2013/2014  KAN-CM_U74  Successful Implementation of Strategy in the Hospitality Industry

English Title

Successful Implementation of Strategy in the Hospitality Industry

Course information
Language	English
Exam ECTS	7.5 ECTS
Type	Elective
Level	Full Degree Master
Duration	One Semester
Course period	First Quarter, Second Quarter Changes in course schedule may occur Wednesday 13.30-16.05, week 36-41, 43-47
Time Table	Please see course schedule at e-Campus
Study board	Study Board for MSc in Economics and Business Administration
Course coordinator
Kristian Anders Hvass - Department of International Economics and Management (INT)
Administrator: Birgit Dahlgren - bgd.int@cbs.dk
Main academic disciplines
Management Experience economy and service management Corporate and Business Strategy Economics, macro economics and managerial economics
Last updated on 22-03-2013

Learning objectives

Upon course completion students should be able to: Define and describe economic approaches in such a way that the students will be able to analyze industries within the relevant economy Identify, describe and analyze the functions, structure and issues in relevant industries locally, regionally and globally Describe and analyze issues pertaining to relevant industries (e.g. mergers, competitiveness, vertical linkages, contracts, etc.) Define and describe concepts, patterns and types of strategy execution within the relevant industries Analyze strategy-related challenges in the relevant industries Identify and describe ‘best practice’ in successful implementation of strategies within the relevant industries Cooperate with fellow students and industry experts in identifying problems, use theory, apply research methods, and communicate the results to expert and general audiences Analyze, interpret and apply relevant theories to real-life scenarios through the participation in the online hotel business simulation

Examination

Hjemmeopgave: Examination form Home assignment - written product Individual or group exam Individual Size of written product Max. 15 pages Assignment type Written assignment Duration 48 hours to prepare Grading scale 7-step scale Examiner(s) One internal examiner Exam period Autumn Term and December/January Make-up exam/re-exam Same examination form as the ordinary exam Samme prøveform som ved ordinær prøve

Course content and structure

The course familiarizes students with the structure of the relevant industries locally, regionally and globally. Moreover, it discusses key concepts in strategy and focuses on the execution-related challenges in the relevant industries.  This course will introduce the student to a holistic perspective and incorporate facets from several important business elements (e.g. human resource management, product development, marketing, finance, competition etc.) that are underlying to strategy execution.  Although theories and models for strategy implementation to a certain degree can be applied across industries, they cannot be viewed isolated and it requires management skills to gather, interpret and act on information from numerous internal and external sources. This is not a one-step process but iterative and success requires to skills to repeatedly process information and react accordingly.  To get a first-hand understanding and to experience the results of their decisions, students will implement their decisions in a simulated market, where the market forces will influence strategy execution as well as innovation. This will give the students knowledge about how different forces will influence a company: External forces: Market forces: Customer satisfaction and demand, Price setting and price elasticity, Sales/distribution channels, Market activities, Behavior by the competitors. Internal forces: Employee: Resource allocation, Value of the right competencies, Employee satisfaction, Productivity (Productivity based on KPIs on various levels in the organization, Productivity based on KPIs versus competitors), Financial data (Relevant KPIs related to the Profit & Loss Statement, Relevant KPIs related to the Balance sheet) The students will work with the element from the following perspective: 1. General Strategy - by Differentiation or Strength, 2. Formulating coherent activities towards the strategic objective (Product/Service and Product/Services Quality Assurance, Resource Planning, Human Resource Development, Pricing for Profit, Marketing to the buyer/consumer), 3. Adjusting to changing market conditions (Business Cycles and their impact, Competitive Actions), 4. Forecasting, 5. Financial Considerations

Teaching methods

This course relies on traditional lectures, as well as Harvard style case discussions. The content and course objectives are complemented by an online business simulation (HOTELsim, read more at milestonecompetences.com) where students in pre-assigned, cross-cultural groups compete against each other as top-level managers of a hotel. The simulation – originally developed for the Marriott and Best Western chains - is used as a learning tool to discuss and illustrate management decisions, strategy execution and innovation throughout the course. The students will be divided into groups of 4 and will have to manage a virtual hotel over 12 months in competition with 5-6 other hotels. During the simulation the different topics, theories and models of the lectures will be included, thereby ensuring that the students will get a more practical approach to the education.

Expected literature

Schlegelmilch B. et al. 2003. Strategic Innovation: the construct, its drivers and its strategic outcomes. Journal of Strategic Marketing. Vol. 11 (2). Pg. 117-132 Rumelt, Richard (2011): Good Strategy, Bad Strategy. Crown Business. Antonio H and Albors J. Innovation management techniques and tools: a review from theory and practice. R&D Management. Vol. 38 (2). Pg. 113-127 Kaplan and Norton. Strategy Maps. 2004. Ch. 5: Innovation Processes, p. 135-156 and Ch. 11: Customizing your Strategy Map to your Strategy, p. 319-346. Quezada L. et al. 2009. Method for identifying strategic objectives in strategy maps. International Journal of Production Economics. Vol. 122 (1) pg 492-500. Lowe D, et al. 2011. The influence of strategy map communications and individual differences on multidimensional performance evaluations. Accounting and Business Research. Vol. 41 (4). Pg. 375-391 Robert G. Cooper, The Journal of Product  Innovation Management 25, 213-232. Perspective: The Stage-Gates Idea-to-Launch Process—Update, What’s New, and NexGen Systems Hossain et. al., 2010. Innovation Process in Canadian and US Hotels.Global Journal of Business Research, Vol. 4 (3). Judy A. Siguaw et. al., Cornell Hospitality Report, Vol. 9, No. 17, November 2009, Cases in Innovative Practices in Hospitality and Related Services Marée G., 2011. Innovation Management in the Hospitality Industry: New Roads Towards Meaning and Corporate Culture. Trends and Issues in Global Tourism, Part 3. Pg. 135-132. Kim and Mauborgne. Blue Ocean Strategy, 2004. Ch. 4: Focus on the Big Picture, Not the Numbers, p. 81-99. Ch. 8: Build Execution into Strategy, p. 171-184. Ch. 9: Conclusion: The Sustainability and Renewal of Blue Ocean Strategy, p. 185-190 Schot J and Geels F, 2008. Strategic niche management and sustainable innovation journeys: theory, findings, research agenda, and plicy. Technology Analysis and Strategic Management. Vol. 20 (5). Pg. 537-554. Brian Hay and Ian Yeoman, Journal of Vacation Marketing 2005. Turning scenarios into a strategy map: Our ambition for Scottish tourism.