Strategic Management Influenes to Organizational Growth

In strategic plan view point, I indicate three types of choices: polices, assets and governance structure. Policies refer action that the firm adopts for all aspects of its operation, e.g. unions complain dealing, locating plants in rural or city areas choice, encouraging employees to fly tourist class, providing fee shares, bonus monetary incentives, or flying to secondary airports as a way to cut expenses to employee welfare. Asset refers to tangible resources, such as manufacturing...
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In strategic plan view point, I indicate three types of choices: polices, assets and governance structure. Policies refer action that the firm adopts for all aspects of its operation, e.g. unions complain dealing, locating plants in rural or city areas choice, encouraging employees to fly tourist class, providing fee shares, bonus monetary incentives, or flying to secondary airports as a way to cut expenses to employee welfare. Asset refers to tangible resources, such as manufacturing facilities, a satellite system for communicating between offices or the use of a particular aircraft model by an airline. Governance of assets and policies refers to the structures of contractual arrangements that confer decision rights for policies or assets. For example, a given business model may contain as a choice to the certain assets, such as a fleet of tracks. The firm can own the fleet or lease it from a third part. The transaction cost economies can reduce the firm to pay asset purchase expenditure at same time because it only pay rent to lease to the fleet of trucks per month.So, business model is as the logic of the firm, the way , it operates and how it creates value for its stakeholders. The make operational , we argue that business models are composed of choices ( policies, assets, governance) and the consequences derived from the choices. For example, Ryanair airline business model includes: flying to secondary airports as lowest ticket prices, low commissions to travel agents, standardized fleet of Boeing 737s,treating all passengers equally, high powered incentives, none meals, nothing free. Consequences of these choices are: secondary airport changes low airport fees, lowest ticket prices can sell large volume, low commissions cost charges to travel agents, standardized fleet of Bosing 737 s has bargaining power with suppliers, all passengers treated equally to achieve economic of scale, high powered incentives to attract combative team, none meals provision to cause faster turnaround, nothing free causes addition revenue, headquarter is low fixed cost, and no unions will be flexibility. Ryanair airline business model is similar to a machine is assembled and how it works. There are many ways in which a machine to performance a given task can be designed and assembled: Different levels of specific mechanisms, quality of components. Different machine have different direct consequences to affect the overall level of efficiency of the machine ( speed, input, efficiency, noise, quality of output) etc. Other airlines are assembled differently than Ryanair airline , which have a different logic , a different way to operate and to create value for their stakeholders. These different ways to put together airlines correspond to different business models. In the case of Ryanair airline, the business model will have three cycles. The first cycle is : The lowest fares causes low quality service expected, to cause none meals, to cause low variable cost and to cause the consequence of lowest fares fare. The second cycles is: The lowest fare causes large volume, to cause high aircraft utilization, to cause low fixed cost/passenger, and to cause the consequence of lowest fares again. The third cycle is: The lowest fares causes large volume, to cause bargaining power with supplier, to cause low fixed fares again.