Part 4 Unit 10 Strategy Preparation, Resource Planning and Structures. Reading. Part 4: Strategic Implementation.
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Strategy Preparation, Resource Planning and Structures
After studying this chapter and related materials you should be able to understand:
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
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 millionCase Study 10: The London Olympics 2012
Introduction officially awarded to London.
summary of main points of report
recommendations (proposed strategy)
Nature of Business
defining the business of the organisation
identifying key strategic business units
Missions and Goals
statement of mission of organisation
objectives setStrategic Planning Framework: 1
Strategic Analysis officially awarded to London.
Analysis of capability
Evaluation of product portfolio
Resource Audit (availability/effectiveness/efficiency)
Analysis of external Environment
Trends in competitive environment
Trends in political environment
Trends economic environment
Trends sociocultural environment
Trends technological Environment
SWOT summary and analysis
An outline of alternative strategies, directions and methods
An evaluation of the alternative strategies under review
The proposed strategy, direction and methodStrategic Planning Framework: 2
Strategic Implementation officially awarded to London.
Resource Implications of strategy
Network analysis for strategy
Review of organisational structure
Setting and measuring objectives and key tasks
Evaluation of strategy (assumptions testing and monitoring financial or other targets)Strategic Planning Framework: 3
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 planResource Planning
Physical resources analysis of the feasibility of an option in terms of finance and availability of resources. At the implementation stage, resource planning is concerned with
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
Human resources analysis of the feasibility of an option in terms of finance and availability of resources. At the implementation stage, resource planning is concerned with
Strategic implementation will have consequences for human resources, and manpower planning will need to address:
recruitment and selection, and,
training and development
grading and remunerationIdentification of resources
Information and technology resources analysis of the feasibility of an option in terms of finance and availability of resources. At the implementation stage, resource planning is concerned with
Information and technology competence may be obtained by
Purchase from external providers for internal use
Contracting out of services
Acquisition of organisations that possess the desired technologyIdentification of resources
There are two potential problems of resource fit. analysis of the feasibility of an option in terms of finance and availability of resources. At the implementation stage, resource planning is concerned with
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
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
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
The main types of organisational structure include: 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.
experimental / organicStructural Types
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
Key issues in organisational design include: organisational structures. These are:
nature of structural groupings
tall vs. flat structures
bureaucratic vs. flexible
centralisation vs. decentralisation
co-ordination of structural elementsIssues in Organisational Design
R organisational structures. These are:esource 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
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 type of organisational structure for a tourism organisation with which you are familiar.
Strategy Preparation, Resource Planning and Structures