Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Strategy Selection and

Positioning

Chapter 3

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

HMS - Strategic Management Process

Developing business strategies Strategic planning process Strategy levels Formulation, control, and

management Business development strategies (techniques)

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Strategic Management

Pattern of decisions made by management to pursue its mission and objectives.

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Strategic Management

Environmental scanning Strategy formulation Strategy choice Strategy implementation

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

HMS - Strategy / Service Industry

Intangibility (Hyatt touch, taste, etc.)

Simultaneous production & consumption

Customer part of delivery process Heterogeneous Perishable

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

HMS -Strategy / Service Industry (continued)

Quality control in the hands of the employee

Communication skills paramount

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

HMS - Service Industry

Capital and labor intensive Fragmented Assets managed by others Real estate intensive

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

HMS - Service Industry

Innovation - no protection Entrepreneurial Supply / demand Technology

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

HMS - Hospitality Industry

Positive relationship between performance and the variable of organizational structure and environmental scanning.

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

HMS - Strategic Management Goal

Match resources to threats and opportunities to achieve long-term viability.

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

HMS - Strategy Levels

Corporate Business Functional

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

HMS - Corporate Strategy

The grand design for managing the entire organization.

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

HMS - Business Level Strategy

Determines the competitive approach for a single product or unit within a multi-product organization.

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

HMS - SBU

SBU = Strategic Business Unit

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

HMS - Functional Level

Strategy making within the business unit at the functional level.

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

HMS - Functional Levels

Finance Marketing Human Resources Operations Administrative Technology Research & Development

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

HMSN - Process Steps

C/E Assessment Mission Objectives Strategy Choices Implementation (action plans) Evaluation

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

HMS - Strategy Formulation

Process of deciding the basic “mission”… the objectives the company wants to achieve.

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

HMS - Mission

The purpose for which, or reason why, an organization exists - establishes its operating domain.

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

HMS - Objectives

What desired outcome stated with end results over a period of time.

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

HMS - Strategy

(How) outcomes will be achieved.

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

HMS - Levels of Control

Strategic Management Operational

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

HMS - Management Tasks Exploiting corporate culture Managing communications

Employees

Owners

Host communities

Investment community

Public Business development process

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

HMS - Managing (Strategy)

Business Development Process Brands Financial Resources Human Resources Marketing Resources

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

HMS - Current Management Issues

Technology Re-engineering

(organizational) Quality Empowerment Customer driven Security

Response rate(s)

Labor Liability Competition Diversity Governance

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Positioning Options

Best quality Best

performance Most reliable Most durable Safest Easiest to use

Fastest Best value for

the money Least expensive Most prestigious Best designed or

styled Most convenient

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Positioning Tactics

More For More More For The Same The Same For Less Less For Much Less More for Less

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Positioning Techniques

Attribute Positioning User Application Positioning Competitor Positioning Quality Price Positioning

Hospitality Management Strategies ©2005 Pearson Education, Inc.By R.A. Nykiel Upper Saddle River, N.J. 07458

Positioning Pitfalls

Under Positioning Over Positioning Confused Positioning Irrelevant Positioning Doubtful Positioning