Chapter Objectives. Chapter Objectives. Key Ideas Defining Strategic Planning. Market-Oriented Strategic Planning. Chapter 3

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Jemimah Terry
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Chapter 3 The Role of Marketing in Strategic Would you tell me, please, which way I ought to go from here?

Marketing for Hospitality and Tourism, 4th edition Chapter Objectives Explain company-wide strategic planning Understand the concepts of

corporate strategic planning Chapter Objectives Understand the processes involved in defining a company s mission and setting goals and

process Market-Oriented Strategic Market-oriented strategic planning is the managerial process of developing and maintaining a feasible fit

1 Chapter 3 The Role of Marketing in Strategic Would you tell me, please, which way I ought to go from here? -Alice (from Lewis Carroll s Alice in Wonderland) 2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Chapter Objectives Explain company-wide strategic planning Understand the concepts of stakeholders, processes, resources, and organization as they relate to a high-performing business Explain the four planning activities of corporate strategic planning Chapter Objectives Understand the processes involved in defining a company s mission and setting goals and objectives Discuss how to design business portfolios and growth strategies Explain the steps involved in the business strategy planning process Market-Oriented Strategic 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 1. Manage companies businesses as an investment portfolio 2. Assess future profit potential 3. Develop the strategy itself 1

Nature of High-Performance Business Stakeholders Processes Resources Organization The Relationship Between Analysis,, Implementation, and

quarter 1992 issue of Prism, the quarterly journal for senior managers, published by Arthur D. Little, Inc.

employees Hospitality and tourism industries are international and multi-cultural Defining the Corporate Mission Mission is shaped by History

2 Nature of High-Performance Business Stakeholders Processes Resources Organization The Relationship Between Analysis,, Implementation, and Control The High Performance Business Dynamic Relationships Among Stakeholder Groups in High Performance Businesses (Excerpted from the first quarter 1992 issue of Prism, the quarterly journal for senior managers, published by Arthur D. Little, Inc.) (Excerpted from the fourth quarter 1992 issue of Prism, the quarterly journal for senior managers, published by Arthur D. Little, Inc.) Corporate Strategic Corporate headquarters sets planning process into motion Greater need for empowerment of employees Hospitality and tourism industries are international and multi-cultural Defining the Corporate Mission Mission is shaped by History Resources determine possibilities Mission should be based on distinctive competencies 2

Competitive Scopes Industry scope range of industries that the company will consider Products and applications scope rang of products and applications in which the company will participate

3 Competitive Scopes Industry scope range of industries that the company will consider Products and applications scope rang of products and applications in which the company will participate Competencies scope range of technological and other core competencies the company will master and leverage Competitive Scopes Market-segment scope the type of market or customers the company will serve Vertical scope the number of channel levels from raw materials to final product and distribution in which the company will engage Geographic scope the 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 that can be planned for separately from the rest of the company It has its own set of competencies Assigning Resources to Each SBU Analytical tools, such as the Boston Consulting Group (BCG) model, are used to classify businesses by profit potential It has a manager who is responsible for strategic planning and profit performance BCG Growth-Share Matrix Developing Growth Strategies Market growth rate Low High Star Question mark Cash cow Dog High Low Relative market share 3

4 Diversification Growth Concentric diversification strategy Horizontal diversification strategy Conglomerate diversification strategy Integrative Growth Backward integration (acquiring a supplier) Forward integration (acquiring distributor of your product) Horizontal integration (acquiring a competitor) Business Mission SWOT Analysis Strengths, Weaknesses, Opportunities, Threats Internal Environment Analysis (Strengths and Weaknesses Analysis) External Environmental Analysis (Opportunities and Threats Analysis) Goal Formulation Arrange from most to least important State quantitatively Measurable and realistic Consistent Strategy Formulation Strategies are the paths to goals 3 generic types Overall cost leadership Differentiation Focus 4

5 Strategic Alliances cooperative agreements between organizations that allow them to benefit from each other s strengths What are some strategic alliances in the hospitality and tourism industry? Program formulation Formulate programs that support the strategy Implementation To implement strategy, required resources and employee buy-in are necessary Feedback and Control Track results and monitor new developments 5

Strategic management. What is strategic management?

Strategic management. What is strategic management? What is strategic management? Strategic management The set of managerial decisions and actions that determines the long-run performance of an organisation. Robbins, Bergman, Stagg, Coulter: Management