Allegis Corporation Case Study
What does the story of Dick Ferris and Allegis tell you about the link between strategy formulation and stakeholders' demand?
There is strong relationship and linkage between strategy formulation and stakeholders' demand because the corporate mission statement is the first key indicator of how an organization views the claims of its stakeholders. Its purpose is to set the organizational context within which strategic decision will be made- in other words , to give an organization strategic focus and direction . All strategic decision flow from the mission statement .Typically , the mission statement defines the organization's business , states its vision and goals , and articulates its main philosophical values.
Allegis failed to satisfy the interests of two of its major constituencies, or stakeholders: its stakeholders and employees.
Why do you think that pilots and stakeholders of Allegis did not support Ferris's diversification strategy?
Because pilots and stakeholders fear that the airline is no longer the focus of the company and they want to return to their core business .
Furthermore, diversification strategy did not support pilots and it cause low cost carriers.