Reference no: EM132180835

The Focused Differentiation strategy was identified as the best strategy to implement for Southwest. A focused differentiation strategy requires offering unique features that fulfill the demands of a narrow market (University of Minnesota, 2016). The organizational design that would best support the Focused Differentiation Strategy is the Multidivisional Strategy. In this type of structure, employees are divided into departments based on product areas and/or geographic regions. These approaches require firms to be very responsive to customers’ needs (Saylor Foundation, 2018). With Southwest focusing on targeting a new particular demographic group they need an organizational design that will be responsive to the new customer needs. A big advantage of a multidivisional structure is that it allows a firm to act quickly (Saylor Foundation, 2018). When focusing on a total new demographic group Southwest is going to need to act quickly to adjust to these new customer needs and to alleviate any problems that may come up. When implementing the strategy there are going to be hiccups along the way so having an organization design that allows for management and employees to react quickly will better the chances of a successful implementation.

Learning Activity 2

In Southwest`s case management could cause this strategy to fail. Management must be willing to make the tough decisions to ensure the right individuals are in the right leadership positions. The “right” individuals include those who will advocate for and champion the strategic plan and keep the company on track (Aileron, 2011). It is management’s responsibility to make sure employees are fully trained and prepared for any new procedure or process. When Southwest initiates the Focused Differentiation Strategy they are going to be targeting a completely new market and demographic. This is going to be new for all of their employees. If Southwest’s management doesn’t prepare its employees and put the right people in the right positions the strategy will fail. While it’s imperative that everyone involved in a project understands from the outset what their work is, how it fits into the project as a whole, and to whom they will be reporting, it’s also important that there be mechanisms by which their feedback is factored into the planning and project processes, particularly as changes in project circumstances require (J, 2018).

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