1

Introduction to the Course

- Strategy Planning
BUDAPEST BUSINESS SCHOOL MA II.
2021/2022 SEMESTER 1
COURSE 1
Course map and Evaluation* 2
Home Assignment Home Assignment Alternatives
1. Introduction to the Course - Strategy Planning and Cases Criteria: Minimum 5,
maximum 10 pages on A4
paper.
2. Phases of the hotel development Font type: Times New Description Deadline Replacement
Roman.
3. Pre-opening I. (P&L, Action Plan) Overall letter size:
minimum 10, maximum
4. Pre-opening II. (Market Launch, Brand and Business 12, except titles.
Development) Hospitality Business Audit
1. Process Description 2021.12.20 No
5. Evolution of the hospitality asset management Description of the Hotel
2. Operator Selection Process 2021.12.20 No

6. Performance management Revenue On Investment

(ROI) planning in case of a
3. Product Improvement 2021.12.20 No
7. Business Audit Project (PIP)
4. Description of the Process 2021.12.20 No
8. Management vs Franchise of Strategy Plannig
Description of Hotel
5. Development Stages and 2021.12.20 No
9. Hotel Operator Selection process the Pre-Opening process
Hopitality Business
6. Strategy Options for 2021.12.20 No
10. Product development, Property Improvement, ROI 2021/2022

11. Evolution of the international hotel operators and their brand

value
12. Information management
Comparison of the hospitality market in the capital and in the
13. countryside.
*: any occuring modification will be advised
Content 3

1. Strategy Management Essentials

2. Embracement of Ethics, Social Responsibility and Sustainability
3. Strategy Types
4. Vision and Mission Analysis
5. The Internal Audit
6. The External Audit
7. Strategy Generation and Selection
8. Implementation
9. Execution
10. Monitoring
 1. Strategy Management Essentials 4

1. The Definitions of Strategic-Management

2. The Stages of Strategy Management
3. Integrating Analysis and Intuition
4. The Key Terms in Strategic Management.
5. The Benefits of Engagement

https://www.ihgplc.com/-/
media/ihg/files/results/2021/q1-2021/240101355_ihg_introducing_ihg_2021_060521.pdf?la=en&hash=C26FBE41411CD2
EC2055F5F798522C4C

https://www.phocuswire.com/Accor-loss-2020-strategy-2021
1.1 Definition 5

 It is the art and science of formulating, implementing, and evaluating cross-functional

decisions that enable an organization to achieve its objectives.
 Focuses on integrating business units, such as management, marketing, finance and
accounting, production and operations, research and development (R&D), and information
systems to achieve organizational success.
 A company’s game plan that results from tough managerial choices among numerous good
alternatives, and it signals commitment to specific markets, policies, procedures, and operations
to gain and sustain competitive advantage
1.2 Stages of Strategic Management 6

1. Formulation
 developing a vision and a mission, identifying an organization’s external opportunities and threats,
determining internal strengths and weaknesses, establishing long-term objectives
2. Implementation (Action Stage – most difficult) and Execution
 mobilizing employees and managers to put formulated strategies into action
3. Evaluation
 reviewing external and internal factors that are the bases for current strategies
 measuring performance
 taking corrective actions
 1.3 Integrating Intuition and Analysis 7

 Objective, logical, systematic approach for making major decisions in an

organization
 An attempt to duplicate what goes on in the mind of a brilliant, intuitive person
who knows the business and assimilates and integrates that knowledge using
analysis to formulate effective strategies

Edward Deming said,“In God we trust. All others bring data.”

1.4 Key Terms in Strategic Management 8

1. Competitive advantage (activity that makes you differ from rival firms)
2. Strategists (help gather, analyse and organize information)
3. Vision and mission statements (What to become? What is our business?)
4. External opportunities and threats (constant monitoring and analysis)
5. Internal strengths and weaknesses (controllable)
6. Long-term objectives (for more than one year, provide direction)
7. Strategies (means by which long term objectives will be achieved)
8. Annual objectives (short term achievable milestones to reach long term objectives)
9. Policies (means by which annual objectives will be achieved)
1.5 Benefits of Engaging in Strategic 9
Management

i. allows to be more proactive than reactive in shaping its own future;

ii. allows to initiate and influence activities (rather than just respond to)—and thus to exert control over its own
destiny;
iii. through involvement (i.e., dialogue and participation), managers and employees become committed to supporting
the organization - Communication is a key to successful strategic management;
iv. learning, helping, educating, and supporting process, not merely a paper-shuffling activity among top executives
v. organizations are more profitable and successful than those that do not do S.M.;

Dale McConkey said, “Plans are less important than planning.”

2. Embrace Ethics, Social Responsibility and Sustainability 10

A. Ethics
 Allow Whistle-Blowing involvement
 Avoid Bribery
 Avoid Workplace Romance
B. Social Responsibility
 Design and Articulate a Social Policy
 Design Social Policies on Retirement
C. Environmental Sustainability
 Apply Sustainability Reports
 Apply ISO 14000/14001 Certification
 Wildlife welfare

https://sproutsocial.com/insights/social-spotlight-hilton/
3. Types of Strategy 11

i. Integration strategies (Forward, Backward, Horizontal integration)

ii. Intensive strategies (Market Penetration, Market Development, Product
Development)
iii. Diversification strategies (Related, Unrelated diversification)
iv. Defensive strategies (Retrenchment, Divestiture, Liquidation
3. Types of Strategy & Examples 12
 4. Vision and Mission Analysis 13

 What Do We Want to Become? (Vision Statement Analysis)

 What is our Business? (Mission Statements)
 The Process of Developing Statements (Resolution of Divergent Views)
 Benefits
 Characteristics
 Evaluating and Writing Mission Statements

https://www.ihgplc.com/en/about-us/our-purpose-and-culture
5. The Internal Audit 14
a) It considers Key Internal Forces.

b) It represents managers and employees from throughout the firm.

c) Considers resources that actually help exploit opportunities and neutralize threats.

d) Integrates Strategy and Culture.

e) Based on traditional Management roles (planning, organizing, motivating, staffing, and controlling)

f) Involves Marketing (through Customer Analysis, Sales results, Product/Service Development, Pricing, Distribution, Market
Research, Cost/Benefit Analysis, Applies Marketing Audit Checklist)

g) Applies Finance & Accounting analysis (Functions, Ratios, Breakeven Analysis)

h) Applies Qualitative and Quantitative Checklists (in Production/Operations)

i) Applies Checklist for identifying R&D level

j) Applies Checklists for MIS (CRM importance - Managing Consumer Data)

k) Prepared Value Chain Analysis (by Benchmarking)

l) Can apply Internal Factor Evaluation Matrix – coupled with Competitive Profile Matrix and External Factor Evaluation Matrix
6. The External Audit 15

 Is Explicit, Considers Key External Forces, Needs a Framework, Requires

Industrial Organization View.
 Economic Forces, Social, Cultural, Demographic, and Natural Environment
Forces, Political, Governmental, and Legal Forces, Technological Forces,
Competitive Forces affect the organization.
 Applies Forecasting Tools and Techniques (for Making Assumptions, Business
Analytics)
 Can applies Porter’s Five-Forces: Industry Competition, Potential Entry of New
Competitors, Threat of Substitute Products, Power of Suppliers, Power of
Customers.
 7. Strategy Generation and Selection 16

 The Strategy-Formulation Analytical Framework (Input Stage, Matching Stage, Decision Stage)
 The SWOT Matrix
 The Strategic Position and Action Evaluation (SPACE) Matrix
 The Boston Consulting Group (BCG) Matrix
 The Internal-External (IE) Matrix
 The Grand Strategy Matrix
 The Decision Stage: The Quantitative Strategic Planning Matrix (QSPM)
 Cultural Aspects of Strategy Analysis and Choice
 The Politics of Strategy Analysis and Choice
 Boards of Directors: Governance Issues
8. Implementation 17

 Strategic Marketing Issues (Engage Customers - Social Media Marketing, Market Segmentation) -
Product-Place-Promotion-Price; Alternatively Geographic, Demographic, Psychographic, Behavioural
 Product Positioning & Perceptual Mapping
 Finance & Accounting Issues
 Needed Capital (EBIT analysis)
 Projected Financial Statements (Analysis, Corporate Valuation)
 IPO’s, Cash Management, Corporate Bonds
 Strategic R&D Issues
 Strategic MIS issues (Mobile Apps for Customers, Mobile Tracking for Employees)
9. Execution 18
 Needs Clear Annual Objectives and Clear Policies
 Means Change
 Allocate Resources and Match Organizational Structure with Strategy
 Manage Conflict (at Resistance to Change)
 Has Specific Guidelines
 Issues are to be addressed by Restructuring and Reengineering or Reinvention
 Employee Stock Ownership Plans can be applied (ESOPs)
 Requires Human Resource Strategy and Employee Branding (Linking Performance and Pay to Strategy,
Balance Work Life and Home Life, Corporate Wellness Program, Diverse Workforce, Caution in Hiring
a Rival’s Employees, Create a Strategy-Supportive Culture, Caution in Monitoring Employees’ Social
Media)

General George Patton once said, “If everyone is thinking alike, then somebody isn’t thinking.”
Symptoms of an Ineffective Organizational 19

Structure
1. Too many levels of management
2. Too many meetings attended by too many people
3. Too much attention being directed toward solving interdepartmental conflicts
4. Too large control
5. Too many unachieved objectives
6. Declining corporate or business performance
7. Losing ground to rival firms
8. Revenue or earnings divided by number of employees or number of managers is low compared
to rival firms

“changes in strategy lead to changes in organizational structure.”

Labour Cost Saving Tactics 20

i. Salary (freeze or reductions)

ii. Employee (freeze or reduction, contracted instead of employed, part-time
instead of full-time, layoffs, early retirement)
iii. Benefits (Reduction or Increase in employee contribution to health-care
premiums, Reducing or eliminating bonuses)
iv. Working hours (Reduction of hours, Mandatory furlough (temporary layoff),
Voluntary furlough)
v. Production/Operation halts for certain time period
10. Monitoring 21

 ACTIVITIES (Review Bases, Measure Performance, Take corrective actions)

 MEASUREMENT TOOL (Balanced Scorecard)
 CHARACTERISTICS (Economical, Meaningful, Timely, True, Foster common understanding)
 CONTINGENCY PLANNIG
 AUDITS (Financial, Independent, as per Generally Accepted Accounting Principles and
International Financial Reporting Standards – IFRS)
 GUIDELINES

„Successful companies treat facts as friends and controls as liberating.”

Strategy Templates 22

www.strategyclub.com
 23

Thank You for Your Attention