Chapter 8 Strategy for Tourism

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(No Transcript)
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Todays Objectives

• Strategy
• What is it?
• Elements?
• What to do for each element? Methods
• Quiz

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What is Strategy?

• Strategy
• The science art of military command
• A careful plan or method
• The art of devising or employing plans toward a
  goal

• What is it?
• Carefully choosing a different set of activities
  to deliver unique value
• e.g.) Southwest Airlines
• What is NOT strategy?
• Operational Effectiveness performing similar
  activities better than rivals
• e.g.) TQM, benchmarking

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Strategy Four Elements

• Mission Stakeholders
• Situation Analysis Internal External
• Choosing the best option
• Implementing the best option

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1. Mission Stakeholders

• Mission
• A reason for being (why does your company
  exist?)
• Concise, objective-oriented
• Objectives should be SMART (Drucker, 1954).
• Stakeholders
• people who have interest
• in my company

The Mission of Southwest Airlines Is dedication
to the highest quality of Customer Service
delivered with a sense of warmth, friendliness,
individual pride, and Company Spirit.
X Airline No mission statement! Commitment to
community ???
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2. Situational Analysis
External Analysis Macro
PEST
External Analysis Micro
5 Forces
S.W.O.T.
Internal Analysis
S.W.
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Internal Analysis
1) Resources (Inputs)

• Performance Monitoring
• Analysis of efficiency (inputs / outputs)
• Financial Analysis (share prices, earnings)
• Appraisal (evaluation of HR)
• Comparative Analysis (benchmarking against)

• Physical Resources (buildings)
• Financial Resources ()
• Intangible
• HR (skills)
• Other intangibles (corporate image, patents)

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Internal Analysis

• 2) Products Services (Outputs)

• Performance Monitoring (How are our products
  services doing?)
• Effectiveness
• Are products/services meeting objectives?
• Value-Chain Analysis
• How is our value created throughout business
  procedures?
• Portfolio Analysis (i.e., BCG Matrix)
• Are range of products well-balanced?
• Product life-cycle analysis
• where are you?

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Product Life Cycle (PLC)
Sales Volume
Revitalization
Discard
Introduction
Growth
Maturity
Decline
Time
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BCG Matrix
H
Market Growth Rate
L
H
Market Share
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Sales Volume
Revitalization
Discard
Introduction
Growth
Maturity
Decline
Time
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External Analysis
Macro Environment PEST
S.W.O.T.
Micro Environment (Industry) Five-Forces Model
(Porter, 1980)
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Forces Driving Industry Competition (Porter, 1980)
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Todays Objectives Achieved?

• Strategy
• Is choosing a different set of activities to
  deliver unique value
• 4 elements
• Why is my company trying to achieve?
• What is the situation?
• What is the best alternative?
• How can I make it work?
• What to do for each element?
• Methods

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Quiz

• What is Strategy?
• What are 4 elements of strategy?
• What are 5 forces of industry competition?

• What is SWOT and what is it for?
• What should be SMART?

• What does RPTS stand for?
• What is the instructors first name?