Strategic Analysis Report: Business Strategy and Operations

This report provides an analysis of business strategy, focusing on the concepts of operational effectiveness and competitive advantage. It references Michael Porter's work and discusses the importance of strategic choices for organizations. The report highlights the distinction between operational effectiveness and strategy, emphasizing the need for companies to differentiate themselves in the market. The example of Southwest Airlines is used to illustrate how lean management principles can be applied to achieve strategic goals. The report underscores the importance of a clear set of activities aimed at achieving a common goal of sustenance and competitive advantage. The report also touches upon the importance of being flexible and benchmark continuously to achieve best practice.

Running head: STRATEGY ANALYSIS
STRATEGY ANALYSIS
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1STRATEGY ANALYSIS
Strategy is assimilating and addressing a set of priorities that re being encountered by an
organization with the purpose of gaining a competitive edge in the markets (Herstein et al. 2017).
The different aspects of change in the organizational operations are based on the effectiveness of
the strategy formulation in accordance with the common objectives of the venture. According to
Porter (1996), strategies support an organization in gaining competitive vantage point in the
markets while meeting their common goals of sustenance. The strategies differ in accordance
with the changing needs of the companies. In an aspect, operational effectiveness is part of a
strategy that is often implemented by the organizations while improving their existing operations
for building on their efficacy. On the other hand, it has been noticed through the article of Porter
that strategies generate a new pathway for an organization while empowering the same in
exploring new opportunities of market growth (Porter 1996).
The case of Southwest Airlines has been cited by Porter with the purpose of identifying
the lean management systems as the strategic insight of the venture. It has been observed that the
organization provided frequent flight services to the customers, however, the organization chose
to layoff costs relating to the meals while proposing very low ticketing price for increasing the
amount of sales revenue (Porter 1996). The application of the lean management principles in the
organizational operations enabled the venture in ensuring the growth of the same while operating
as per the changing needs of the customers. Therefore, strategy is a clear set of activities that are
aimed towards achieving a common goal of sustenance and competitive vantage of a venture.

2STRATEGY ANALYSIS
References
Herstein, R., Drori, N., Berger, R. and Barnes, B.R., 2017. Exploring the gap between policy and
practice in private branding strategy management in an emerging market. International
Marketing Review.
Porter, M.E., 1996. What is strategy?. Harvard business review, 74(6), pp.61-78.