BGMT 495 ***Zeek the GEEK***
Bigricker12
student_responses_week_6.docxAaron: (LA1)
Organizations have heavily invested in developing their strategy, and it is found that even the best strategies often fail. There are certain reasons behind that and organizations are unable to implement a sound strategy in an effective manner. During the last week, I have used the Quantitative Strategic Planning Matrix (QSPM) tool to evaluate the merger and strategy for Southwest Airline. It was identified that the strategy would be probably acceptable, and it is a more attractive strategy that can increase the performance and operational effectiveness of the company. The organization design has a significant impact on the strategy and plays an important role in implementing the strategy in an efficient manner.
The effective organizational design will help Southwest Airlines to achieve the effective results from the strategy. The effective leadership, values, decision-making process, system, and ethical corporate culture play an important role in developing the organizational design. The corporate culture of the organization will enhance its performance after merger and acquisition with other company (Christine & Patricia, 2011).
The leadership of Southwest Airlines should focus on communication, technological innovation, productivity, and transparency that can generate good results from the strategy. The leadership is the starting point for implementing the merger and acquisition strategy in the organization. The executives have strong values and abilities to meet the goals through the contribution of all employees (Hsieh & Yik, 2016). It is important that the organizational culture is aligned with its objective. It is important the organization has established the shared decision-making process, and it has high staff morale. The company has strong cultural integration plan and ability to scrutinize the culture of acquired company.
References:
Christine, I., & Patricia, C. (2011). Organization Design: A Guide to Building Effective Organizations. London: Kogan Page Publishers.
Hsieh, T.-y., & Yik, S. (2016). Article . Retrieved from http://www.mckinsey.com/global-themes/leadership/leadership-as-the-starting-point-of-strategy
Josh: (LA1)
In week 5, I determined the best alternative strategy for Subway was to use a Vertical Integration Strategy of acquiring the bakeries, produce companies, and deli meat suppliers so that Subway would own all aspects of their supply chain. In order to accomplish this new venture for Subway, I feel that a Multi-divisional Structure would be best suited for this new strategy. Since this alternative strategy is multi-faceted with different divisions and considering Subway operates in many different countries, they will need "employees [that]are divided into departments based on product areas and/or geographic regions" (Mastering Strategic Management, 2014). Employees will need to be divided into their specific area of operations, for example, produce, deli meats, and bakery. Not only that, but each department will need a U.S. and international division. Since the aspects of one division won't always impact the other, having a multi-divisional structure will allow the individual division to react quickly to change without having to move through the hierarchy of a functional structure, for example. Oversight will need to be implemented for all divisions to ensure that one division does not implement change that does not conform to Subway's mission statement and business strategy. Each division will need different tiers such as sales, warehousing and shipping, product development, quality assurance, operations, and accounting. The overseas divisions will include the same but will need specialized sales teams who are fluent in other languages in which Subway operates as well as global research division. The HR, legal, and public relations can work across all divisions since they are not necessarily unique to one division.
Subway's new strategy will focus on Output Control since the only thing measurable in this alternative strategy is the quality, quantity, cost and ability to be flexible to changes (Mastering Strategic Management, 2014). Each division will be responsible for producing a specific product, so measuring output as well as the cost to make that output will be able to be tracked by the different department heads.
Finally, Subway's new alternative strategy will fall under the same Privately Held Corporation umbrella as the already existing infrastructure.
Strategic Management (2014). Washington, D.C.: The Saylor Foundation
