STRATEGY a.

Inputs that
cannot be
- Greek word “STRATEGOS” (general) seen or
o “LEADERS OF THE ARMY” felt
- making you think ahead
- Professor Chandler of Harvard STRATEGIC MANAGEMENT
Business School in 1962.
- giving you concepts, frameworks, tools and
o determination of the basic
techniques
long-term goals and objectives
- develop a framework for thinking
of an enterprise, and the
ahead
adoption of courses of action
- Mintzberg‟s five Ps
and the allocation of resources o Professor Henry Mintzberg of McGill
- ELEMENTS OF STRATEGY University in Montreal, Canada
o Determination of the basic
o writing in the late 1980s
long-term goals and objectives o Plan Strategies
▪ conceptualization of coherent
▪ Long term strategy
and attainable strategic
▪ progress is monitored
objectives
▪ deliberate or perspective
o Adoption of courses of action strategy
▪ actions taken to arrive at the
o Ploy Strategies
objectives
▪ short-term strategy
o allocation of resources ▪ detailed tactical action
▪ cost associated with the actions ▪ ‘a manoeuvre intended to
required outwit an opponent or
▪ Resource inputs competitor’
• factors of production ▪ have very limited objectives and
• essential to the normal it may be subject to change at
functioning of the very short notice
organizational process. o Pattern Strategies
1. Financial ▪ “pattern of behaviour” strategy
resources ▪ Adopting a consistent form of
a. Money behavior
b. shareholder o Position Strategies
s, banks, ▪ positioned in respect to its
bondholder competitors or its markets
s, etc. ▪ organization wishes to achieve
2. Human or defend a certain position.
resources o Perspective Strategies
a. Workforce ▪ Changing the culture
b. skilled ▪ companies want to make their
employees employees think in a certain
c. labour way
markets
3. Physical LEVELS OF STRATEGIC DECISIONS
(tangible) 1. Strategic Level Decisions
resources a. primary focus
a. Land, b. acquisition of sustainable competitive
buildings, advantage
plant, c. formulation, evaluation, selection and
equipment monitoring of strategies
, stock for d. made by senior managers (usually
production directors)
, transport e. affect the whole organization
equipment
f. Decisions to launch new
, etc.
products, enter new markets,
4. Intellectual
takeover competitors,
(intangible) investment decisions
resources 2. Tactical Level Decisions
 a. how strategic level objectives are to be • directly point at a prime
met and how strategies are goal
implemented ▪ Future orientation
b. dependent upon overall strategy and • do not consist of a one-
involve fine tuning and adjustment time
c. made at the head of business unit, ▪ Stability
d. have an effect only in parts • do not shift in response
e. Decision to advertise, adjust to short-term trends,
prices, alter product features • flexible enough to
etc. weather fluctuations
3. Operational Level Decisions ▪ Challenge
a. shorter-term objectives • Motivates staff
b. day-to-day management members to try their
c. dependent upon strategy and tactics best
d. made at junior managerial or
supervisory level OBJECTIVES
e. high degree of certainty, and are not - Types of Objectives
complex
o Closed
HIERARCHICAL CONGRUENCE ▪ quantitative terms,
▪ specific
- happens when the tactical and operational o Open
decisions must “fit” the strategic objectives ▪ qualitative terms,
- success of the strategy as a result ▪ general
- objectives set at various levels must be aligned - essential to the successful accomplishment of
with each other the managerial function
o provide a sense of direction;
MISSION, VISION AND VALUES
o provide a standard of measurement and
- manifestations of an organization’s identity; a means of controlling performance;
- personality o project an image of the organization’s
- Mission style
o what the organization does - Corporate objectives
o critical first step in planning is the o translate the mission and vision into
definition of an organizational mission. specific long-term targets
Powers (2012) - Objective writing is a CRIME
- mission statement o C – Communicable
o articulates the fundamental purpose of ▪ Easily communicated
the organization o R – Realistic
o contains several components (Hitt et al., ▪ achieved within the timescale
2012) o I – Internally consistent
▪ company philosophy; ▪ consistent with the overall
▪ company identity or self- organizational mission
concept; o M – Measurable
▪ principal products or services; ▪ capable of being quantified so
▪ customers and markets; that they can be measured
▪ geographic focus; o E – Explicit
▪ obligations to shareholders; ▪ written in clear and
▪ commitment to employees unambiguous language
- VISION - set by an organization’s senior management –
o what the company would like to the board of directors
achieve. o Stockholder Approach
- VALUES ▪ businesses exist primarily for
o How managers and employees should their owners
conduct themselves, ▪ STOCKHOLDERS
o ‘powerful’ visions look like • who own at least one
▪ Conciseness share of the company’s
• easy to communicate stocks
and remember o Stakeholder Approach
▪ Clarity
 ▪ affected by the achievement of difficult to alter, at
an organization’s objectives least in the short
▪ Stakeholder term
• Legitimate interest in ▪ Heterogeneity
the organization’s • Never identical.
activities • standardization of
procedures
UNWTO ▪ Ownership
- United Nations World Tourism • Customers use
Organization services rather than
- Tourism own them
o movement of people • Loyalty schemes
o the frequent
NATURE OF PRODUCTS: GOODS AND flyer
SERVICES programmes
- GOODS operated by
o Tangible many airlines
o things you can own and frequent
o raw materials, parts, sub- guest
assemblies, or final products programmes
- SERVICES
o Intangible 6 CHARACTERISTICS OF TOURISM AND
o things done on your behalf or for HOSPITALITY
your benefit 1. High Cost
o Characteristics of service a. Potential customers will want
▪ Intangibility reassurance about the reliability
• Services cannot of the product, the value for
normally be seen money the purchase represents,
▪ Inseparability and the quality and value
• production and provided
consumption of b. companies have to build up a
services, including relationship with customers
those in THE over a period of time to provide
sectors, are reassurance before the purchase
inseparable. decision is made
• Service Factory 2. Seasonality
o direct a. seasonality of demand for the
experience product is largely related to
of the climate, but is also related to
production of factors such as school
that service. holidays, religious festivals
• Packages and and historic travel patterns
Tour Operators b. important managerial
o Package- implications in terms of aspects
prearranged of management such as:
combination i. managing cash flow;
▪ transport; ii. product pricing;
▪ accommoda iii. managing the quantity
tion; of products supplied;
▪ other tourist and
services iv. dealing with labour
▪ Perishability 3. Ease of Entry or Exit
• services are not a. Barriers to entry have been a
sold at the time they popular field of research since
are offered, then the seminal work of Bain (1956)
they perish and no and a large literature on this
income is received particular aspect of economics
• Demand can has developed (see for example
fluctuate for all sorts Pehrsson, 2009)
of reasons; b. Tourism and Hospitality entry to
• Supply, however, is the industry might be considered
often much more to be relatively straightforward
 and this means that if one
company is seen to be
successful in a particular
segment of the market then it
is not difficult for a competitor
to offer a similar product.
4. Interdependence
a. components sectors of
Tourism and Hospitality
i. Lodging
ii. Entertainment and
Recreation
iii. Food and Beverages
iv. Travel and Tourism
b. sectors are all linked and depend
upon one another
c. TOURISM SUPPLY CHAIN
i. network of tourism
organizations engaged in
different activities
ii. Sectors and Sub-Sectors 6. The Effect of External Shocks
of Tourism, Hospitality a. Internal Shocks
1. Hospitality i. assessed and controlled
2. Events by managers
3. Attractions ii. Corporate: Financial
4. Transport irregularity, management
5. Travel Organisers that is too ambitious,
6. Destination fraudulent and
Organisations incompetent
b. External Shocks
i. Unpredictable
ii. wars, hurricanes, terrorist
attacks, pollution, adverse
publicity or accident
WHAT TO DO?
Managers, whilst not be able to plan
directly for such events, need to be able to:
• Identify the risks to which the
organization may be susceptible
• Assess the possible impact of those
risks
• Have contingency plans in place so
the organization is able to react quickly and
effectively

5. Impact on Society
a. classified as economic, social
and environmental and classified
into positive and negative
impacts.
b. Mass Tourism - phenomenon
of largescale packaging of
standardize leisure services at
fixed prices for sale to a mass
clientele