STRATEGIC MANAGEMENT

Strategic Management



Strategic Management

The fundamentals of Strategic Management

The fundamentals of Strategic Management” provide us with a summarizing and short, evaluation of the most important concept and technique in strategic management.

Basics concepts of strategic management

Strategic management

Set of managerial decisions and actions that help in determine the long-run performance of a corporation, is termed as Strategic management. It include first the environmental scanning (both external and internal), then the strategy formulation (strategic or long range planning), then the strategy implementation, and monitoring and control. Therefore, strategic management emphasize on the controlling and evaluating of external and internal factors.

Evolution of strategic management

Unplanned strategy cannot be continues productively if Corporation expands,

Managerial layer increase,

Environment changes significantly.

Part 1 - elementary financial setting up: look for improved operational control through meeting budgets.

Part 2 - forecast planning: looking for more efficient planning for expansion.

Part 3 - External factor setting up (strategic planning): looking for growing sensitivity to competition and markets with the help of thinking strategically.

Part 4 - Strategic management: looking for a successful future and a competitive advantage by managing all resources. Moreover this phase also includes strategy implementation, then its evaluation and controlling (Woods. 2001).

Concept of a Value Chain with respect to tourism

Within the service sectors, tourism has a fundamental characteristic: the product offered is an "experience", which can manifest in many different ways such as looking at the nature or work art, participate in intense physical activities or enjoy leisure in resting places, meet with peers in centers of scientific discussion and sharing moments of religious devotion, and so the variety continues in a multitude of other expressions.

To optimize this experience, tourism should enter some growth (Moulin, 1986). It is necessary to actively make the tourist a number of steps recognizing different stages, which implies a certain effort of confrontation with unknown new experiences, because, as Piaget puts it in several of its works, there is no learning without incident.

In order to carry out some of these experiences, tourism takes a set of activities undertaken by different companies, which serve different functions, acquiring, for the most part, characteristics and complementarily competition between them. These companies, in turn, are grouped into sub-sectors within tourism, according to the key role to play, or service offered to passengers. However, these make a close linkage between them at this point that the primary objective of tourism (experience) could not be given if service is interrupted in any these links.

Companies involved in tourism are numerous and diverse, each contributes in part to increase the overall value of tourism product, as the consumer-tourist-only perceive the existence of a single product, is nothing more than their vacation. Therefore, value creation in the tourism sector should be based on a combination of different activities into a single system, thereby achieving synergy that is produced, which makes necessary the analysis of the whole.

Thus the value chain or value system of the tourism industry is just the set of interrelated activities that take place in it ...