Strategic Management for Tourism, Hospitality and Events

Cover
Half Title
Title
Copyright
Dedication
Contents
Detailed Contents
List of figures
List of tables
List of short illustrative and technology focus cases
List of key concepts
Preface
List of abbreviations
Study guide
Part 1 Strategy and the tourism, hospitality and events contexts
	Introduction
	The strategy process
		Strategic analysis
		Strategic choice
		Strategic implementation and management
		The feedback link
		Study progress
	Strategy in tourism, hospitality and events (THE) contexts
		Tourism management
		Hospitality management
		Events management
		Tourism, hospitality and events management – an integrated approach
	Small business focus
	Summary
	References
	1 Strategy and strategic objectives for tourism, hospitality and event organizations
		Introduction and chapter overview
		Learning objectives
		1.1 What is strategy?
			1.1.1 Definition
			1.1.2 Chandler’s definition
		1.2 The elements of strategy
		1.3 The practice of strategy
			1.3.1 Mintzberg’s 5 Ps
		1.4 Levels of decision making
			1.4.1 Strategic-level decisions
			1.4.2 Tactical-level decisions
			1.4.3 Operational-level decisions
			1.4.4 Congruency and ‘fit\'
			1.4.5 Time and planning horizons
		1.5 Objectives
			1.5.1 Types of objectives
			1.5.2 Hierarchy of objectives
			1.5.3 Mission, vision and values – overview
			1.5.4 Mission and mission statements
			1.5.5 What does a mission statement contain?
			1.5.6 Vision and values
		1.6 The content of corporate objectives
			1.6.1 Economic objectives
			1.6.2 Social objectives
			1.6.3 Growth or market share objectives
			1.6.4 Competitive advantage objectives
		1.7 How do businesses set objectives?
			1.7.1 The stockholder approach
			1.7.2 The stakeholder approach
			1.7.3 Stakeholders and objectives
		1.8 Stakeholders and corporate governance
			1.8.1 Corporate governance and sustainability
		Small business focus
		Chapter summary
		References and websites
	2 Introduction to strategy for tourism, hospitality and events
		Introduction and chapter overview
		Learning objectives
		2.1 Tourism, hospitality and events as service industry sectors
			2.1.1 Goods and services
		2.2 Summary of the key characteristics and their implications for THE managers
		2.3 Service product characteristics
			2.3.1 Intangibility
			2.3.2 Heterogeneity
			2.3.3 Inseparability
			2.3.4 Perishability
		2.4 THE – seven specific characteristics
			2.4.1 Ownership
			2.4.2 High cost
			2.4.3 Seasonality
			2.4.4 Ease of entry/exit
			2.4.5 Interdependence
			2.4.6 Impacts of tourism
			2.4.7 The effect of external shocks
		Small business focus
		Chapter summary
		References and websites
Part 2 Analyzing the internal environment
	Internal analysis
		Internal analysis overview
		Study progress
		Purposes of internal analysis
		The components of internal analysis
		The strategic process
	3 Tourism, hospitality and event organizations – the operational context: sources of competitive advantage
		Introduction and chapter overview
		Learning objectives
		3.1 The sources of competitive advantage
		3.2 Resources
			3.2.1 Categorization of resources
			3.2.2 Resource challenges for THE managers
		3.3 Analyzing resources
			3.3.1 Analysis by category
			3.3.2 Analysis by specificity
			3.3.3 Analysis by performance
		3.4 Competences and capabilities
			3.4.1 How core competences \'work\'
			3.4.2 Distinctive capabilities
		3.5 Core competence, distinctive capability and competitive advantage
			3.5.1 Sustainable competitive advantage
			3.5.2 The ‘VRIO’ framework
			3.5.3 Dynamic capabilities
			3.5.4 How dynamic capabilities are developed
		3.6 Knowledge management as a source of competitive advantage
		3.7 Value-adding activities
			3.7.1 What is value adding?
			3.7.2 The value-adding process
			3.7.3 The value chain
			3.7.4 Analysis of the value chain
			3.7.5 Core activities, non-core activities and outsourcing
		3.8 The Profit Impact of Market Strategy
		3.9 The service profit chain
		3.10 Service-dominant logic
			3.10.1 S-D logic and co-creation of value
		Small business focus
		Chapter summary
		References and websites
	4 Tourism, hospitality and event organizations – the human resources context
		Introduction and chapter overview
		Learning objectives
		4.1 The importance of human resources in THE
		4.2 Employment and working conditions in THE
		4.3 Management of the guest–employee encounter
		4.4 Human resources and service quality
		4.4.1 Humans vs machines in THE
		4.5 The human resource audit
			4.5.1 The contents of a human resource audit
			4.5.2 The outcomes of a human resource audit
			4.5.3 Human resources as critical success factors
		4.6 Organizational culture
			4.6.1 The determinants of culture
			4.6.2 Why is culture important?
			4.6.3 The cultural web
		4.7 Cultural typologies
			4.7.1 Handy’s culture types
			4.7.2 Miles and Snow’s culture types
			4.7.3 Hofstede’s cross-cultural differences
		Small business focus
		Chapter summary
		References and websites
	5 Tourism, hospitality and event organizations – the financial context
		Introduction and chapter overview
		Learning objectives
		5.1 Financial resources in THE contexts
		5.2 An introduction to financial analysis
			5.2.1 Capital intensity
			5.2.2 Financial structure and profitability
			5.2.3 The balance sheet
			5.2.4 The profit and loss statement
		5.3 Sources of corporate funding
			5.3.1 Share capital
			5.3.2 Rights issue capital
			5.3.3 Retained profit as a source of capital
			5.3.4 Loan capital
			5.3.5 Comparison of share capital and loan capital
		5.4 Sources of finance: strategic significance
			5.4.1 Sources of finance: company comparison
			5.4.2 Other sources of capital
		5.5 Cost of capital
			5.5.1 Why calculate the cost of capital?
			5.5.2 Costs of debt capital
			5.5.3 Costs of share capital
			5.5.4 Weighted average cost of capital
		5.6 Key techniques of financial analysis
			5.6.1 Longitudinal analysis
			5.6.2 Cross-sectional analysis
			5.6.3 Ratio analysis
			5.6.4 Performance ratios
			5.6.5 Efficiency ratios
			5.6.6 Liquidity ratios
			5.6.7 Investors’ ratios
			5.6.8 Financial structure ratios
			5.6.9 Using ratios in financial analysis
		5.7 Limitations of financial information
		5.8 Foreign exchange risk management in THE
			5.8.1 Transaction exposure
			5.8.2 Translation exposure
			5.8.3 Economic exposure
			5.8.4 Managing foreign exchange risk
		5.9 Cash management
			5.9.1 Cash flow risk analysis
			5.9.2 Cash flow forecasting
		Small business focus
		Chapter summary
		References and websites
	6 Tourism, hospitality and event organizations – the products and markets context
		Introduction and chapter overview
		Learning objectives
		6.1 Strategic marketing for competitive advantage
		6.2 Understanding markets
		6.3 Market attractiveness
		6.4 Defining markets
			6.4.1 Market – definition based on product
			6.4.2 Market – definition based on need satisfaction or function performed
			6.4.3 Market – definition based on customer identity
			6.4.4 Market – combined definition
		6.5 ‘STP’ marketing
		6.6 Market segmentation
			6.6.1 Four approaches to segmentation
			6.6.2 Criteria for segmentation
			6.6.3 Sociodemographic segmentation
			6.6.4 Geographic segmentation
			6.6.5 Psychographic segmentation
			6.6.6 Geo-demographic segmentation
			6.6.7 Benefit segmentation
			6.6.8 Business-to-business marketing
		6.7 Targeting
		6.8 Product positioning
			6.8.1 Tourism destination positioning
			6.8.2 Adjusting the marketing mix
		6.9 Products
			6.9.1 Product definition
			6.9.2 The product life cycle
			6.9.3 The tourism area life cycle
			6.9.4 Product life cycle critique
			6.9.5 S-curve (technology life cycle analysis)
		6.10 New product development
			6.10.1 New product idea generation
			6.10.2 New product screening
			6.10.3 New product development
		6.11 The product portfolio
			6.11.1 The Boston Consulting Group matrix
			6.11.2 Utilizing the BCG matrix
			6.11.3 Limitations of the BCG matrix
			6.11.4 Composite portfolio models
		Small business focus
		Chapter summary
		References and websites
Part 3 Analyzing the external environment and SWOT
	External analysis and SWOT
		External analysis and SWOT overview
		Study progress
		Levels of external analysis
		SWOT analysis
	7 The external environment for tourism, hospitality and event organizations – the macro context
		Introduction and chapter overview
		Learning objectives
		7.1 The macro environment
			7.1.1 Conducting macro-environmental analysis
			7.1.2 Limitations of macro-environmental analysis
		7.2 ‘STEEP’ analysis
			7.2.1 Using STEEP analysis
			7.2.2 What to analyze
			7.2.3 Sociodemographic factors
			7.2.4 Technological factors
			7.2.5 Economic factors
			7.2.6 Environmental factors
			7.2.7 Political, governmental, legal and regulatory
 factors
			7.2.8 The relationships between the STEEP factors
		Small business focus
		Chapter summary
		References and websites
	8 The external environment for tourism, hospitality and event organizations – the competitive context
		Introduction and chapter overview
		Learning objectives
		8.1 Industries and markets
		8.2 Industry analysis
		8.3 Porter’s five forces model of industry analysis
			8.3.1 The threat of new entrants to the industry
			8.3.2 The threat of substitute products
			8.3.3 The bargaining power of buyers
			8.3.4 The bargaining power of suppliers
			8.3.5 The intensity of rivalry among competitors in the industry
			8.3.6 The five forces framework and profitability – a summary
			8.3.7 Limitations of the five forces framework
		8.4 Clustering
		8.5 A resource-based approach to environmental analysis
			8.5.1 Competitive and collaborative arenas
			8.5.2 Limitations of existing frameworks of analysis
			8.5.3 The resource-based framework
			8.5.4 Resource-based model – a summary
		8.6 Strategic group analysis
		8.7 Competitor profiling
		8.8 Critical success factors and key performance indicators
		Small business focus
		Chapter summary
		References and websites
	9 SWOT analysis for tourism, hospitality and event organizations
		Introduction and chapter overview
		Learning objectives
		9.1 SWOT analysis in THE contexts
		9.2 SWOT – general principles
		9.3 SWOT implementation
		Small business focus
		Chapter summary
		References
Part 4 Strategic options
	Strategic options for tourism, hospitality and events contexts
		Strategic options overview
		Study progress
		Formulating, evaluating and selecting options
		Levels of strategy
	10 Competitive strategy for tourism, hospitality and event organizations
		Introduction and chapter overview
		Learning objectives
		10.1 How competitive advantage is achieved
		10.2 Strategy formulation in THE contexts
		10.3 Competitive strategy overview
		10.4 Michael Porter’s generic strategies
			10.4.1 Cost leadership strategy
			10.4.2 Differentiation strategy
			10.4.3 Focus strategy
			10.4.4 Critical evaluation of the generic strategy framework
			10.4.5 The strategy clock framework
		10.5 Competence-based strategy
			10.5.1 The ‘VRIO’ framework
			10.5.2 Dynamic capabilities
			10.5.3 Developing dynamic capabilities
		10.6 Core competence, generic strategy and the value chain – a synthesis
			10.6.1 Where to exploit core competences and strategies
		Small business focus
		Chapter summary
		References and websites
	11 Strategic directions for tourism, hospitality and event organizations
		Introduction and chapter overview
		Learning objectives
		11.1 Growth strategies
			11.1.1 Growth – Igor Ansoff’s product–market framework
			11.1.2 Market penetration
			11.1.3 Market development
			11.1.4 Product development
			11.1.5 Diversification
		11.2 Stability strategies
		11.3 Retrenchment strategies
			11.3.1 Involuntary retrenchment
		11.4 COVID-19 crisis response strategies
		11.5 Risk and balance
		Small business focus
		Chapter summary
		References and websites
	12 Strategic methods of development for tourism, hospitality and event organizations
		Introduction and chapter overview
		Learning objectives
		12.1 Alternative strategic methods
		12.2 Organic (internal) growth
		12.3 Mergers and acquisitions
			12.3.1 The effects of mergers and acquisitions
			12.3.2 Synergy – the main objective of M&A
			12.3.3 Motivations for M&A
			12.3.4 Potential failure factors with M&A
			12.3.5 Government policy and integrations
		12.4 The relational approach to strategic management
		12.5 Joint development
			12.5.1 Categorizing forms of joint development
			12.5.2 Joint development in THE
		12.6 Strategic alliances
			12.6.1 Strategic alliances in THE
			12.6.2 A conceptualization of the collaborative process for international airlines
			12.6.3 Motivations for strategic alliance formation
			12.6.4 Potential difficulties with strategic alliances
			12.6.5 Partner selection in strategic alliances
		12.7 Public–private partnerships
		12.8 Franchising
		12.9 Management contracts
		12.10 Cooperative networks
			12.10.1 Hospitality consortia
			12.10.2 Referral networks
		12.11 Methods of strategic development: a comparison
		12.12 Methods of retrenchment
			12.12.1 Reasons for disposal
			12.12.2 Shareholders and disposals
		Small business focus
		Chapter summary
		References and websites
	13 Strategic evaluation and selection for tourism, hospitality and event organizations
		Introduction and chapter overview
		Learning objectives
		13.1 Identifying strategic options
			13.1.1 Competitive strategy decisions
			13.1.2 Direction of development – product and market decisions
			13.1.3 Strategic method decisions
		13.2 Applying evaluation criteria
		13.3 Suitability
			13.3.1 Screening
		13.4 Feasibility
		13.5 Sustainability
		13.6 Acceptability
		13.7 Reaction of stakeholders
		13.8 Returns
		13.9 Financial tools for evaluating returns
			13.9.1 Investment appraisal – introduction
			13.9.2 Payback method
			13.9.3 Breakeven analysis
			13.9.4 Accounting rate of return
			13.9.5 Discounted cash flow methods
			13.9.6 Net present value
			13.9.7 Internal rate of return
			13.9.8 NPV and IRR compared
			13.9.9 Limitations of the financial tools
		13.10 Non-financial tools for evaluating returns
			13.10.1 Cost–benefit analysis
			13.10.2 Impact analysis
		13.11 Risk
			13.11.1 Scenario planning and sensitivity analysis
			13.12 Strategic evaluation in emergent strategies
		Small business focus
		Chapter summary
		References and websites
Part 5 Strategy in action
	Strategic implementation and strategy in practice for tourism, hospitality and events
		Study progress
	14 Strategic implementation for tourism, hospitality and event organizations
		Introduction and chapter overview
		Learning objectives
		14.1 Implementation and the strategic process
		14.2 Aspects of strategic implementation
		14.3 Implementation – resources
			14.3.1 Matching strategy with resources
			14.3.2 Developing and controlling resources
		14.4 Implementation – configuration of culture and structure
			14.4.1 Cultural suitability
			14.4.2 Miles and Snow’s typology and cultural postures
			14.4.3 Organizational structure
			14.4.4 The ‘height’ of structures
			14.4.5 The ‘width’ of structures
			14.4.6 Complexity of structure
			14.4.7 Methods of divisionalization
		14.5 Implementation – managing and leading change
			14.5.1 Inertia – identifying barriers to change
			14.5.2 Understanding change – Kurt Lewin’s three-step model
			14.5.3 Understanding the context of change
			14.5.4 Leading and managing change
			14.5.5 Leadership and management styles
			14.5.6 The role of the \'change agent\'
		14.6 Implementation: THE contexts
		14.7 Implementation: communicating, coordinating and measuring
			14.7.1 Communicating, coordinating and measuring – a practical technique for implementing strategy
			14.7.2 The balanced scorecard: overview
			14.7.3 BSC as part of the strategy process
			14.7.4 BSC in practice
			14.7.5 BSC – potential difficulties
		Small business focus
		Chapter summary
		References and websites
	15 International and global strategies for tourism, hospitality and event organizations
		Introduction and chapter overview
		Learning objectives
		15.1 Internationalization and globalization
		15.2 Globalization of markets and industries
			15.2.1 Market homogenization
			15.2.2 Global configuration of activities and outsourcing
			15.2.3 Deglobalization
		15.3 Internationalization and globalization models
			15.3.1 Multi-domesticity
		15.4 Porter’s global generic strategies
			15.4.1 Configuration and coordination of internal activities
		15.5 The competitive advantage of nations or regions
			15.5.1 Porter’s diamond framework
		15.6 Yip’s globalization driver framework
			15.6.1 Market globalization drivers
			15.6.2 Cost globalization drivers
			15.6.3 Government globalization drivers
			15.6.4 Competitive globalization drivers
			15.6.5 Using the globalization driver framework
		15.7 Key strategic international decisions
		15.8 Market entry decisions
			15.8.1 Decision criteria
			15.8.2 Location of value-adding activities
			15.8.3 Market development methods
			15.8.4 Internal development methods
			15.8.5 External development methods
		15.9 A conceptualization of market entry
		15.10 Globalization and market entry strategy – a focus on hospitality
		Small business focus
		Chapter summary
		References and websites
	16 Sustainability strategy for tourism, hospitality and event organizations
		Introduction and chapter overview
		Learning objectives
		16.1 Business sustainability: meaning
			16.1.1 Sustainability and competitive advantage
		16.2 Sustainability strategy: principal issues
		Small business focus
		Chapter summary
		References and websites
	17 Strategic management for tourism, hospitality and event organizations – strategy in practice
		Introduction and chapter overview
		Learning objectives
		17.1 The growth of THE and the managerial challenges presented
			17.1.1 Strategic management in THE contexts
			17.1.2 Approaches to the study of strategic management
		17.2 Strategy in practice
			17.2.1 Factors determining how strategy is presented
			17.2.2 Styles of strategy presentation
			17.2.3 The 8 Cs of presentation
			17.2.4 Strategy presentation: an example
		Chapter summary
		References
Part 6 Case analysis for tourism, hospitality and events
	Introduction
	What do case studies cover?
	Reading and studying the case
	Doing the analysis
	Case study summary
	Chapter/case correlation
	Case study 1 Competing or cooperating in the airline industry: strategic alliances or going it alone?
	Case study 2 Thomas Cook vs TUI: survival of the fittest
	Case study 3 Queensland Australia: tourism and events – strategic positioning and promotion
	Case study 4 IHG – competing on the world stage
	Case study 5 RX – strategic issues for a leading events management company
	Case study 6 Airbnb: back to the future – a ‘disruptor’ for global hospitality
Glossary
Subject index
Name index