Marketing for Hospitality and Tourism Chapter 3

Marketing for Hospitality and Tourism - Chapter 3

• Chapter 3, titled "The Role of Marketing in Strategic Planning," discusses the significance of strategic planning in the hospitality and tourism industries.
• The chapter objectives include explaining company-wide strategic planning, understanding stakeholders, processes, resources, and organizational structure, and outlining the four core planning activities in corporate strategic planning.
• These objectives also include defining a company's mission and goals, designing business portfolios and growth strategies, and detailing the business strategy planning process.
• Market-oriented strategic planning is a managerial process that aims to create a sustainable fit between the organization's goals, skills, and resources, and the constantly changing market opportunities.
• Key elements of strategic planning include managing businesses as an investment portfolio, assessing future profit potential, and developing the actual strategic plan.
• A high-performing business considers stakeholders, processes, resources, and organization to ensure success. This involves various stakeholders like employees, governments, customers, communities, and investors.
• The relationship between analysis, planning, implementation, and control is crucial for success. Analysis informs planning, planning guides implementation, implementation facilitates the evaluation of results and, in return, corrective actions lead to further improvements.
• The high-performance business strategy prioritizes key stakeholders while improving critical processes and ensuring resource alignment to achieve organizational goals.
• Dynamic relationships exist among stakeholder groups that drive positive outcomes. Stakeholder satisfaction, enhanced product quality, advancements in services, and innovations lead to growth and profitability.
• Corporate strategic planning involves corporate headquarters directing the planning process, emphasizing employee empowerment, and recognizing the multicultural nature of hospitality and tourism.
• Corporate strategic plans often include a defined vision, mission, and values to guide the organization's overall direction.
• Defining the company mission is a key aspect of corporate strategic planning; shaping the mission based on the business history and resources is important, and the mission should highlight distinctive competencies of the organization.
• Defining competitive scopes involves determining the industries, products, applications, technological, and other core competencies the organization intends to pursue.
• Market segments, vertical scope (raw materials to final distribution), and geographic scope are crucial elements in determining competitive scopes.
• Strategic business units (SBUs) are single businesses or related businesses that can be independently planned and managed. Each SBU has its own competencies, and a manager responsible for strategic planning and profit performance.
• Tools like the Boston Consulting Group (BCG) Growth-Share Matrix are used to classify SBUs based on profit potential, classifying businesses into categories like stars, question marks, cash cows, and dogs.
• Various growth strategies exist, categorized based on whether the company targets existing or new markets and products and whether these are related to the core business. Examples include market penetration, market development, product development, and diversification.
• There are different types of diversification including concentric, horizontal, and conglomerate diversification strategies.
• Integrative growth strategies involve acquiring suppliers (backward), distributors (forward), or competitors (horizontal).
• Business strategy planning includes activities like defining business mission, conducting SWOT analysis, formulating goals, setting strategies, formulating programs, and evaluating results.
• The hotel industry faces unique challenges, including varied ownership structures, limitations in owner knowledge of their properties, and inconsistent training of professional managers on aspects of strategic planning.
• Best practices in strategic planning include learning from successful examples such as Howard Schultz's introduction of Starbucks, adapting innovations to stay ahead of competition, and the strategic approaches used by corporations like The Inn on Biltmore Estates, Tricon Global Restaurants, Jack in the Box, Las Vegas Hilton, Hyatt Hotels, and Boston Greater Convention and Visitors Bureau.