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Strategic Development Method - Coggle Diagram
Strategic Development Method
Alternative strategic methods
Three basic options
Internal development (organic growth)
Mergers and acquisitions
Joint development and collaboration
Strategic Methods in THE
Franchising
Management contracts
Strategic alliances
Public-private partnerships
Organic (Internal) Growth
Definition: Reinvestment of profits
Characteristics
Straightforward mechanism
Common in early stages
Advantages
Control retention
Market share growth
Examples:
Expansion of hotel rooms, cruise ships
External Mechanisms of Growth
Mergers and Acquisitions (M&As)
Definitions (merger, takeover)
Synergy: The primary objective
Benefits: Efficient resource use, increased value
Motivations for M&As
Market share increase
Economies of scale
Risk diversification
Challenges of Mergers and Acquisitions
Integration difficulties
Organizational structure
Cultural compatibility
Operational integration
Potential failures and success factors
Joint Development
Definition: Collaborative partnerships
Advantages
Shared resources
Risk reduction
Types of joint development
Strategic alliances
Public-private partnerships
Strategic Alliances
Characteristics
High collaboration
Complementary goals
Levels of alliances: Strategic vs. tactical
Public-Private Partnerships
Characteristics and relevance in THE
Examples in tourism, hospitality, and events
Objectives of partnerships
Management Contracts
Distinction from franchising
Advantages
Rapid expansion
Market penetration
Limited capital investment
Definition and operational control
Methods of Retrenchment
Definition and importance
Forms of retrenchment:
Organic reduction
Divestment
Disengagement from partnerships
Reasons for Disposal
Under-performance
Change in strategic focus
Capital raising