Podcast
Questions and Answers
A hospitality company deciding to expand its chain of hotels into new international markets is primarily addressing which aspect of its competitive scope?
A hospitality company deciding to expand its chain of hotels into new international markets is primarily addressing which aspect of its competitive scope?
- Market-segment scope
- Vertical scope
- Geographic scope (correct)
- Product and applications scope
Which element is most crucial when defining a corporate mission?
Which element is most crucial when defining a corporate mission?
- The company's history (correct)
- The current economic climate
- Competitor's strategies
- The latest industry trends
What is the primary role of a Strategic Business Unit (SBU) within a large corporation?
What is the primary role of a Strategic Business Unit (SBU) within a large corporation?
- To provide legal and financial advice to the parent company
- To focus on public relations and marketing for the corporation
- To be planned for separately from the rest of the company (correct)
- To manage day-to-day operational tasks across the entire company
In the context of the BCG Growth-Share Matrix, a 'Cash Cow' is characterized by:
In the context of the BCG Growth-Share Matrix, a 'Cash Cow' is characterized by:
A hotel chain acquires a company that supplies linens and towels to its properties. This is an example of what type of integrative growth?
A hotel chain acquires a company that supplies linens and towels to its properties. This is an example of what type of integrative growth?
What is the purpose of performing a SWOT analysis as part of the business strategy planning process?
What is the purpose of performing a SWOT analysis as part of the business strategy planning process?
Which of the following is a key characteristic of well-formulated goals in business strategy planning?
Which of the following is a key characteristic of well-formulated goals in business strategy planning?
A restaurant aims to become known for its innovative dishes and exceptional customer service, setting it apart from competitors. Which generic strategy is the restaurant pursuing?
A restaurant aims to become known for its innovative dishes and exceptional customer service, setting it apart from competitors. Which generic strategy is the restaurant pursuing?
Two airline companies enter into an agreement to share resources and coordinate flight schedules on certain routes. What does this exemplify?
Two airline companies enter into an agreement to share resources and coordinate flight schedules on certain routes. What does this exemplify?
What is the risk of pursuing a horizontal diversification strategy?
What is the risk of pursuing a horizontal diversification strategy?
Which of the following best describes market-oriented strategic planning?
Which of the following best describes market-oriented strategic planning?
In the context of strategic planning, managing a company's businesses as an investment portfolio involves:
In the context of strategic planning, managing a company's businesses as an investment portfolio involves:
Which of the following is NOT explicitly identified as a key element of a high-performance business?
Which of the following is NOT explicitly identified as a key element of a high-performance business?
What is the correct order of the elements in a high-performance business?
What is the correct order of the elements in a high-performance business?
How do high-performance businesses view the relationship between stakeholder groups?
How do high-performance businesses view the relationship between stakeholder groups?
A company decides to focus its strategic planning on understanding and meeting the needs of its customers. Which of the following actions would best support this?
A company decides to focus its strategic planning on understanding and meeting the needs of its customers. Which of the following actions would best support this?
What is the primary benefit of managing a company’s various businesses as an investment portfolio?
What is the primary benefit of managing a company’s various businesses as an investment portfolio?
A company is undergoing strategic planning. Which activity is MOST vital for aligning the company's objectives with market opportunities?
A company is undergoing strategic planning. Which activity is MOST vital for aligning the company's objectives with market opportunities?
What is the potential pitfall of neglecting stakeholder relationships in strategic planning?
What is the potential pitfall of neglecting stakeholder relationships in strategic planning?
How can viewing stakeholder relationships as dynamic and interconnected improve a company's strategic planning?
How can viewing stakeholder relationships as dynamic and interconnected improve a company's strategic planning?
Flashcards
International & Multicultural
International & Multicultural
The hospitality and tourism industries operate across different nations and cultures.
Corporate Mission
Corporate Mission
A statement of an organization's purpose, shaped by its history, resources, and distinctive competencies.
Industry Scope
Industry Scope
The scope defines the industries a company will consider entering.
Strategic Business Unit (SBU)
Strategic Business Unit (SBU)
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BCG Matrix Classifications
BCG Matrix Classifications
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Diversification Growth
Diversification Growth
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Integrative Growth
Integrative Growth
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SWOT Analysis
SWOT Analysis
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Market-Oriented Strategic Planning
Market-Oriented Strategic Planning
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Goal Formulation
Goal Formulation
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Strategic Alliances
Strategic Alliances
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Stakeholders
Stakeholders
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Processes
Processes
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Resources
Resources
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Organization
Organization
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High-Performance Business Model
High-Performance Business Model
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Investment Portfolio Management
Investment Portfolio Management
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Strategic Planning
Strategic Planning
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Dynamic Capabilities
Dynamic Capabilities
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Strategic Control
Strategic Control
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Study Notes
- Market-oriented strategic planning is the managerial process of developing and maintaining a feasible fit between the organization's objectives, skills, and resources and its changing market opportunities
Key Ideas Defining Strategic Planning
- Manage companies businesses as an investment portfolio
- Assess future profit potential
- Develop the strategy itself
Nature of High-Performance Business
- High-performance businesses consider stakeholders, processes, resources, and organization
- Stakeholders include governments, customers, employees, communities, suppliers, and investors
The Relationship Between Analysis, Planning, Implementation, and Control
- There's a relationship between analysis, planning, implementation, and control in business operations
- Planning involves developing strategic and marketing plans
- Implementation involves carrying out plans
- Control involves measuring results, evaluating results, and taking corrective action
High Performance Business
- Strategies are set to satisfy stakeholders
- Critical business processes are improved
- Resources and organization are alligned
Dynamic Relationships Among Stakeholder Groups in High Performance Businesses
- Stockholder satisfaction is a product of growth and profits
- Customer satisfaction is a product of higher-quality products and services
- Employee satisfaction comes from a higher-quality work environment
Corporate Strategic Planning
- Corporate headquarters sets the planning process into motion
- There is a greater need for empowerment of employees
- The hospitality and tourism industries are international and multicultural
Defining the Corporate Mission
- Mission is shaped by History
- Resources determine possibilities
- Mission is based on distinctive competencies
Competitive Scopes
- Industry scope is the range of industries that the company will consider
- Products and applications scope is the range of products and application the company will participate in
- Competencies scope is the range of technological and other core competencies the company will master and leverage
- Market-segment scope pertains to the type of market or customers the company will serve
- Vertical scope pertains to the number of channel levels from raw materials to final product and distribution in which the company will engage
- Geographic scope pertains to range of regions, countries or country groups where the corporation will operate
Establishing Strategic Business Units
- A single business or a collection of related businesses can be planned separately from the rest of the company
- It has its own set of competencies
- There is a manager responsible for strategic planning and profit performance
Assigning Resources to Each SBU
- Analytical tools, such as the Boston Consulting Group (BCG) model are used to classify businesses by profit potential
BCG Growth-Share Matrix
- Stars have high market growth rate and relative market share
- Question marks have high market growth rate and but low relative market share
- Cash cows have low market growth rate but high relative market share
- Dogs have low market growth rate and low relative market share
Growth Strategies
- Market penetration: existing markets, existing products
- Market development: new markets, existing products
- Product development: existing markets, new products
- Diversification: new markets, new products
Diversification Growth
- Concentric diversification
- Horizontal diversification
- Conglomerate diversification
Integrative Growth
- Backward integration involves acquiring a supplier
- Forward integration involves acquiring a distributor of your product
- Horizontal integration involves acquiring a competitor
Business Strategy Planning
- Business strategy planning considers the business mission
- SWOT Analysis: Strengths, Weaknesses, Opportunities, Threats
- Internal Environment Analysis: Strengths and Weaknesses Analysis
- External Environment Analysis: Opportunities and Threats Analysis
- Goal Formulation is arranged from most to least important
- Goal Formulation is stated quantitatively, measurable, realistic and consistent
- Strategy Formulation are paths to achieve goals
Business Strategy - 3 generic types
- Overall cost leadership: Offer the same product at a lower cost
- Differentiation: Offer a unique product
- Focus: Offer the same product to a particular target market
Business Strategy Planning - Strategic Alliances
- Strategic Alliances are cooperative agreements between organizations that allow them to benefit from each other's strengths
Business Strategy Planning - Programs
- Program formulation is the approach for programs supporting a business's strategy
- Implementation- To implement strategy, required resources and employee buy-in are necessary
- Feedback and Control involves tracking results and monitoring new developments
Challenges in hotel industry
- Unique Challenges of the hotel industry complicate the process of strategic planning because:
- Major chains commonly does not own all properties that they manage
- Owners of hotel-resorts often show little interest or knowledge of their property (ego-capital concept)
- Professional managers often are not trained in strategic planning
- Global strategic alliances may further complicate the planning process
Best Practices
- Howard Schultz brought the European coffee experience to America via Starbucks
- Growth, new products, and new retail channels help stave off competition
Best Practices in Strategic Planning - successful strategies
- The Inn on Biltmore Estates
- Tricon Global Restaurants (Yum Brands)
- Jack In The Box
- The Las Vegas Hilton
- Hyatt Hotels
- Boston Greater Convention and Visitors Bureau
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Description
Explore market-oriented strategic planning: aligning organizational objectives with market opportunities. Learn about managing businesses as investment portfolios and assessing profit potential. Understand the nature of high-performance businesses and the relationship between analysis, planning, implementation, and control.
