Managing Hospitality Issues:
The hospitality sector is the largest service industry across the globe because of the number of customers it serves on a daily basis. This industry is also characterized by a huge number of competitors or hospitality establishments in the market. For the managers of these establishments, there are various factors that determine their success of failure such as brand identity, pricing, cost cutting, and marketing. These factors play a crucial role in determining success of failure of the establishments because of market volatility, which is the norm in the hospitality industry. Market volatility is attributed to various factors such as the ever increasing changes in the tastes of customers. Notably, managers of these hospitality establishments have to deal with several issues and challenges in daily operations of their businesses. In the past few years, occupancy and average room rate have become crucial issues that act as acid tests of what work or does not work in hospitality industry.
Strategic Management Process:
The strategic management process is generally defined as the process through which managers think of, develop, and execute a plan that contributes to a sustainable competitive advantage (Jurevicius, 2013). This encompasses establishing business objectives and developing strategies or courses of action that are geared towards achieving business goals within a specified timeframe and evaluating progress and results. This process is usually a by-product of several procedures i.e. initial assessment, situation analysis, formulation of strategy, implementation of strategy, and strategy monitoring. These procedures are basically considered as the main components of the strategic ma...
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...xamined Fine Sand’s business strategy and developed an effective strategy for Blue Mist that contributed to sustainable competitive advantage over this competitor.
In conclusion, strategic management is an important process in the modern business environment because of its significance in establishing sustainable competitive advantages in over major rivals. In the hospitality industry, strategic management is a process that can be used by managers to enhance their productivity and success by obtaining competitive advantage. Notably, this process is impacted by external and internal influences such as micro and macro environment and core competencies respectively. The strategic management process can be applied in the hospitality industry through various ways such as objective setting, environmental and organizational assessment, and strategic advantage analysis.