Unlocking Competitive Advantage: A Strategic Thinking Perspective

This assignment content comprises a collection of articles and books related to strategic management, brand management, and systems thinking. The articles cover topics such as employee communication behavior, corporate disaster donations, stakeholder engagement, and project strategy. The books provide insights on brand equity, strategic thinking, and conceptual frameworks for sustainability in higher education. Additionally, the online resources explore the importance of strategic thinking for competitive advantage and the concept of strategic value management.

Strategic Thinking and Value
Management

Table of Contents
ABSTRACT.....................................................................................................................................3
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................4
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

ABSTRACT
Strategic thinking is the process in which it is decided that what steps are taken in order
to make the business a successful unit. With the help of it decisions were taken in respect of
present as well as future. Value management ensure that proper relationship is maintained with
the needs and demands of the customer. In this essay it was discussed that how Airbnb had
applied the strategic thinking and value management in its business in order to solve its major
problem of poor customer services. For this purpose the various challenges that it was facing
were given the required focus. There was a theoretical analysis of the problem with the help of
various techniques that included the balance scorecard approach, GAP, PESTLE, and SWOT
analysis. They all were discussed and analysed that what all challenges were faced by them. The
limitations in respect of each theory were also explained in the essay. With the help study of all
these aspects it was possible for the Airbnb to take correct decisions and work for the further
development and expansion of the business and also it was possible for the company to face the
challenges and deal with the competition in the market. All of matters in relation to customer
services were discussed in this essay on the basis of which conclusion was drawn at the end.
INTRODUCTION
For becoming successful there is a chain of decisions that is required to be adopted in
relation to what are the actions that are required to be performed for becoming a successful
business and the process of forming this chain of decision is involved in the process of strategic
thinking (Batra, Kaushik and Kalia, 2010). It is a very important tool that is needed to in order to
take the important decisions for the future as well as present which will help in successfully
achieving the goals and becoming successful. There are various critical skills that are required to
be developed and they are included in strategic thinking. Every successful business will think
about the future and will always work towards encouraging strategic thinking. Airbnb is a
company which was founded in 2008 and is situated in San Francisco, California. It provides

services to the public in relation to accommodation. Here anyone can find about the required
accommodation facility and can make a booking either online or with the help of tablet and
mobiles. It is providing services in around 191 countries and more than 65000 cities. It helps
people in achieving unique travel experiences (Pang and Pisapia, 2012). there are various
problems that are faced by the company and they can be solved with the help of strategic
thinking and the main problem that will be discussed here is poor customer services. As it deals
with the public so it will be very beneficial as by this the thought process of the public can be
understood. It will be possible to identify the needs and requirements of different class of people
and then providing them services according to their needs. It will enable to know about the major
changes that can take place in future and how they can be dealt with. It will help the business in
dealing with the problem of poor customer services as this is the common problem which every
company faces (Noland and Phillips, 2010). It will help the company to know that how the
customer services can be improved so that they can be satisfied. In this essay major focus will be
placed on the theoretical analysis that will be performed by using different strategies which will
involve balance business scorecard, GAP, PESTLE, AND SWOT with the help of which the
business phenomenon will be explained together with the major challenge faced by it. The
various aspects of these theories will be explained in detail in the below given essay.
TASK
The manner in which people assess, view or create the future is the process of strategic
thinking. Just thinking is not enough and in order to achieve what has been thought is the main
challenge for any business. This can be done with the help of value management in which it is
considered that how can the balance be created between the needs and the wants and also can be
improved. The resources needed to satisfy the wants are required to be managed in an effective
and efficient manner (Patanakul and Shenhar, 2012). This will be required to be applied by the
Airbnb also as it is providing facilities of accommodation are provided to whosoever is in need
and in order to become successful it is necessary for the company to understand the thinking
process of the people. Then it will be required that company should identify the needs and wants
of the people and take measures in order to satisfy them with the available resources in the most
effective manner possible and also take steps to improve the services even further.
Balance scorecard approach :

According to Ageron, Gunasekaran and Spalanzani, (2012), it has been analysed that a
balance scorecard is the tool that is used in order to measure the performance in case of strategic
management. With the help of it the performance of any business can be improved by identifying
and improving the various functions that affect the business internally and also the outcomes that
are obtained from them. After the performance has been measured than it is required that the
feedback in respect of what all has been found should be provided to Airbnb. For the purpose of
taking decision it is important that the relevant and appropriate information should be collected
as on the basis of that information only managers will make the decisions for the growth of the
business. For the maintenance of good behaviour this technique of balance scorecard has been
introduced as with the help of it the four main areas of the business which are important to be
analysed are separated. The four areas that are required to be considered are business processes,
learning and growth, finance and customers and they are called as the four legs. For the
achievement of measurements, objectives and goals of the which arises from the functioning in
all these areas, the balanced scorecard approach is required.
As per the views of Bratianu, Jianu and Vasilache, (2010), it has been depicted that those
factors that affect the performance of the company can be easily identified and then the required
changes in their respect can be made with the help of future scorecard. Firstly area that is to be
considered is the collection of timely and relevant data is of the major importance and for this
purpose managers perform different actions in order to collect the data. The core function of the
management of airbnb is to handle and process the financial data. Information will be collected
regarding level of satisfaction of the customers. It is very important for every organizations to
focus on this aspect as the business will be able to survive in long run only if it is able to provide
good services to its customers. With the help of using various processes by which the services
that are provided to customers can be improved by balance scorecard approach.
As stated by Berry, Bryson and Yang, (2010), it has been depicted that the main
perspective which comes is the customer related perspective. According to this it has been seen
that for being a successful business it is necessary that the focus should be given to the customers
needs, their demands and their specific requirements. It should be seen that their needs are
properly taken care of and they are satisfies with the services that are being provided by the
Airbnb. If any business is not able to tend to the customer needs in a satisfied manner than it will
surely result in its failure as being not satisfied customer will go to the other suppliers where they

can get the services as per their requirements and needs. All of this can be achieved by
conducting proper surveys in regards to the needs of the customers and the looking to it that they
are fulfilled and company is maintaining a good relationship status with the customers and is in
friendly behaviour so that they can identify their thinking process in a better way. According to
Phillips and Lawrence, (2012), it has been analysed that it is very important to look into the
business process perspective as it is related to the internal functions of a business. With the help
of this it will be possible to have an information regarding whether the company is performing in
a better way or not. It is also required to be checked that the business is capable in meeting the
customer needs and is satisfying them to the greatest extent possible. The set standards in
relation to the quality of the product should be met as it will be required to satisfy the customer
requirements and provide them with great customer services. All this will be achieved in a better
way if this process is conducted by those members who have all the knowledge regarding
internal functions of the company because the way they know the functioning no other external
body can know and take steps in this regard.
As per the view of Çalişkan, (2010), it has been depicted that it is very important to
provide the employees with the required training and development programme and also those
techniques that will lead to their self improvement and all of this is covered under the learning
and growth perspective of the balance scorecard scheme. With the change in the technology the
requirement to learn the new technology arises and the employees should always be aware of
such changes and should learn them so that they can apply them while performing their activities
by which the provision of services to customers will be enhanced. Further it is required to be
checked whether the employees hold the correct expertise in respect of their job or not and also it
is to be analysed that the employee turnover ratio should not be more and if it is then the reason
for it should be ascertained and measures to improve the ratio should be taken as new employees
will take time to understand the needs of the customers and will not be able to provide
satisfaction to them. With the help of balance scorecard approach objectives that are required to
be achieved by airbnb will be specified by taking into view the strategy of the company. This
scheme will help the company to achieve its objective of improving customer services in an
efficient manner as by this their needs will be identified and there services will be provided
according to it.
Limitation of balance scorecard approach :

In addition to the above mentioned advantages there are certain disadvantages also that
are present in this approach which include that this approach cannot be applied at a short notice
as for the application of this it is required that a plan is formulated and then whole procedure
takes lot of time. Another limitation is that the data that is collected in it is limited and does not
cover all the aspects that are required to be collected.
GAP Analysis
According to Eden and Ackermann, (2013), it has been analysed that in order to solve the
problem of poor customer services certain steps are required to be performed and that can be
done with the use of a technique which is known as GAP Analysis. With the help of it Airbnb
can determine whether it is using all the resources that are available with it in an effective
manner and is performing as per the required expectations and all this can be done by comparing
its actual performance with the expected performance. As there are some deviations between the
actuals and the expected services that should be provided it can be said to be the gap in the
business procedure. The basic focus of this analysis is towards identification of the level of
services company is currently providing and the level till where it wants to reach that Is what is
the status where it sees itself in the coming period. To overcome these gaps Airbnb is required to
formulate the new plans on the basis of the understanding that has been obtained with this
analysis and that plan will specify the actions that are required to be performed by the company
in order to achieve the required customer satisfaction. The gap analysis can be conducted by
performing four steps which include construction of organizational goals, benchmarking of the
current state, analysis of the gap data, and lastly compilation in a gap report.
According to the views of Eweje, Turner and Müller, (2012), it has been depicted that
gap analysis should start with the identification of the problem faced by business or by defining
the goals of an organisation. The objectives that will be established should be such that they can
be measured, should be specific about what is to be achieved, attainable i.e. should not be such
which is not possible to be achieved and should have a time factor involved which will specify
the time limit within which the objectives are required to be achieved. Before formation of the
goals it is necessary that proper research in the companies structure should be conducted so that
the information obtained can be utilised in formation of the proper plan by which good customer
services can be provided. The next step in this analysis would be to analyse the historical
information in relation to the company that is available and then using such information for the

measurement of the current performance of the company and setting the benchmarks on the basis
of it.
As stated by Freeman, (2010), it has been depicted that after the setting of the
benchmarks the next step that is involved in gap analysis is to analyse the data that has been
collected and on the basis of it identification of the variance between the actual performance and
the expected performance should be done. When the deviations will be known than it is required
that the measures should be taken in order to identify the causes of such deviations that why is
the performance of the company not in accordance with the desired level of output in customer
services. It should be identified that what will be the effect of such variations on the profitability
or the future performance of the organisation and what all steps are required to be taken in order
to remove those gaps that have been found in order to make the business of the company a
successful one. The last step that is required to be taken in this series of steps is to make a report
compiling all the information that have been gathered while performing the analysis and will also
include the other aspects such the reasons for non achievement of the set standard benchmarks
that were set in relation to level of customer services and their effects. Also it should be included
in the report that what all plans are required to be made and all other actions that are required to
be taken in order to overcome the existing faults and further helping Airbnb in achieving its set
organisational goals and objectives and provide the customers with maximum satisfaction.
As per the views of Goetsch and Davis, (2014), it has been depicted that like any other
technique gap analysis also has some sets of advantages and disadvantages. The major
advantages of this scheme are that it provides the managers with the necessary information
regarding their resources, goals and objectives that are required to be achieved. It will help the
company to know that whether it has sufficient amount of resources in order to meet the
objectives and other requirements of the company . It will help them to know the gaps present in
the current situation and then take steps in order to overcome those in the coming future and to
ensure that they do not occur again in the future. With the formation of the plan it will be
possible for the company to establish the priorities and decide what is to be done before any
other task. In case of limited resources it will be helpful in identifying the activities to which the
resources are required to be applied on the priority basis (Strategic value management, 2017).
Disadvantages of GAP Analysis

Along with the advantages there are certain disadvantages also that are associated with
the gap analysis which includes that it will lead to the problem of cost and time as there will be
the requirement to conduct the analysis of the business procedure and then making the plan and
all this process will involve consumption of lot of amount of money and it will increase the cost
burden on the company. Also lot of time will be consumed in process of collection of data and
that managers will be required to conduct the analysis and make the plan of action and this whole
process will require the involvement of the management and by this lot of time of the
management will be occupied.
PESTLE analysis
According to Goldman, (2012), it has been analysed in order to identify the various
factors that affect or shape the company's environment there is need to conduct the PESTLE
Analysis. There are various factors that affect the organisation and plays a very important role in
telling about the nature of the organisation and also how those factors will be affecting the future
working of the company will also be determined with the help of PESTLE analysis. The factors
involved in this are political, economic, socio-cultural, technological and environmental. As it is
bases on the internal functions it is considered as one of the major tool in strategic management
as it will help the company in identifying the macro factors which are required to be taken into
consideration by Airbnb so that it can formulate the policies that are required to followed in
order to solve the problem of customer services and providing them with desired satisfaction
(Strategic thinking for today's project managers, 2017).
As per the views of Gunasekaran and Ngai, (2012), it has been depicted that the first
factor that is to be considered in the analysis is the political factors. In this the focus is provided
on the external environment. It describes the level up to which the control in the company will be
exercised by the government. These are those factors that are required to be changed and
operated by the government and the services that will be provided to the Airbnb by the
government. There are various rules and regulation which are formulated by the government and
are required to be followed by the company in relation to customer services (Muller and Kräussl,
2011). Government has levied a large amount of penalties and prosecution and those who will
not be following the rules and regulations that have been specified by the government will have
to bear the consequences and the penalties and the prosecution specified by the government in
this behalf. Other factors that also affect political decisions will include the interest rates as it

will be seen that the borrowings are available at what interest rates as funds will be required for
the provision of good customer services. All these factors are required to be considered by the
Airbnb in order to be successful in growing level of customer satisfaction.
As stated by Haines, (2016), it has been depicted that the other critical factor which is to
be considered in the pestle analysis is the economic factor. These are those factors which will
have their impact on the Airbnb in long run and they will show the performance of the company
due to which the performance of the company will have to bear a direct impact. With the change
in the economic factors the demand and supply of the company will be affected to a large extent
as due to this the customers purchasing power will be affected so there will be an impact on the
amount of goods or services that he will be buying or procuring and also the customers will
demand more services and Airbnb is currently having problem in this respect. The other
economic factors that will have impact on the business will include inflation rates, foreign
exchange rates, interest rates, and various others. With the help of these factors it will be possible
to ascertain the amount of growth in the business and also its level of expansion by achieving
good customer base with the help of providing them with good customer services (Moon, 2013).
The next factors that are to be analysed in PESTLE Analysis are the socio-cultural factors. In this
the social and cultural elements of the business are considered and companies demand for the
goods will be affected due to these factors. They will also cover the procedure that is followed by
the company in its other business activities that will include marketing and human resource that
are mainly concerned about customer services.
As per the views of Haycock, (2012), it has been depicted that the next are the
technological factors that will be affecting the company. This will include all those technologies
that are crucial and very important for an organisation in order to achieve the objectives that have
been set by the company in an efficient manner. With the change in the technology it will be
required by the Airbnb that they should consider their strategies again in order to incorporate the
changes in the business make the business ready for the competitive market so that it can achieve
the customers support by providing them better services with the help of new and advanced
technology. The major areas of business where the impact of the technology will be the most are
decisions regarding outsourcing, quality of the product, efficiency of the production and
innovations in relation to the services provided as all these are very important in provision of
support services to the customers. After these comes the environmental factors which will show

there effect in the external operations for the industries operating in the field of tourism. Weather
and climatic changes are some of the environmental factors that affect the organisation (Mingers
and White, 2010). Awareness in regards to the climate change is now gaining importance and
has to be considered. The advantages of this analysis are that it provides ans easy way to carry on
the analysis, helps in reducing the impact of the factors that affect the organisation in a negative
manner as Airbnb will be able to prepare itself in this respect and it will be able to provide the
visitors with the required services that are important to be provided in such conditions.
Disadvantages of PESTEL Analysis.
The disadvantages in this model are that for the conduction of these processes investment
is required to be made which is often not made by the company. The information required for the
making of decisions are sometimes modified resulting into formation of wrong decisions and this
will have an adverse impact on airbnb.
SWOT Analysis :
According to Holweg and Helo, (2014), it has been analysed that the other major
technique that can be used is SWOT Analysis. This strategy can be applied by any business as by
applying it organisation will be able know about the strengths, weaknesses, opportunities and
threats in relation to the customer support services. By determination of these factors airbnb will
be able to identify strengths and weaknesses that are present in relation to services that are
provided to customers and then they can focus on them. Steps can be taken to overcome the
weaknesses that are identified by the business in order to achieve customer satisfaction. The
strengths which are the capabilities of the business should be utilised in an effective manner so
that the good customer services can be ensured. Therefore it is considered as necessary to
conduct the SWOT analysis. First thing that is considered in this analysis are the strengths.
As stated by Kapferer, (2012), it has been depicted that for any organisation strengths
will be considered as the positive characteristics of the organisation in relation to its internal
aspects and it will not be of any relevance while conducting the analysis that whether the
characteristics are tangible or intangible. The strengths are generally considered to within the
scope of organisation that is they can be controlled by Airbnb. By the conduction of the SWOT
analysis business will be able to know about its those strengths that it is having in addition to the
others and in which they are best and what all resources are available with it. The strengths of
Airbnb are that the valuation of the company is high and due to this advantage it can get large

amount of money from its investors which can be further utilised by the company for the purpose
of providing customer with better support services. After the evaluation of strengths the next
factor is the analysis of weaknesses. These are those aspects which are present in the internal
functioning of the company and its acts as the hindrance in the way of development and growth
of the company.
Due to these the company is not able to provide appropriate services to the customers
and is not able to stand in the competitive market with the other companies as it is not able to
compete with them and for it to become capable to stand with them it will be required that it
should take some steps in order to overcome the weaknesses (Stephens and Graham, 2010). The
reason for such weaknesses should be identified and it should be understood that can they be
solved.
According to Keller, Parameswaran and Jacob, (2011), it has been analysed that
opportunities are those elements that are external and due to which it can be expected that
business has the chances that it can grow and expand in the future. These factors are needed to be
identified in the market as these will be those factors due to which the company will be able to
get the benefits in the market. The factors in the external market that will lead to the growth of
the business in any of the form possible will also be covered in the aspect of opportunities. There
are various opportunities that are involved in every business which are required to be utilised by
the business for their advantage (Creating and Implementing Strategy for Competitive
Advantage, 2017). The major opportunities for Airbnb are that it can develop its business by
introducing the new line of products and services which will increase the level of customer
satisfaction as they will be able to get the services as per their wish and also it can acquire some
new acquisitions which will prove to be the opportunities for it. As stated by Kim and Rhee,
(2011), it has been depicted that there are certain factors that every business is required to face
and they cannot be controlled by the organisation, such factors are known as threats. These
threats will impose a negative impact on the business and they have the ability that they can
cause the strategic plans of the company to be proved as failure and could not be achieved. These
threats can be overcome by the business if there is an effective plan with the company by which
it is possible to solve the problems that arises due to threats. If the company is not able to deal
with the threats in an effective manner than it will to decrease in the profit levels of the business
as they will act as the competitors of the business in the market.

There can be various threats for the different types of organisation that they will be
required to be faced. Some of the threats that are faced by Airbnb are the risk that it has to face
from the external business market as it is in the business of providing accommodation so there
are various other hotels and all that will become its competitors who will be providing better
services to the customers (wayne, Duncan and Ginter, 2012). As per the views of Wheelen and
Hunger, (2011), it has been depicted that with the help of an effective SWOT analysis a business
can avoid its threats and also it will be able to encash its opportunities and take advantage by it.
For any business it is important to have the knowledge about all its aspects and that can be done
by following the analysis. With the help of it effective business policies can be made that will
cover all the threats and weaknesses so that there will be no loss due to those factors which will
be required to be borne by the company.
Limitation of SWOT Analysis :
There are some limitations of SWOT analysis which include that in this every point is given the
equal amount of weightage. In this analysis there are no specific part that are provided which can
be helpful in any respect. The limitation can be due to internal aspects which will include that
there may be faulty products due to lack of good quality control or Airbnb can have shortage of
skilled employees who are managing the support services.
CONCLUSION
From the above mentioned research essay it can be concluded that for the success, growth
and expansion of any business it is necessary that a proper strategic thinking and value
management process should be established. It has been noticed that Airbnb is a company which
is providing services of accommodation to the public. It has been noticed that for the success of
this process the various techniques that are required to be undertaken are covered by the
company. Those techniques were balance scorecard approach, GAP, PESTLE and SWOT
analysis and with the help of them the management of the company was able to identify the areas
in which proper planning and actions were required to be taken in order to solve the problem of
poor customer services. Also it has identified its strengths and weaknesses which will help it in
making correct decisions. With the proper understanding of all these frameworks it can be
further concluded that for the achievement of better support services all these approaches will be
required to be performed and they will be of great help for the company to maintain the principle
of strategic thinking and value management.

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