Explanation and Analysis of the Strategic Management Process Essay

1. Introduction:

Strategic direction is concerned with preparing, implementing and measuring determinations that facilitate a house to accomplish its ends. It focuses on incorporating selling, finance, production, research and development to better an endeavor public presentation ( David, 2008 ). The strategic direction procedure consists of three phases: scheme development, scheme executing and scheme rating. This assignment will concentrate on scheme development and scheme executing.

1.1 Strategy in Action

Scheme in action refers activities which are carried out in organisations on day-to-day footing. These activities must be appropriate to an endeavor scheme. One of the cardinal activities is strategic capableness.

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1.2 Strategic Capability

Strategic capableness is defined as the capableness of an endeavor to successfully transport out an action that is anticipated to hold an consequence on its long term growing and development ( Lenz, 1980 ). It is besides defined as the ability to alter the endeavor and its concern environment. A capableness is strategic if it brings alteration and has the possible to ( Johannesson & A ; Palona 2010 ). The cardinal resources and competencies that are needed for developing strategic capableness as scheme in action are: organisational construction, organisational resources and pull offing strategic alteration.

1.2.1 Organizational construction

The house construction plays an of import function in the executing of a scheme. The organisation ‘s structural design refers to formal functions, duties and lines of describing in an endeavor ( Johnson, Scholes and Whittington 2009 ). The construction besides province that how aims and policies will be formulated ( David 2008 ). For illustration aims and policies stated are different for fabrication houses than for service organisation. Structure besides reflect how resources will be allocated. If an endeavor ‘s construction is based on client groups, so resources will be allocated in that manner. Similarly if an endeavor construction is based on functional concern lines, so resources will be allocated based on functional countries ( p. 234 ). Thus construction must be based harmonizing to house ‘s scheme ( Deresky, 2000 ).

Furthermore, alterations in scheme lead to alterations in endeavor construction. Structure facilitates the strategic facet of an organisation. An endeavor without a scheme should confront trouble in planing an appropriate construction. On the other manus, construction besides affect scheme. Schemes must be formulated harmonizing to organisational design. If a new scheme needs a batch of alterations in organisational construction and design, it would non be an appropriate scheme. Therefore construction form scheme preparation. It is besides of import to place what type of structural alterations are required to implement new scheme and how these alterations can be made ( David 2008 ).

1.2.2 Organizational resources

The cardinal organisational resources that can impact the executing of scheme are: people, information, finance and engineering.

1.2.2.1 Peoples as a resource

The people in the organisation are critical to accomplish high public presentation ( Barney 1991 ).People influence scheme both through their competency and through their corporate behaviour ( Johnson et al. 2008 ). People plays an of import function in planing an effectual strategic direction system. The scheme executing may do human resource jobs due to: break in societal and political construction, failure to fit people ‘s aptitude with assignment of undertaking, deficient support from top direction during executing of scheme ( David 2008 ).

Strategy executing can be a menace to many people in the organisation. The relationship between power and position are expected to be changed. New formal and informal groups and values and beliefs are besides unknown to people. The people may demo opposition as their function and power alterations due to new scheme executing. The affect on societal and political construction must be considered before explicating and implementing a new scheme. ( David 2008 ).

1.2.2.2 Information as a resource

Information schemes may adversely impact the capableness and competitory advantage of an endeavor. The information engineering might impact the three cardinal elements of a capableness are: guaranting that clients are satisfied with the merchandises and services ; taking rivals and edifice capablenesss hard to copy. The handiness of information might besides assist to larn more about rivals ( Johnson et al. 2008 ).

1.2.2.3 Finance as a resource

The direction of finance dramas cardinal function in the executing of a scheme. There are three concerns for all types of organisations. These issues are: managing for value, funding strategic developments, and fiscal outlooks of stakeholders.

Pull offing for value refers to the maximization of long term hard currency bring forthing capableness of an endeavor. One of the chief duties of director is to make value for stockholders and guaranting the good usage of their money. This aim can merely be achieved if finance is good managed and controlled. Furthermore, finance is besides needed for strategic developments in an organisation. The beginning of funding to be used for executing of scheme depends upon the ends and aims of an endeavor. For illustration, a house will hold different fiscal demands if it follows a scheme of rapid growing, as comparison to those who follow to consolidate its past public presentation ( Johnson et al. 2008 ).

1.2.2.4 Technology as a resource

Technological developments besides affect the competitory forces and strategic capableness of an endeavor. The successful executing of a new scheme depends upon the manner engineering is developed, exploited and managed. Furthermore, it is of import for a director to understand the affect of technological developments on the five market factors which are: barriers to entry, permutation, the comparative power of providers and purchasers and competitory competition ( Johnson et al. 2008 ).

1.2.3 Pull offing strategic alteration

The direction of strategic alteration is an of import facet of scheme executing procedure. The employee ‘s interaction forms may be affected if there is a alteration in organisation design, employees, engineering or schemes. The scheme executing procedure can imply major alterations on employees and procedures. That is why people show opposition to alter.

Resistance to alter is a major menace for successful executing of a scheme. For illustration, employees show opposition in the signifier of absenteeism, demoing grudges and unwillingness to collaborate. Another ground for opposition to alter is that employees have no thought that what is traveling on in the organisation or why alterations are taking topographic point. In such type of state of affairs employees need awareness about alteration. Thus it is of import for directors to make a contributing environment to alter ( David 2008 ).

Employees can defy alteration at any phase or degree of executing of scheme procedure. In this respect, troughs can take a figure stairss to minimise opposition to alter. Fore illustration, employees can be involved in the determination doing procedure of alteration and besides how to implement alteration. It is of import for directors to expect strategic alteration and supply preparation workshops to employees so that alteration ( scheme executing ) can easy be adopted ( David, 2008, p. 247 ).

1.3 Application of cardinal constructs to the instance organisation

The instance organisation for this assignment is Quetta Serena Hotel. The back land information for this organisation is attached with appendix.

1.3.1 Management Strategies of Quetta Serena Hotel

Management Schemes for Quetta Serena Hotel link up with the functional schemes to guarantee that the back uping substructure is available to efficaciously implement the programs. The Quetta Serena Hotel besides focus on beef uping its Business Continuity Process, heightening its Management Information System ( MIS ), streamlining its processs through Business Process Re-engineering ( BPR ), and a stronger hazard based and IT audit map ( Quetta Serena Hotel 2009 ).

1.3.2 Human Resource Development Strategy

Human resource direction is an of import constituent in the hotel industry for the past few old ages ( Nolan, 2002 ). This of import component can construct competitory advantage for the house ( Barnet, 1995 ; Pfeffer, 1994 ; 1998 ). In this respect, the Quetta Serena Hotel plans to increase employee attractive force, keeping and motive by cut downing enlisting timelines, inventing advanced compensation and benefit programs, set uping employee guidance, supplying just preparation chances and heightening the Performance Management System ( PMS ). The Quetta Serena Hotel besides plans to foster heighten the PMS to convey transparence and objectiveness to determinations sing employee calling direction ( Quetta Serena Hotel 2009 ).

In add-on to the present preparation chances, employees will be encouraged to pass some clip geting on-the-job experience of other subdivisions of Serena hotel. This aim will be achieved through a assortment of methods, like, commission, short-run assignments, fond regard, and leave without wage. To heighten the calling chances of well-qualified staff, who will finally presume leading places in the Quetta Serena Hotel, occupation chances of specific continuance with international subdivisions of Serena hotel such as Kabul Serena hotel etc. Quetta Serena Hotel besides plans to play a proactive function in presenting best Hour patterns in the hotel industry ( Quetta Serena Hotel 2009 ).

1.3.5 Strengthening of Legal Framework Strategy

A figure of new countries are emerging where Quetta Serena Hotel plans to venture or has already initiated work. Quetta Serena Hotel plans to assist explicate and beef up the legal model regulating these countries. Many of the functional schemes listed above encompass either updating/changing the bing legal models or facilitation of passage of new Torahs.

Question No.2

1. Strategy development procedures

Planning plays a critical function in concern. It is an activity which entails determinations ( aims /goal puting ) about terminals and consequences. It describes the organisation ‘s strengths and failings every bit good as chances and menaces ( Fening, Pesakovic & A ; Amaria 2008, p.698 ). More over the strategic planning procedure refers to the procedures undertaken by a house to develop schemes and to derive way for the endeavor. ( Tapinos, Dyson, & A ; Meadows, 2005 ). The aims set in the planning procedure can merely be achieved through scheme development. The Strategy development procedure is a step- by measure procedure to develop and explicate a house scheme ( Johnson et al. 2008 ).There are two wide degrees of scheme that is corporate degree scheme and concern degree scheme.

Corporate degree scheme refers to the overall growing, stableness or economizing of an endeavor ( Wheelen and Hunger, 2008 ). It includes issues sing geographical coverage, merchandises and services and how resources will be allocated among different concern units. However, concern degree scheme is concerned with assorted types of concern units. It includes pricing schemes, invention, distinction and typical distribution channel ( Johnson et al. 2008 ).

Position of scheme

1.1.1 Intended scheme

Intended scheme refers to the preparation of scheme with clear ends and aims planned by the nucleus employees of an organisation. This scheme is developed in a systematic manner by utilizing the formal techniques and procedures with the purpose of implementing set aims. The intended scheme is developed through strategic leaders. These leaders influence others by their personalities. These persons determine the vision and mission of an organisation. They besides create a conducive for other employees that motivate them to work together for accomplishing shared aims of an organisation ( Johnson et al. 2008 ).

1.2 Emergent Strategy

Emergent scheme refers to the preparation of scheme based on the activities and procedures carried every twenty-four hours. Such activities and procedures lead towards the future way of an organisation. The emergent scheme involves experimentation and larning from environment to happen the best manner to prosecute the organisational aims. In this manner, the organisation ‘s existent scheme becomes more obvious. The factors that leads to the development of emergent scheme are: environmental uncertainness ; troughs views about future based on twenty-four hours to analysis of the market ; seeking flexible concern patterns ; the influence of organisational civilization ; the political procedures and anterior determinations ( Johnson et al. 2008 ).

1.3 Challenge of complexness

Sometimes the intended scheme does non work good and the planned aims can non be achieved due to unexpected environmental factors and the troughs decide non to follow the planned scheme. However, these fortunes lead towards a realized scheme that is the scheme that should really be followed. The mangers/strategists can manage this challenge by taking measure to look into if the planned scheme and realized schemes are different. They should besides acquire sufficient feedback from client and market about implementing the realized scheme. Second this challenge besides demands that the people in organisations should be promote to demo their willingness to dispute and alter their positions and thoughts of transporting out their undertakings ( ( Johnson et al. 2008, p. 420-21 ).

1.4 The Learning organisation and scheme development

The learning organisation refers to the uninterrupted regeneration of accomplishments and cognition and experience of employees and promoting them to dispute the vision, mission of the organisation. This procedure besides helps the organisation to develop dynamic schemes. The troughs should make an environment of sharing and advancing information among employees so that every person in the organisation should be cognizant of the alterations taking topographic point within or outside the organisation. In this respect, employees should besides be able to place chances and menaces for an organisation that can assist to plan a planned or emergent scheme ( Johnson et al. 2008 ). Furthermore, directors should welcome the conflicting thoughts and should set them for argument. Besides experimentation should be adopted for new thoughts and its executing as a scheme ( p. 422 ).

1.5 Justification of betterments to the instance organisation

The strategic planning procedure employed by Quetta Serena Hotel is participative, advisory and result-oriented. While the overall way is provided by senior direction the action programs are evolved at the departmental degree to guarantee ownership and committedness of those charged with implementing the program. The function of the Strategic Planning Unit ( SPU ) is that of accelerator, facilitator and synthesist, to steer the planning procedure efficaciously ( Quetta Serena Hotel 2009 ).

Individual sections are requested to make their several environmental scans through a SWOT analysis whereby they identified their internal strengths and failings every bit good as the external chances and menaces. All sections of Quetta Serena Hotel along with other subdivisions are grouped into five bunchs. The single section ‘s SWOT analyses are consolidated by the bunch representatives ( Quetta Serena Hotel 2009 ).

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1.6 Evaluation of Quetta Serena Hotel ‘s strategic planning Procedure

Environmental scan is an of import component that involves garnering information about demographic, economic, industry/workforce, socio-cultural, and instruction factors that influence the executing of a scheme of an organisation ( Wheelen and Hunger, 2008 ).

The environmental scan involves the designation of strengths, failings, chances, and menaces ( SWOT ) and draws on both internal and external information. The result of this scan can be used to mensurate public presentation.

The result of the environmental scan is in the signifier of a SWOT analysis. This analysis provides a model for placing critical issues and aims that will probably help and restrain the pool ‘s ability to turn to the strategic issues and aims.

1.6.1 SWOT Analysis of Quetta Serena Hotel

Quetta Serena is located in a really critical part which presents assorted chances and menaces from clip to clip. But if handled tactfully by the direction, the menaces may turn into the chances.

The SWOT analysis gives us the undermentioned facts ( Quetta Serena Hotel 2009 ; hypertext transfer protocol: //www.serenahotels.com/serenaquetta/ ).

1.6.1.1 Strengths:

The lone 4 star delux International Chain hotel

Highest figure of suites available

Beautiful Garden & A ; Fruit groves

Modern Health Club Facilities

Safety & A ; Security

International Service Standard

Unique Architecture & A ; Decor

Central Air-conditioning & A ; Heating

Cable Television Network

Presidential Suites/ Executive Suites, Executive Club/ Non-Smoking Floor

In-house Laundry

24 hrs Room Service

24 hour Business Center

24 hrs Doctor on Call

Out door Swiming Pool

Assortment of Restaurant

Web Site

Online Internet Service

Changeless ascent of Product & A ; Service

Specious parking country

Large map country

Important strategic location near Afghanistan

1.6.1.2 Failing:

Restricted Population of Quetta

Business dependant on geting flights

Checking-in clip is limited due to non reaching of dark flights.

Non- Availability of trained and qualified staff

Limited amusement & A ; Tourist attractive forces

Low income of people of the part

Lack of hoteling consciousness in local people which finally affects its concern

Lack of cooperation among the staff and different sections

Local market Sensitive to monetary value

Employees ‘ emphasis due to long on the job hours

De-motivation among the staff due to low wage

Component of biasness traced

1.6.1.3Opportunities:

Turning Chain

Revival of Govt. undertakings

Large Banquet country

Government Stability

Influx of NGO ‘s

Service Standards

Value of money

Completion of Gawadar undertaking

Peace and stableness in Afghanistan

The proclamation of get downing dark flights in Quetta by the president of Pakistan

1.6.1.4 Menaces:

Market perceptual experience of monetary value

Opening up of Guesthouses

Increase in low monetary value eating houses

Limited figure of Hotel traveling Guests

Worsen Law and order state of affairs in the part

Limited reaching of aliens in Quetta due to some security oversights

Destabilized economic policies

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