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Write a 1,050-word minimum strategic implementation plan in which you include the following: 

• Create an implementation plan including:
• Objectives
• Functional tactics
• Action items
• Milestones and deadlines
• Tasks and task ownership
• Resource allocation
• Recommend any organizational change management strategies that may enhance successful implementation.
• Develop key success factors, budget, and forecasted financials, including a break-even chart.
• Create a risk management plan including contingency plans for the identified risks. 

Running head

Strategic Evaluation

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[Shortened Title up to 50 Characters] 9

Strategic Evaluation

Babra Kamusinga

University of Phoenix

02/24/2020

STR/581

Lorelie Kaid, MBA, CSM, CSPO, CCMP, Pmp

INTRODUCTION

Barret (1994) states that at the Chicago conference in 1944, free trade aviation was rejected of the fear that the USA would dominate the market; therefore, a “system of bilateral air treaties was established.” Hence, every international aviation market was served by two different airlines; that charged the same airfare with a predetermined market capacity. Government control over the airline was a formality. In 1978 there was the deregulation of the airline with the belief that there would be an improvement with the quality of the consumer service. Over the years, the airline industry has evolved, and many features and amenities have been developed and added as perks to the consumers’ examples are “hub and spoke networks, computer reservations, frequent fliers, travel agencies commission overrides and many more (Richards, 1996).

Contestability theory was utilized in predicting the airline market structure. A contestable airline market is termed as a costless entry and exit, that would promote competitors to enter the market at any given time. However, Richards argues that airline markets are not entirely contestable. However, Southwest Airlines has managed to show that it is possible to “compete with the hub-and-spoke systems by offering low-cost, no-frills, and point to point service; this is depicted of how the airline thrived in the early ’90s while most airlines were incurring heavy losses. Southwest Strategy of low cost and low fare helped change the dynamic in the airline market, with the belief that even the structure of the U.S airline industry would adapt to the southwest model. The model applied to short hauls and hub and spoke for long hauls (Richards, 1996).

This paper is an evaluation of Southwest strategic management for business-level strategy and corporate-level strategy.

Evaluate potential business level strategies for southwest airlines

Southwest Airlines has a business level strategy; the company “believes in a sustainable future with a balanced model between its consumers’ shareholders and stakeholders. The company has maintained its mission of a low-fare passenger airline that provides services in the US and near international markets. Also, Southwest is primarily operated by one segment, which is the passenger and freight transportation services; the company provides point to point air transportation service. Therefore, the company is high frequency, short-haul routes with nonstop long-haul hauls for designated states and cities (MarketLine Industry Profile, 2017). 

Assess potential corporate-level strategies for Southwest Airline

Pidun (2019) states that an organization is capable of developing an excellent corporate strategy after matching its resources and core capabilities to the external environment opportunities. Southwest is an airline company that has shown its prowess by creating long-term value for its stakeholders. Southwest is a company that has been operating for decades; therefore, it has accumulated analysis of customers’ competitors’ market resources and care capabilities. Therefore, the company has the capabilities of expanding into other businesses such as expanding to a freight company, acquiring the duty-free shops with specific products; expand to airbus with destinations all over the world by joining a strategic alliance with another airline. Southwest will become diversified by operating all the different product markets to increase its revenues and organic market presence. Hitt et al. (2014) state that diversification produces a firm with the flexibility of shifting their investments to market with the highest returns rather than being dependent on one commodity in one market. therefore, southwest top management must keep a portfolio of “ businesses balances diversification costs and benefits

global strategies for Southwest Airline

Most airlines have strategic strike alliances that have eventually steered stiff competition to its non-members; also, with an added advantage of operating in an environment where competitors are under bankrupt protection, that creates unequal grounds for competition. “The alliances pose threats to routes within which they would fly”(Riwo-Abudho, 2013). However, Southwest has not established any alliances; as a result, the airline is under immense pressure and strain of maintaining its position within the industry the airline industry while operating a smaller fleet. Also, In 2018 Southwest freight transportation was limited when comparing its total revenue to all the airlines; its total revenue was $175 million, which was 0.8 percent of the entire company’s revenue (Southwest Airlines Co. SWOT Analysis, 2019). 

Recommendation

Kumar et al. (2020) state that “high growth companies become low growth all the time; many top managers know that it is an evitable sign of business maturity.” Therefore, at this point, a company needs to stop looking for internal growth instead, needs to shift its attention for acquisitions and mergers of smaller companies and big companies. Southwest is a company that has shown continual growth for decades. Also, the company has managed to maintain its competitive advantage of low fares as well. Therefore, the company needs to generate “organic growth”; Southwest needs to innovate and implement new ideas. The company needs to explore opportunities by taking advantage of the dynamic global market. For example, Southwest airlines could offer more inflight amenities (as a choice with purchase option) to enjoy, especially during the long, non-stop flights. Also, Southwest Airlines needs to strike a strategic alliance with international airlines to explore more opportunities beyond the US borders or nearby international destinations and its freight fleet. The company will also benefit from bankrupt protection in place (Kumar,2020). Inconclusion, the market dynamics have changed to global; therefore, the organization needs to develop a global mindset to have the ability to contend with similar firms that are coming into the market on a global scale. Hitt et al. (2014) state that it is common for firms to differ in the amounts of resources accumulated or rather the type of resources’ which increase the competition within the market and a company’s competitive advantage may not be guaranteed without innovating (Hitt et al., 2014).

Reference

Barrett, S. D. (1994). Aviation and the Pursuit of Contestability. Economic Affairs, 14(2), 11.

https://doi.org/10.1111/j.1468-0270.1994.tb00168.x

Hitt, M. A., Ireland, R. D., Hoskisson, R. E. (2014/01/01). Strategic Management: Concepts and Cases: Competitiveness and Globalization, 11th Edition [VitalSource Bookshelf version]. Retrieved from vbk://9781305217188

Kumar, R., & Kumar, A. (2020). Conceptualizing corporate entrepreneurship capability and its linkages towards firm performance. In Sustainable Business: Concepts, Methodologies, Tools, and Applications (pp. 1771-1796). IGI Global.

MarketLine Industry Profile: Airlines in North America. (2017). Airlines Industry Profile: North America, 1–42.

Richards, K. (1996). The effects of Southwest Airlines on US airline markets.

Riwo-Abudho, M., Njanja, L. W., & Ochieng, I. (2013). Key success factors in airlines: Overcoming the challenges.

Pidun, U. (2019). Corporate Capabilities. In Corporate Strategy (pp. 33-53). Springer Gabler, Wiesbaden.

Southwest Airlines Co. SWOT Analysis. (2019). Southwest Airlines Co. SWOT Analysis, 1–8.

Running head:

ENVIRONMENTAL SCAN 1

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Introduction

Author (2016) states that a company’s value and ability to sustain competitive advantage through its ability to “devise new resources and reconfigure existing ones to address issues that arise in the external environment. Environmental scanning is defined as the act of scanning and acquiring information about relationships and events in the external environment that have importance for charting and achieving the organization’s strategic goal and mission (Ciaran Heavey, 2009). Therefore, the organization needs to conduct environmental scanning by also investigating how other firms interpret environmental signals.

Ciaran (2009) states that environmental scanning has become paramount due to the increase in complexity, dynamic environment, and competitiveness that are spearheaded by the global forces, customers, channels, and transferable marketing. The author also mentions global cost drivers which are economies of scale, scope, learning, and experience(Ciaran Heavey, 2009). Besides, Yu et al. (2019) give examples of models used in environmental scanning that is (SIAP) scanning, interpreting action and performance model, and (OIPT) organization, information processing theory can be used as a metric to explain environmental scan performance.

Also, environmental scanning is fundamental to many vital strategic processes, including planning, decision making, innovation, and organizational design (Ciaran Heavey, 2009). Some of the advantages associated with environmental scanning include fast response to changes with consumer demand, supply disruption risks, and realigning the supply resources with the environment (Yu, 2016). This paper aims to discuss how environment scanning is used by South West airlines to sustain its competitive advantage within their target market

Southwest Airlines external environment.

Southwest Airlines is one of the low-fare passenger airlines that provide services in the US and near international markets. The company serves 97 destinations in 40 states and international destinations, including Jamaica, Mexico, Bahama, Aruba, among others. Southwest is primarily operated by one segment, which is the passenger and freight transportation services; the company provides point to point air transportation service. Therefore, the company is high frequency, short-haul routes with nonstop long-haul hauls for designated states and cities (MarketLine Industry Profile, 2017). 

Challenges Facing Southwest airline

1. Product innovation and supplier (economic and technological)

In Aviation, modern technology and advance innovations are a force that affects operations and drives for change. Southwest, among all other airlines, are heavily dependent on the systems that are subjected to advancements from innovation (Riwo-Abudho, 2013). The manufactures of Boeing are dedicated to innovation; therefore, they produce modern planes and engines through their R&D; Boeing is the majority carrier for Southwest. Therefore, southwest is faced with the challenge of upgrading their planes and systems that requires much investment of resources. Also, other cost includes communications systems, maintenance, insurance, and training. (Riwo-Abudho, 2013).

2. Reputation (Social)

Like all businesses, Southwest depends on its good name to retain and acquire more customers. However, in the event of bad publicity can be detrimental to the firm. Some of the recent notable scandals for Southwest airlines include:

.1 engine problems in 04/17/2018 that resulted in a death

2. flights delays where Southwest was forced to ground 34 planes on their busiest travel weekend 11/26/2018

3. Baggage’s issues; an employee was caught on camera tossing baggage’s haphazardly

4. price increase, the company is under pressure for quality services due to the recent increase in airfare and lastly safety and violations;

5. the company was caught falsifying safety reports in conjunction with the FAA. The very reports that assure consumers that the planes are safe. The airline had to pay $7.5 million in fines (Biggest Southwest Scandals, 2018).

a. Enlightened consumers

It is a norm for all companies to understand their target consumers’ needs and is obligated to incorporate them into their services or products. The global market has become easily accessible to consumers due to the internet. Therefore, the internet has become a platform that is an opportunity at the same time, a threat. The internet has provided an opportunity for consumers to shop around for the best price and airline. Therefore, Southwest has the responsibility of ensuring that they sustain their competitive advantage by conducting frequent environmental scans; to access new markets and profit opportunities (Riwo-Abudho, 2013).

3. Competition: strategic alliance s and bankruptcies Political

Most airlines have strategic strike alliances to which has ultimately led to stiff competition to non-members; also, with an added advantage of operating in an environment where competitors are under bankrupt protection, which creates uneven grounds for competition. “The alliances pose threats to routes within which they would fly”(Riwo-Abudho, 2013). However, Southwest has not established any alliances; as a result, Southwest is under immense strain to maintain its position in the industry while running a smaller fleet (Southwest Airlines Co. SWOT Analysis, 2019).

4. Increased expenses: labor, fuel and security measures

All Airlines, including Southwest, included overly depend on the insurance payouts; due to the constant innovations and advancement of equipment, facilities, and ” advents of jets meant more seat to sell” (Riwo-Abudho, 2013). Also, due to terrorist threats, security measures have become a vital variable to airlines; also, airlines are losing money since people are using other forms of transportation for travel. Also, the fuel cost has soared due to the political instability that has prevailed in oil-producing countries. Therefore, Southwest is facing an unpredictable environment that has rapid changes with different variables. Therefore, strategic managers need to conduct regular environment scanning to come up with ways of mitigating different scenarios (Riwo-Abudho, 2013).

Inconclusion

Southwest has the challenge of ensuring it sustains its competitive advantage by maintaining its target market position while growing its market share. The marketing department has to continue adding face value to the company by ensuring that there deliver their services and amenities as advertised. The Southwest airlines have been able to stick to its mission of providing low fare for more than 30 years and has focused on teams’ spirit and other strategies; therefore, the company needs to ensure that their strategies are keeping up with the dynamic market trends (Riwo-Abudho, 2013).

Reference

author. (2016). Achieving a firm’s competitive advantage through dynamic capability. Baltic Journal of Management, 11(3), 260–285.

https://doi.org/10.1108/BJM-11-2015-0224

Biggest Southwest Scandals. (2018, November 29). International Business Times [U.S. ed.]. Retrieved from https://link.gale.com/apps/doc/A563644107/GIC?u=uphoenix&sid=GIC&xid=a171c4d8

Ciaran Heavey, Richard T. Mowday, Aidan Kelly, & Frank Roche. (2009). Reconceptualizing executive environmental scanning and search: Implications for international leadership research and practice. Emerald Group Publishing Limited. https://doi.org/10.1108/S1535-1203(2009)0000005007

MarketLine Industry Profile: Airlines in North America. (2017). Airlines Industry Profile: North America, 1–42.

Riwo-Abudho, M., Njanja, L. W., & Ochieng, I. (2013). Key success factors in airlines: Overcoming the challenges.

Southwest Airlines Co. SWOT Analysis. (2019). Southwest Airlines Co. SWOT Analysis, 1–8.

Yu, W., Chavez, R., Jacobs, M., Wong, C. Y., & Yuan, C. (2019). Environmental scanning, supply chain integration, responsiveness, and operational performance: An integrative framework from an organizational information processing theory perspective. International Journal of Operations & Production Management, 39(5), 787.

RunningheadInternal Analysis

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INTRODUCTION

The sole reason for conducting an assessment in an organization’s internal environment; is to ensure that the organization is capable of achieving the intended strategic goals in line with the company’s mission with the delegated resources and capabilities

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Therefore, the internal environment assessment determines the organizations’ portfolio of its entire resource and capability

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Through internal analysis, a firm can determine the relationships between resources, core competencies, and capabilities (Hitt et al., 2014).

Also, the market dynamics have changed to global; therefore, the organization needs to develop a global mindset to have the ability to contend with similar firms that are coming into the market on a global scale. Hitt et al. (2014) state that it is common for firms to differ in the amounts of resources accumulated or rather the type of resources’ which increase the competition within the market and a company’s competitive advantage may not be guaranteed without innovating (Hitt et al., 2014).

Kinicki (2015) adds that the internal environment comprises of the employees, the board of directors, and the owners; the internal environment at times may also consist of stakeholders and people whose interests are inclined with firm performance (Kinicki, 01/2015). Therefore, supporting Hitt et al. (2014) idea of innovation as the most critical aspect in any firm to sustain its competitive advantage, whereby human capital is the essence and critical resource for achieving the goal. Therefore, it is essential for the organizations to be able to identify and successfully utilize talented individuals for innovation, creativity, and economic growth.

This paper seeks to explore how Southwest airlines utilize its resources and capabilities to achieve the company’s strategic goals; how the company has managed to create services of value to its customers (Hitt et al., 2014).

Southwest internal analysis

Human Capital Strategy

Hallowell (1996) asserts that “Southwest Airline’s success is dependent on its organizational capability, which enables them to convert some of the value created for employees to customer and shareholder value.” Southwest understands the value of innovating human capital and utilizing them as a resource to attain the firm strategic goals and objectives. Also, as a result of the capability of adequate use of its human resources, the employees deliver quality service at low prices, which is Southwest’s competitive advantage.

Therefore, for Southwest to maintain its competitive advantage that it has formed through people, the company requires to employ motivation, organization capabilities, and strategic positioning. Southwest uses its resources to ensure that its employees feel valuable; the sense of feeling value inspires the employees to work hard. The value instilled into the employees; some of it rubs off to the customers. Therefore, “creates value, convert value, capture value cycle which may apply to some extent in competitive advantage (Hallowell, 1996).

Airline Strategy

Southwest Airlines is a low-fare passenger airline that provides services in the US and near international markets. The company serves 97 destinations in 40 states and international destinations, including Jamaica, Mexico, Bahama, Aruba, among others. Southwest is primarily operated by one segment, which is the passenger and freight transportation services; the company provides point to point air transportation service. Therefore, the company is high frequency, short-haul routes with nonstop long-haul hauls for designated states and cities (MarketLine Industry Profile, 2017). 

Strengths, weaknesses, and resources of Southwest airlines

1. Strength

Fleet network

In the most recent data from the US department of transportation, Southwest Airlines is the largest carrier of originating domestic passengers. In 2018 the airline operated a total of 750 Boeing 737 by December 31; the airline also served 99 destinations, 40 states, and offered international services to 14 destinations through 23 international gateway cities. Besides, the airline added 26 new 737-800 aircraft, 18 new 737 MAX 8 aircraft, and one pre-owned Boeing737-700 aircraft. The strong airline fleet is a big resource, which enables the company to deliver its services effectively and efficiently to its customers and a quick response to opportunities (Southwest Airlines Co. SWOT Analysis, 2019). 

Point to point service strategy

Hub and spoke system is the popular service strategy with many airlines; however, Southwest uses the point to point strategy, which was a great fit that ensures maximum usage of its fleets and “reliable on-time performance. The point to point strategy offers nonstop flights; 77% of Southwest customers flew nonstop. Also, the southwest point to point It to provide its target market with frequent conveniently timed flights at low fares. Also, the company “balances its high-frequency short-haul with nonstop long hauls (Southwest Airlines Co. SWOT Analysis, 2019). 

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Low-cost fares

The airline fare structure comprises of; “wanna get any away”, anytime and business select; also, the fare includes two free checked-in luggage, soft drink, and snack. On some flight, they are also on-demand or live television. Wanna get away fares are the cheapest and nonrefundable; anytime and business select are refundable. Southwest is focused on reducing fuel costs by upgrading and buying new fleets and taking advantage of other fuel initiatives (Southwest Airlines Co. SWOT Analysis, 2019). 

.

Weaknesses

Reliant on single aircraft and engine supplier

Boeing is Southwest sole supplier for aircraft, and many of its spare parts. Hence, the company may be “materially adversely affected ” in the event of a regulatory or mechanical issue with the Boeing 737 aircraft. The company has a total of 750 Boeing 737, and 51 of the aircraft are on operating lease. In addition, if Boeing were unable to deliver any of its services to Southwest Airlines, the impact would be dire to the company’s operations (Southwest Airlines Co. SWOT Analysis, 2019). 

Limited presence in the freight market

In 2018 Southwest freight transportation was limited when comparing its total revenue to all the airlines; its total revenue was $175 million, which was 0.8 percent of the entire company’s revenue (Southwest Airlines Co. SWOT Analysis, 2019). 

Southwest Airlines’ structure of the organization and the influence this has on its performance.

As mentioned earlier, Southwest values its human capital; employees are viewed as the heart of the delivery system; though high-quality service with low costs. Therefore, the management strives to fulfill employees’ needs as a means of motivating and creating a value that will, in turn, be converted to the organization’s use. The value in Southwest airlines is created by ” FUN and LUV. The value created by employee’s management utilizes it to convert it into a high value, which can accrue customers a shareholder (Hallowell, 1996).

Below is a Southwest Virtuous cycle of the organization and the influence it has on the performance.

Figure 1 Southwest Airlines’ virtuous cycle (Hallowell, 1996)

Southwest airlines in comparison with other airlines

Most airlines have strategic strike alliances to which has ultimately led to stiff competition to non-members; also, with an added advantage of operating in an environment where competitors are under bankrupt protection, which creates uneven grounds for competition. “The alliances pose threats to routes within which they would fly”(Riwo-Abudho, 2013). However, Southwest has not established any alliances; as a result, Southwest is under immense strain to maintain its position in the industry while running a smaller fleet (Southwest Airlines Co. SWOT Analysis, 2019).

References

Dearinger, R. L. Organizational Behavior Evaluation of Southwest Airlines.

Hallowell, R. (1996). Southwest Airlines: A Case Study Linking Employee Needs Satisfaction and Organizational Capabilities to Competitive Advantage. Human Resource Management, 35(4), 513–534. https://doi.org/10.1002/(SICI)1099-050X(199624)35:4<513::AID-HRM5>3.0.CO;2-Z

Hitt, M. A., Ireland, R. D., Hoskisson, R. E. (2014/01/01). Strategic Management: Concepts and Cases: Competitiveness and Globalization, 11th Edition [VitalSource Bookshelf version]. Retrieved from vbk://9781305217188

MarketLine Industry Profile: Airlines in North America. (2017). Airlines Industry Profile: North America, 1–42.

Riwo-Abudho, M., Njanja, L. W., & Ochieng, I. (2013). Key success factors in airlines: Overcoming the challenges.

Kinicki, A., Williams, B. (01/2015). Management, 7th Edition [VitalSource Bookshelf version]. Retrieved from vbk://1259723542

Pidun, U. (2019). Corporate Capabilities. In Corporate Strategy (pp. 33-53). Springer Gabler, Wiesbaden.

Southwest Airlines Co. SWOT Analysis. (2019). Southwest Airlines Co. SWOT Analysis, 1–8.

Running Head: Values and Strategy

MARKETING 6

Introduction

The significant components of strategic management include; conducting internal and external analysis which will be a guideline in setting up the vision, mission, strategies; Scanning the business environment; strategic formation; implementation of strategy and strategic evaluation the process follows POLC (planning, organization, leading and controlling)

Strategic management process

Hitt et al. (2014/01/01) state that the strategic management process is a phase whereby an organization has a full set of commitments, decision making, and actions that are detrimental for the firm’s ability to achieve strategic competitiveness and high revenues. Therefore, the organization needs to conduct both internal and external analyses to determine the firm’s resources competencies and capabilities thereof strategy will be based. The information gathered from the analysis will be used in formulating the firm’s vision, mission, and strategies.

The strategic management process begins by identifying the mission and vision of the organization and afterward setting attainable short-term goals, which will be the building blocks for the long-term objectives that align with the mission and vision of the company. Therefore, the mission and the vision statements of the company create a broader guideline for the organization.

Scanning the business environment by conducting the SWOT and PEST analysis is an important strategic tool to understand the intricacies of the business environment. Hitt al et explains the importance of understanding the business landscape; with challenging emergence of global economy and globalization, dynamic changes in market trends and the ever-changing technological innovations (Hitt, 2014/01/01) in the recent years business paradigms have shifted to sustainability; the challenges that have arisen in the recent years comprises of significant challenges associated with the environment, economic and social issues. Consumers are aware that natural resources are getting depleted, the rise in global poverty, climate changes, and economic injustices (Fairbrass, 2012).

The strategic formation is a phase where organizations decide on what actions to choose from multitudes available. These choices are carefully selected and deliberated; they are a product of the SWOT analysis influenced by the external analysis. Therefore, the main objective that spearheads an effective formulated strategy that marshals, integrates, and allocates organization resources, core competencies, and capabilities to align with the organization’s vision and mission statement. A successful strategy will rationalize a firm’s vision and mission and actions taken to achieve them (Hitt, 2014/01/01). Also, while formulating strategies, it is essential to innovate; some corporate innovations include product, process, marketing, and management innovations. Innovations also include new leadership styles, organizational cultures, and commitment that impact employees directly and their willingness to work (Wu et al., 2011).

Strategic implementation is conducted at the organizational level where resources are delegated, human resources training, channel development, and the organizational culture is rectified or modified to suit the strategies; This is the phase where network partners are also involved in maximizing benefits.

Major Components of the Strategic Management Process for Southwest Airlines

Strategic management process for Southwest Airlines include environmental scanning, strategy implementation, formulations, and evaluation. Rothaermel (2015)South West airlines analyze relevant internal and external determinants of the firm through feed backs, reviews, information understudy, and scrutiny. Also, by conducting the analysis, the company is able to improve its services and conform to the market trends continually.

Strategic formulation

Southwest airlines prioritize its objectives and SMART goals by ensuring that their services are delivered as promised; that is, their services are rendered by a stipulated timeline with the highest efficiency and effectiveness. The strategy formulation of the company is following the environmental scanning After completing environment scanning, the strategic managers formulate functional strategy, corporate strategy, and business strategy, in order to enable the company to achieve the strategic goals and objectives (Rothaermel, 2015).

strategy implementation,

At strategy implementation, strategic managers, together with relevant stakeholders, create the organizational structure of the company, allocate and distribute resources, the design process of making decisions, and manage HR resources.

Strategic Evaluation

The last step of the strategic management process is strategy evaluation. POLC(planning, organizing, Leading, and controlling) is applied at this point; This the point the feedback, reviews, and other reports are scrutinized in-depth in relation to the strategies used. The company compares the anticipated results with actual results and mitigates to ensure that the strategic process is gearing towards the intended results for its goals and objectives. A strategy evaluation, strategic managers, use performance metrics to evaluate the entire strategy (Rothaermel, 2015). Some of the performance metrics used by the strategic managers include employee satisfaction, turnover rate, employee retention, and quality of services delivered by employees.

When undertaking a strategy evaluation, the loyalty of the human capital is an important metric used to evaluate the success of the Strategic Management Process. To measure the loyalty of the customers, purchase ratio, upselling ratio, customer loyalty index, customer engagement numbers, and net promoter score are effective methods (Rothaermel, 2015). The purchase ratio involves measuring the ratio of repeat purchases over one-time purchasers. Upselling ratio involves calculating customers who have sought services for more than one type of product divided by customers who have sought for service only one. The customer loyalty index incorporates values of repurchasing, NPS, and upselling to evaluate customer loyalty.

How Strategic Management Process Components Create Value

Proper integration of f Strategic Management Process components helps in creating value. Through proper environment scanning, the company is in a position to understand the negative external and internal factors that inhibits the progress of the company and work towards correcting those negative triggers. As a result, it enables the company to innovate its service delivery to the customers (Scarborough, 2015). When there is a proper environment scanning, it makes it easier to undertake strategy formulation and implementation. As a result, it enhances a proper design of the course of actions that help to improve quality. When strategic managers undertake a proper strategy evaluation, it makes it easier to concentrate on value elements such as the safety of services, efficiency, and effectiveness (time management).

Southwest Airlines Summary

The mission statements

The mission statement of Southwest Airlines is “dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit” (Southwest Airlines, n.d). To improve on the quality of service delivery as stated in the mission statement, the company focuses on staff training in order to create awareness of how to offer quality services that boost the level of satisfaction of the customers.

The vision statements

The vision statement of Southwest Airlines is “To become the world’s most loved, most flown, and most profitable airline.” (Southwest Airlines, n.d)

According to the CEO of the company, the vision of the company is achieved by “providing employees with a stable work environment with equal opportunity for learning and personal growth” (Southwest Airlines, n.d). The CEO believes in creating a conducive work environment by providing equal opportunities for learning, and individual growth nurtures the spirit and teamwork that is grounded in social cohesiveness; human capital is the driving force for-profit motives of the company.

SouthWest airlines have incentives, benefits, free-flying passes. Also, employees have the opportunity of getting a stock purchase plan. Southwest Airlines has been ranked as one of the best companies in staff retention with the lowest turnover rate. The company’s organizational cultures are grounded on improving service delivery to its customers. The people strategy of Southwest Airlines is to improve the livelihood of primary stakeholders such as customers, employees, investors, and communities.

Role of Ethics and Corporate, Social Responsibility in Strategic Planning

At Southwest Airlines, ethics and corporate social responsibilities are the compasses that assist the company to focus on the demands, aspirations, and plans of the primary stakeholders. Therefore, it gravitates to the company to make with the stakeholders’ interest at heart while delivering the promises made to the customers. Ethics and Corporate Social Responsibility assists the company to deliver informed decisions without neglecting corporate and business strategies (Scarborough, 2016). Also, ethics helps to leverage positive inputs of employees during strategic planning. Hence, it improves the credibility, reliability, and effectiveness of the entire strategic plan.

Ethics and corporate social responsibilities spearhead Southwest Airlines into implementing a strategic plan for moral values, respect to diversity, and principles of the society and the company; also, help in acknowledging the societal expectations and values of the primary stakeholders (Rosemann & vom Brocke, 2015). SouthWest achieves this by being transparent to its stakeholders on the changes and trends in the strategic plan and therefore increasing the credibility of the entire strategic plan.

References

Fairbrass, J., & Zueva-owens, A. (2012). Conceptualizing corporate social responsibility: ‘relational governance’ assessed, augmented, and adapted: JBE JBE. Journal of Business Ethics, 105(3), 321-335. doi:http://dx.doi.org/10.1007/s10551-011-0968-9

Hitt, M. A., Ireland, R. D., Hoskisson, R. E. (20140101). Strategic Management: Concepts and Cases: Competitiveness and Globalization, 11th Edition [VitalSource Bookshelf version]. Retrieved from vbk://9781305217188

Rosemann, M., & vom Brocke, J. (2015). The six core elements of business process management. In Handbook on business process management 1 (pp. 105-122). Springer, Berlin, Heidelberg.

Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.

Scarborough, N. M. (2016). Essentials of entrepreneurship and small business management. Pearson.

Southwest Airlines. (n.d). Our Business: Purpose, Vision, Values, and Mission. Retrieved from

http://investors.southwest.com/our-company/purpose-vision-values-and-mission

Wu, S., & Lin, C. (2011). THE INFLUENCE OF INNOVATION STRATEGY AND ORGANIZATIONAL INNOVATION ON INNOVATION QUALITY AND PERFORMANCE. International Journal of Organizational Innovation (Online), 3(4), 45-81. Retrieved from https://search.proquest.com/docview/905854310?accountid=35812