Strategic plans are of vital importance to a business. The most commonly used type of plans are tactical plans and operational plans. These two plans are framed to implement the strategy of a firm. It is essential to understand the elements of these plans so as to develop and implement the strategic goals and objectives.
Operational planning is the process of planning strategic goals and objectives to tactical goals and objectives. Operational plans are devised with reference to the strategic plans. It explains how, or what portion of, a strategic plan will be put into operation during a given operational period. The strategic plan is about setting a direction for the organization, devising goals and objectives and …show more content…
Strategic, Tactical, & Operational Goals: Southwest Airlines
4.1 Strategic Goals.
The strategic goal of the top line management of Dallas-based Southwest Airlines was to ensure the profitability of the airline, following the general strategy of (a) minimizing the cost and fares and (b) offering a superior on-time arrival record. Focusing on the services of a single airline, Boeing 737s was one of the most important strategic decisions that Southwest had made.
The air hose had a tough time during 2008-2009 recessions just as its rivals. Amidst these troubles, the airline succeeded in attaining its strategic ends. Conception of a strong corporate culture was another strategic decision made by the airlines
Tactical Goals.
The key tactical goal before the Southwest middle level managers was to cut short the costs and to keep the fare at low charge per units. For instance, the organization cut costs in its maintenance plan by performing more work on a plane when it’s in for a check instead of getting it in three different …show more content…
In addition, as mentioned, the airline is religious about turning planes around in exactly 20 minutes, so that on-time departures are more apt to produce on-time arrivals. Although the airline is about 83% unionized, turnaround is helped by looser work rules, so that workers can pitch in to do tasks outside their normal jobs.
Operational Goals. First-line managers also make sure that seat assignments (boarding passes) are not given out until an hour before the plane is due to leave to make sure that the maximum number of passengers will be on hand to fill the seats available. Recently, Southwest has thrived on being the only U.S. airline that lets passengers check two pieces of luggage for free, a policy that also helps lines move more briskly.
5. OPERATIONAL PLANNING FOR A MANUFACTURING COMPANY
In case of a manufacturing business, an operational plan is absolutely vital because of the intrinsically complex and detail-intensive operations. The operational plan must address several key items for successfully sketching the operations of a manufacturing business.
5.1 Facilities and