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Strategic Hospitality Management

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Define the strategic management process, identify the external and internal influences that affect strategic management, and describe how strategic management is applied in the hospitality industry.

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Strategic management processes help management formulate plans for implementation with the purpose of achieving strategic competitiveness that can result in higher than average returns on investment. If a company has chosen a process that matches its environment and structure, the result is a tremendous positive effect on the company's performance. The company achieves strategic competitiveness when it can implement a value-creating strategy and one that is unique and not being duplicated by competing companies. If the strategy is unique, properly planned and implemented, and matches the needs of the environment, the company achieves sustainable competitive advantage. As long as it can maintain this competitive advantage it will earn above-average returns on investments and higher profits. Companies need to earn at least an average return on the investments of their investors in order to survive.
The process of strategic management usually undergoes through four steps: (1) Environmental scanning; (2) Strategy formulation; (3) Strategy implementation; (4) Strategy evaluation. During the environmental scanning procedure, information is being gathered, scrutinized and analyzed to produce the internal and external factors that affect the organization. This information is used for the planning of the strategic management process. When the company has analyzed the environmental factors, they formulate the appropriate strategy that can accomplish the goals and objectives of the organization. Once they have decided on the right strategy, they put it into action by designing the organization's structure, preparing the resources needed, managing their personnel and informing them about it, and develop how they make their decisions. Once implemented, there is a need to evaluate the effectiveness of the strategy by assessing the internal and external factors, measuring the ...

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1,084 words; 3 references; strategic management process; external and internal influences that affect it and how it is applied in the hospitality industry; this is not APA formatted

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Strategic management (SM) is the art and science of implementing a course of action used to achieve goals and to monitor the progress of the chosen strategy. According to Richard D. Irwin (1995), there are five tasks associated with strategic management such as;

1. "Defining the business; stating a mission; and forming a strategic vision.
2. Setting measurable objectives.
3. Crafting a strategy to achieve goals.
4. Implementing and executing strategy
5. Evaluating performance, reviewing new developments, and initiating corrective adjustments." (Irwin, 1996).

The role of strategic management in the hospitality industry is to maintain a competitive advantage over competitors by remaining up-to-date with the current trends. Today's marketplace is rapidly changing; it is up to the hospitality organization to identify the needs of the consumer and to determine their needs based on the economic climate. For example, many organizations are currently out of business due to the current state of the economy (i.e. the recession); unfortunately they were unable to anticipate such a drastic downturn, resulting in a decrease in profitability and possible business closure. Organizations must pay close attention to the changing climate and develop a back-up plan for consumers who are not spending as much as they were before the recession.

Strategic management (SM) is the art and science of implementing a course of action used to achieve goals and to monitor the progress of the chosen strategy. According to Richard D. Irwin (1995), there are five tasks associated with strategic management such as;

1. "Defining the business; stating a mission; and forming a strategic vision.
2. Setting measurable objectives.
3. Crafting a strategy to achieve goals.
4. Implementing and executing strategy
5. Evaluating performance, reviewing new developments, and initiating corrective adjustments." (Irwin, 1996).

The role of strategic management in the hospitality industry is to maintain a competitive advantage over competitors by remaining up-to-date with the current trends. Today's marketplace is rapidly changing; it is up to the hospitality organization to identify the needs of the consumer and to determine their needs based on the economic climate. For example, many organizations are currently out of business due to the current state of the economy (i.e. the recession); unfortunately they were unable to anticipate such a drastic downturn, resulting in a decrease in profitability and possible business closure. Organizations must pay close attention to the changing climate and develop a back-up plan for consumers who are not spending as much as they were before the recession.

A hospitality organization can work towards increasing revenue by formulating a pricing strategy that will attract more consumers. Most organizations perpetuate competitiveness by reducing their prices to become the retailer with the "lowest price in town," for example, Wal-Mart's Rollback advertisement; their organization prides themselves on having the lowest prices for household items and electronics.

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