research paper- Cathay Pacific airways

Dr. Aday

HTM 590

§ Identify the advantages and disadvantages of inter- organizational relationships.

§ Understand how firms in a tourism cluster work together.

§ Explain what factors affect the strategic importance of various stakeholders.

§ Know the guidelines for deciding which stakeholders are most attractive for the formation of partnerships.

§ List effective partnering and inclusion strategies for key stakeholder groups.

FUNCTIONAL-LEVEL STRATEGY §Functional-level strategy is the collective pattern

of day-to-day decision made and actions taken by managers and employees who are responsible for value-creating activities within functional areas

§Consistent with strategic direction

§Essential Characteristics: §Decision made within each function are

consistent §Decisions made within one function are

consistent with decisions made within other functions

§Decisions made in all functional areas are consistent with and support the overall strategies (strategic direction) of the business

§A functional strategy audit can help determine whether functional strategies are internally consistent, consistent across functions, and supportive of the strategies of the firm.

§Conducting a functional strategy audit §Marketing strategy §Operations strategy § Information systems strategy §R&D/Technology strategy §HR Strategy

§To move the organization towards the successful execution of its strategies

§Consistent with strategic direction

§Managing stakeholder relationships

§Managing organizational resources

§We discussed joint ventures in Chapter 6. This is when two or more firms pool a portion of their resources to create a separate jointly owned entity.

§Hong Kong Disneyland §Owned by:

§ Hong Kong International Theme Parks Limited § Hong Kong Government § Disney - Shareholders

§A hub and wheel configuration with a local firm at the hub organizing the interdependencies of a complex array of firms

§Specialized joint ventures encompassing many different arrangements. Consortia are often a group of firms oriented towards problem solving and technology development, such as R&D Consortia

§Travel Agents are Consortia

§Leading Hotels of the World § Luxury independent hotels that use a CRS

§An arrangement between two or more firms that establishes an exchange relationship but has no joint ownership involved.

§Star Alliance §28 Airlines § Share resources

§Organizations (typically non-profit) that are formed by firms in the same industry to collect and disseminate trade information, offer legal and technical advice, furnish industry-related training, and provide a platform for collective lobbying.

§Generally two postures §Buffering strategy §Partnership and inclusion strategy

§Designed to stabilize and predict environmental influences

§Traditional stakeholder management techniques such as marketing research, creation of special departments to handle specific areas of the external environment, i.e. legal, purchasing, recruiting

§Building bridges with their stakeholders in pursuit of common goals.

§Southwest Airlines and Hotels §MGM and Caesars Palace § SPG §Marriott Rewards

STRATEGIC IMPORTANCE OF STAKEHOLDERS AND DECISION TO PARTNER

Formal Power

Strategic Importance of External Stakeholder

Economic Power

Political Power

Influence on Environmental

Uncertainty Facing the

Firm

Possession of Knowledge or Resources not Found in Firm

Partnering and Inclusion in the Firm’s Activities

Monitoring and Traditional

Management Techniques

High Importance

Low Importance

§Customer service departments

§Marketing and marketing research

§On-site visits

§800 numbers

§Long-term contracts

§ Involvement on design teams or product testing

§ Joint planning sessions

§ Joint training/service programs

§Financial investments

Traditional Management Partnering / Inclusion

MANAGING OR PARTNERING WITH SUPPLIERS?

§Purchasing departments

§Encourage competition among suppliers

§Sponsor new suppliers

§Threat of

§Long-term contracts

§ Involvement on design teams for new products

§ Integration of ordering system with manufacturing

§Shared information systems

Traditional Management Partnering / Inclusion

§ Competitors

§ Government

§ Local community

§ Activist groups

§ Special interest groups

§ Media

§ Unions

§ Financial Intermediaries