a newform of business and reimagined the airline industry. By providing cheap flights it was able tobring air transportation to the common people. In an interview with CNBC, he named Jack1 Evan Smith2 Kenneth Labich3 Kenneth Labich2
Welch, former CEO of General Electric, C.R Smith (founder of American Airlines) and PatPatterson (founder of United Airlines) as his business heroes.4It is interesting to note how heconsidered his major rivals as inspirational figures.Context and Results of his InfluenceHerb Kelleher began his business career with a need to fulfil an inner desire ofserving people. At his time of entrance to the airline sector, the industry was dominated bythe big players. Airline travel was restricted to the financially well-off community because ofthe expensive tickets. He saw how the country could be revolutionised if airline tickets weremade cheaper. Kelleher, through the introduction of a low-cost carrier envisioned a companythat would bring a solution to these needs of the country.5The airline industry has been known as one with the “worst labour relations” with

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Term
Winter
Professor
Linda dimiceli
Tags
Herbert David Kelleher

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