Strategic Management & Hotel SIM

Semester 5

Aim

Objective

Lecturer(s)

To give the student a comprehensive understanding of the issues and

techniques of strategy and how they apply to the successful overall direction
of a business
The objective of this course is to expose students to the principles and
practices of the strategic management process and give them an opportunity
to develop their evaluative and analytical skills through practical application
using the Hotel SIM simulation programme
Name

Ext

E-mail

Dr Sean T.
Ruane

061-712364

sean.ruane@nuigalway.ie

Mob
087-2061161

Upon completion of this course you will be able to:

Overall Learning
Outcomes

Format

Course Material

Core Text

1. Recognise the characteristics of strategic decisions and what is

meant by the term strategic management
2. Develop an understanding of the basic vocabulary of strategy as
used in different contexts
3. Critically assess how priorities within a business may vary
according to the levels within an organisation (corporate, business
and operational)
4. Critique strategies using a variety of strategic management tools
and evaluate them according to suitability
5. Formulate a strategic plan for a hotel business and operationalise it
using the Hotel SIM computer simulation
Weekly, the course comprises lecture(s) plus class discussions,
computer labs, group presentations, in-class exercises.
Hotel SIM will take place Wednesdays from 2-4 pm from week 6
The Sunday Business Show on Today FM 10.00-11.00am
Sunday Business Post Left in the Library
Exploring Corporate Strategy Text & Cases, (10th Ed). Prentice Hall.
Johnson,G., Whittington, R., Scholes, K., Angwin, D., & Regnr, P. (2014)
ISBN 978-1-292-00254-5
Note: Students need their own copy

Supplementary
Texts

Business Plan Guide, 3rd Edition, Publisher. B.R. Ford, J.M. Burstein & P.T.
Puritt ISBN:

Type of
Assessment:

Assessment

Workload hours

Class Times &

Location

X%:

Learning
Outcome to be
Assessed*:

Week
Distributed:

End of Year
Exam

55%

2&3

December 2015

Assessment 1
Group Case
Study

20%

Week 2

Assessment 2
(Hotel SIM)

20%

Attendance

5%

Week 5

Lecture hours:
Computer laboratory hours:
Independent assignment work:
Independent study:
Associated hours:
Examination:
Total Student Effort:

36
13
34
100
25
30
238

Classes will be held in the Burren room of the Park Inn Hotel
Mondays from 08.30am -10.30am and 11.30-12.30pm
Tutorials: Thursdays- group (1) from 11.00-12.00pm and group (2) from
12.00-1.00pm in the Burren room of the Park Inn Hotel

Weekly Outline:
Topic

Readings

Week 1: Section 1: Title : Introduction Strategy

Introducing strategy
What is strategy
Strategic Management
Strategy as a subject of study
Strategy as a job
The strategy lenses

Johnson, et al (2014) 10th Ed pp.224

[Check Folder for Week 1 on
Blacboard]

Section Outcomes: You will be able to

Summarise the strategy of an organization in a strategy statement

Distinguish between corporate, business and operational strategies

Identify key issues for an organisations strategy according to the Exploring Strategy Model

Understand different peoples contribute in strategy work

Appreciate the importance of different organizational contexts, academic disciplines and

theoretical lenses to practical strategy analysis

Topic
Week 2: The Environment:
Analysing the environment
PESTEL Analysis
Key Drivers in the Macro-environment
Porters Five Forces Model
Identifying strategic groups
Strategic gaps

Readings
Johnson, et al (2014) 10th Ed pp.
33-67
]
[Check Folder for Week 2 on
Blackboard]

Section Outcomes: You will be able to

Analyse the broad macro-environment of organizations in terms of the PESTEL framework

Identify key drivers in this macro-environment and use these key drivers to construct
alternative scenarios with regard to environmental changes within hotels

Explain five forces analysis and how it can be used to define the attractiveness of various
investment options for hotels and to identify their potential for change

Identify strategic groups within the national and international hotel sector, and potential new
market segments based on critical success factors within a hotel organization, and use
them leverage strategic gaps and opportunities in the market

Use these various concepts and techniques in order to recognize threats and opportunities
in the marketplace

Topic

Readings

Week 3 & 4 : Strategic Capability

Foundations of strategic capability
Identifying elements of organizational capabilities Johnson, et al (2014) 10th Ed pp.68-105
The need for continuous evolution
Using capabilities to leverage competitive
[Check Folder for Week 3
advantage
on Blackboard]
Value chain analysis, activity mapping,
benchmarking and SWOT analysis
Management development of organization

strategic capabilities
Section Outcomes: You will be able to

Identify strategic capabilities in terms of organizational resources and competences and

how these relate to the strategies of organisations

Analyse how strategic capabilities might provide sustainable competitive advantage on the
basis of their Value, Rarity, Inimitability and Organisational support (VRIO)

Diagnose strategic capability by means of VRIO analysis, benchmarking, value chain

analysis, activity mapping and SWOT analysis

Consider how managers can develop strategic capabilities for their organisations

Topic

Readings

Week 5: Culture and Strategy:

Where we come from & where are we going?
Strategic drift
How the history of an organization impacts on
its strategic position and direction
The influence of organizational culture on
strategy using the cultural web
The importance of constantly reviewing
organizational culture

Johnson, et al (2014) 10th Ed pp.140-173

[Check Folder for Week 5
on Blackboard]

Section Outcomes: You will be able to

Analyse how history influences the strategic position of a hotel (hotel company)

Analyse the influence of an organisations culture on its strategy using the cultural web

Recognise the importance of strategies questioning the taken-for-granted aspects of a

culture

Identify organisation which may be experience the symptoms of strategic drift

Topic

Readings

Week 6: Business Level Strategy

Strategic Business Units
Identifying SBUs in organizations
The strategy clock
Using the strategy clock to leverage
competitive advantage
Competition verses collaboration
Game theory and competitive strategy

Johnson, et al (2014) 9th Ed pp.190-223

[Check Folder for Week 6
on Blackboard]

Section Outcomes: You will be able to

Identify strategic business units (SBUs) in Hotels

Explain (in oral form) the bases of achieving competitive advantage for hotels using the
strategy clock

Critically evaluate the extent to which the various strategy options on the strategy clock are
likely to provide sustainable competitive advantage

Identify strategies for hotels suited to hypercompetitive conditions

Differentiate between competition and collaboration and when it may be more suitable for
hotels to collaborate rather than compete

Topic

Readings

Week 7: Corporate Level Strategy::

Deciding where to go
Alternative directions, market penetration or
consolidation. Product and market
development and diversification
When to grow and move into new markets
Various differentiation strategies
Parental control, how corporate parents
can encourage or destroy value within
SBUs
Deciding which SBUs to invest in and
which to cut loose

Johnson, et al (2014) 10th Ed pp.224-259

[Check Folder for Week 7
on Blackboard]

Section Outcomes: You will be able to

Identify alternative directions for strategy within hotels including; market penetration,
consolidation, product development, market development and diversification

Explain when hotels should consider diversification as an effective strategy for growth

Distinguish between (related and unrelated) diversification

Analyse the ways in which corporate parents such as Starwood, Hilton and Marriott can
add or destroy value for their portfolio of business units

Analyse portfolios of business units within hotels and judge which to invest in and
which to divest

Topic

Readings

Week 8: International Strategy

Identifying sources of competitive advantage
Assess the internationalization potential of
different markets, sensitive to fluctuations
over time
Exploitation of local factors embodied in
Porters Diamond
Distinguish between 4 main types of
international strategy
Rate various markets for entry or expansion
Assess the merits of different market entry
modes, such as joint ventures and licensing

Johnson, et al (2014) 10th Ed pp.260-293

[Check Folder for Week 8
on Blackboard]

Section Outcomes: You will be able to

Assess the internationalisation potential of different markets, sensitive to variations

over time

Identify sources of competitive advantage in international strategy for hotels through

global sourcing and exploitation of local factors embodied in Porters Diamond

Distinguish between four main types of International strategy

Rank markets for entry or expansion, taking into account attractiveness, cultural and
other forms of distance and competitor retaliation threats

Assess the relative merits of different market entry modes, including joint ventures,
licensing and foreign direct investment for hotels

Topic
Week 9: Mergers, Acquisitions and Alliances
Growth strategies
Identifying and responding to the need to
grow your business
Anticipate and capitalize on opportunities to
work with partners to secure new markets
Knowing when to lead or to follow in

Readings
Johnson, et al (2014) 10th Ed pp.328-364
[Check Folder for Week 9
on Blackboard]

response to merger, acquisition and alliance

activity in the global business environment

Section Outcomes: You will be able to

Establish the potential role of organic (stand-alone) strategies

Identify key issues in the successful management of mergers and acquisitions

Identify the key issues in the successful management of strategic alliances

Determine the appropriate choice between organic development, mergers and

acquisitions and strategic alliances

Compare key success factors in mergers, acquisitions and alliances

Week 10: Group Case Study Presentations

Topic
Week 11: Evaluating Styrategies
Evaluating strategies
Strategic tools
Assessing potential for success based on
-suitability, acceptability and feasibility

Schedule will be posted on student global

Readings
Johnson, et al (2014) 10th Ed pp.366- 401
[Check Folder for Week 11
on Blackboard]

Section Outcomes: You will be able to

Assess the performance outcomes of different strategies in terms of effectiveness

Assess performance and the need for new strategies using gap analysis

Employ three success criteria for evaluating strategic options, suitability, acceptability,
feasibility

Topic

Readings

Week 12: The strategy development process

Become a Chameleon
Deliberate and Emergent Strategy
development
Intended processes of strategy development
Logical incrementalism
Resource allocation processes
Cultural processes
Organisational politics

Johnson, et al (2014) 10th Ed pp.402-431

[Check Folder for Week 12
on Blackboard]

Section Outcomes: You will be able to

Explain (in oral form) what is meant by deliberate and emergent strategy development

Identify deliberate processes of strategy development in hotels including the role of

vision and command, strategic planning systems and externally imposed strategy

Identify emergent processes of strategy development such as logical incrementalism,

resource allocation processes, cultural processes and organisational politics

Explain (in written form) some of the issues managers of hotels face in strategy
development including the challenge of managing intended and realised strategy, the
development of the learning organisation and strategy development in uncertain and
complex conditions

Assignment Schedule: Semester 5

Week
2
5
9
10
12

Semester 5 Strategic Management

Assignment
Group Case Study Given Out
Hotel SIM Business Plan Given out
Hotel SIM Business Plan Submitted
Group Case Study Presentations
Hotel SIM Report Submission

Re-submissions:
There are no facilities or opportunities to resubmit assignments before the next offering of the course,
should student(s) fail to submit by specified deadlines in the first instance.
General:

It is highly advisable to purchase the textbook as early as possible which comes with online support
for students, and to use it wisely. It is important to note that this subject will be heavily handson, requiring time outside lecture hours in extra reading and working through the examples
outlined in the supporting online website. Access to the supporting website is controlled by
purchasing a unique logon code which accompanies each copy of the book.

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