● Strategy Is the direction of an organisation over the long-term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling Stakeholder*
Strategic Decisions : Long term, scope, advantage, business envornment, capability, values and expectations CHARACHTERISTICS: Complex, uncertainty, affect operationnal deciosons, integrated aproach, change
A vision is the desired future state of the Organisation. Values are the fundamental beliefs upon which your Business and its behavior are based A mission is a general expression of the overall Purpose of the organisation, which, ideally, is in line With the values and expectations of major Stakeholders
STRATEGIC LEVELS :
Corporate-level strategy, concerned with the overall Scope of an organisation and how value will be added to The different parts (business units) of the organisation. • “Where do we want to be?” “What do we get there?”
Business-level strategy is about how to compete Successfully in particular markets. • “How do we get there?”
Operational strategies are concerned with how the Component parts of an organisation deliver effectively The corporate- and business-level strategies in terms of Resources, processes and people. • “What do we do to get there?”
STRATEGIC MANAGEMENT PROCESS: The strategic management process includes: (1) analysis of the external environment and the organization/strategic position, (2) establishment of a strategic direction, and formulation of a strategy/strategic choice, (4) implementation of the strategy and development of a system of controls/ Strategy in action.
STRATEGIC POSITION: The strategic position of an organisation is influenced by ● the external environment, ● internal strategic capability and the expectations, and ● influence of stakeholders. Strategic Position issues: ● The environment. ● The strategic capability of the organisation – made up of resources and competences. ● The major influences of stakeholder expectations on an organisation’s purposes. ● Cultural and historical influences.
STRATEGIC CHOICES: Strategic choices include the underlying bases of strategy at both the corporate and business levels, And the directions and methods of development. Typical options and methods: ● To compete at the business level ● To compete at corporate level Diversification ● International strategy ● Choices about the methods by which they realize the strategies.
Key issues for strategy in action: ● Strategy evaluation and selection ● Implementation ● Organizational Structuring and Processes ● Control ● Managing strategic change
SERVICE PRODUCTS ●goods are tangible – things you can own; ●services are intangible – things done on Your behalf or for your benefit. You Do not own service products, but instead You have use of them. ●● intangibility - perception of comfort ●● inseparability - time and place of event ●● perishability - capacity, occupancy Rate, ●● heterogeneity - never identical ●● ownership - flight with airplane
SERVICE CHARACTERISTICS ●● high cost for the consumer ●● seasonality ●● ease of entry/exit ●● interdependence - hotel and transfer, flight and destination ●● impact on society - building beach hotels ●● the effect of external shocks