Podcast
Questions and Answers
Which of the following best describes market-oriented strategic planning?
Which of the following best describes market-oriented strategic planning?
- A rigid adherence to a pre-set plan, regardless of changes in the market.
- A short-term focus on immediate sales and revenue targets.
- Developing and maintaining a fit between an organization's goals, skills, and resources and its evolving market opportunities. (correct)
- Focusing solely on internal operations and cost reduction strategies.
When managing a company's businesses as an investment portfolio, what is the primary goal?
When managing a company's businesses as an investment portfolio, what is the primary goal?
- To avoid any risk by investing only in well-established, mature markets.
- To equally distribute resources across all business units regardless of performance.
- To maximize short-term gains from each business, even at the expense of long-term growth.
- To optimize the overall value and growth potential of the entire collection of businesses. (correct)
In the context of a high-performance business, which of the following is the most accurate understanding of 'stakeholders'?
In the context of a high-performance business, which of the following is the most accurate understanding of 'stakeholders'?
- Any group or individual who can affect or is affected by the achievement of the organization's objectives. (correct)
- Only customers who purchase the organization's products or services.
- Primarily shareholders and investors who provide capital.
- Exclusively internal employees and management teams.
What role does 'control' play in the relationship between analysis, planning, implementation, and control?
What role does 'control' play in the relationship between analysis, planning, implementation, and control?
Which of the following is NOT a primary element defining a high-performance business?
Which of the following is NOT a primary element defining a high-performance business?
A company's mission statement should primarily focus on:
A company's mission statement should primarily focus on:
When designing a business portfolio, why is it important to assess the future profit potential of each business unit?
When designing a business portfolio, why is it important to assess the future profit potential of each business unit?
In the corporate strategic planning process, what is the significance of analyzing the external environment?
In the corporate strategic planning process, what is the significance of analyzing the external environment?
What is the MOST important factor that shapes a company's mission?
What is the MOST important factor that shapes a company's mission?
Which of the following scopes defines the range of regions a corporation will operate in?
Which of the following scopes defines the range of regions a corporation will operate in?
Which of the following is a key characteristic of a Strategic Business Unit (SBU)?
Which of the following is a key characteristic of a Strategic Business Unit (SBU)?
According to the BCG Growth-Share Matrix, a business with a high market share in a low-growth market is classified as a:
According to the BCG Growth-Share Matrix, a business with a high market share in a low-growth market is classified as a:
A hotel chain acquiring a company that supplies linens and towels would be an example of:
A hotel chain acquiring a company that supplies linens and towels would be an example of:
What does SWOT analysis primarily contribute to business strategy planning?
What does SWOT analysis primarily contribute to business strategy planning?
What is the purpose of strategic alliances in the hospitality and tourism industry?
What is the purpose of strategic alliances in the hospitality and tourism industry?
Flashcards
Market-oriented strategic planning
Market-oriented strategic planning
The managerial process of creating and sustaining alignment between an organization's objectives, skills, resources, and evolving market opportunities.
Strategic Planning Approach
Strategic Planning Approach
This involves managing diverse business units like a collection of investments.
Assess Future Profit Potential
Assess Future Profit Potential
Evaluating the potential earnings of different business ventures.
Develop the Strategy
Develop the Strategy
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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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Industry Scope
Industry Scope
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Strategic Business Unit (SBU)
Strategic Business Unit (SBU)
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BCG Model
BCG Model
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Backward Integration
Backward Integration
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SWOT Analysis
SWOT Analysis
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Strategic Alliances
Strategic Alliances
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Overall Cost Leadership
Overall Cost Leadership
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Study Notes
Market-Oriented Strategic Planning
- A managerial process is for creating and maintaining a fit between an organization's objectives, skills, resources, and market opportunities.
Key Ideas Defining Strategic Planning
- Manage business as an investment portfolio.
- Assess future profit potential
- Develop a strategy.
Nature of High-Performance Business
- Key aspects that define a high-performance business include:
- Stakeholders.
- Processes.
- Resources.
- Organization.
Four Planning Activities
- Analysis
- Planning
- Implementation
- Control
High Performance Business
- Strategy sets should satisfy key stakeholders.
- Improving critical business processes leads to better outcomes.
- Aligning resources and organization lead to an effective strategy.
Stakeholder Relationships
- Satisfying stakeholders increases growth and profits.
- Customer satisfaction is attained through higher quality products and services.
- Breakthrough innovation and continuous improvement results in employee satisfaction.
Corporate Strategic Planning
- Corporate headquarters initiates the planning.
- Employee empowerment is needed.
- Hospitality and tourism industries are international and multicultural.
Defining the Corporate Mission
- Shaped by history.
- Resources determine what is possible.
- Based on distinctive competencies.
Competitive Scopes
- Ranges of Industries in which a company will operate.
- A range of products and applications in which the company participates.
- A range of technological & other core competencies.
- Market-segment scope refers to the the type of customers a company will serve.
- Vertical scope refers to the number of channel levels, from raw materials to final product and distribution.
- Geographic scope refers to the range of regions, countries or country groups where the corporation will operate.
Establishing Strategic Business Units
- A business is planned separately from the rest of the company.
- Has its own competencies.
- Has a manger responsible for strategic panning & profit performance.
Assigning Resources to Each SBU
- Models such as the Boston Consulting Group (BCG) 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 low relative market share
- Cash cows have low market growth rate and high relative market share
- Dogs have low market growth rate and relative market share
Developing Growth Strategies
- Market penetration utilizes existing markets and existing products.
- Market development uses new markets and existing products.
- Product development utilizes existing markets and new products.
- Diversification uses new markets and new products.
Diversification Growth
- Concentric diversification strategy
- Horizontal diversification strategy
- Conglomerate diversification strategy
Integrative Growth
- Backward integration is acquiring a supplier.
- Forward integration is acquiring a distributor of products.
- Horizontal integration is acquiring a competitor.
Business Strategy Planning
- Consists of a business mission.
- Requires SWOT Analysis:
- Strengths
- Weaknesses
- Opportunities
- Threats
Components of a SWOT Analysis
- Internal environment (strengths and weaknesses analysis).
- External environment (opportunities and threats analysis).
Goal Formulation
- Arrange goals from most to least important.
- State goals quantitatively.
- Ensure they are measurable and realistic.
- Must be consistent.
Strategy Formulation
- Strategies are the paths to goals.
- Types of strategies:
- Overall cost leadership.
- Differentiation
- Focus
Strategic Alliances
- Agreements between organizations that allow them to benefit from each other's strengths
Implementing a Business Strategy
- Create supporting programs.
- Requires resources for implementation.
- Requires employee agreement.
- Track results
- Monitor new developments.
Unique Challenges of the Hotel Industry
- Complicates the process of strategic planning:
- Chains do not own all the properties they manage.
- Owners show little interest in their property.
- Managers are not trained in strategic planning.
- Global strategic alliances complicate the planning process.
Best Practices
- Howard Schultz brought the European coffee experience to America via Starbucks.
- Starbucks focused on growth and new products.
Examples of Best Practices
- 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, portfolio management, and high-performance business strategies. Understand the roles of stakeholders, control, mission statements, and environmental analysis in corporate success. Learn to define a company's scope and identify key characteristics of strategies.
