Strategic thinking
Class Discussion
According to Enz (2009) strategic management is a process through which organizations analyze and learn from their internal and external environments, establish strategic directions and implement these strategies to steer the organization into a direction that is beneficial for all the stakeholders. For a firm to effectively implement its strategy, the firm ought to maintain a good relationship and extend its network of corporate relationships with the intention of gaining a competitive edge.
The key players in the restaurant and lodging industry are; Intercontinental Hotel Group, Accor, Hilton Hotels Corp, Marriott International and Wyndham Hotel Group. These hotels are the key players because they control the industry and have many hotels based all over the world. Their success is due to the fact that they have ventured into different markets and therefore are reputable and respected worldwide.
Strategic thinking is what gives a company a competitive edge in its industry. Manager can learn a great deal after studying the different strategies of their competitors so as to learn for their mistakes and make improvements on various areas. There are six characteristics of strategic thinking that allow it to be a success. Strategic thinking should be intent-focussed where it is built on a vision of the goals of the company. It should be comprehensive taking note of the firm and its linkages to other systems. Strategic thinking ought to be opportunistic and ready to take advantage of any opportunity presented. Based on the strategic intent, strategic thinking should be long-term considering what the firm wants to become in the future. I n addition, strategic thinking should be built on the present not forgetting the past. Finally, strategic thinking should be hypothesis-driven meaning that it should be willing to take risks and learn from the mistakes made. Organizations can encourage this type of thinking by allowing the different managers to come up with different strategies which they are liable of accomplishing at the end of a specific period.
The recent economic, sociocultural, political, and technological trends that affect hospitality organizations include; time on demand, time for sale, interactive society, pure communication, quality of life, mobility and pull economy (www.trendwatcher.com). Time on demand and quality of life are the major trends affecting the hospitality industry. In recent times, people are more careful on the food they eat and the health benefits derived from these foods. Therefore, the hospitality industry should be keen to understand the likes and dislikes of their consumers. Time on demand is also a very critical issue since the world is moving towards a twenty four hour economy. Consumers want deliveries to be made to them on time despite the time of the day or night.
As described by Enz (2009) monitoring can help a firm avoid restrictive legislation which is bound to threaten the success of an organization. An organization is termed as socially responsible if it goes beyond of what is expected of them by the law. The current sociocultural trend in Europe include; demographic changes, personal development, food safety and spirituality (www.trendwatcher.com)
Economic factors including; economic growth, inflation, trade deficits, exchange rates and interest rates are critical and an organization should continually scan so as to link demand with profit potential. Economic factors as discussed by Enz (2009) have a significant influence on the behaviour and performance of an organization. These factors allow for the creation of growth and profits thus satisfying all the stakeholders.
The broad environment is bound to affect a business in one way or another. The effects are usually greater than those of operating factors. Broad factors are interdependent are mostly intertwined in the sense that one broad factor can automatically lead to another and therefore affecting the success of a business in a significant way. On the other hand, operating factors affect the business in a different level because not all stakeholders possess the same power. Ultimately, it is impossible for a business to influence its broad factors because they are mostly external as opposed to operational factors that are internal which can be easily influenced.
References
Enz, C. A. (2009). Hospitality strategic management: Concepts and cases (2nd ed.). Hoboken, NJ: John Wiley & Sons.
www.trendwatcher.com
