CHAPTER 11
STRATEGIC PLANNING FOR SERVICE
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.
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
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).
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.
Copyright © 2013 by John Wiley & Sons, Inc. All Rights Reserved.
Change Theory
• Change Theory
– Several theories exist and organizational behavioral
professionals dedicate careers to specializing in
helping businesses succeed through transitional
periods.
Frozen
Thawing
Whitewater
Refreezing
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
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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.
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
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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
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
Copyright © 2013 by John Wiley & Sons, Inc. All Rights Reserved.
Discussion Questions
1.
2.
3.
4.
5.
6.
7.
8.
List the three components of strategy.
Explain why strategy is both important and natural.
Outline the basic concept of continuous improvement.
What is the strategic service system?
What are the three resources common to most all businesses?
What does the “O” in SWOT stand for?
What is the benefit of conducting a SWOT analysis?
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?
Copyright © 2013 by John Wiley & Sons, Inc. All Rights Reserved.