Business Strategy for the Food & Hospitality Industries Andrew Boer

Characteristics of three decades of strategy… 1970’s: Planning Strategy A predictable future based on analysis of the probable1970’s: Planning Strategy A predictable future based on analysis of the probable 1980’s: Visioning Strategy An unpredictable future based on imagination of the possible1980’s: Visioning Strategy An unpredictable future based on imagination of the possible 1990’s: Learning Strategy An unknown future based on understanding the present1990’s: Learning Strategy An unknown future based on understanding the present

Characteristic of the next decade of strategy…? 2000’s: Agility Strategy An unpredictable future based on acceptance of massive innovation and change but with a need to:2000’s: Agility Strategy An unpredictable future based on acceptance of massive innovation and change but with a need to: Sense Change (the ability to pick up signals and identify change) Awareness (the ability to communicate signals and raise awareness amongst those who are best equipped to deal with it) Responsiveness (the ability to mobilise resources in order to respond appropriately)

Strategic Development Components:Components: –Context (the environment in which the strategy operates and is developed) –Content (the main actions of the strategy) –Process (the way in which the strategy is achieved)

Components of the strategic planning model Strategic Analysis Strategic Analysis Strategic Choice Strategic Implementation Sequential?

Strategic Development PrescriptivePrescriptive –all 3 elements linked together sequentially –‘Biblical’ in its approach : linear / rational / methodical / ‘scientific’ process –Cyclical & controlled with defined objectives as outcomes

The prescriptive corporate strategy

Strategic Development EmergentEmergent –all 3 areas inter-related –Darwinian in approach : evolutionary / concurrent / flexible / incremental / continuous –Series of strategies which continue to be refined.

The emergent strategy process.

Prescriptive and emergent approaches

Strategic Analysis Occurs at different levels:Occurs at different levels: –Corporate level (overall scope / purpose; resource allocation; portfolio issues etc) –Business unit level (competitive strategy; market opportunities; new products etc) –Operational level (processes; people; skills; implementation etc)

Strategic Analysis Understanding the strategic position of the organisation, particularly:Understanding the strategic position of the organisation, particularly: - within its environment -in view of its resource base The above points analysed in view of the organisations expectations and aims (and those of the significant stakeholders).The above points analysed in view of the organisations expectations and aims (and those of the significant stakeholders).

The seven basic factors influencing the organisation

Strategic Environmental Analysis Environmental evaluationEnvironmental evaluation Issues affecting many industries (not necessarily industry generic)Issues affecting many industries (not necessarily industry generic) Issues affecting a specific industryIssues affecting a specific industry Issues specific to the ‘competitive balance’ of the industryIssues specific to the ‘competitive balance’ of the industry

Strategic Environmental Analysis Issues specific to the ‘cooperative balance’ of the industryIssues specific to the ‘cooperative balance’ of the industry Issues specific to the immediate competitorsIssues specific to the immediate competitors Issues specific to the customer baseIssues specific to the customer base

Strategic Resource Analysis Internal AnalysisInternal Analysis –Tangible / Intangible / Capabilities Human ResourcesHuman Resources Financial ResourcesFinancial Resources Operational ResourcesOperational Resources

Purposes of Strategic Analysis Encourages reflective analysisEncourages reflective analysis Allows for rational justification of actionsAllows for rational justification of actions Identifies possible ‘mismatch’ between current and aspired positionsIdentifies possible ‘mismatch’ between current and aspired positions Enables reaffirmation to organisational mission / objectivesEnables reaffirmation to organisational mission / objectives Basis for strategic choice & implementation ?Basis for strategic choice & implementation ?