Southwest Airlines: Strategical Management Analysis Essay (Critical Writing)

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Introduction

The success of firms and companies depends on long term objectives rather than the short term ones. Therefore, firms plan with an aim of developing presently as well as in the future. A projection into the future enables the firms to determine their expenditures and income. The United States of America is focused on making long term goals and objectives. The emphasis on the long term objective has constributed to the development of their economy.

As a result, the country has remained economically stable by maintaining economic solvency. The Southwest airlines is one of the main corporations of the USA contributing to the development of the country’s economy. It facilitates local and international trade in the country. Consequently, they apply grand strategies in regards to their long term objectives to realize prosperity. This paper aims at analyzing the grand strategies used by the airlines and determine their efficiency (Banfe, 1992).

Grand strategy Analysis

The Southwest Airlines has adopted various grand strategies aiming at fulfilling their long term objectives. Firstly, the Southwest airlines makes partnerships with other airlines. The partnerships allow the Southwest Airlines to expand their market. In addition, partnerships enable them to work more efficiently than when they operate individually (Brown, 2010). For example, the Southwest Airlines partnered with ATA Airlines, which helped them open flights to Hawaii.

However, the ATA Airlines experienced bankruptcy in 2008. As a result, the partnership was abolished and terminated. Also, the Southwest Airlines partnered with Volaris from Mexico in 2008. The partnership enabled them to make low cost flights to Mexico. However, the partnership was terminated in February, 2013. The grand strategy selection shows that the Southwest Airlines enhances market development through partnering and collaboration.

The selection shows that the Southwest Airlines uses the ability and strengths of their partners to market their products. However, the matrix selection shows that the Airlines should make stable and lasting partnerships. It suggests that temporary partnerships impair implementation of long term objectives and goals. Therefore, the Airlines should evaluate companies and access their future solvency before making partnership.

Secondly, the Southwest Airlines has adopted a strategy that ensures employees’ commitment. It aims at recruiting competent staff. This strategy ensures that the quality of the services is high and satisfactory (Luecke & Hall, 2006). The grand matrix selection shows that the company maximizes its strengths by providing high quality services.

This internal strategy results in innovations and discovery. As a result, it facilitates the development of new product in the market. However, the selection matrix asserts that the company should strike a balance between quality assurance and profit maximization. It suggests that they should not only provide quality services but also make good profits. The balance ensures that the company maintains economic solvency in the business world.

In addition, the company has adopted diversification. Diversification is a crucial strategy in business. It distributes the risks among many arms of a business firm.

The distribution of risk reduces the loss exposure of the business (Kenny, 2009). Therefore, the company has incorporated both, the long and short hauls. This ensures that the risks involved in the two hauls regulate each other. As a result, they incur few losses per unit time. According the matrix selection, diversification of services is a strategy that maintains the company’s competence.

Conclusion

The analysis focuses on the various strategies that the Southwest has adopted in their business structure. It has critiqued and shown why they are inappropriate and unsuitable. As a result, the above analysis is an all-inclusive evaluation that can enable the company to implement their long term goals effectively.

Works Cited

Banfe, Charles. Airline management. Englewood Cliffs, N.J.: Prentice Hall, 1992. Print.

Brown, David R.. Three essays in industrial organization: alliances, mergers, and pricing in commercial aviation. Manhattan, Kan.: Kansas State University, 2010. Print.

Kenny, Graham. Diversification strategy how to grow a business by diversifying successfully. London: Kogan Page, 2009. Print.

Luecke, Richard, and Brian J. Hall. Performance management: measure and improve the effectiveness of your employees. Boston, Mass.: Harvard Business School Press, 2006. Print.

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