Corporate Social Responsibility Southwest Airlines - amazonia.fiocruz.br

Can: Corporate Social Responsibility Southwest Airlines

We use cookies essential for this site to function well. Please click "Accept" to help us improve its usefulness with additional cookies. Learn about our use of cookies, and collaboration with select social media and trusted analytics partners here Learn more about cookies, Opens in new tab. At the heart of the traditional approach to strategy lies the assumption that executives, by applying a set of powerful analytic tools, can predict the future of any business accurately enough to choose a clear strategic direction for it.

Learn more here process often involves underestimating uncertainty in order to lay out a vision of future events sufficiently precise to be captured in a discounted-cash-flow DCF analysis. When the future is truly uncertain, this approach is at best marginally helpful and at worst downright dangerous: underestimating uncertainty can lead to strategies that neither defend a company against the threats nor take advantage of the opportunities that higher levels of uncertainty provide. Corporate Social Responsibility Southwest Airlines

Southwest airlines case study analysis pdf

Another danger lies at the other extreme: if managers can't find a strategy that works under traditional analysis, they may abandon the analytical rigor of their planning process altogether and base their decisions on gut instinct. Making systematically sound strategic decisions under uncertainty requires an approach that avoids this dangerous binary view.

Rarely do managers know absolutely nothing of strategic importance, Sputhwest in the most uncertain environments. What follows is a framework for determining the level of uncertainty surrounding strategic decisions and for tailoring strategy to that uncertainty.

Available strategically relevant information tends to fall into two categories. First, it is often possible to identify clear trends, such as market demographics, that can help define potential demand for a company's future products or services. Second, if the right analyses are performed, many factors that are currently unknown to a company's management are in fact knowable—for instance, performance attributes for Soxial technologies, the elasticity of demand for certain stable categories of products, and competitors' plans to expand capacity.

Southwest airlines 2016 case study

The uncertainty that remains after the best possible analysis has been undertaken is what we call residual uncertainty—for example, the outcome of an ongoing regulatory debate or the performance attributes of a technology still in development. But quite a bit can often be known despite this.

In practice, we have found that the residual uncertainty facing most strategic-decision makers falls Responsihility one of four broad levels Exhibit 1. The residual uncertainty is irrelevant to making strategic decisions at level one, so managers can develop a single forecast that is a sufficiently precise basis for their strategies.

Strategy in level one's clear enough future

To help generate this usefully precise prediction of the future, managers can use the standard strategy tool kit: market research, analyses of competitors' costs and capacity, value chain analysis, Michael Porter's five-forces framework, and so on. A DCF model that incorporates those predictions can then be used to determine the value of alternative strategies. The future can be described as one of a few discrete scenarios at level two.

Analysis can't identify which outcome will actually come to pass, though it may help establish probabilities. Most important, some, if not all, elements of the strategy would change if the outcome were predictable. Many businesses facing major regulatory or legislative change confront level two uncertainty.]