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Strategic Management (Service (THE (seasonality->different seasonal…
Strategic Management
Service
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heterogenety->products are not identical->staff-part of the product, type of support
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ownership->customers non own products-use services->loyalty programs, to make them use longer
intangibility->product cannot be tested or sampled->effective promotion&distrubution(good trust)->Hotels can be tested
THE
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impact on society – produce ‘sustainable’ products;H&E less vide ranging and controversial +control of the environment(Olympics-no one wants to host)
effect of external shocks->have contingency plans in place to manage risks->H&E more prone to external shocks
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PLC
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–growth – increasing penetration of product and repeat sales lead to sales growth;->Market penetration->Moderate
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Approaches
Planned(Prescriptive)
+Clear objectives provide focus
- performance can be measured & monitored
+Resources can be allocated to specific objectives & efficiency can be judged
+logical & rational
-discrepancies between planned & realised strategy
-dynamic & turbulent business environment ->unproductive
-stifle creativity
-missed business opportunities
Emergent
+increases flexibility in a turbulent environment allowing the business to respond to threats & exploit opportunities
+strategy is often of necessity emergent
-danger of strategic drift as objectives lack clarity
-more difficult to evaluate performance as targets are less well defined
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