Risk Management and Strategic Planning

Part 4 Unit 10 Strategy

Preparation, Resource Planning and Structures

Reading

Book Ch

Tribe, J, (2010) Strategy for Tourism, Goodfellow Publishers, Oxford.

10

Capon, C. (2008) Understanding Strategic Management, Prentice Hall: Hemel Hempstead.

10

Tribe, J. (2005) The Economics of Recreation, Leisure and Tourism, Butterworth Heinemann, Oxford.

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Johnson, G., Scholes, K., and Whittington, R. (2008) Exploring Corporate Strategy, Prentice Hall: Hemel Hempstead.

12.13

Part 4: Strategic Implementation The final stage of tourism risk analysis and strategy is

strategic implementation. By the end of part 4 it should be possible to construct a plan to operationalise a strategy for a tourism organisation, systematically monitor that strategy and create a comprehensive strategy document.

Strategic implementation follows logically from the previous three stages where an appropriate strategy has been selected from a number of options after a comprehensive situational analysis of the tourism organisation.

Chapter 10 discusses the detail of implementation in terms of financial, physical and human resources.

Chapter 11 examines the management of change and reviews methods of control and evaluation of strategy.

Chapter 12 concludes. At its centre is a guide on how to write and present a strategy document and this is followed by a look at crisis management

Learning Outcomes

After studying this chapter and related materials you should be able to understand:Resource planningFormulation of a coordinating plan

and critically evaluate, explain and apply the above concepts.

Discussion Point

What are the key resources that a destination would need to achieve competitive advantage?

What risk factors would be associated with investment in a new aiport?

Resource Planning

The evaluation stage of the strategy process involved analysis of the feasibility of an option in terms of finance and availability of resources. At the implementation stage, resource planning is concerned withidentification of resourcesresource fit, andformulation of a co-ordinating plan

Identification of resourcesPhysical resources

A change in strategic direction will generally require adjustments in physical resources at the level of plant and machinery or consumables. A tourism organisation may have a dedicated purchasing department to co-ordinate the buying of physical resources. Important considerations in physical resources planning include:Specification - This may involve a careful audit of the

uses to which physical resources are to be put. The result will be a list of required specifications.

Fitness for purpose - This will examine the match between the specifications offered and the specifications required

Cost - Prices between suppliers need to be compared, taking into account running and maintenance costs.

Terms - Is it more appropriate to lease or buy capital goods?

Identification of resourcesHuman resources

Strategic implementation will have consequences for human resources, and manpower planning will need to address:manpower numbersskillsrecruitment and selection, and,training and developmentgrading and remuneration

Identification of resourcesInformation and technology

resourcesInformation and technology competence may

be obtained byIn-house developmentPurchase from external providers for internal

useContracting out of servicesAlliancesAcquisition of organisations that possess the

desired technology

Formulation of a coordinating planA co-ordinating plan is a key to strategic

implementation. It comprises the following elementsproject logistics, (planning)project objectives (operations)

Management by Objectives (MBO) can be an important contributor to strategic implementation. First MBO helps to clarify the strategy - what does the strategy mean in terms of measurable performance targets? Second, MBO, assists implementation since this now becomes attributable to personnel who have been assigned specific tasks.

Risk Management and Strategic Planning

Part 4 Unit 10 Strategy

Preparation, Resource Planning and Structures

The End