Strategic Choice: Business Level Strategies - Essay Example

Topic 6 – Strategic Choice: Business Level Strategies . A. Prescribed Readings The Fall and Rise of Strategic Planning by Henry Mintzberg The paper expresses the views of Mintzberg that strategic planning is essentially different from strategic thinking. There has been too much stress on strategic planning, which after all was only the articulation of visions and aims that already existed. Strategic planning required analysis, while strategic thinking, on the other hand, requires synthesis, where the elements that were broken down in analysis are reassembled into a working and useful structure. The striking view that Mintzberg proposes is that the synthesis activity is what operationalizes the good intentions and lofty visions presented in the analysis phase. Without the synthesis, the intentions and visions remain just that. Mintzberg’s Mintzberg’s position adopts an alternative perspective – some may say a searing commentary – of the prevailing management misapplication of what has become a buzzword. Possible motivations aside, the views he expresses are actually pragmatic and constructive. It is true that many companies are run according to “strategic plans” which, in the end, fail to provide truly concrete directions when seen at the operations level. The down to earth writing style and direct approach of Mintzberg produces the sort of literature that holds the attention of management practitioners on the lookout for fresh theoretical approaches to practical management problems. By drawing attention to the shortcomings of common practice, Mintzberg is able to contribute an added dimension to the link between management theory and practice that would provide real results for the company. 235 Chapter Reading - Strategic Choice: Business Level Strategies As is expected of a textbook chapter, the selection is explanatory and descriptive. The author explains the differences in business strategy based on the position of the firm in the industrial chain and the particular applications that generic strategies bear on the hospitality and tourism business. The definitions cited by the chapter are succinct and focused, as well as the concepts of the level of strategy. One of the novel discussion presented in the text is the approach taken in the various gaps left uncovered by the current business strategy. The concept of gap analysis as presented in the text is an important one. Usually, when business managers come together at a strategic planning session, they approach the coming strategy formulation as if they were facing a clean slate. The emphasis is on the new strategy, new methods, new directions; whereas, little attention is paid to the problems of the past, as to how or where the previous strategy succeeded or failed to meet expectations. Because of these, the organization enters to new period with many of its problems unsolved, and without a sense of continuity or progression from the past. With the different aspects of gap analysis, management could better address the challenges of the future by learning from the lessons of the past. 215 (Wordcount = 450 excluding titles) B. Related selections: Kotey, Bernice & Harker, Michael. 1998 A Framework for Examining Strategy and Strategy-Types in Small Firms. Faculty of Business, Sunshine Coast University College, Australia. This study proposes a framework by which business strategy in small firms is examined. The authors chose this focus because they acknowledge the importance of the small firms to the economic development of the country. They classified the strategy for large organizations into three levels: the corporate, business and functional levels. For small firms, however, there are only two – business, and functional. Their stress on the business level of strategic formulation, as well as the fact that tourism as an industry is comprised of many small business, making this paper a good supplement to the topic of business level strategy. 100 Srivannoboon, Sabin. 2006 Linking Project Management with Business Strategy. Seattle, Washington: PMI Global Congress Proceedings The article discusses one of Henry Mintzberg’s generic strategies which is known as the “emergent strategy” approach. Emergent strategy is not intended or planned, but instead materializes or “emerges” from a succession of managerial actions and decisions through a significant length of time. The authors then searched for evidence of the application of this concept in the case of the management of projects; inasmuch as projects are with a definite beginning and end, and a specific purpose, seldom are any two projects exactly the same. The uniqueness of each project makes it ideal for the use of the emergent strategy. 100 (Wordcount for related selections = 200 excluding titles) Topic 7 – Strategic Choice: Corporate Level Strategies A. Prescribed Readings Galbraith, Jay R. 1983 Strategy and Organization Planning. Human Resource Management, Spring/Summer83, vol. 22, issues 1/2, pp. 63-77. John Wiley & Sons, Inc. Among the several insights Galbraith brings to light is his view of organization as being more than merely structure, but moreso encompasses the working relationships, the “fit” and “harmony” of each element of the organization with one another. In conventional management, “organization” had consistently been associated with the table of organization, and the channel of communication and supervisory hierarchy embodied the structure of the organization. With the “humanization” of the concept of organization, the “soft” side of HRD becomes an integral aspect of strategy formulation. There appear to be weak points in the study, however. For instance, Galbraith belabours the distinction between upstream and downstream strategies. While this definitely may have some importance in the vertical product flow for manufacturing industries, it has little impact on service industries, since services production co-exists with services marketing. In the 21st century when a significant proportion of the economy is fuelled by services, Galbraith’s theory tends to diminish in significance, at least as far as the discourse on the upstream and downstream operations and the divergence in their strategies is concerned. The theory is not lost to obsolescence, however, because as mentioned there is still, particularly in the manufacturing industries, room for application of these concepts. In any case, Galbraith’s conceptualization of the importance of fit between organization on the one hand, and human resources development on the other, to the formulation of business strategy remains to be a cogent observation, and continues to gain in relevance in this day of employee empowerment. 250 Chapter Reading – Strategic Choice: Corporate Level Strategies The chapter was enlightening in creating a distinction between corporate level strategy and business level strategy. The organizational framework and the interaction between various levels and divisions of diversified organizations have spawned new theories irrelevant to proprietorships. While business strategizing was dedicated to a single productive activity and was concerned with competing therein, strategizing for corporations asks what new activities, products or services could prove fertile ground for the corporation to compete in. Businesses are for the most part singular and dedicated, while corporations on the other hand have the option of diversification. The corporation is an invention of modern society; it is a legal entity, but at the same time a mere fictional person. A corporation could not think, feel, or act by itself; it does so only through the representation of its managers acting in the name of the owners. By their size, reach, and economic power, corporations could (as they have) be the agents of significant and beneficial economic change, or terrible widespread mischief. The chapter leaves one the impression that corporate managers have the power to do immense good or harm. This the state must duly regulate in the public interest, without curtailing sound economic initiative. 200 (Wordcount = 450 excluding titles) B. Related selections: Farell, Bryan H & Twining-Ward, Louise 2004 Reconceptualizing Tourism. Annals of Tourism Research, vol. 31, no. 2, pp. 274-295 In the course of formulating strategic plans for corporations engaged in the tourism industry, it becomes necessary to consider the duties of corporate citizenship. This article delves into the transition of tourism organizations towards sustainability, and requisite familiarity with the new fields of ecosystem ecology, ecological economics, global change science, and complexity theory. The authors emphasize that such concerns as retreat from reductionism, extensive integration of human and natural systems, redefinitions of sustainability and emergence of sustainability science encompass the new directions for tourism, which is why in the study of corporate level strategies, this article will provide fresh insights. 100 Darcy, Simon & Taylor, Tracy 2009 Disability citizenship: an Australian human rights analysis of the cultural industries. Leisure Studies, Oct2009, Vol. 28 Issue 4, p419-441 Research into the circumstances surrounding the lives of the disabled and aspects of cultural life (such as the arts, leisure, recreation, sport and tourism) within the context of Australian society is the topic of this research by Higgins-Desbiolles. Social approaches to disability has lagged behind medical research in this area in the consciousness of academic researchers. The experiences of people with disabilities has prompted new corporate directions towards a comprehensive policy in designing goods and services targeted at addressing these experiences. Thus this paper will provide valuable input to corporate strategies to alleviate the disadvantaged experienced by tourists with disabilities. 100 (Wordcount for related selections = 200 excluding titles) Topic 8 - Strategic Choice: Competition, Co-operation and Coexistence A. Prescribed Reading Mintzberg, Henry 1984 Who Should Control the Corporation? California Management Review, vol. 27, issue 1, Fall, pp. 90-115 Mintzberg in this article delves into corporate governance and the matter of control. The matter of control encompasses implications on the ethical, legal, and cultural dimensions. There is a gradual shift of control in the pursuit of economic goals, a power that traditionally belonged to the owners, but now is slowly being transferred to the managers in the case of the larger corporations. Social responsibility as a concept initially and which is now a mandate has superimposed itself and taken precedence over the economic interests of the owners. The agency effect has implanted the managers in place of the owners, while at the same time providing the managers the opportunity to put their interests before that of the corporation and the shareholders. The recent gigantic payouts and golden parachutes that exiting CEOs have given themselves despite maneuvering their companies to bankruptcy is an example of this overreach that managers have been given, or have given themselves. It borders on the brink of the unethical that tens or hundreds of millions of dollars were paid out, legally it turns out, by these gigantic corporations and multinationals to the very persons who should have stewarded their ships rather than running them aground, and their employees into the unemployment line. As early as a quarter of a century ago, Mintzberg voiced the questions that have re-emerged in the present financial crisis. Wisely he concludes, “I believe that we need to treat the conceptual horseshoe as a portfolio of positions from which we can draw, depending on circumstances.” To Mintzberg, the control of the powerful corporations – tiny kingdoms or countries in themselves – is a vital issue that impacts on the lives of countless individuals. His words are wise even today. 286 Leiper, Neil 1995 Tourism Management. Australia: RMIT Press, Chapter 6 The sixth chapter of Leiper’s book continues in essence what was begun in the preceding two chapters, wherein Leiper argues for the need to interpret tourist destinations in the context of three elements: geographic, economic and psychological. The author present fresh insight into how complex the industry is, and dissects sixteen component processes that he believes comprises the core of tourism. On the basis of a review by Fagence, it appears that this sixth chapter captures the “real Leipzig…challenging, discovering hidden agendas, provoking reappraisal, bypassing conventional interpretations…” From the agreement and approval that is accorded the author by his peers concerning his profound appreciation of the complexities of the tourism industry, it becomes immediately apparent that Leiper’s views maintain their relevance today, and will continue to do so. It is necessary, however that not only his colleagues in the academe, but also managers in the field, should obtain an understanding of these complexities, in order to be able to utilize such in their strategizing. 164 (Wordcount = 450 excluding titles) B. Related selections: Stokes, Robyn 2008 Tourism strategy making: Insights to the events tourism domain. Tourism Management. Vol.29, pp. 252-262 In the formulation of competitive strategies, the events tourism domain provides viable possibilities. More and more tourist establishments are allocating features and amenities targeted at events such as conferences, seminars, concerts, shows, and conventions, among others. The opportunity to accommodate volume bookings has allowed for efficiencies that would tolerate the extension of special packages involving mass discounts and freebies, to motivate institutional customer patronage. Events tourism strategies of are found by the study to be reactive or proactive to emerging events, signalling possible strategy-formulation initiatives that would optimize the incipient synergies that events tourism may exploit as a competitive advantage. 100 Leiper, Neil 2008 Why ‘the tourism industry’ is misleading as a generic expression: The case for the plural variation, ‘tourism industries’. Tourism Management, Vol. 29, pp. 237-251 The change proposed by Leiper is more than just a mere adjustment in nomenclature. It is a profound redirection of perspective and mindset concerning the industries that comprise the tourism activities within a jurisdiction. Many tourism industries co-exist, providing goods or services targeted at the transient tourist traffic, and to suggest that they all belong to a single giant industry homogeneous in nature is to miss out on the true character of tourism businesses. An understanding of how the various industries are interrelated provides valuable insights in creating synergies through co-operation and coexistence that are mutually beneficial to these establishments. 100 (Wordcount = 450 excluding titles) Topic 9 – Strategies in Whole Tourism Systems A. Prescribed Reading Leiper, Neil 1995 Tourism Management. Australia: RMIT Press, Chapter 12 In chapter 12 of Leiper’s book on Tourism Management, he deals directly with the more advanced issues that concern contemporary tourism managers. Chapter 12 contains the analysis and evaluation of topics discussed in case studies tackled in chapters 9 to 11. Six important issues on the management of tourism businesses are encountered: the influence of seasonality in the industry; the partial industrialization of tourism and the consequences thereof; the response of the market to the availability of tourism-related products and services; sustainability; and diversity and variety. The chapter is of such contextual breadth that the author reserves it for higher students in tourism, grounding the theoretical developments in the earlier chapters in concrete and practical examples. The use of case studies is particularly helpful to the serious student as well as the casual reader, in helping them appreciate the points the author wishes to impress. While the earlier chapters deal with abstracts and ideology for the most part, the latter chapters bring together into focus the workings of these abstracts through concrete illustrations that convey the complexities of the interrelated issues. This makes the book insightful and powerful, and shows the touch of a master in his field. A book review by Page on the third edition of this book (2006) describes Leiper’s work as “seminal” and pays it high tribute, calling the ideas contained therein as material in “shaping any undergraduate tourism degree.” The decade spanning the first and third reviews have confirmed the validity of Leiper’s thinking on the multifaceted and challenging tenets of tourism management. 258 Lamb, Andrew N. 1988 Tourism development and planning in Australia – the need for a national strategy. International Journal of Hospitality Management, vol. 7, no. 4, pp. 353-361 The article calls for the establishment of a National Tourism Strategy that addresses the needs of Australia’s tourism industry. At the time of its writing, Australia had the fastest growing tourist industry in the world, at an annual rate of 25%. The strategy is needed to provide a framework that would coordinate the efforts of the various sectors and agencies in further fuelling this phenomenal growth. It would also draw focus upon the “heightened sensitivity to the complex economic, social environmental and cultural issues” that have attended this accelerated growth. The call is well placed. Tourism is not just one business or one industry per se, but it is many industries and undertakings. The lodgings industry comprises one sector, but within that sector there are the five-star highrise hotels as well as the pension houses or the cottages in the beach resorts. Restaurants, transportation services, organized tours, and such specialized amenities as scuba-diving or safari trips – all fall under the umbrella “tourist industry.” The multi-faceted, complex nature of this undertaking requires a central, coherent plan that may be found in a National Tourism Strategy. Australia could only benefit from such an endeavour. 192 (Wordcount = 450 excluding titles) B. Related selections: Higgins-Desbiolles, Freya 2006 More than an “industry”: The forgotten power of tourism as a social force. Tourism Management, vol. 27 pp. 1192-1208 The contemporary view of tourism as industry has relegated to the sidelines the powerful concept of tourism as social phenomenon. The article draws back attention to a perspective of tourism as social force, which is not totally new. When the capacities of tourism are unconfined by the “market fundamentalism” it is presently subjected to, it becomes a significant instrument to achieve the development imperatives of the general public. Human rights, social tourism, and similar directions are worthwhile considerations in the formulation of a national agenda for tourism, and in the process achieve the interests of the state, economy, and society. 100 Knowd, Ian 2001 Rural Tourism: Panacea and Paradox. Exploring the Phenomenon of Rural Tourism and Tourism’s Interaction with Host Rural Communities. Lecture, School of Environment and Agriculture, University of Western Sydney Rural tourism signals the return to traditionalism and interest in the countryside. Tourism in rural areas, however, could create tensions in the destination rural communities, aside from providing opportunities for economic stimulation. On the other hand also is the issue of tourist motivation, and the contrasts between rural tourism in developed and in developing countries. Even as the mainstream tourist destinations appear to converge in the same core experiences (e.g. shopping malls, resorts, hotels), national initiatives could explore the potentials of rural tourism as a means of bringing development to the countryside while providing tourists with a unique cultural experience. 100 (Wordcount = 450 excluding titles) REFERENCES Darcy, Simon & Taylor, Tracy 2009 Disability citizenship: an Australian human rights analysis of the cultural industries. Leisure Studies, Oct2009, Vol. 28 Issue 4, p419-441 Farell, Bryan H & Twining-Ward, Louise 2004 Reconceptualizing Tourism. Annals of Tourism Research, vol. 31, no. 2, pp. 274-295 Galbraith, Jay R. 1983 Strategy and Organization Planning. Human Resource Management, Spring/Summer83, vol. 22, issues 1/2, pp. 63-77. John Wiley & Sons, Inc. Higgins-Desbiolles, Freya 2006 More than an “industry”: The forgotten power of tourism as a social force. Tourism Management, vol. 27 pp. 1192-1208 Knowd, Ian 2001 Rural Tourism: Panacea and Paradox. Exploring the Phenomenon of Rural Tourism and Tourism’s Interaction with Host Rural Communities. Lecture, School of Environment and Agriculture, University of Western Sydney Kotey, Bernice & Harker, Michael. 1998 A Framework for Examining Strategy and Strategy-Types in Small Firms. Faculty of Business, Sunshine Coast University College, Australia. Lamb, Andrew N. 1988 Tourism development and planning in Australia – the need for a national strategy. International Journal of Hospitality Management, vol. 7, no. 4, pp. 353-361 Leiper, Neil 2008 Why ‘the tourism industry’ is misleading as a generic expression: The case for the plural variation, ‘tourism industries’. Tourism Management, Vol. 29, pp. 237-251 Leiper, Neil 1995 Tourism Management. Australia: RMIT Press, Chapter 6 Leiper, Neil 1995 Tourism Management. Australia: RMIT Press, Chapter 12 Mintzberg, Henry 1994 The Fall and Rise of Strategic Planning. Harvard Business Review, Jan-Feb pp. 107-114 Mintzberg, Henry 1984 Who Should Control the Corporation? California Management Review, vol. 27, issue 1, Fall, pp. 90-115 Srivannoboon, Sabin. 2006 Linking Project Management with Business Strategy. Seattle, Washington: PMI Global Congress Proceedings Stokes, Robyn 2008 Tourism strategy making: Insights to the events tourism domain. Tourism Management. Vol.29, pp. 252-262 Read More