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Strategic Plan Part II: SWOTT Analysis (Passenger Matching)

Strength Weaknesses Opportunities Threat and Trend (SWOTT) is a crucial process that can provide a blueprint in the strategic planning. “Any complex process, aimed at the future, regardless of its nature - managerial, economic, technical or technological etc. - requires, in advance, a detailed analysis of the organization or its procedural components or structural levels on which it will occur” (Verboncu & Condurache, 2016, p. 114). Furthermore, a SWOTT can help prevent downfalls by predicting potential threats a company can face. With a SWOTT analytical mind and Passenger Matching as the new service; I will be covering economic, legal, regulatory forces, trends, the company’s adaptation to change, supply chain, and internal organizational considerations for the strategic plan development.

Economic, Legal, and Regulatory Forces and Trends

The airline industry operates in an Oligopoly market structure. Meaning it is significantly difficult to enter (high barriers to entry), and it is comprised of a limited amount of stakeholders. Therefore, from an economic standpoint, the airline industry is profitable. However, the industry is affected by a number of factors, for example, legal public policies worldwide, fuel prices, recessions, political views, airspace laws, ongoing wars and more. Although the economic, legal and regulatory trend constantly fluctuates there will always be a need for traveling. According to "Economic Trends and the Airlines Industry" (2017), “The airline industry is inextricably related to the economy of the country and to trade. If there is an increase in trade and globalization, there is an increased demand for airlines and their services. On the other hand if there is sluggishness in growth or the economy there will be a fall in overall industry performance of airlines” (para. 2). We will have to monitor those forces (Threats) continuously and have a mitigation plan in place.

How well does the Organization Adapt to Change

It is essential for organizations to adapt to changes. McGahan (2004), “You can’t make intelligent investments within your organization unless you understand how your whole industry is changing” (para. 1). The airline industry does a remarkable job in adapting to change. Let us take a look at this from two aspects, the economic environment, and technology. When the economy is not at its best, to guarantee survival, the airline industry adapts their prices, change or cancel flying routes, and even the merging of airlines. When it comes to technology, you see the constant adaptation to customer needs, for example, WIFI capable planes, on demand entertainment, charging dock for electronics and more. For this reason, I believe that my proposal of the passenger matching service will be successful and aligned with today’s technologically driven environment.

Supply Chain of the New Division and Leveraging core Competencies and Resource

First, we must understand what Supply Chain Management entails. According to "Supply Chain Resource Cooperative" (2017) “Supply chain management (SCM) is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage” (para. 1). In addition, supply chain must have a flawless operation to enable successful operations. “Global supply chains require highly coordinated flows of goods, services, information, and cash within and across national boundaries” (Mentzer 2001).

The supply chain of the new division will be maximized by leveraging the core competencies and both internal and external resources. For example, if the organization will hold a meeting and somewhat of a competitive selection process. That way, we will pinpoint the subject matter experts in our organizations so that the new division can be created. As far as Internal and external resources, it would be ideal for us to utilize what is already out there. By making the APP in such a way that is open to the public, travel websites, and airlines, their specific resources automatically become ours with little to no add on efforts.

Primary Internal Organizational Considerations for the Development of a Strategic Plan

Let me approach this section by providing the internal factors of the organization, in this case the travel industry. I will conduct such analysis via a SWOTT of the new service, Passenger Matching. Internal Factors are specifically covered by the Strength & Weaknesses of the SWOTT matrix. The following are internal factors in the Strength category: well-established organization, technological skills, strong management, long industry survivability history, and Ease in Adaptation. The following are internal factors in the Weaknesses category: employee turnover, lack of continuity, technical difficulties (App going down), lack of App developers within. It is for the aforementioned reasons that the strategic plan will be an APP that is maintained independently my new division which will include the hiring of APP developers so that high-quality customer service is provided. “Due to demanding customers and competitive pressures, businesses today are restructuring themselves to operate on a global basis to take advantage of the international product, factor, and capital markets” (Manuj & Mentzer, 2011).

Conclusion

A SWOTT analysis is an extremely and necessary tool that can assist in identifying internal and external factors, leveraging resources and predicting downfalls. Adapting to chain to avoid becoming obsolete is required for any organization. Via the SWOTT analysis, I was able to get a clear picture on how the strategic plan should be developed for the new division in the airline industry that provides passenger matching. Let me offer my SWOTT analysis diagram as supporting representation of the conclusion. bus wk 4 1

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Figure derived from Personal Power Point Presentation (BUS/475, 2017)

References

Bureau of Transportation Statistics. (2017). Retrieved from https://www.rita.dot.gov/bts/publications/passenger_travel_2016

David, F., & David, F.R. (2016). Strategic Management: A Competitive Advantage Approach, Concepts and Cases (16th ed.). New York, New York: Pearson

Economic Trends and the Airlines Industry. (2017). Retrieved from https://brainmass.com/economics/economic-growth/economic-trends-and-the-airlines-industry-133793.

Manuj, I., & Mentzer, J. T. (2008). GLOBAL SUPPLY CHAIN RISK MANAGEMENT. Journal of Business Logistics, 29(1), 133-IX. Retrieved from https://search.proquest.com/docview/212655223?accountid=458

Supply Chain Resource Cooperative. (2017). Retrieved from https://scm.ncsu.edu/scm-articles/article/what-is-supply-chain-management

Verboncu, I., & Condurache, A. (2016). Diagnostics vs. SWOT analysis. Revista De Management Comparat International, 17(2), 114-122. Retrieved from https://search.proquest.com/docview/1814287556?accountid=458