Running head: STRATEGIC MANAGEMENT 1

Strategic Management

Student’s Name

Institutional Affiliation
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Strategic Management

1. Effect of Corporate Scenarios on the Creation and Deployment of a Company

Strategy

The corporate scenarios affect the formulation and implementation of the company

strategy. They approximate the income statements and balance sheets to forecast the advantages

of every possible strategy on return investment that will be embraced. The corporate scenarios

forecast the probable scenarios on what will occur if one tactic is applied at the expense of the

other. In this regard, corporate scenarios are very important as a guideline for determining the

appropriate strategy at the given moment.

2. Role of Outsourcing in Creating an Effective Strategy.

Organizations outsource goods or services that earlier had been produced internationally

to cut down operating expenses. Consequently, firms can decrease the production expense or

performing it and even obtain a better quality with a higher frequency offered by the third party

organizations. Southwest Airline is pursuing to outsource their Maintenance, Overhaul, and

Repair for their equipment. However, this will build a bad reputation for Southwest Airlines.

Canaday (2016) argues that Southwest Airline should be ashamed for attempting to outsource

their Maintenance, Overhaul, and Repair from a firm that pays low wages (Canaday, 2016). In

the regard, the company has continued boasting that they care the welfare of their staff.

3. Impact of a Marketing Strategy on the Bottom Line of the Organization.

Marketing strategy is one of the key strategies that improve the bottom line of a

company. The lack of a proper marketing strategy will distort the delivery of the product to the
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final consumer (Krush, Sohi, & Saini, 2015, p.32). Consequently, market penetration and

saturation are important in selling a product and making dividends.

4. Application of Budgets, Programs, and Procedures to Develop a Thriving Strategy.

Programs, budgets, and procedures are important in creating a thriving strategy. Programs

assist in creating an action-oriented strategy. Budgets are the ultimate checks on the feasibility of

a chosen strategy as the actual numbers are crunched and figured. Procedures are developed to

regulate control the routine deeds that the company will utilize. Consequently, as the budget the

resource allocation and what measures will be used to determine progress, budget development is

more efficient when linked to the corporate strategy. In this regard, linking the three provides the

managers and workers with a precise understanding of a successful strategy.

5. Various Stages of Corporate Development.

The development of corporate involves various phases. The first stage is linked with the

beginning of the firm. The organization is typical whereby the supervision has complete control.

The second phase is the survival that it evolves vast enough to the extent that the supervisor

requires other top managers to assist control the firm. The third stage is that the success of the

organization gives the upper edge to think of expanding to other geographical regions. The

fourth phase is whereby the company matures and has profited over a long period and is tasked

with either pushing forward or exiting the enterprise. In our scenario, Southwest Airline has

reached the fourth phase and has profited over a long period and has selected to expand to South

America region. In essence, it is not already known where Southwest Airline will expand to in

the next years.

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6. The Significance of Synergy to an Effective Strategy.

Synergy is important to the development of an effective strategy. If the separate function

does not converse with one another and assist one another, then the team will fail. It is similar to

how the supervisors, management, and workers liaise together to attain one objective. Various

ways exist for assisting each other whether disseminating information or resources to one

another. The employees can work together on a single project and align with one another. In this

regard, the notion of an integrated company or groups of individuals working together creates an

immense effect on a certain aspect.

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References

Canaday, H. (2016, August 11). How Airlines, Suppliers Are Cutting MRO Costs. Retrieved

from https://www.mro-network.com/maintenance-repair-overhaul/how-airlines-suppliers-

are-cutting-mro-costs

Krush, M. T., Sohi, R. S., & Saini, A. (2015). Dispersion of marketing capabilities: impact on

marketing’s influence and business unit outcomes. Journal of the Academy of Marketing

Science, 43(1), 32-51. Retrieved from

https://digitalcommons.unl.edu/cgi/viewcontent.cgi?article=1036&context=marketingfac

pub