Institute for Tourism Studies :Institute for Tourism Studies STRATEGIC MANAGEMENT: An Application to Hospitality Qualification Presentation for the Post of Assistant Professor (Ref. No. 004/AC/09) Assistant Professor Georgios PALAIOLOGOS European Doctoral Program in Entrepreneurship, Lund University, Sweden MSc, BSc in Management, Boston University, USA.


Slide 2:EDUCATION 1995. European Doctorate Program in Entrepreneurship & SME Management Universitat Autonoma Barcelona(Spain) – Lund University (Sweden) 1994. Postgraduate Diploma in Small Business Management Aegean University (Greece) 1992. Graduate Studies in Tourism Administration Hellenic Tourism Organisation(Greece) 1991. Master of Science in Management focus in Strategic Management Boston University(USA) 1990. Bachelor of Science in Ph. Education and Leisure Athens University(Greece) 1989. Spec. Diploma in Sport Economy & Coaching Deutsche SporthochSchule Cologne(Germany)


Slide 3:WORK EXPERIENCE 2008-Today. Assistant Professor in International Business. Hankuk University, S.Korea 2008- Today. Instructor of Marketing. University of Liverpool Distance MBA 2007-08 Academic Director and Senior Lecturer in Business & Hospitality Management. Raffles University, HK 2007-08. Instructor of Marketing and Strategy. Leicester University Blended MBA, HK. 1998-07. Senior Lecturer(Preceptor) of Management & Marketing. American College of Greece 1995-97. Lecturer in Tourism and Business Mgt. European University(Brussels, Athens) 1994-95. Business Development Director South East Asia Operations. Future Telecommunications Ltd (Singapore, Malaysia, Indonesia, India, Turkey) 1993-94. Top Secret Junior Officer. North Atlantic Treaty Association(NATO – Belgium) 1992. Stagiaire. Commission of the European Union(Belgium) 1995-07. Senior Partner & Consultant. GP & Associates. Projects/Positions: a. 2005-2007. Affiliate management & Business Development Mgt. Travel City(Travel Agent) b. 2004-2006. General Manager. Goritsas Tiles & Sanitary Ware c. 2005-2007. CEO. Afragos Web Travel. d. 2004-2006. Marketing Director. MacDonald’s Hellas(Multi-franchisee Kontizas 3 units) e. 1998-2003. CEO. Paedomania, Family Entertainment Centers(franchisor- 3 units) f. 1997. Marketing Ass. Director. KEM 1st International Franchising Exhibition g. 1996. Training Franchisees. Grigoris Snacks(franchisor-150 units) h. 1995. Sales Mgr. TZANET beauty centers(franchisor-10 units)


Slide 4:What Is Strategy andWhy Is It Important?


Slide 5:“Without a strategy the organization is like a ship without a rudder.” Joel Ross and Michael Kami


Thinking Strategically:The Three Big Strategic Questions :Thinking Strategically:The Three Big Strategic Questions 1. Where are we now? 2. Where do we want to go? Business(es) to be in and market positions to stake out Buyer needs and groups to serve Outcomes to achieve 3. How will we get there? A company’s answer to “how will we get there?” is its strategy


What Is Strategy? :What Is Strategy? Consists of the combination of competitive moves and business approaches used by managers to run the company Management’s “game plan” to Attract and please customers Stake out a market position Compete successfully Grow the business Achieve targeted objectives


The Hows ThatDefine a Firm's Strategy :How to please customers How to respond to changing market conditions How to outcompete rivals How to grow the business How to manage each functional piece of the business and develop needed organizational capabilities How to achieve strategic and financial objectives The Hows ThatDefine a Firm's Strategy


Southwest Airlines’ Strategy :Southwest Airlines’ Strategy Grow the business by gradually adding more flights on existing routes and initiating service to new airports Make friendly service a company trademark Maintain an aircraft fleet of only Boeing 737s Encourage customers to make reservations and purchase tickets at the company’s Web site Avoid flying into congested airports Employ a point-to-point route system Economize on Amount of time it takes terminal personnel to check passengers in and on-load passengers Costs


Strategic Approaches to Building Competitive Advantage :Strategic Approaches to Building Competitive Advantage Strive to be the industry’s low-cost provider Outcompete rivals on a key differentiating feature Focus on a narrow market niche, doing a better job than rivals of serving the unique needs of niche buyers Develop expertise, resource strengths, and capabilities not easily imitated by rivals


Company’s Strategy Is Partly Proactive and Partly Reactive :Company’s Strategy Is Partly Proactive and Partly Reactive


A Company’s Strategy-Making Hierarchy :A Company’s Strategy-Making Hierarchy


PEPSICO SBU's and Strategies :PEPSICO SBU's and Strategies


Levels of Strategy-Makingin a Diversified Company :Levels of Strategy-Makingin a Diversified Company Corporate Strategy Business Strategies Functional Strategies Operating Strategies Two-Way Influence Two-Way Influence Two-Way Influence


Levels of Strategy-Making ina Single-Business Company :Levels of Strategy-Making ina Single-Business Company Business Strategy Two-Way Influence Functional Strategies Operating Strategies Business-Level Managers Operating Managers Functional Managers Two-Way Influence


What Is a Strategic Plan? :Its strategic vision and business mission Its strategy Its strategic andfinancial objectives What Is a Strategic Plan? A Company’s Strategic Plan Consists of


Slide 17:The Managerial Process of Crafting and Executing Strategy


The Strategy-Making, Strategy-Executing Process :The Strategy-Making, Strategy-Executing Process


Developing a Strategic Vision :Developing a Strategic Vision Involves thinking strategically about Future direction of company Changes in company’s product-market-customer-technology to improve Current market position Future prospects Phase 1 of the Strategy-Making Process A strategic vision is a road map showing the route a company intends to take in developing and strengthening its business. It paints a picture of a company’s destination and provides a rationale for going there.


Slide 20:Nike To bring innovation inspiration to every athlete in the world.


Strategic Vision vs. Mission :The mission statement of most companies focuses on current business activities - “who we are and what we do” Current product and service offerings Customer needs being served Technologicaland businesscapabilities A strategic vision concerns a firm’s future business path - “where we are going” Markets to be pursued Future technology-product-customer focus Kind of company management is trying to create Strategic Vision vs. Mission


Characteristics ofa Mission Statement :Defines current business activities, highlighting boundaries of current business Present products and services Types of customers served Conveys Who we are, What we do, and Why we are here A company’s mission is not to make a profit! Its true mission is its answer to “What will we do to make a profit?” Making is profit is an objective or intended outcome! Characteristics ofa Mission Statement


Slide 23:To give our customers the best food and beverage values that they can find anywhere and to provide them with the information required for informed buying decisions. We provide these with a dedication to the highest quality of customer satisfaction delivered with a sense of warmth, friendliness, fun, individual pride, and company spirit. (a unique grocery store chain)


Setting Objectives :Setting Objectives Purpose of setting objectives Converts vision into specific performance targets Creates yardsticks to track performance Pushes firm to be inventive, intentional, andfocused in its actions Setting challenging, achievableobjectives guards against Complacency Internal confusion Status quo performance Phase 2 of the Strategy-Making Process


Types of Objectives Required :Outcomes focusedon improving financial performance Outcomes focused on improving long-term competitive business position Financial Objectives Strategic Objectives Types of Objectives Required


Heinz’s Financial andStrategic Objectives :Heinz’s Financial andStrategic Objectives Achieve earnings per share in the rangeof $2.15-$2.25 in 2004 Increase operating cash flow by 45% to $750 million Reduce net debt by $1.3 billion in 2003 and further strengthen the company balance sheet in 2004 Continue to introduce new and improved food products Remove the clutter in the company product offerings by reducing the number of SKUs Increase spending on trade promotion and advertising by $200 million to strengthen the recognition and market shares of the company’s core brands Divest non-core underperforming product lines


Short-Term vs.Long-Term Objectives :Short-Term vs.Long-Term Objectives Short-term objectives Targets to be achieved soon Milestones or stair steps for reaching long-range performance Long-term objectives Targets to be achieved within3 to 5 years Prompt actions now that willpermit reaching targetedlong-range performance later


Crafting a Strategy (Planning) :Crafting a Strategy (Planning) Strategy-making involves entrepreneurship –searching for opportunities To do new things or To do existing things in new or better ways Strategizing involves Picking up on happenings in the external environment and Steering company activities in new directions dictated by shifting market conditions Phase 3 of the Strategy-Making Process


Who Participates in Craftinga Company’s Strategy? :Who Participates in Craftinga Company’s Strategy? Chief executive officer - CEO Senior corporate executives Chief financial officer - CFO Managers of business divisions andmajor product lines Key VPs for production, marketing, human resources, and other functional departments Every company manager has a strategy-making,strategy-executing role – ranging from minor to major – for the area he or she heads!


Implementing and Executing Strategy :Action-oriented, operations-driven activity aimed at shaping performance of core business activities in a strategy-supportive manner Tougher and more time-consumingthan crafting strategy Key tasks include Improving efficiency of the strategy being executed Showing measurable progress in achieving targeted results Phase 4 of the Strategy-Making Process Implementing and Executing Strategy


What Does Strategy Implementation Involve? :Building a capable organization Allocating resources to strategy-critical activities Establishing strategy-supportive policies Instituting best practices and programs forcontinuous improvement Installing information, communication, and operating systems Motivating people to pursue the target objectives Tying rewards to achievement of results Creating a strategy-supportive corporate culture Exerting the leadership necessary to drive the process forward and keep improving What Does Strategy Implementation Involve?


Evaluating Performance andMaking Corrective Adjustments :Tasks of crafting and implementing the strategy are not a one-time exercise Customer needs and competitive conditions change New opportunities appear; technology advances; any number of other outside developments occur One or more aspects of executing the strategy may not be going well New managers with different ideas take over Organizational learning occurs All these trigger the need for corrective actions and adjustments on an as-needed basis Phase 5 of the Strategy-Making Process Evaluating Performance andMaking Corrective Adjustments