1. Copyright © 2013 by John Wiley & Sons, Inc. All Rights Reserved. After reading this chapter, you should be able to: Define and apply strategy as it applies to a service operation. Outline and apply the three main facets of strategy. Implement four parts of a strategic service system. Analyze the internal and external aspects of a service organization in a SWOT Analysis. Understand vision, mission, and statements of purpose as they relate to service. CHAPTER 11 S TRATEGIC P LANNING FOR S ERVICE

2. Copyright © 2013 by John Wiley & Sons, Inc. All Rights Reserved. Service Strategy Strategy Defined – Calculated plan to achieve a common, chosen objective. Calculated Plan Common, Chosen Objective

3. Copyright © 2013 by John Wiley & Sons, Inc. All Rights Reserved. Strategy is Natural Strategy is a natural way of thinking. We are all programmed to think strategically about many things in our lives. – We have a want or a need (objective and goal). – Formal or not, we perform research and decide how we will achieve it (plan). – We, and others, agree to follow, support, and monitor the plan and direction (common, chosen).

4. Copyright © 2013 by John Wiley & Sons, Inc. All Rights Reserved. Strategy is Important Creates many benefits to the organization. Underlying premise to delivering quality guest service. Every Fortune 500 company uses strategy.

5. Copyright © 2013 by John Wiley & Sons, Inc. All Rights Reserved. Change Theory – Several theories exist and organizational behavioral professionals dedicate careers to specializing in helping businesses succeed through transitional periods. Frozen Thawing Whitewater Refreezing

6. Copyright © 2013 by John Wiley & Sons, Inc. All Rights Reserved. SWOT Strategy SWOT Analysis – The letters of the SWOT stand for: Strengths Weaknesses Opportunities Threats

7. Copyright © 2013 by John Wiley & Sons, Inc. All Rights Reserved. SWOT Strategy (cont’d) SWOT Analysis – Valuable tool commonly used to establish a starting point in strategic development. – It evaluates both internal and external attributes of a business and is very useful for observing the big picture also known as the macro view. – Allows you to know where your company stands, where the competition stands, and how the outside variables influence your business.

8. Copyright © 2013 by John Wiley & Sons, Inc. All Rights Reserved. Integration Implementing a Service Strategy Integration: Implementing a Service Strategy The Strategic Service System – Purpose – Product – Plan – People

9. Copyright © 2013 by John Wiley & Sons, Inc. All Rights Reserved. Integration: Implementing a Service Strategy (cont’d) Integration: Implementing a Service Strategy – Purpose – Product – Plan Timeline Communication Guidelines Leadership Measurable Relatable Obtainable Challenging – People Training Attitude Motivation Customers

10. Copyright © 2013 by John Wiley & Sons, Inc. All Rights Reserved. Resource Viewpoint The resource viewpoint states that every hospitality business has three main resources: – Human resources – Financial resources – Physical resources Ideally, the manager – Should be working with each of the three main resources – Considering them in all decisions

11. Copyright © 2013 by John Wiley & Sons, Inc. All Rights Reserved. Discussion Questions 1.List the three components of strategy. 2.Explain why strategy is both important and natural. 3.Outline the basic concept of continuous improvement. 4.What is the strategic service system? 5.What are the three resources common to most all businesses? 6.What does the “O” in SWOT stand for? 7.What is the benefit of conducting a SWOT analysis? 8.What is the difference between internal and external components of the SWOT analysis? 9.What are five qualities that you should consider when developing service objectives? 10.What is the best advice that you could provide for a property about to experience a renovation?