strategic planning assignment

(Front sheet for BTEC – Level 7 assessment in Business)

Front Cover sheet BTEC – Level -7, Advanced Professional Diploma in Management Studies

Strategic Planning and Implementation (Unit 4)

(Submitted to –Mr. Sumesh S Dadwal)

LEARNER’S BRIEF

Learner’s Name:…DIXITA VISHALKUMAR KHATRIID………0909BHC214……………………………………..Class (Course)……PGDBM-C…………………………………..Section ………UNIT 4…………………………………. Unit title……STRATEGIC PLANNING AND IMPLEMENTATIONDate assessment details issued………………..Date handed in …09/07/2010…………………………….Words Count: …3533…………………………….

Learner’s signature___________________ Date 09 /07 /2010

Note: Each student must attach this ‘assessment sheet’ as 2nd page of your report

Table of Content

of 22

Submitted to: MR Sumesh Singh Dadwal

Submitted by :

Name :

Sr. no. Contents Page No.

1 Introduction 3

2 A business structure 3

3 Criteria for reviewing potential options 4

4 A strategy and its resource implication 8

5Organisation’s ethical, cultural, environmental, social and business background

13

6 Vision and mission statement 14

7 Objectives and measures for evaluation 14

8 Outline timetable for implementaion 15

9An appropriate dissemination processes to gain commitment

17

10 Monitoring and evaluation systems 19

11 conclusion 21

12 References 21

INTRODUCTION:

“Affordable and ecologically friendly venue = Echotel”

of 22

“Make your holidays comfortable, healthy and enjoyable at this noise free and eco-friendly hotel”

Jay and Chris are two entrepreneurs who have embarked on a project that involves building a chain of green hotels called EcHotels.

EcHotel provides you sustainable, fresh, noise-free and healthy environments that you are looking for your leisure activities at an affordable price.

To develop other ecologically friendly venues in order to appeal to a segment of the market that prefers sustainable tourism is the primary objective of the Echotel.

1(a). SUITABLE BUSINESS STRUCTURE

Hotel’s organizational structure is very important but hotels’ organizational structure is very different from one another because of different size and type.

EcHotel ltd can provide enough services for attracting many parties and stakeholders to this hotel. ECHotel can achieve this situation when it accepts below situation for the “Right Approach”.

1). Front Office: - Hospitality’s most important part is Front desk because guests and staff first contact the front desk (Reception Counter). Hospitality Business venues’ face office is where stranger are greeted when they arrive, where they are registered and assigned to a room, and where they check out. So it is necessary that he/she has very good communication skill, politeness, good organizational skill and any other required skills.

2). House Keeping: - House keeping departments’ main duty is to keep guests’ room and public space clean and tidy. It means guest rooms, bed sheet, towel, every little items need to be clean and tidy. 3). Engineering: - Engineering department is responsible for hotels maintenance, repair, replacement, improvement, variation of furniture and fixtures, utilities and regular test and examination of the equipment.

4). Marketing and Sales department:- Marketing and sales departments are also responsible for selling of hotels facilities and serves. They meet potential clients through direct relations, publicity and conference meetings, and give you information for hotels structure and facility so clients can attractive for this hotel.

of 22

General Manager

Front Desk House Keeping Engineering Sales Audit

5). Accounting Department:- Accounting departments are responsible for many of the duties such as hotel operation, cost accounting, guest accounts, staff salary, purchase ledger, sales ledger, maintenance exp and any other duties.

6). General Manager:- General manager is a responsible for all hotels work and all department (both administration and organizational) so also called that second of hotel’s owner

If ECHotel can accept that structure, many parties and stakeholders can be attracted to this hotel. Because this structure is very good as every responsibility (work) is devided so work can be done fast, with ease and without mistakes.

Reference:

1) Hotel Oisrganization Structure | eHow.co.uk http://www.ehow.co.uk/about_5598090_hotel-organization-structure.html#ixzz0sGjG6xQy

2) http://media.wiley.com/product_data/excerpt/78/EHEP0004/EHEP000478.pdf

1(b). Criteria that can be used when analyzing Potential options for development :-

ECHotel Ltd can use many of the tools for the development. Such as market development, SWOT analysis, BCG matrix

Analysis:

core competencies core business Market Development Required inputs SWOT PEST Porter’s five forces

Market Development :Market development is the most important part of the business development because this tool will useful for the increase market share, increase market revenew and grew the business. Market development process is a very simple. They meet potential clients through advertising, and conference meetings, and direct contacts, and give you information for hotels structure and facility after that i knew that customers need and expectation and at the same time build stronger relationship with your customer.

Reference:

of 22

http://media.wiley.com/product_data/excerpt/78/EHEP0004/EHEP000478.pdf

http://www.odassoc.com/resources/docs/using_mkt_dev.pdf© 2004 O’Donnell & Associates, LLC Page 2

Required Inputs : Land > to develop ecologically friendly venues Labour > to get skilled & unskilled labours required Capital > the type and cost of capital to achieve the strategy

SWOT :S = Strengths, identify Echotel’s existing strengthsW = weakness, identify Echotel’s existing weaknessesO = opportunities, market opportunities for Echotels to exploitT = threats, to come for future success of Echotel

PEST :P = political, local national & international may affect the Echotel How / In what ways?E = economic issues that may affect EchotelS = social trends that may affect Echotels operation and future planning.T = technological change can impact advantage of company fast.

Porter’s five forces :

1) Strength of barriers to entry2) Extent of rivelry between firms3) Supplier power4) Buyer power5) Threats from substitutes

Porter’s three strategies:-

Porter’s generic strategies is more profitable and attractive for a business and it is divided in three parts. Cost leadership strategy, Differentiation and Focus strategy. But ECHotel ltd can use cost leadership strategy to get more profits.

Cost leadership strategy:-There are many competitive advantages for low cost leadership but it is possible that lower price can produce good level of quality. This is a focus on ‘cost benefit’. This strategy will help company to purchase every goods in a bulk order. That means lower expenses and thus benefit to the company and this benefit will be useful to manage the company’s product price.ECHotel ltd has this internal strength so they can succeed cost leadership strategy.Company has taken many sustainable eco friendly ideas to redues cost in many areas of hotel operation and they are looking for more ideas to implemented in the future.

Anssoff Matrix :-

of 22

http://www.odassoc.com/resources/docs/using_mkt_dev.pdf

provides the basis for an organization's objective setting and sets the foundation of directional policy for its future' (Bennett, 1994).

Very useful to determine business growth opportunities.

ECHotel ltd should use the market development strategy because they are the new entry in the competitor market. There are two market development strategies.

Identify users in different markets with similar needs to existing customers. Identify new customers who would use a product in a different way.

Reference:

http://www.ngfl-cymru.org.uk/ansoff_matrix-2.pdf

BCG matrix :This tool is helpful for the hotel management, portfolio analysis, and strategic management and marketing. BCG matrix is also helpful for business, in which the best way for the use of opportunity and source will take advantage of profit in the future.

Two factors for the BCG matrix, market share and market growth.

of 22


Dogs (Low market growth/ Low market share):-Dogs mean your business situation is weak. ECHotel ltd a Weak situation in the presence market so that its necessary for the hard work and difficult to gain a lot of profit. Second side ECHotel’s market growth is slow that means ECHotel obtain a lot of hard work to progress the condition.

Cash Cow(High market share/Low market growth):-Cash cow means high profit and cash generaion. ECHotels to settle in the market so it’s easy to gain a new opportunity but it have a limited opportunity because market growth is low so expend limited money.

Star (High market share/ High market growth):-ECHotel is reputable in the market and market growth is high. This is a fantastic opportunity for the ECHotel and if this situation ECHotel should hard work, the top position in the market.

Question marks (Low market share/ High market growth):- New products or services with good commercial potentials.

of 22

1 (c) Company Strategy and include all associated resources:-

‘Strategy is the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations’.(Johnson and Scholes, page - 10)

Strategy defined by Glueck is:

Unified, Comprehensive & integrated plan Relates to the strategical benifits of the firm to the challenges of the

environments Designed to ensure that basic objectives of the enterprise are achieved

through proper implementation process.

Plans can be seen as the strategical expressions for Echotels. Depending on decisions making, three types of strategies are there:

Market strategy: Compete in the related Market and so advertising, promotions and public relations

Labour strategy: Number of people required for certain position with certain skills.

Profit strategy: Source of capital to use for financial problems, ensuring the cash flow is adequate.

Reference:

The business of Hotels, Fourth Edition, S.Medlik and H. Ingram, page-34

of 22

Reference: Strategic management, MS-11, IGNOU, page-18

of 22

Strategic plan sections:

Summary of executive Strategic planning methodology Current situations End-result that is targeted Requirements of Echotels Program of implementation

Reference:

STRATEGIC PLAN TEMPLATE Produced by NSGIC for the FGDC page-5

The resources involved in the strategic process can be included and considered by the below mentioned approach.

Balanced score card:- this is one of the tool of strategic planning and management and this tool useful for the organization of company’s vision and mission statement.

Four perspectives of the balanced scorecard

Financial Customer Internal business processes Learning and growth

Perspectives Crieteria

of 22

Finance Timely and accurate financial data manage is the most important part of the business because this financial position company know that which time investment return and how much profit and loss ( financial result )

Customer Assessment of need and expectation of customer

Provide a good services

Good communication with customers

Such developments may take the form of Comment slip or Guest satisfaction survey

Internal business process Process arrangement (right process in the right department) such as: management, operation, systems, information and communication.

Learning and growth Training and learning opportunity for employee and job satisfaction

Reference:

1) http://www.businessballs.com/balanced_scorecard.htm2) http://www.12manage.com/images/figure_bsc.jpg

SWOT Matrix

ECHotel ltd can use these tools for the hotels strength, weakness, opportunity and threats to compare to the other hotels. After the comparison, you know that which type of change and develop is essential in the hotel.

Strategic Analysis

Internal Factors External Factors

Strength Weakness Opportunity Threats

of 22

http://www.12manage.com/images/figure_bsc.jpg

SWOT Analysis what to look for?

Potential Resource Strengths

Potential Resource Weakness

Potential Resource

opportunity

Potential Resource Threats

Eco Friendly Low Cost Powerful

structure Good Customer

services Best location

Financial position

Limited facility

Market development

Expanding a new geographic area

New entrant

Competitor Taxation

Reference:

Harvard Business Review; June 2002, author : Kim W Chan and Mauborgne,.

Reference:

www.zanthus.com/.../images/swot_matrix.png

S-O Strategies:- EChotel Ltd have a strength at a good location and eco friendly so they have take advantage of market development (opportunity).

S-T Strategies:- ECHotel Ltd can accept good structure and develop a strategy so you don’t worry for the competitor in the market.

W-O Strategies:- ECHotel ltd have weak financial position by taking advantage of market development.

W-T Strategies:- minimize weakness and reduce threats that means minimize limited facilities and reduce new entrant.

Reference:

Kim, W. Chan and Mauborgne, Renee;; Harvard Business Review; June 2002.T

of 22

http://www.zanthus.com/databank/strategy/business_strategy.php?aspr#SWOT

2(a) organisation’s ethical, cultural, environmental, social and business background against current standpoint

1. Ethical:- Ethics means people serving people and giving comfort, friendliness, transportation, provisions, clarification, pleasure and more. So considering these things, ECHotel has employed staffs that are technically skills in their work, educated, mature, experience and have the ability to hold high level of ethical value under pressure.

2. Social – Cultural :- Culture is very important part of the hospitality industry as their customers are belongs to different culture. So they need to understand their culture and provide the best service to them.

To keep this thing in the mind, ECHotel has employed people, who came from different part of the world, so they can offer the service as per their country’s culture. Customer can also feel good as they can communicate with their local language and ECHotel can offer service as per guest’s culture. ECHotel also provides different kind of international food to its international and local customer. ECHotel also gives training about different culture to their employee, so they can offer their guest best service as per their culture.

3. Environmental : There are many environmental issues which effects Hotel Industry. But from all of them some important issues are as follows : Labour and Skills shortage, technology, Construction Cost, travel trends.

From all of the above, ECHotel has good & experience staff. ECHotel is using latest technology for their business and they are making sure that they update it as per requirement of the market and business. ECHotel is using re-cycle materials, sustainable source for the construction, which is very low cost. ECHotel is situated on the sea and as per global environment, they are expecting good growth in the business and they are expecting at least 35% growth for this year.

4. Business: In the current scenario, people and business houses are more aware about the environment. They are ready to give some more price/value/effort to get the ecologically products and services.

ECHotel has developed many ecological ideas that they are using to run their business and due to this approach, ECHotel hotel is popular and getting good business from the corporate sector as well as individual. Compare to the last year they get around 25% more customer this year as ECHotel accepted ecologically ideas.

of 22

2 (b). Vision and Mission Statement:-

Vision statement:-

“To develop eco-friendly hotel and leisure ventures for the customers who prefer sustainable hospitality.”

ECHotel has a good vision and they are committed to that vision by their work. ECHotel is doing research in to business activities that have a physically powerful ethical management centre as well as considering ethical, cultural, social, business and environmental perspectives.

Mission Statement:-

“Completely eco-friendly and sustainable hotels for comfortable and healthy tourism”

This mission statement clearly shows the essential purpose of the organization’s existence.

2 (c) Objective and measures for evaluation:-

Every business has objectives and they work to achieve their objective. To create a chain of cost-effective and friendly hotels and leisure ventures in the future, the following objectives can be considered.

Objectives:-

Complete Satisfaction for need and expectation for the all customer ( rooms, food and drink, miscellaneous guest services, organization and staffing and accounting and staffing)

Employee’s satisfaction Successfully manage for the hotel investment and management. . Develop a chain of similar hotels (green and cost-effective) and leisure

ventures over the next few years. To implement eco-friendly and low cost plan that used in hotel’s operation. Achieve level of profit

Evaluation measures:-

Organize a marketing and sales department because they are responsible for selling of hotels facilities and serves. They meet potential client through advertising and conference meeting and direct contact and give you information for hotels structure and facility so client can attract for this hotel and can achieve a good profit. This profit useful for develop a chain of similar hotel (investment).

of 22

Organize training division of the human resource department becauseo Improving employee’s knowledge, skill and attitudes to worko Sales and output increasingo Employee’s loyalty increasingo Reducing breakages, waste of materials and misuse of equipment

Reference:

The business of Hotels, forth edition, S. Medlik and H. Ingram, page no. 168

(3a) Outline timetable for strategy implementation:

According to Fortune Magazine “Less than 10% of strategies which are effectively formulated are effectively executed as well.”

So, it clearly shows that strategy implementation is key factors in deciding the success of the organization.

So, for that outline timetable for each activity needs to be created.

“Strategy making needs person with vision whereas strategy implementation needs a person with administrative ability.”

Outline steps for strategy implementation:

Project Implementation Procedural Implementation Resource Allocation Structural Implementation Functional Implementation Behavioral Implementation

Project Implementation:

Plan of action to acquire land for the installation within a time frame.

Echotels needs to first get proper and eco-friendly place to develop the hotel.

Procedural Implementation:

“LAW OF LAND” i.e. rules and regulation in terms of wastage and other utilities.

Complete the govt. Formalities fot central and state.

of 22

Different steps:

Licensing requirements Foreign Collaboration procedure Capital issue requirements Incentives and benefits

As the Echotel is eco-friendly, the wastage and other utilities would be negligible.

Resource allocation:

Allocation of the inside and outside resources.

For Echotel, labour, money and materials required are the primary resources.

Structural implementation:

Interlinking of various units and sub-units

Some issues:

How the work will be divided? How the work be assigned among various position, groups, departments? Coordination among these to get the objectives

Two aspects:

1. Differentiation2. Integration3.

Functional implementation:

Major function of Echotels:

Production

Decisions related to size, location of project, technology to be used, production capacity, R&D

Marketing

Decisions related to type of product, price, distribution, promotion.

of 22

Finance

Decisions related to sources of funds, usage of funds and earnings management.

Personnel

Decisions related to recruitment, development of personnel, motivation system, and mobility.

Behavioral Implementation:

5(five) issues:

1. Leadership2. Organization culture3. Values and ethics4. Corporate Governance5. Organizational politics

Reference: Strategic management, MS-11, IGNOU, page-26

(3b) An appropriate dissemination processes to gain commitment:-

Dissemination: “It is the process which involves a share of a results and experience to influence the thinking style of other people or making them aware of new idea, product or services”

Reference:

http://qas.programkontoret.se

Methods:

We can describe the dissemination process by its 10 elements.

Goals: Decide the goals of your dissemination process for your work. Objectives: association of each goal with one or more than one objectives. Users: Stack holder analysis

of 22

http://qas.programkontoret.se/

“Stakeholder management is critical to the success of every project in every organization I have ever worked with. By engaging the right people in the right way in your project, you can make a big difference to its success... and to your career." (the mindtools e-book, James manktelow, 1995-2005, page no. 110)

Reference:

http://www.mindtools.com/pages/article/newPPM_07.htm

http://leadershipchamps.files.wordpress.com/2008/03/stakeholder-management-processes-1.jpg

ECHotel ltd’s stakeholder:-

http://www.howto.co.uk/business/how-to-run-a-great-hotel/

Primary stakeholders are very important because those who have significant influence are primary stakeholders and as such require most of you attention.

So it is important to satisfy all legal expectation of the primary stakeholders.

of 22





Content: the basic elements of the projected content to be disseminated to each of the potential user groups identified

Source(s): Identification of the primary source or sources with which more users are attached. Considering partnership with these types of sources in the dissemination efforts.

Medium: media through which the content of your message can best bedelivered to potential users.

Websites: update it periodically. Briefings: seminars, conferences – opportunities to discuss

Success: Gathering the data and know if your dissemination activities have been successful. If data needs to be taken, define when, how and who will take it.

Access: Define how you can promote access to information and how you will archive information that may be required at a later date.

Availability: Identification of strategies for promoting awareness of the availability of your research-based information.

Barriers: Identification of the barriers that might interfere with the targeted users' access. Develop actions to reduce these barriers.

Reference:

http://www.researchutilization.org/matrix/resources/dedp/

(3c) monitoring and evaluation systems for EcHotel Ltd

Monitoring: “It is the systematic collection of data to give managers, stack holders and other persons the progress of the project with an indication.”

Evaluation: “It is objective and systematic assessment of completed and/or ongoing programme with its design, implementation & results.”

Steps:

1) Monitoring and evaluation planning:

Define the evaluation question Establish an evaluation team Set a budget

2) Design of M &E

Descriptive design Quasi-experimental design Qualitative design

Product /service evaluation:

of 22

It can give following answers:

Which product/services produces results in terms of quality and client satisfaction? Why?

Which product/service generates more profits?

10 steps of designing:

3) Objective review and project logic4) Indicator selection:

Measure progress towards goals Assess the performance and results of project

Components:

Five (5):

i) measurable objectivesii) set of indicatorsiii) collection of data and management of records of projectsiv) Arrangements for gathering, analyzing, and reporting datav) M&E results can be given back to decision making

Reference:

Local partnership for employment, croatia an EU funded project CARDS 2002

10 steps to a result based monitoring and evaluation system – jody zall kusek

CONCLUSION:

of 22

Echotel has defined as eco-friendly venues. It is the small scale organization. It has been basically designed to appeal the segment of the market that prefers sustainable tourism.

It is required to adapt the dissemination process to influence the thinking style of other people and making them aware of new idea regarding the Echotels developments.

The eco-friendly materials and techniques will increase the attractiveness and effectiveness of the hotel in Devon.

It can be concluded that every method of business development is satisfactory, if it can give proof for the management processes.

References:

Local partnership for employment, croatia an EU funded project CARDS 2002

10 steps to a result based monitoring and evaluation system – jody zall kusek

http://www.researchutilization.org/matrix/resources/dedp/




Strategic management, MS-11, IGNOU, page-26

http://qas.programkontoret.se

The business of Hotels, forth edition, S. Medlik and H. Ingram, page no. 168

www.zanthus.com/.../images/swot_matrix.png

http://www.businessballs.com/balanced_scorecard.htm


STRATEGIC PLAN TEMPLATE Produced by NSGIC for the FGDC page-5

Strategic management, MS-11, IGNOU, page-18

The business of Hotels, Fourth Edition, S.Medlik and H. Ingram, page-34

of 22


http://www.zanthus.com/.../images/swot_matrix.png

http://qas.programkontoret.se/







© 2004 O’Donnell & Associates, LLC Page 2

Hotel Oisrganization Structure | eHow.co.uk http://www.ehow.co.uk/about_5598090_hotel-organization-structure.html#ixzz0sGjG6xQy


the mindtools e-book, James manktelow, 1995-2005, page no. 110

of 22




strategic planning assignment

Documents

hotels structure

business development

business structure criteria

forces market development

market development process

hotel oisrganization

hotels maintenance

market revenew