Principles and Practices of Strategic Management in Hospitality Industry

Strategic Hospitality Manage-
ment name Emanuel
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Table of contents
INTRODUCTION...........................................................................................................................3
FORMULATION OF CORPORATE STRATEGY.......................................................................3
MAIN BODY..................................................................................................................................6
Process of corporate strategy formulation and the possibility organisation................................6
challenges of implementing corporate strategy...........................................................................7
Effectiveness of implementing corporate strategy......................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
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INTRODUCTION
Strategic management is process of planning, identifying and analysis of all requirement of
organisation so that goals and objectives are met. Strategic management play vital role in growth
and success of firm as it provides a direction to move ahead. Besides that, resources are allocated
in order to execute plan (Bindra, Parameswar, and Dhir, 2019). Hospitality sector is wide as it
includes many sub sectors. Thus, it requires an effective strategic management plan to be
developed. There are various practices of strategic management that is applied.
The essay will describe about principles and practices of strategic management within
hospitality sector. Also, it will be discussed about process, challenges and effectiveness of
implementing a corporate strategy. Apart from it, essay will explain models and concepts of
strategic management in global hospitality industry.
FORMULATION OF CORPORATE STRATEGY
Every organisation is required to formulate and develop a corporate strategy so that goals
are attained. The corporate strategy provides a framework that how goals are to be attained.
Along with that, it also includes various other strategies as well that is applied in accomplishing
goals. However, it is necessary to formulate strategy in effective way as overall success and
growth of organisation depends on it. Thus, if strategy formed is not effective then it led to non
accomplishing of goals. Therefore, for formulating it there are different stakeholders involved as
well. It is because they provide relevant data and info. On basis of which tactics are made.
The corporate level strategy is one in which entire goals, direction and scope of
organisation is decided. Basically, the aspect of study is growth and portfolio one. Likewise, in
hospitality industry also corporate strategy is formulated. Thus, there are various steps which is
taken in defining strategy. They are define environment and target market, define strategic
mission, set objectives, define competitive positon, implement and at last is evaluate. This
enables in forming an effective strategy (Bondarenko, Isaeva,. and Soltakhanov, 2017).
Principles and practice of strategic management
It has been analysed that there are different principles and practice of strategic
management that is followed. These ease the overall process of strategy formation. But
sometimes it becomes highly difficult for firm to develop strategy. It is because there come
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various obstacles in that. For that there are several principles of strategic management that is
followed in it. They are as below
Focus on most important – It is first principle of strategic management in which the focus is on
most important thing. This means that if emphasis is on attaining customer satisfaction then it
must be done that. Here, priorities are set that is most crucial. It helps in attaining of business
goals.
Leverage strengths – here, the strengths are leverage by focusing on competitive advantage.
Thus, core business is understood, sales profits, etc. are analysed and then strategy is formed.
Besides, it is ensured the innovation is reinforcing to expand business and gain opportunities.
Communicate- In this it is ensured that everyone in organisation understand what is going to be
done. The employees must be involved in this and all goals should be communicated to them.
This will enable in gaining their trust and it will benefit in effective strategy implementation.
Increase energy level- in this a pace of progress is created to momentum and enthusiasm. The
schedule progress meetings are held on a regular basis (Konovalova,, Yudina,. and Lebedev,
2018). Thus, strategy management is made as a priority and everyone interest and commitment is
ensured in it. The employees and managers become energized by their contribution to the
process.
Be flexible- Strategy management is a dynamic and continuous process. Therefore, it must be
flexible and prepared to make adjustments as competitors, customers and economic market
conditions change. It is done by conducting regular team strategy meetings in which progress
made is highlighted and action needed on key issues and opportunities are taken.
Invest in process- it is considered as retaining a qualified outside resource to help facilitate the
process. This approach allows the CEO to participate in the process and provides an objective
third party that can challenge assumptions and ask the tough questions. As companies grow, the
need for broader experience becomes greater. An outside resource can provide credibility and
invite creativity.
There are various strategic management practices a well that is followed. The use of
practices allows to plan and execute strategic plan. So, practices are as follow
Strategy formulation- it is foremost practice in it where objectives are formed and clearly
defined. The overall process is highly proactive and requires a lot of efforts to be completed.
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