1. External and Internal Driving Forces
Chapter 2
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

2. HSM - External and Internal Driving Forces
Entrepreneurship
Segment linkages
Travel (business, government, leisure)
Franchising
Alliances
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

3. HSM - External and Internal Driving Forces (continued)
Domestic market saturation
Competitive market opportunity
Incentives (government, World Bank,
IMF, etc.)
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

4. HMS- Analytical Goals (Strategic)
Opportunities
Threats
Trends
Strategic or competitive advantage(s)
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

5. HMS - Analytical Focal Points
 Customers (existing and potential)
 Product/service offering(s)
 Market(s)
 Environment
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

6. HMS - Analytical Focus Customer Analysis Goal:
Influences strategy by identifying
Segments
Motivations
Unmet needs
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

7. HMS - Analytical Focus - Terms
Strengths
Weaknesses
Opportunities
Threats
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

8. HMS - Analytical Focus - Terms (continued)
Computer
Aided
Design
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

9. HMS - Analytical Focus - Terms (continued)
Strategic
Competitive
Advantage
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

10. HMS- Analytical Focus Competitive Analysis: Customers Market expansion
Product expansion
Backward integration
Forward integration
New threats
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

11. HMS - Analytical Focus Competitive Analysis S & W: Innovations
Locations
Finance
Management
Marketing
Customer Base
Cost Structure
Exit Barriers
Strengths and Weaknesses
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

12. HMS - Analytical Focus Competitive Analysis S & W:
Image and positioning
Objectives and commitment
Current and past strategies
Organization and culture
Forward integration
New threats
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

13. HMS – Analytical Focus Dimensions of a Market Analysis:
Actual and potential market size
Market growth
Market profitability
Cost structure
Distribution systems
Trends and developments
Key success factors
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

14. Five-Factor Model of Market Profitability
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

15. HMS - Analytical Focus Key Concepts: Market growth Driving forces
Maturity and decline
Market profitability
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

16. HMS- Analytical Focus (continued)
Environmental Analysis:
Technology
Government
Economics
Culture
Demographics
External analysis
Scenarios
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

17. HMS- Analytical Focus (continued)
Terms:
Trend extrapolation
Cross impact analysis
Scenario analysis
Immediacy
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

18. Strategic Question Categories
Immediacy
Low
High
Monitor and analysis; contingent strategies considered
In-depth analysis; strategy development I M P A C T
High
Monitor and analysis
Low
Monitor
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

19. HMS - Analytical Focus Scenario Analysis Develop Scenario Strategies
Estimate Scenario Probabilities
Perform Regress Analysis
Identify Scenario
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J