Learning Activity #1
During the previous week you identified the generic strategic direction for Southwest (please see 2nd attachment for previous week���s assignment to reference for this
assignment). It is now time to identify specific alternative strategies for implementation. Based on the strategic direction that you identified in Week 4 (assignment
attached), create 2-3 strategic alternatives, i.e., actual strategies that the organization should pursue. Keep in mind that these alternatives MUST fit under the
umbrella strategic direction you identified last week. Be sure to fully explain each alternative and why it���s a good possibility including supporting rationale.
Learning Activity #2
Use the QSPM tool to review the alternatives identified this week in Learning Activity #1 to identify just ONE strategy to move forward (please include the QSPM in
your response). Provide a detailed explanation of the ONE strategy identified using this tool and explain why that strategy is critical to the organizations future
success; be sure to use the data from previous weeks to support your explanation.
Offer supporting rationale for your explanation and be sure to reference your statements using proper APA formatting.
Learning Activity #1
The EFE is an analytical technique related to strategy analysis. It evaluates the external position of an organization, and its strategic intent.
IFE is the most popular management tool for auditing the major internal strengths and internal weakness in all the functional areas of an organization.
��� The affordable fares and high-quality service are small
��� The coordination of system in the airline is seen to be average
��� Customers can access the carrier because its corporate image is strong
��� The airline offers only one class of seating option
��� The airline does not provide extras on its flight
��� Many Americans travel over holidays
��� Online booking is preferred. This has minimized the time spent on both the customer and the employee���s end
��� The option to use mobile phones in the flight may serve as an edge over other competitive companies
��� Changes in weather has led to cancellation of many flights which may frustrate customers
��� Competition with other airlines such as those who offer business class flights
Strategy to be used in this airline
Boston Consulting Group (BCG)
This matrix is designed to help in both short term and long term planning. It helps an organization consider growth opportunities by reviewing its portfolio of
products and services, and decide where to invest, and also discontinue or improve the services and outputs. This matrix is also called Growth/Share Matrix.
The matrix is divided into four quadrants on market growth and market share as shown below:
Star Question mark
Cash cow Dog
Items in the Dog section are services with low market share and low market growth. These services should be removed from the market as they will drain the organization
resources and will lead to massive losses to the team.
Question marks are services with high market growth and low market share. They require significant investment to push them to the position of the star. But, a lot of
investment may be necessary to make this change. It not always easy to determine the future star, and it can result in potential loss of funds.
Star services are those with high market share and high market growth. This can be a market leader though it requires that the ongoing investment sustain. They also
generate more return on investment than the other service categories.
Cash cows are products with high market share and low growth. Utilize these products as much as possible without depleting them. They are mature and well-established
The matrix is a great technique for evaluating the sense and wisdom in a particular strategic plan. We can take a financial institution as an example. This is how to
present the space matrix:
1.The first step is to establish variables for each dimension of SPACE MATRIX. Assume that the variables are similar to each aspect for the financial institution.
Secondly, assign the values according to their importance as worst and best.
2. In the 2nd step, we assign them values according to their importance as worst and best as briefed above.
Return of investment 3
Financial leverage 2
Working capital 5
Market share -3
Service lifecycle -6
Technology change -2
Easy to exit -1
Thirdly values of each dimension are calculated.
3. The average values of each dimension are computed which are:
Financial strength 2.6
Competitive advantage -3.3
Environmental Stability -3.9
Industry strength 2.8
Fourth, plot the average values on the appropriate axis in shape.
X-axis values are added and the amount to -0.5 and y-axis -1.3
-0.5 is planned x-axis and-1.3 on y-axis
The directional vector of space matrix is based strategic selection. The average values are computed from individual values assigned to each variable. This matrix is
critical to the financial institution to avoid losses.
Alsem, K. J. (2007). Strategic marketing; an applied perspective.
Allan, G. B. and Hammond, J. S. (1975). A note on the Boston Consulting group concept of competitive analysis.
Calandro, Jr. and Lane, S. (2007). A new competitive analysis tool.
Day, G. S. (1997). Diagnosing the product portfolio.