Reflective Journal
HOS301A Hotel Management Simulation
STRATEGY
1
STRATEGY
Introduce todays agenda
2
What is strategy?
QUIZ
WORKSHOP
STRATGEY
What is strategy? Michael Porter explains common misunderstandings
https://youtu.be/3Hd88eBgkw0
3
What is Strategy
Strategy is an integrated set of choices that positions an organization within its environment to achieve its vision over the long term.
PESTEL
Customer Segmentation
SWOT
VRIO
STRATEGY TOOLS
Refer to pre class learning activity - difference between strategy and tactic.
Explain how the term strategy is misunderstood.
What tools are available, top line explanation?
What is external analysis v internal analysis?
4
ANALYSIS
We want to develop students thinking process
5
EXTERNAL – What is happening?
INTERNAL – What Capabilities do we have?
FORMULATION – What should we do?
PESTEL
STRATGEYTOOL
EXTERNAL ANALYSIS
Provide examples of each area of the PESTEL.
Ask the students to start thinking about their current hotel and how they would use PESTEL
6
POLITICAL
ECONOMICAL
SOCIAL
TECHNOLOGICAL
ENVIRONMENTAL
LEGAL
CUSTOMER SEGMENTATION
STRATGEYTOOL
EXTERNAL ANALYSIS
Will talk about this in further detail next week during Marketing topic.
Introduce basic hotel segmentation such as business and leisure – groups and individual
7
Demographic
Behavioural
Geographic
Psychographic
SWOT
STRATGEYTOOL
INTERNAL ANALYSIS
Students should be familiar with SWOT as they are third year students.
Recap what SWOT stands for i.e.
Strengths
Weakness
Opportunities
Threats
Provide examples of each area of the SWOT.
Ask the students to start thinking about their current hotel and how they would use SWOT.
8
S
W
O
T
STRATGEYTOOL
VRIO
INTERNAL ANALYSIS
Students may not be as familiar with this strategic framework will assist in uncovering a sustained competitive advantage
Walk students through the application of this framework:
V = Does your hotel offer a value to customer?
Are you able to exploit an opportunity or nullify the competitor
R = Do you control scare resource or something hard to find i.e. may a patented service delivery
I = Is it expensive to duplicate your hotel resource or capability?
O = Does your company have the management system, process or structure to capitalize?
Explain the benefit of conducting an internal analysis with this framework
9
V
Valuable
R
Rare
I
Inimitable
0
Organized
ASSESSMENT
ONE
Answer 20 multiple choice questions
Open book – background documentation
Exam rules apply
Quiz Time: 40 minutes
10
STEPS TO FORMULATE & MANAGE STRATEGY
Introduce a process to assist with their strategy development.
Thinking - They have conducted the information gathering via the use of the strategy tools and research
Analysis - Now they need to start analyzing the data and commence with their strategy design
Actions – what decision will they take, each hotel management teams needs to choose their strategy and craft an implementation plan i.e. Action Plan
11
Thinking
Information gathering
Analysis
Information analysis
Strategy Design
Action
Decision making Implementing Monitoring
OPTIONS
STRATGEY
SELECTION
Competitive Scope
Competitive Advantage
Broad
Total Market
Narrow
Niche Market
Low Cost
Product Uniqueness
Explain the Porters Generic Forces:
What is cost leadership, what would that look like for their hotel
What is cost focus, what would that look like for their hotel
Differentiation, how would they go about this and provide example
12
Porters Generic Forces
Cost Leadership
Differentiation
Cost Focus
Differentiation Focus
COST LEADERSHIP
STRATGEY
SELECTION
Provide students of examples of how their hotel may follow a cost leadership strategy i.e. the basic service and a reasonable quality
Focusing on cost and ensuring that their profit is driven by producing the product cheaper than the competition, resulting in higher profit margins
13
Features are acceptable
Standardise product
Lowest price
STRATGEY
SELECTION
DIFFERENTIATION
Provide students of examples how their hotel product may differentiate itself based on value, non standardize product such as suites, executive floors and pricing that is premium.
14
Valued by consumers
Non standardise product
Premium price
STRATGEY
SELECTION
FOCUS
FOCUS – choice of narrow competition scope within an industry. Selecting a segment or segments to focus on at the exclusion of other
i.e. no groups business only individual travelers
May be focused on cost advantage
May be focused on differentiation
15
Select a segment or groups of segments.
Choice either to focus on cost or differentiation
Better meet the needs of the target market
SCOPE
STRATGEY
SELECTION
External Analysis
Internal Analysis
Strategic Choices
Strategic Decision
Strategic Planning
PESTEL
Trends
What can we do
SWOT
VRIO
Fit
Tactics
Plans
Budgets
A framework to develop and select strategy.
This will be useful to follow this scope during the activity – Their hotel strategy development
16
WORKSHOP
1. Strategy Development
In your groups select a space to facilitate discussion and idea generation.
2. Strategic Tool Selection
What tools did you select and why?
3. Analysis
What information insights were discovered
4. Strategy Selection
Make decisions based on FIT
Action plan to implement your choice
Group Activity: 30 minutes
In their respective hotel teams, students need to start strategy development for their hotels.
17
Business
Plan
A mission statement is a brief description of the companies fundamental purpose.
Crafted properly it can lend a strategic focus to a company.
What is our business
Who are customers
What kind of value can we provide to these customers
Mission Statements should answer these questions
Walker, O., J. Gountas, F. Mavond, and J. Mullins (2012), Marketing Strategy: A Decision-focused Approach, Sydney: McGraw-Hill.
Mission Statement
18
Business Plan
To accelerate the world's transition to sustainable energy.
To enhance the lives of our customers by creating and enabling unsurpassed vacation and leisure experiences.
To deliver distinctive experiences for our guests.
Mission Statement
Examples
19
BUSINESS
PLAN
Hotel Business Plan Template
Elements of the plan
Refer the students to reading 2.2
Hotel Business Plan template
20
HOTS
Simulation Familiarisation
Provide teams with login details,
Allow them to play around with the system and get them to make one decision, allow ten (10) minutes.
21
HOTS301A
ASSESSMENT TWO
22
HOTS301A
ASSESSMENT TWO
23
HOTS301A
ASSESSMENT TWO
24
Off Campus Activities
Complete Hotel Strategy
Complete pre class Activity
Participate – post your thoughts on the discussion forum
Remind students that this subject requires out of class work.
25