Week 3 Lecture Slides
Uploaded by
banhmi1986Week 3 Lecture Slides
Uploaded by
banhmi1986Week-3
Strategic Management in T & H
❖Strategic Management Process
❖Key Terms to reflect
❖Strategic Approach, Development & Review
❖Pestle- Micro & Macro Environ Forces Analysis
❖Driving Forces influence
❖SWOT & Porter’s Model
❖Business Strategies
❖Ansoff Growth Strategy (Market)
❖Video on 2020 Strategies
Strategic Management Definition
Strategic management in a business
refers to the planning, management,
utilization of resources to define and
achieve objectives efficiently. It also
includes a review of internal
processes and external factors
impacting the business. Formulating
and implementing strategies allow a
company to proceed with its action
plan.
KEY TERMS IN STRATEGIC
MANAGEMENT IN T & H
❖VISION
❖MISSION
❖GOALS
❖EXTERNAL OPPO & EXTERNAL THREATS
❖OBJECTIVES- MEASURABLE, CONSISTENT,
REASONABLE, CLEAR. SHORT TERM AND
LONG TERM OBJECTIVES
❖SIMPLE SGT MODEL TO REFLECT: WHERE
ARE WE NOW/ WHERE DO WE WANT TO GO?
HOW ARE WE GOING TO GET THERE?
Strategic Management Process Model
Fig-1: STRATEGIC MANAGEMENT FOR HOSPITALITY AND TOURISM
FEVZI OKUMUS, LEVENT ALTINAY, PRAKASH CHATHOTH AND MEHMET ALI KÖSEOGLU
Strategic management process has four
steps:
1.Environmental Scanning
✓Environmental scanning refers to a process of collecting, scrutinizing and providing
information for strategic purposes.
✓It helps in analyzing the internal and external factors influencing an organization.
✓After executing the environmental analysis process, management should evaluate it on
a continuous basis and strive to improve it.
2. Strategy Formulation- Strategy formulation is the process of deciding best course
of action for accomplishing organizational objectives and hence achieving
organizational purpose.
✓After conducting environment scanning, managers formulate corporate, business and
functional strategies.
Strategic management process has four
steps (contd..)
3. Strategy Implementation
✓Strategy implementation implies making the strategy work as intended or putting the organization’s chosen strategy into action.
✓Strategy implementation includes designing the organization’s structure, distributing resources, developing decision making
process, and managing human resources.
4. Strategy Evaluation
✓Strategy evaluation is the final step of strategy management process.
✓The key strategy evaluation activities are: appraising internal and external factors that are the root of present strategies,
measuring performance, and taking remedial/corrective actions.
✓Evaluation makes sure that the organizational strategy as well as it’s implementation meets the organizational objectives.
.
Strategic management process has four
steps (contd..)
These components are steps that are carried, in
chronological order, when creating a new
strategic management plan. Present businesses
that have already created a strategic
management plan will revert to these steps as
per the situation’s requirement, so as to make
essential changes
Strategic Approach, Development and Review
Strategic Approaches to Building
Competitive Advantage
Examples: Strategies Based on
Review : actual performance,
Distinctive Capabilities – Resort
environment changes, technology
hotels, Business Hotels, Extreme
etc
Sports Hotel, China Bar; Health Spa
Strategic Development and
Monitoring Model ( 5 Step): i.
developing Vision ii. Set objectives iii
craft strategy iv implement v.
monitoring & corrective action
An Example of Strategic
Management
A beverage company is looking to increase its market share.
Company executives decide to launch a new line of flavored water.
Before commencing with production, they initiate a strategic
management process. They evaluate their current pipeline for
launching new products and perform a SWOT analysis. They find
that their biggest strengths are in their robust supply chain process,
while their weakness lies in their marketing strategy.
The next step is creating a clear and achievable strategic plan to
capitalize on the organization’s strengths. Company leadership
works with all relevant stakeholders and strategists to create a
detailed resource allocation plan, a timeline from initial product
development to launch, and metrics for evaluating success (let’s say a
five percent increase in market share). They also decide to tweak
the organizational structure of the marketing department to
promote better communication with other teams. Thirty days after
the launch of the new product line, the company reviews the
performance of the campaign and makes adjustments accordingly.
The Canoe Theory-
Strategic Management
❖Think of your organization as a long canoe
❖The canoe has a destination
❖Everyone in the canoe has a seat and paddle
❖Everyone is expected to paddle
❖Those who won’t paddle have to get out of the
canoe
❖Those who prevent others from paddling have to re-
adjust or get out of the canoe
❖There are no passengers in the canoe
❖The canoe theory understands crisis
❖The canoe theory says you have the right to be
happy
The Canoe Theory: A business
Success Strategy For Leaders
The Canoe Theory compares an organization and its
members to a canoe and its crew. Like canoes, businesses
need every member to "paddle" together for greater
success. Today, more than ever, employers and
employees feel disconnected from one another. The
Canoe Theory provides solutions to difficult challenges
business leaders and employees alike face and details
how to bridge the gap and "paddle" together. This short
yet powerful book lays out the seven simple principles of
The Canoe Theory and how implementing them equals
organizational success. Business leaders from across the
country from organizations such as The Irvine
Company, DuPont, and Steelcase, just to name a few,
practice "the Canoe Theory."
VIDEO -THE CANOE THEORY:
TENETS OVERVIEW
Analysis using Key Strategic
Mgt Tools
PESTEL Analysis
We know that a business firm in an economy is affected by both micro and macro factors in its
external environment. In addition, these factors are not in control of the firm themselves.
However, PESTEL analysis is a tool that helps in analysing these factors. Furthermore, this is what
firms use to understand and monitor the macro-environmental factors. So let us see how this is
done.
PESTLE or PESTEL Analysis is a tool which helps companies have a ten thousand foot view of
the macro environment it is operating in. PESTEL is an acronym and the letters stand for Political,
Economic, Social, Technological, Environmental and Legal. Also, this framework helps to keep
track of all the changes happening in the environment.
Moreover, this framework has undergone many changes and also has many variations. Previously it
was only PEST analysis. Then the legal environment was included later. At the present time, a
debate is going on about including Ethics in the framework.
Analysis
using Key
Strategic
Mgt Tools
Coping with COVID-19: Hotel industry hit
hard with layoffs and closures, looks to the
future- strategies for the future
Watch this video (click on the link)-a discussion on Hotel
Industry.
Coping with COVID-19: Hotel industry hit hard with layoffs
and closures, looks to the future Class
•23 Mar 2020
Activity
Click on this LINK: https://youtu.be/sNzm3Sr0a7I
What are the Driving Forces
faced by the T & H Sector ?
❖ Internet and e-commerce opportunities
❖ Increasing globalization of industry
❖ Changes in long-term industry growth rate
❖ Changes in who buys the product and
how they use it
❖ Product innovation
❖ Technological change/process innovation
❖ Marketing innovation
SWOT Analysis
Analysis using Key Strategic Mgt Tools -2 :
Porter’s 5 Forces Theory
The Five Generic Competitive Strategies
Merger and Acquisition Strategies
Business Outsourcing Strategies
Strategies First-Mover Advantages
for T & H Vertical Integration Strategies
Backward & Forward Integration
Disneyland Strategies - Video
GOOD LUCK
for your
Assessment #1
(MCQ’s)