WORLDWIDE, because we are and intend to remain an innovative, aggressive, ethical, and successful competitor that offers access to the world at the highest standards of customer service. We will continue to look for opportunities to extend our reach through new routes and creative global alliances.
AIRLINE, because we intend to stay in the business we know best -- air transportation and related services. We won’t stray from our roots. We believe in the long-term prospects for profitable growth in the airline industry, and we will continue to focus time, attention, and investment on enhancing our place in that business environment.
OF CHOICE, because we value the loyalty of our customers, employees, and investors. For passengers and shippers, we will continue to provide the best service and value. For our personnel, we will continue to offer an ever more challenging, rewarding, and result-oriented workplace that recognizes and appreciates their contributions. For our shareholders, we will earn a consistent, superior financial return.
Companies whose managers set objectives for each key result area and then press forward with actions aimed directly at achieving these performance outcomes typically outperform companies whose managers exhibit good intentions, try hard, and hope for the best!
Objective-setting needs to be more of a top-down than a bottom-up process in order to guide lower-level managers and organizational units toward outcomes that support the achievement of overall business and company objectives.
Fig. 2-1(a): Levels of Strategy-Making: A Diversified Company Corporate Strategy Business Strategies Functional Strategies Operating Strategies Corporate-Level Managers Business-Level Managers Operating Managers Functional Managers Two-Way Influence Two-Way Influence Two-Way Influence
Levels of Strategy-Making: A Single-Business Company Business Strategy Functional Strategies Operating Strategies Executive-Level Managers Operating Managers Functional Managers Two-Way Influence Two-Way Influence
Corporate Strategy for a Diversified Company Corporate Strategy How Much Diversification Kind of Diversification Responses to Changing Conditions Efforts to Build Competitive Advantage Via Diversification Moves to Strengthen Positions and Profits in Present Businesses Moves to Add New Businesses Approach to Capital Allocation Moves to Divest Weak Units
Actions to boost performance of individual businesses
Capturing synergy among business units
2 + 2 = 5 effects!
Establishing investment priorities and steering corporate resources into the most attractive business units
Strategy Components of a Single-Business Company Business Strategy Strategic Alliances and Collaborative Partnerships Responses to Changing Conditions Basic Competitive Approach Moves to Secure Competitive Advantage Geographic coverage; approach to vertical integration Manufacturing Strategy Marketing Strategy R & D Strategy Human Resources Strategy Finance Strategy
A company’s strategy ought to be grounded in its resource strengths and in what it is good at doing (its competencies and competitive capabilities); it is perilous to craft a strategy whose success is dependent on resources and capabilities that a company lacks!
Ambitions, Philosophies, and Ethics of Key Executives
Managers generally stamp strategies they craft with their own personal