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Part 4 Unit 10 Strategy Preparation, Resource Planning and Structures. Reading. Part 4: Strategic Implementation.

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part 4 unit 10 strategy preparation resource planning and structures
Part 4

Unit 10

Strategy Preparation, Resource Planning and Structures

part 4 strategic implementation
Part 4: Strategic Implementation
  • The final stage of tourism corporate strategy is strategic implementation. By the end of part 4 it should be possible to construct a plan to operationalise a strategy for a tourism organisation, systematically monitor that strategy and create a comprehensive strategy document.
  • Strategic implementation follows logically from the previous three stages where an appropriate strategy has been selected from a number of options after a comprehensive situational analysis of the tourism organisation.
  • Chapter 10 discusses the detail of implementation in terms of financial, physical and human resources.
  • Chapter 11 examines the management of change and reviews methods of control and evaluation of strategy.
  • Chapter 12 concludes the book. At its centre is a guide on how to write and present a strategy document and this is followed by a look at turnaround and crisis strategies
learning outcomes
After studying this chapter and related materials you should be able to understand:

Resource planning

Formulation of a coordinating plan

Design of an organisational structure

Issues in organisational design

and critically evaluate, explain and apply the above concepts.

Learning Outcomes
case study 10 the london olympics 2012
In 2005 the Games of the XXXth Olympiad for 2012 were officially awarded to London.

In terms of funding the London 2012 Organising Committee has budgeted about £2bn for the staging of the Games. It receives most its funding from the International Olympics Committee and by its own revenue generation through sponsorship, ticket sales and merchandising. On the other hand the budget needed by the Olympic Delivery Authority to provide the infrastructure is around £9.5bn the sources of this are as follows:

Central Government £5,975 million

National Lottery £2,175 million

Greater London Authority £925 million

London Development Agency £250 million

Case Study 10: The London Olympics 2012
strategic planning framework 1
Introduction

Executive Summary

summary of main points of report

recommendations (proposed strategy)

Mission

Nature of Business

defining the business of the organisation

identifying key strategic business units

Missions and Goals

statement of mission of organisation

objectives set

Strategic Planning Framework: 1
strategic planning framework 2
Strategic Analysis

Analysis of capability

Evaluation of product portfolio

Resource Audit (availability/effectiveness/efficiency)

Analysis of external Environment

CPEST factors

Trends in competitive environment

Trends in political environment

Trends economic environment

Trends sociocultural environment

Trends technological Environment

SWOT summary and analysis

Strategic Choice

An outline of alternative strategies, directions and methods

An evaluation of the alternative strategies under review

The proposed strategy, direction and method

Strategic Planning Framework: 2
strategic planning framework 3
Strategic Implementation

Planning

Resource Implications of strategy

Network analysis for strategy

Review of organisational structure

Monitoring

Setting and measuring objectives and key tasks

Evaluation of strategy (assumptions testing and monitoring financial or other targets)

Strategic Planning Framework: 3
resource planning
The evaluation stage of the strategy process involved analysis of the feasibility of an option in terms of finance and availability of resources. At the implementation stage, resource planning is concerned with

identification of resources

resource fit, and

formulation of a co-ordinating plan

Resource Planning
identification of resources
Physical resources

A change in strategic direction will generally require adjustments in physical resources at the level of plant and machinery or consumables. A tourism organisation may have a dedicated purchasing department to co-ordinate the buying of physical resources. Important considerations in physical resources planning include:

Specification - This may involve a careful audit of the uses to which physical resources are to be put. The result will be a list of required specifications.

Fitness for purpose - This will examine the match between the specifications offered and the specifications required

Cost - Prices between suppliers need to be compared, taking into account running and maintenance costs.

Terms - Is it more appropriate to lease or buy capital goods?

Identification of resources
identification of resources13
Human resources

Strategic implementation will have consequences for human resources, and manpower planning will need to address:

manpower numbers

skills

recruitment and selection, and,

training and development

grading and remuneration

Identification of resources
identification of resources14
Information and technology resources

Information and technology competence may be obtained by

In-house development

Purchase from external providers for internal use

Contracting out of services

Alliances

Acquisition of organisations that possess the desired technology

Identification of resources
resource fit
There are two potential problems of resource fit.

First, the technical issue of how new resources will fit with existing ones? This is a particular problem for areas such as computer resources, where new software may just not technically operate on old systems, or the computer systems of two merging organisations may be incompatible.

The second problem of resource fit concerns fit between resources and organisational skills.

Resource fit
formulation of a coordinating plan
A co-ordinating plan is a key to strategic implementation. It comprises the following elements

project logistics, (planning)

project objectives (operations)

Management by Objectives (MBO) can be an important contributor to strategic implementation. First MBO helps to clarify the strategy - what does the strategy mean in terms of measurable performance targets? Second, MBO, assists implementation since this now becomes attributable to personnel who have been assigned specific tasks.

Formulation of a coordinating plan
design of organisational structure
An organisational structure is the framework which describes how an organisation\'s activities are arranged. It shows how its personnel are grouped together and the purposes of the groupings (e.g. marketing, human resource management). It shows lines of communications between groupings, organisational hierarchy and control.

Mintzberg (1979) defines an organisation\'s structure as "...the ways in which its labour is divided into distinct tasks and then its co-ordination achieved amongst those tasks."

Design of Organisational Structure
structural types
The main types of organisational structure include:

simple

functional

multidivisional

matrix structure

holding company

experimental / organic

Structural Types
structural elements
Mintzberg (1979) identified six basic elements common to all organisational structures. These are:

the operating core - the employees who produce the goods or provide the services.

the strategic apex - the management of the organisation.

the middle line - as organisations grow, middle-managers are needed.

the techno-structure - analysts such as accountants and statisticians who perform a monitoring role

the support staff - who provide internal services such as catering, cleaning and legal services.

its ideology - which describes the overarching values, beliefs and aims of the organisation.

Structural Elements
issues in organisational design
Key issues in organisational design include:

nature of structural groupings

tall vs. flat structures

bureaucratic vs. flexible

centralisation vs. decentralisation

co-ordination of structural elements

Issues in Organisational Design
review of key terms
Resource planning: Identification of resources, ensuring resource fit, and formulation of a co-ordinating plan

Co-ordinating plan: A plan covering project logistics (planning) and project objectives (operations)

Logistics: The organisation and management of the flow of goods, information, human and other resources in order to achieve a particular goal.

Organisational structure: The framework which describes how an organisation\'s activities are arranged.

Simple structure: Absence of formal structure.

Functional Structure: Groupings arranged according to functional areas.

Divisional structure: Groupings arranged according to an organisation’s products or services or geographical areas.

Matrix structure: Groups workers by both function and product.

Holding company: An umbrella-type structure for the ownership and co-ordination of a number of clearly separated business units.

Organic structure: A flexible and fluid network of people and communications.

Review of Key Terms
discussion questions
Discuss the suitability of using an experimental or organic type of organisational structure for a tourism organisation with which you are familiar.

Does structure follow strategy or strategy follow structure? Discuss with reference to a named tourism organisation.

Identify and explain Mintzberg\'s six structural elements by reference to a tourism organisation you are familiar with.

Prepare a project plan which demonstrates the logistics of a named tourism strategy.

Identify the type of organisational structure which exists for a named tourism organisation. Is this structure appropriate for the future?

Discussion Questions
part 4 unit 10 strategy preparation resource planning and structures the end
Part 4

Unit 10

Strategy Preparation, Resource Planning and Structures

The End

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