Running head: AGGRESSIVE STRATEGIC DIRECTION Aggressive Strategic Direction Student's Name Institution 1 AGGRESSIVE STRATEGIC DIRECTION 2 Aggressive Strategic Direction Prospector strategy The prospector strategy is the most aggressive strategy that the organisation should pursue. The strategy gives the organisation a chance to create and run active programs within the organisation. The formation of active programs is an achievable goal as the company poses great potential in regards to financial capability .The prospector strategy also enables the company to grow and enter into new market environments while still utilizing the emerging opportunities. Southwest Airlines has depicted tremendous capability in dealing with the competitive market through extensive research as well as close monitoring of the market changes and emerging opportunities buy using offensive competition thus making it perfect to adopt the prospector strategy. Defender strategy On the other hand, Southwest airlines apt not to pursue the market aggressively and instead use defender strategy. The strategy requires the company to carefully research and find a stable market as well as maintain the market secure. The strategy requires that the company keep itself off from stiff technological competition and product development and instead protect themselves from such phenomenon. In order to achieve this low profile, Southwest airline will be required to undertake several developments such as ensuring that their prices are relatively low as well as other expenditures such as advertising.[Agr] QSPM tool AGGRESSIVE STRATEGIC DIRECTION 3 Strategic alternatives Key internal factors Internal strengths Financial position Marketing and promotion Prospector strategy Weight AS TAS 0.15 2 0.30 0.10 2 0.30 Defender strategy AS TAS 3 0.45 3 0.30 Internal weaknesses Operating expenses Employee turnover 0.10 0.10 1 - 0.10 - 2 - 0.20 - Opportunities-External factor Globalisation Penetration 0.05 0.25 2 - 0.10 - 3 4 0.15 1.00 Threats-External factor Competitors New players induction 0.20 0.05 3 3 0.60 0.15 2 1 0.40 0.05 Total sum of attractiveness score 1.40 2.55 The defender strategy is the most attractive alternative following the QSPM strategy. Therefore southwest airlines should opt for this strategy as it has depicted a higher score. The defender strategy is critical to the company as it depicts to have more advantages in regards [QSP16]to the companies swot analysis. The strategy fits well with the company's financial position. Southwest airlines have good financial capability which would enable them to pursue the strategy meeting all the requirements which include reduced cost in terms of price and marketing. The company also enjoys a low employee turnover making it stand a better position to utilise the defender strategy. The company has globalisation and market penetration to their advantage using the defender strategy.[QSP] References AGGRESSIVE STRATEGIC DIRECTION Agressive or Offensive Strategy in business. (n.d.). Retrieved from differenciateyourbusiness.co.uk/agressive-or... QSPM. (n.d.). Retrieved from www.maxi-pedi.com/quantitative+strategy... QSPM. (2016). Retrieved from www.mba-tutorials.com/strategy/230-quantitative-strategicplanning-matrix-qspm.html. 4 Post #1 The best strategies will be successful only when they are implemented with the appropriate business design. In the previous weeks, the defender strategy was recommended for the Southwest Airlines basing on the facts and evidence from the QSPM tool. However, besides using the QSPM tool to identify the best strategy, the management should also consider the organizational design of Southwest Airlines to determine the suitability of the defender strategy. For the generic strategy proposed to work best for the airline, the company should adopt the matrix design. This design entails a structure where employees report to two or more lines. In most cases, the matrix design combines both the functional and divisional lines of responsibilities (Leckey & Auletta, 2002). A marketing manager, for instance, would report to both the functional marketing director and country or region division director where the manager works. Such a design would encourage the defender strategy since it would help in providing the relevant information required to research, find and maintain a stable market share. Competition from other airlines in one major threat the Southwest airline is experiencing. The company should, therefore, adopt the matrix design to reduce operational costs and gather all the information needed to secure its market share. References Leckey, A., & Auletta, K. (2002). The best business stories of the year: 2002 edition. New York: Vintage Books. Post #2 Generic strategies fail because of various reasons. One of the reasons discussed in learning activity #1 is the failure to implement the right strategy. In the case of Southwest, the recommended defender strategy is appropriate by QSPM recommendations and the suggested matrix design. However, other factors that also lead to the failure of the defender strategy management, marketing, finance, MIS issues and R&D challenges. In the case of Southwest Airlines, marketing challenges might lead to the failure of the recommended strategy. The defender strategy requires that the airline should research its market to identify its most profitable market segment and secure it from other players in the industry (Cunningham & Harney, 2012). Choosing inappropriate market mixes will deny the airline most of the relevant information about their target market. The managers should, therefore, leverage the advantages of the matrix design to collect all the relevant information about the target market. Once this information is collected, it should go through the right channels where it would be analyzed and interpreted to help in making suitable marketing decisions that would help in securing the market segment (Boyd & Walker, 1990). The managers would for instance use this information to develop the best marketing strategies that would help the airline to win over and retain its loyal customers to sustain profitability amidst the high competition in the industry. References Cunningham, J., & Harney, B. (2012). Strategy & strategists. Oxford: Oxford University Press. Boyd, H. W., & Walker, O. C. (1990). Marketing management: A strategic approach. Homewood, IL: Irwin. Post #1 The best strategies will be successful only when they are implemented with the appropriate business design. In the previous weeks, the defender strategy was recommended for the Southwest Airlines basing on the facts and evidence from the QSPM tool. However, besides using the QSPM tool to identify the best strategy, the management should also consider the organizational design of Southwest Airlines to determine the suitability of the defender strategy. For the generic strategy proposed to work best for the airline, the company should adopt the matrix design. This design entails a structure where employees report to two or more lines. In most cases, the matrix design combines both the functional and divisional lines of responsibilities (Leckey & Auletta, 2002). A marketing manager, for instance, would report to both the functional marketing director and country or region division director where the manager works. Such a design would encourage the defender strategy since it would help in providing the relevant information required to research, find and maintain a stable market share. Competition from other airlines in one major threat the Southwest airline is experiencing. The company should, therefore, adopt the matrix design to reduce operational costs and gather all the information needed to secure its market share. References Leckey, A., & Auletta, K. (2002). The best business stories of the year: 2002 edition. New York: Vintage Books. Post #2 Generic strategies fail because of various reasons. One of the reasons discussed in learning activity #1 is the failure to implement the right strategy. In the case of Southwest, the recommended defender strategy is appropriate by QSPM recommendations and the suggested matrix design. However, other factors that also lead to the failure of the defender strategy management, marketing, finance, MIS issues and R&D challenges. In the case of Southwest Airlines, marketing challenges might lead to the failure of the recommended strategy. The defender strategy requires that the airline should research its market to identify its most profitable market segment and secure it from other players in the industry (Cunningham & Harney, 2012). Choosing inappropriate market mixes will deny the airline most of the relevant information about their target market. The managers should, therefore, leverage the advantages of the matrix design to collect all the relevant information about the target market. Once this information is collected, it should go through the right channels where it would be analyzed and interpreted to help in making suitable marketing decisions that would help in securing the market segment (Boyd & Walker, 1990). The managers would for instance use this information to develop the best marketing strategies that would help the airline to win over and retain its loyal customers to sustain profitability amidst the high competition in the industry. References Cunningham, J., & Harney, B. (2012). Strategy & strategists. Oxford: Oxford University Press. Boyd, H. W., & Walker, O. C. (1990). Marketing management: A strategic approach. Homewood, IL: Irwin