The strategic management process and tools

The strategic management process has turn into more complicated and expensive. Rising of competitiveness in the market and many combine of dimension is growing with resolution facing manager. For this reason, the support strategic management with a large variety of tools and techniques has been improved (Barnat, 2005). According to Buhalis (2003), these tools can divided into four basic critical stage analysis questions are where are we now? Where do we want to go? How do we get there? And how do we know we got there?.

• Where are we now? This analysis is telling the understanding of company target and goal that they wanted to process. The technique of “where are we now?” is for the organization generates specific of profitable satisfy customer needs which defines to use with the environment of internal and external situation. It is including financial, market environment and organization’ competitive. The SWOT analysis is also often guided as a main part of a situation analysis. There is referred to strength, weaknesses for company internal and company external for opportunities, and threats. It can lead to solve the solution problem. 
  

• Where do we want to go?It is showing that the company mission presently going, Buhalis (2003). The organization is performing the long term development for “against competitors”.

• How do we get there? There is the way of company have to realize which environment they are suitable to move on. So, they have to focus on the organization internal and external resources to achieve the company’s objective. By making flexible and changeable plan to able to use productivity (Buhalis, 2003). 

• How do we know we got there?  The organization should understand the feedback and control process to be done better in the future. So, they have to evaluate development for the external environment, competitor moves and efficient respond. Therefore, the company needs to focus on steady demand by re-estimating the whole strategy step by step (Buhalis, 2003).

The case study of Carnival Corporation Cruises is now the first Cruise Line Company in the world with lowest competitive. They also expected to have the highest standard of high speed internet. So, when the customers and subordinates journey on board, they can access the high speed-internet same as fast as on the mainland. This means that the company focused on the internal and external environment by upgrading and providing the excellence service of internet speed for the crews and passengers satisfaction. The company decided to sign 10 years contract with the largest internet provider’s company, Harris. This company is providing the worldwide serviced for the marine community and data service.

In the other hand, the Crown Prince of Dubai is another one who realize about the historically of the main trading goods but it is not enough. So, he was initiated to create the high-tech. industry’s advance and offer the zero-Tax business environment for the world leading company. Since last year, they desired to use the “Cisco System” with 10 years contact by providing 100Mbit/s for the international company and 2Mbit/s for universal internet access and complete IP telephone. Now, Dubai was named “The Dubai Internet City- a real broadband Oasis”. This place is becoming the most attractive global business center in the world and opening to the world business- class environment for ICT Company to create and grow in the future.

The Continental Airline strategic management is to improve the number of customer service and against the competitors. During the period, the company is facing to the fuel price crisis. The company tried to constant the ticket price to maintain the loyal group customers and going to develop the online check-in and e-ticket which rely on a brisk IT department. Since 2002, the airline was changed the whole system to use “CRM” system. This system was reduced the company’s cost and create a cross-enterprise data warehouse such as reservations, customer profiles airline maintenance, employee and crew payroll, and customer care etc. The company policy is “work hard to fly right”. So, they take risk to lunch more routes to get more profitable and more valuable on the airline. Now, the company from the no.1 airline in the world turns into the most favorable airline with the high standard of service. In addition, soon the company will add the new technology for member customers who missed their connecting flight. As soon as they turn on their cell phone they will receive the SMS notification about the upcoming flight. So, the passenger can print the new boarding pass. All new focusing for the company on IT industry the airline staffs need to learn to be changed and followed the company step by step.

In conclusion, the strategic management is by processing the step of performing environment from top management in each company. The achievement of company is usually consequent with the ability of management level who applies to use on their task. Nevertheless, the carryon of understanding the process of strategic management can be the key to success for reaching the company goal.

References

Buhalis, D 2003, E-Tourism: Information Technology for Strategic Tourism Management, Pearson Education Limited,

Burnatt, R 2005, Tools for developing Organization Strategies. Retrieved November 26, 2009 from http://www.introduction-to-management.24xls.com/en238

Strategic management processes and tools

Strategic management processes and tools (factors that can measure the effectiveness of a strategic management plan)

– Where are we now? That is the industry used to analysis the existing situation before developing plans includes the collection of competitive intelligence. It assesses the position of the industry elements of external and internal environment. External analysis provides market share, future trends and demand-and-supply analysis. Internal analysis provides product, service and processes. – Where do we want to go? This stage normally starts with the mission statement, which illustrates competencies and business cope. - How do we get there? This stage is strategic direction that provides the road map for organization to be undertaken and to be able to adopt flexible structures that enable performance and effectiveness. – How do we know we got there? Finally this stage is the feedback and control. Measurement performs effectively at each stage of the strategy in order to enable industry to development in the external environment.

Analyzing ICT of industry provides the Dubai internet city as a leading regional commercial hub with its strategic location, tax-free living and consistently strong economic outlook and a world class business environment. It has now become the logical place to do business in the Middle East, providing investors with a unique and comprehensive value added platform. The Middle East region is one of the fastest growing ICT markets in the world. DIC provides an environment that attracts all elements of the ICT value chain, and in addition, has developed several programmes that can be leveraged by the community to explore and expand channel development opportunities. Moreover, Dubai Internet City provides a one-stop-shop environment for a variety of services required for setting up and running a business. The current position of DIC without competitor in ICT is better than that of Dubai.

Similarly, Harris Corporation has contract with Carnival Corporation, a cruise ship by enhanced modern that can passengers and staff have access to the latest high-speed Internet and advanced voice and data services available as they sail the high seas. This will make satisfy of passengers and crew who expect to access the communications services onboard a ship.

In case Study of Continental Airline's strategy is increase the loyalty of Continental's most valuable customers. The airline technology of Continental plays such as online check-in and electronic ticketing in order to the customers receives the most convenient and fast service. Moreover, the company’s enhance on a nimble IT department that is creating automated tools, boosting efficiency to return high profitability and make it a favorite among the flying public. This is surviving competitively of the company in the airline industry and usurps power of selling in the market.

Reference

Buhalis, D 2003, E-Tourism: Information Technology for Strategic Tourism Management, Pearson Education Limited, Essex.

Where are we now?

The initial stage in the creation of a strategic management plan for tourism deals with an analysis of internal, as well as external factors which affect the organization. Internally, this includes an evaluation of the firm’s business units, performance, trends, products, services, resources, processes and systems. On the other hand, external analysis provides a view of the company’s market positioning, geographical scope, target markets, suppliers, buyers, competitors, stakeholders and other external forces which can impact the business (Kotler, Bowen & Makens 2006). A management tool commonly used to conduct an integrated examination of internal and external factors is the SWOT analysis, which explores the strengths and weaknesses (internal) as well as the opportunities and threats (external) of the business (Hudson 2008).
In the process of analysing these factors and their impacts on the organization, ICT provides the company with relevant information through internal databases, network linkages and internet resources. In the case of Continental Airlines’ strategic plan, internal analysis revealed the company’s negative position in terms of profitability, necessitating a 20% reduction in flights and lay-off of 20,000 workers. Their IT operations proved to be disorganized, with an old IBM mainframe and 45 CRM systems causing major technical problems. At that point in time, Continental’s management realized that their unreliable information systems failed to provide valuable information to enable them to segment their market as to customer type and value. Despite these weaknesses, Continental’s IT team composed of 350 technical staff was considered as an advantage in its human resource pool. Among the external drivers which significantly affected the company were the 9/11 terrorist attack and the SARS outbreak which sent the demand for air travel down. In addition, the rising cost of fuel, currency rate fluctuations and stiff competition drove airline companies to negative profitability and bankruptcy. A competitive scan also showed how competitors are taking the pricing strategy, as evidenced by the entry of low cost carriers and the move of other airlines to drastically cut down airfares. Using ICT to access internal and external information, the company was able to evaluate its position and map out its strategy to survive competitively in the airline industry.
Aside from the travel sector, other tourism organizations use ICT extensively to explore market opportunities for their strategic initiatives. Dubai, for instance, recognizing that the oil industry cannot be an enduring economic driver, felt the need to diversify the economy by riding with the fast-growing global ICT industry. Capitalizing on its liberal economic policies and regulations, it offered tax-free ownership to foreign corporations, stringent cyber regulations and easy registration and licensing. Similarly, Carnival Corporation, a cruise company, identified the growing need for access to high-speed internet and advanced voice and data services, allowing them to satisfy communication requirements of employees and guests.
Irregardless of the type of product or service offered by companies within the tourism systems framework, ICT is are instrumental in providing executive management with information to support the development and implementation of strategy (Buhalis & Licata 2002). By providing information on internal and external forces affecting the organization, ICT plays a vital role in establishing the company’s current position and determining how it can achieve competitive advantage.


References:

Buhalis, D & Licata, M 2002, ‘The future E-Tourism Intermediaries’, Tourism Management, Vol. 23 Issue 2, June 2002, pp. 207-220.

Buhalis, D 2003, E-Tourism: Information Technology for Strategic Tourism Management, Pearson Education Limited, Essex.

Hudson, S 2008, Tourism and Hospitality Marketing: A Global Perspective, SAGE Publications Ltd., London.

Kotler, P, Bowen, J, Makens, J 2006, Marketing for Hospitality and Tourism, 4th Edition, Pearson Education International, New Jersey.