Strategic Management

Introduction

This project deals with applying the principles of strategic management to real life situations. This paper will help in understanding the nature of the organization, its mission, vision, goals, strategies, strengths, weaknesses, the opportunities available and the threats imposed by the business environment.

About the company

The company, XYZ Inc. is a medium sized chain of luxury hotels which provides the services of bed and breakfast as well as a wide variety of ancillary services like spa, swimming pool, business centers, etc equivalent to a four star hotel. The first hotel was established in Manhattan two years back. The first year was a start up year which faced heavy losses. However, the second year saw a zestful increase in profits and from then on there is no looking back.

Vision and Mission of XYZ Inc.

The company's long term vision is to open a 100 and more restaurants across the United States and expand to make its presence felt across the world. The mission of the company is to provide high quality restaurant service, a wonderful food experience to its customers. The company has to maintain a level of brand standards and adhere to the same continuously. The customer satisfaction is the most important aspect in this industry and that needs to be achieved.

Strategy of XYZ Inc.

The company can achieve the vision and mission by following a combination of different strategies. Initially, the company will follow Michael Porter's low cost strategy. In this case, the company looks at providing good quality food at low costs. This will ensure penetrative pricing also. Hence, it will attract more customers in the beginning. Once the company has sustained itself for four to five years, it will look at the second strategy of differentiation. The company will start providing additional quality services as well as classic signature dishes on its menu to enable it to differentiate itself from its competitors. This, as rightly suggested by Porter, entails a higher cost than the previous strategy. That is the reason why this is required to be implemented only when the company is stabilized and earning profits.

Sources of competitive advantage

The company was the first to introduce an iPad based menu card and ordering system which is directly connected to the kitchen. Hence, the guests can directly place orders. This reduces the need for people waiting at the table. For the first time in the history of the world, robots are going to be used in the kitchen to ensure precision and quality. One needs to test it thoroughly before implementation.

Business opportunities

The business opportunities available are plentiful. Hotel industry is a growing market with many new players and new strategies coming in. Tourism has increased by leaps and bounds and many people resort to holidays to reduce their stress levels. Hence it is up to the company to tap such business opportunities available.