Question:
Narrowed down that strategic direction and identified possible alternative strategies and then narrowed those alternatives down to ONE specific strategy to implement for either Southwest or Subway.
Using that specific strategy, identify what type of organizational design would best support that strategy.
Provide a high level overview of the organizational design - be sure to fully explain the design and why it was selected to support the strategic direction and, more importantly, the specific strategy to be implemented.
Agree or Disagree:
Southwest Airlines (Panameno)
The defender strategy of Southwest Airlines entails the company concentrating on a particular market that it has gained control over and keeping it secure. The strategy restricts the company to spread to new areas unless the customer requirements change or competition compels them to do so.
The firm will defend its market and focus on efficiency in the provision of products and services to make it relatively difficult for competitors to gain leverage on their space. Wheeler (2012) explains that Southwest airline provides travel amenities that are aimed at making their customer' trip free of hassle. They are designed to make air travel stress free.
The organizational design of the company that supports this strategy is the use of reward power based on its leadership technique. Wheeler (2012) elaborates that it provides individuals who cooperate within standards that are acceptable with incentive. The company has an excellent system of management for rewarding workers and performing to the expectation or in a way that impresses the customers.
In fact, it is often carried out as a form of exchange for compliance and job performance. It helps managers or leadership to optimize both the profitability and productivity of others. Through the good system of reward, the company increases the performance expectation, thus compelling the staff to reciprocate to customers efficiently in the provision of air travel amenities (Power Base, n.d).
The choice of the reward power base organizational design in the support of the defender strategy illuminated earlier is that it helps in ensuring that the company maintains its market share (Study, 2015).