Key Components of Strategic Planning: Southwest Airlines
Analysis of Key Strategies
Stephanie Peete
Embry-Riddle Aeronautical University
Business Capstone
MBAA-635
William Reed
February 23, 2014
Analysis of Key Strategies
When a company creates a strategic plan, it should reveal the future direction of the company. The strategic plan should outline the organization’s purpose, goals and the methods that will be used to accomplish those goals. The major key components of strategic planning are outlining the company’s vision and mission statements. The vision statement summarizes how the organization wishes to be recognized and operate in the industry and the mission statement tells the purpose of the organization. There are several other key components involved in creating a strategic plan that should illustrate the company’s marketing, financial, manufacturing, and legal strategies. The leadership and performance strategies are also important steps in this plan as well as any international strategies.
The functional level of the organization is the level of the operating divisions and departments. The strategic issues at the functional level are related to business processes and the value chain. Functional level strategies in marketing, finance, operations, human resources, and R&D involve the development and coordination of resources through which business unit level strategies can be executed efficiently and effectively (Cile, 2014 ).
Southwest Airlines utilizes its functional level to explore and answer the following question to access how the company is progressing in the industry. How are we utilizing human resources, information technology, finance/accounting, marketing, or other functional areas to gain a competitive advantage? The primary marketing strategy for Southwest Airlines is to target business travelers because they are the most frequent buyers, most loyal, and are willing to pay more money than the average vacationer. The secondary marketing strategy is to focus on budget travelers
Stephanie Peete
Embry-Riddle Aeronautical University
Business Capstone
MBAA-635
William Reed
February 23, 2014
Analysis of Key Strategies
When a company creates a strategic plan, it should reveal the future direction of the company. The strategic plan should outline the organization’s purpose, goals and the methods that will be used to accomplish those goals. The major key components of strategic planning are outlining the company’s vision and mission statements. The vision statement summarizes how the organization wishes to be recognized and operate in the industry and the mission statement tells the purpose of the organization. There are several other key components involved in creating a strategic plan that should illustrate the company’s marketing, financial, manufacturing, and legal strategies. The leadership and performance strategies are also important steps in this plan as well as any international strategies.
The functional level of the organization is the level of the operating divisions and departments. The strategic issues at the functional level are related to business processes and the value chain. Functional level strategies in marketing, finance, operations, human resources, and R&D involve the development and coordination of resources through which business unit level strategies can be executed efficiently and effectively (Cile, 2014 ).
Southwest Airlines utilizes its functional level to explore and answer the following question to access how the company is progressing in the industry. How are we utilizing human resources, information technology, finance/accounting, marketing, or other functional areas to gain a competitive advantage? The primary marketing strategy for Southwest Airlines is to target business travelers because they are the most frequent buyers, most loyal, and are willing to pay more money than the average vacationer. The secondary marketing strategy is to focus on budget travelers
References: Cile, E. (2014). Business Level Strategy, Corporate-Level Strategy, Functional Level Strategy and International Strategy. Retrieved from http://bizniszajednica.com/business-level-strategy-corporate-level-strategy-functional-level-strategy-and-international-strategy/ Mariani, T. (2012). Strategies for Reaching Global Markets. Retrieved from https://sites.google.com/a/email.vccs.edu/bus100tmariani/home/global-market-strategy Sanner, K., Swider, J., Uszynska, R., & Vierela, M. (2012). Situation Analysis. Retrieved from http://issuu.com/rainelleu/docs/southwest_airlines?e=6172574/1804712 Scilly, M. (2014). Examples of Cost Leadership & Strategy Marketing. Retrieved from http://smallbusiness.chron.com/examples-cost-leadership-strategy-marketing-12259.html Southwest and AirTran Network Connectivity. (2014). Retrieved from http://www.southwest.com/hmtl/air/intl-hub.html