© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Chapter 15 Planning

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition After Reading and Studying This Chapter, You Should Be Able to: Describe the importance of planning Discuss the merits of the different types of planning Explain the goals and strategies set and give examples Identify the seven steps in operational planning

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition What Is Planning? Establishing goals Determining objectives to meet goals Formal planning Informal planning

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Figure 15-1 Hierarchy of Planning in Organizations

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Purpose of Planning Gives direction Reduces the impact of change Minimizes waste and redundancy Sets the standards used in controlling Coordinates efforts of associates Assists in risk reduction

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Strategic Planning Long-range planning Top management function Identify where the organization is and where it will go Mission and vision

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Steps in Strategic Planning 1. Build your vision 2. Understand your customers 3. Examine your operating environment 4. Determine the key issues 5. Identify strategies for the future 6. Create your action plan

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Figure 15-2 Strategic Management Process

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Corporate Growth Strategies Market penetration Geographic expansion Product development Horizontal integration Strategic alliances Diversification

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition SWOT Analysis Strengths Weaknesses Opportunities Threats

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Environmental Scanning Screening of large amounts of information to anticipate and interpret changes in the environment Forecasting:  Future revenues  New technology breakthroughs

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Operational Planning Setting goals Analyzing and evaluating the environment Determining alternatives Evaluating alternatives Selecting the best solution Implementing the plan Controlling and evaluating results

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Figure 15-4

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Management by Objectives (MBO) Set organizational goals Set departmental goals Discuss departmental goals Set individual goals Give feedback

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Benchmarking Definition Process:  Form a team  Identify companies to benchmark  Collect data  Analyze data  Create action plan  Implement

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Important Terms Policy Procedures Rules Budgets Scheduling Project management

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Trends in Planning Planning needs to be done quickly and adjusted when necessary Technology can allow more people to have input into the planning process