Lesson 2: Strategic Management (MGTN12B) PDF

LESSON 2 :STRATEGIC MANAGEMENT (MGTN12B) The Tourism, Hospitality and Events Context February 23-28,2024 Face-to- Face- meeting  Lesson 2: Strategic Management: The Tourism, Hospitality and Events Context Learning Objectives: 1. Define goods and servic...

LESSON 2 :STRATEGIC MANAGEMENT (MGTN12B) The Tourism, Hospitality and Events Context February 23-28,2024 Face-to- Face- meeting  Lesson 2: Strategic Management: The Tourism, Hospitality and Events Context Learning Objectives: 1. Define goods and services 2. Describe the key characteristics of service products and how they are relevant to THE organizations cont’n: Learning Objectives: 3. Explain the defining characteristics of THE products in particular 4. Explore some of the ways in which managers respond to the key features of THE products  Goods and Services 1. Goods and Services It is important to consider the nature of the products that comprises Tourism, Hospitality and Events. In general, there are two basic types of products: goods and services -Goods are tangible - things you can own  Goods and Services SERVICES: Services are intangible - things done on your behalf or for your benefit. You do not own service products, but instead you have to use them. For example, as a customer you do not own an aircraft seat on a flight, a hotel room, or an event that you attend, but instead you make use of the services offered (Evans, 2015). Nature and Characteristics of Service Source: https://cianclernon.wordpress.com/tag/heteroability/  Service Product Characteristics Intangibility and Inseparability 1. Intangibility – Unlike physical products, services cannot be seen, tasted, felt, heard, or smelled before they are purchased. 2. Inseparability - In most hospitality services, both the service provider and the customer must be present for the transaction to occur.  Service Product Characteristics Perishability and Heterogeinity 3. Perishability - Services cannot be stored. If service providers are to maximize revenue, they must manage capacity and demand because they cannot carry forward unsold inventory (Kotler, 2016) 4. Heterogeneity - Service quality depends on who provides the services and when and where they are provided. Services are produced and consumed simultaneously (Kotler, 2016).  Service Product Characteristics Ownership 5. Ownership - When a consumer buys a service he or she does not usually receive ownership of anything tangible. Service buyers are therefore buying only access to or use of something, which has important management implications. 3. Key Service Characteristics and their Implications for THE Managers. Chapter 2.2. Six Tourism, Hospitality and Events Characteristics The characteristics apply to all service products to some degree – which includes banking, insurance and professional services (legal accounting, etc.). Thus the characteristics considered previously, whilst certainly applicable to THE sectors are not unique to these sectors, but applicable across all service sectors.  2. Six Tourism, Hospitality and Events Characteristics Six further characteristics can be identified, which are particularly applicable to these sectors (though to varying degrees in the three sectors). Consequently these characteristics have a particular influence on decision making for managers operating in these three sectors (Evans, 2016).  2. Six Tourism, Hospitality and Events Characteristics 1. High cost 2. Seasonality 3. Ease of entry/exit 4. Interdependence 5. Impact on society 6. The effect of external shocks 3. Key Service Characteristics and their Implications for THE Managers  2.4. Strategic Management in tourism, hospitality and events context : The Case Study Method Case study analysis invariably forms part of most courses in strategic management. Case studies are used so as to enable students to understand the complete nature of strategic decision making and the inter-related nature of such decisions. Cases that covers various facets of tourism, hospitality and events management provide an illustration of the specific strategies management challenges that managers face in these contexts.  2.4. Strategic Management in tourism, hospitality and events context : The Case Study Method Case studies are thus a valuable tool in several ways. Case Studies: Provide experience of organizational problems and issues that it might not be possible or feasible to encounter directly. Serve to illustrate the theory and concepts of strategic management applied to relevant examples from THE Allow active participation in strategic analysis, choice and implementation and of presenting results persuasively  2.4. Strategic Management in tourism, hospitality and events context : The Case Study Method Illustrate the linkages inherent in strategic management in that internal decisions have impacts on other parts of the organization and on external stakeholders Illustrate the holistic nature of strategic management in that decisions often require knowledge of other subject fields such as marketing, finance, and human resource management.  4. Strategic Management in tourism, hospitality and events context : The Case Study Method In all cases considered, however, it is important to realize that what you are normally being asked to do is to place yourself in the position of a manager of an organization or within an industry sector at a particular moment in time.  Reading and Studying the Case In considering cases you are expected to go beyond merely describing the circumstances of the case. The case method requires you to analyse the case in detail and develop sound reasoned judgements that will lead to recommendations being made.  Reading and Studying the Case In so doing, it is important to recognize the key or strategic points of the case and to distinguish these points from less substantial or trivial points. A manager has to make sense of the information and discern the important or urgent from the less important or less urgent. So in analyzing the case it is important to ask what are the central issues? ANALYSIS ASPECT AND TIPS ANALYSIS ASPECT ANALYSIS ASPECT AND TIPS ANALYSIS ASPECT AND TIPS ANALYSIS ASPECT AND TIPS  2.5 Strategic Management in Tourism, Hospitality and context: THE CASE STUDY METHOD Case study analysis -invariably forms part of most courses in strategic management. Case studies -are used so as to enable students to understand the complete nature of strategic decision making and the inter-related nature of such decisions. Cases that covers various facets of tourism, hospitality and events management provide an illustration of the specific strategies management challenges that managers face in these contexts.  2.5 Strategic Management in tourism,Hospitality and context: Case studies are thus a valuable tool in several ways. Case Studies: Provide experience of organizational problems and issues that it might not be possible or feasible to encounter directly. Serve to illustrate the theory and concepts of strategic management applied to relevant examples from THE Allow active participation in strategic analysis, choice and implementation and of presenting results persuasively  Cont’n: 2..5 Strategic Management in tourism,Hospitality and context: Case studies are thus a valuable tool in several ways. CASE STUDIES: Illustrate the linkages inherent in strategic management in that internal decisions have impacts on other parts of the organization and on external stakeholders Illustrate the holistic nature of strategic management in that decisions often require knowledge of other subject fields such as marketing, finance, and human resource management.  2..5 Strategic Management in tourism,Hospitality and context: Case studies are thus a valuable tool in several ways. CASE STUDIES: In all cases considered, however, it is important to realize that what you are normally being asked to do is to place yourself in the position of a manager of an organization or within an industry sector at a particular moment in time.  2..5 Strategic Management in tourism,Hospitality and context: Case studies are thus a valuable tool in several ways. CASE STUDIES: The important point is not what actually happened to the company in reality, but given the available information, how would you have made sense of the information available to you at the time and what actions would you have recommended in the circumstances.  2.5 Strategic Management in tourism,Hospitality and context: Case studies are thus a valuable tool in several ways. Case Studies: 1. Why Analyze Strategic Management Cases? It is often said that the key to finding good answers is to ask good questions. Strategic managers and business leaders are required to evaluate options, make choices, and find solutions to the challenges they face everyday. To do so, they must learn to ask the right questions. The study of strategic management poses the same challenge.  2.5 Strategic Management in tourism,Hospitality and context: Case studies are thus a valuable tool in several ways. Case Studies: The process of analyzing, decision making, and implementing strategic actions raises many good questions: Why do some firms succeed and others fail? Why are some companies higher performers than others? What information is needed in the strategic planning process? How do competing values and beliefs affect strategic decision making? What skills and capabilities are needed to implement a strategy effectively?  2..5 Strategic Management in tourism,Hospitality and context: How does a student of strategic management answer these questions? By strategic case analysis. Case analysis stimulates the real-world experience that strategic managers and company leaders face as they try to determine how best to run their companies.  2..5 Strategic Management in tourism,Hospitality and context: A strategic management case is a detailed description of a challenging situation faced by an organization. It usually includes a chronology of events and extensive support materials such as financial statements, product lists, and transcripts of interviews with employees.  2..5 Strategic Management in tourism,Hospitality and context: One of the main reasons to analyze strategic management cases is to develop an ability to evaluate business situations critically. In case analysis, memorizing key terms and conceptual frameworks is not enough.  2..5 Strategic Management in tourism,Hospitality and context: The types of skills that are required to prepare an effective strategic case analysis can benefit you in actual business situations. Three capabilities can be learned by conducting case analysis: 1. Differentiate - Effective strategic management requires that many different elements of a situation be evaluated at once. This is also true in case analysis. When analyzing cases, it is important to isolate critical facts, evaluate whether assumptions are useful or faulty, and distinguish between good and bad information.  2..5 Strategic Management in tourism,Hospitality and context: Three capabilities can be learned by conducting case analysis: 1. Differentiate - Effective strategic management requires that many different elements of a situation be evaluated at once. This is also true in case analysis. When analyzing cases, it is important to isolate critical facts, evaluate whether assumptions are useful or faulty, and distinguish between good and bad information.  2..5 Strategic Management in tourism,Hospitality and context: Three capabilities can be learned by conducting case analysis: 1. Differentiate - Differentiating between the factors that are influencing the situation presented by a case is necessary for making a good analysis. Strategic management also involves understanding that problems are often complex and multilayered  2.5 Strategic Management in tourism,Hospitality and context: Three capabilities can be learned by conducting case analysis: 2. Speculate - Strategic managers need to be able to use their imagination to envision an explanation or solution that might not readily be apparent. The same is true with case analysis. Being able to imagine different scenarios or contemplate the outcome of a decision can aid the analysis. Managers have to deal with uncertainty since most decisions are made without complete knowledge of the circumstances.  2..5 Strategic Management in tourism,Hospitality and context: Three capabilities can be learned by conducting case analysis: 3. Integrate - Strategy involves looking at the big picture and having an organization wide perspective. Strategic case analysis is no different. A strategic manager needs to comprehend how all the factors that influence the organization will interact.  2..5 Strategic Management in tourism,Hospitality and context: 2. How to Conduct a Case Analysis The process of analyzing strategic management cases involves several steps. First, unless you prepare for a case discussion, there. is little you can gain from the discussion and even less that you can offer. Effective strategic managers don't enter into problem-solving situation without doing some homework-- investigating the situations, analyzing and researching possible solutions, and sometimes gathering the advice of others. Good problem solving often requires that decision makers be immersed in the facts, options, and implications surrounding the problem.  2..5 Strategic Management in tourism,Hospitality and context: 2. How to Conduct a Case Analysis. The second point is related to the first. To get the. most out of a case analysis, you must place yourself "inside" the case. Think like an actual participant in the case situation. There are several positions you can take:  2..5 Strategic Management in tourism,Hospitality and context: 2. How to Conduct a Case Analysis Strategic. decision maker. This is the position of the senior executive responsible for resolving the situation describe in the case. It may be the CEO, the business owner, or a strategic manager in a key executive. position. Board of directors. Since the board of directors represents the owners of a corporation, it has a responsibility to step in when a management crisis threatens the company. As a board member, you may be in a unique position to solve problems.  2..5 Strategic Management in tourism,Hospitality and context:. How to Conduct a Case Analysis 2. Outside. consultant. Either the board or top management may decide to bring in outsiders. Consultants often have an advantage because they can look at a situation objectively.  2..5 Strategic Management in tourism,Hospitality and context: 5 Five Steps to Follow When Conducting A Strategic. Management Case Analysis: 1. Become Familiar with the Material. Read quickly through the case one time to get an overall sense of the material Use the initial read-through to assess possible links to strategic concepts  2..5 Strategic Management in tourism,Hospitality and context: 5 Five Steps to Follow When Conducting A Strategic. Management Case Analysis: 1. Become Familiar with the Material. Read through the case again, in depth. Make written notes as your read Evaluate how strategic concepts might inform key decisions or suggest alternative solutions. After formulating initial recommendations, thumb through the case again to help assess the consequences of the actions you propose.  2..5 Strategic Management in tourism,Hospitality and context: 5 Five Steps to Follow When Conducting A Strategic Management Case Analysis:. 2. Identify Problems When conducting case analysis, one of your most important task is to identify the problem. Earlier we noted that one of the main reasons to conduct case analysis is to find solutions.  2..5 Strategic Management in tourism,Hospitality and context:. 5 Five Steps to Follow When Conducting A Strategic Management Case Analysis: 2. Identify Problems Some cases have more than one problem, But the problems are usually related. For a hypothetical example, consider the following: Company A was losing customers to a new competitor. Upon analysis, it was determined that the competitor had a 50 percent faster delivery time even though its product was of lower quality. The managers of company A could not understand why customers would settle for an inferior product  2..5 Strategic Management in tourism,Hospitality and context: 5 Five Steps to Follow When Conducting A Strategic. Management Case Analysis: 2. Identify Problems Another tip when preparing a case analysis is to articulate the problem. Writing down a problem statement gives you a reference point to turn to as you proceed through the case analysis.  2..5 Strategic Management in tourism,Hospitality and context: 5 Five Steps to Follow When Conducting A Strategic. Management Case Analysis: 3. Conduct Strategic Analyses The first step is to determine which strategic issues are involved. Is there a problem in the company's competitive environment or is it an integral problem? Once you have identified the issues that apply to the case, conduct the analysis. For example you may need to conduct a five-forces analysis or SWOT analysis  2..5 Strategic Management in tourism,Hospitality and context: 5 Five Steps to Follow When Conducting A Strategic. Management Case Analysis: 4. Propose Alternative Solutions It is important to remember that in strategic management case analysis, there is rarely one right answer or one best way.  2..5 Strategic Management in tourism,Hospitality and context: 5 Five Steps to Follow When Conducting A Strategic. Management Case Analysis: 4. Propose Alternative Solutions First, generate a list of all the options you can think of without prejudging any one of them. This point illustrates the purpose of developing alternatives: to evaluate what will happen if a company chooses one solution over another.  2..5 Strategic Management in tourism,Hospitality and context: 5 Five Steps to Follow When Conducting A Strategic. Management Case Analysis: 4. Propose Alternative Solutions First, generate a list of all the options you can think of without prejudging any one of them. This point illustrates the purpose of developing alternatives: to evaluate what will happen if a company chooses one solution over another.  2..5 Strategic Management in tourism,Hospitality and context: 5 Five Steps to Follow When Conducting A Strategic. Management Case Analysis: 5. Make Recommendations The basic aim of a case analysis is to find solutions. Your analysis is not complete until you have recommended a course of action. In this step the task is to make a set of recommendations that your analysis supports. Describe exactly what needs to be done. explain why this course of action will solve the problem.  2..5 Strategic Management in tourism,Hospitality and context: 5 Five Steps to Follow When Conducting A Strategic. Management Case Analysis: 5. Make Recommendations The recommendations should also include suggestions for how best to implement the proposed solution because the recommended actions and their implications for the performance and future of the firm are interrelated.  2..5 Strategic Management in tourism,Hospitality and context: 5 Five Steps to Follow When Conducting A Strategic. Management Case Analysis: 5. Make Recommendations The recommendations should also include suggestions for how best to implement the proposed solution because the recommended actions and their implications for the performance and future of the firm are interrelated.  2..5 Strategic Management in tourism,Hospitality and context: 5 Five Steps to Follow When Conducting A Strategic Management Case Analysis:. 5. Make Recommendations Recall that the solution you proposed must solve the problem you identified. Make a logical argument that shows how the problem led to the analysis and the analysis led to the recommendations you are proposing. Source: (Dess, McNamara, Eisner, Lee, 2019)..