Activity: What’s Your Strategy?
Required Preparation
Before this activity, please complete the following:
- Read the assigned reading “Introduction to Strategy”.
- Complete the corresponding Canvas quiz.
- Watch the assigned video:
Pub Quiz: Southwest Airlines - Strategy in Action
Description: This activity is designed to help you apply key strategic management concepts to a real-world example: Southwest Airlines. We’ll use a fun pub quiz format to test your knowledge and spark discussion.
Learning Objectives
By the end of this activity, you will be able to:
- Identify and define key strategic management concepts.
- Analyze a company’s strategy using various frameworks.
- Connect theoretical concepts to real-world business practices.
Steps:
- Work in Teams: Work with your project team to complete the activity.
- Question Batches: The quiz will consist of several batches of questions, each focusing on a specific set of topics from the reading.
- Teacher-led Discussion: Before each batch, there will be a brief teacher-led discussion to review the relevant concepts and provide context.
- Group Discussion: After each batch is introduced, discuss the questions with your team members, referring to the video, notes, or transcripts as needed.
- Answer and Present: Individual team members will be asked to answer a question and present their reasoning to the class.
Do not use AI for this activity. This activity serves as preparation for case tests where you will have no AI to assist you in analysis. If you use AI, you will miss a critical opportunity to prepare for the tests.
Self-assessment:
- Active participation in group discussions.
- Quality and accuracy of answers presented to the class.
- Individual accountability through observation and potential follow-up questions.
Question Batches
Batch 1: Approaches to Strategic Management
Learning Objective:
- Apply diverse approaches to strategic management, including Internal and External Fit, Porter’s Five Forces, Blue Ocean Strategy, and Emergent Strategy to understand SouthWest’s business decisions.
The questions in this batch are primarily aimed to help you recall details from the video. For each of the questions, first choose an answer from the list of options. Then discuss and identify what approach to strategic management it represents. More than one approach may apply.
- Internal and External Fit
- Porter’s Five Forces
- Blue Ocean Strategy
- Emergent Strategy
Batch 1 Questions
- Southwest Airlines’ decision to forgo interlining agreements with other airlines reflects its focus on which type of traveler?
- A) Business travelers seeking the best fare deals.
- B) Short-haul frequent flyers who prioritize convenience and speed.
- C) Leisure travelers looking for affordable vacation packages.
- D) International travelers connecting to overseas destinations.
- How did Southwest Airlines’ choice to use reusable plastic boarding passes and tickets resembling grocery store receipts contribute to its business model?
- A) By enhancing brand recognition and customer loyalty.
- B) By minimizing costs and streamlining operations.
- C) By appealing to environmentally conscious passengers.
- D) By differentiating its services from competitors’ offerings.
- Which of Porter’s Five Forces did Southwest Airlines effectively mitigate by choosing to operate primarily in midsize cities and the secondary airports of large cities?
- A) Threat of New Entrants
- B) Bargaining Power of Buyers
- C) Threat of Substitute Products or Services
- D) Bargaining Power of Suppliers
- Which of Porter’s Five Forces is most evident in the aggressive competition between Southwest Airlines and America West in Phoenix?
- A) Bargaining Power of Suppliers.
- B) Threat of Substitute Products or Services.
- C) Rivalry Among Existing Competitors.
- D) Threat of New Entrants.
- What unconventional practice did Southwest Airlines adopt to enhance the passenger experience and differentiate itself from competitors?
- A) Offering complimentary in-flight meals and beverages.
- B) Providing assigned seating to ensure passenger comfort.
- C) Creating a fun and engaging atmosphere with games and entertainment.
- D) Partnering with other airlines to offer seamless connections.
- Southwest Airlines’ decision to focus on short-haul, point-to-point flights between midsize cities created a new market space. What traditional industry practice did this strategy disrupt?
- A) The hub-and-spoke model used by major airlines.
- B) The reliance on travel agents for booking flights.
- C) The use of sophisticated computer reservation systems.
- D) The practice of offering first-class and business-class seating.
- Herb Kelleher’s leadership style, characterized by flexibility and a willingness to experiment, fostered what type of strategic approach at Southwest Airlines?
- A) A rigid, top-down approach to planning.
- B) A data-driven approach focused on market analysis.
- C) An adaptive and evolving approach that responded to market dynamics.
- D) A risk-averse approach that prioritized stability over innovation.
- Southwest Airlines’ initial marketing campaigns, featuring flight attendants in hot pants and playful promotions, exemplified what aspect of emergent strategy?
- A) Careful market research and analysis.
- B) A willingness to experiment and adapt to customer feedback.
- C) A focus on long-term strategic planning.
- D) A reliance on traditional industry practices.
Batch 2: Business Model, Fit, and Trade-off
Learning Objectives:
- Analyze Southwest Airlines’ business model and how its activities fit together.
- Identify the trade-offs Southwest has made in its business model.
Questions in this batch require you perform a simple application of concepts from the reading. They are aimed at helping you recognize critical stategy choices from everyday sources of information.
Batch 2 Questions
- Southwest Airlines’ choice to forgo traditional meals and in-flight entertainment is an example of which business model concept?
- A) Value Proposition
- B) Trade-offs
- C) Customer Segments
- D) Key Activities
- Which of the following best describes Southwest Airlines’ value proposition?
- A) Providing a luxurious and comfortable flying experience.
- B) Offering the widest selection of destinations and connecting flights.
- C) Delivering affordable, convenient, and fun short-haul air travel.
- D) Catering to business travelers with premium services and amenities.
- Southwest Airlines’ use of reusable plastic boarding passes and simplified tickets demonstrates which level of fit in their business model?
- A) Simple Consistency
- B) Optimization of Effort
- C) Mutually Reinforcing Activities
- D) Dynamic Adaptation
- Southwest Airlines’ focus on a single type of aircraft, the Boeing 737, primarily contributes to which aspect of its business model?
- A) Value Proposition
- B) Customer Relationships
- C) Channels
- D) Key Activities
- Southwest Airlines’ decision not to interline with other airlines is a trade-off that primarily impacts which element of its business model?
- A) Customer Relationships
- B) Key Partnerships
- C) Revenue Streams
- D) Cost Structure
- Southwest Airlines’ emphasis on employee satisfaction and a strong company culture contributes to which aspect of its business model?
- A) Key Resources
- B) Value Proposition
- C) Customer Segments
- D) Revenue Streams
- Which of the following best describes Southwest Airlines’ approach to business model innovation?
- A) Focusing on incremental improvements to existing processes.
- B) Regularly launching entirely new products and services.
- C) Disrupting the industry with radical technological advancements.
- D) Prioritizing mergers and acquisitions to expand market share.
Batch 3: Value Creation and Value Capture
Learning Objectives:
- Analyze how Southwest Airlines created and captured value using relevant frameworks.
Value creation and value capture are critical higher-level concepts in strategy. A student’s ability to identify them from a set of business facts often depends on the ability to piece together multiple lower-level concepts and details. In this batch of questions, you will have an opportunity to test your understanding of these higher-level concepts
Batch 3 Questions
- Which of the following actions by Southwest Airlines most directly contributes to increasing customer willingness to pay (WTP)?
- A) Minimizing turnaround time to maximize aircraft utilization.
- B) Negotiating favorable contracts with labor unions to control costs.
- C) Offering a fun and engaging in-flight experience with friendly service.
- D) Operating from secondary airports to reduce congestion and delays.
- Southwest Airlines’ strategy of offering consistently low fares, often comparable to the cost of driving, primarily targets which element of the value wedge?
- A) Increasing WTP by offering premium features and amenities.
- B) Reducing SOC by minimizing operational costs and maximizing efficiency.
- C) Capturing a larger share of the value created by reducing competition.
- D) Shifting industry boundaries to create a new market space with less rivalry.
- Southwest Airlines’ decision to avoid interlining agreements with other airlines, while potentially limiting customer flexibility, allows the company to:
- A) Increase WTP by offering a more seamless travel experience.
- B) Reduce SOC by avoiding the complexities and costs associated with coordinating with other carriers.
- C) Capture more value by reducing the bargaining power of complementary services.
- D) Reshape the industry landscape by creating a new standard for air travel.
- Which of the following threats to sustainability, as described in the sources, poses the most significant risk to Southwest Airlines’ ability to capture value over time?
- A) Imitation: Competitors adopting similar low-cost models and eroding Southwest’s competitive advantage.
- B) Substitution: The emergence of high-speed rail or other ground transportation alternatives that offer comparable convenience and affordability.
- C) Holdup: Labor unions demanding higher wages and benefits, potentially increasing Southwest’s operating costs.
- D) Disruption: New technologies, such as electric aircraft or autonomous flight systems, radically transforming the airline industry.
- Southwest Airlines’ focus on building a strong company culture, characterized by employee loyalty and a commitment to customer service, can be seen as an investment in which element of value creation?
- A) Reducing SOC by motivating employees to work more efficiently.
- B) Increasing WTP by enhancing the perceived value of the Southwest brand and customer experience.
- C) Capturing more value by reducing employee turnover and training costs.
- D) Reshaping the industry landscape by establishing a new standard for labor relations in the airline sector.