Strategy & strategic management

A strategy is a long term plan of action designed to achieve a particular goal. It is differentiated from tactics which incorporate short term activities Strategic management is the ongoing process of specifying the organization’s objectives, developing plans to achieve these objectives, and allocating resources to implement the policies and plans to achieve the organization’s objectives.

With regard to it’s etymologic origin the word “strategy” derives from the Greek word stratēgos, which derives from two words: stratos (army) and „Agein“ (ancient Greek for leading). Stratēgos referred to a ‘military commander’ during the age of Athenian Democracy. In its purest form, strategy dealt solely with military issues.

According to Michael Porter „Competitive strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value.“ So the purpose of strategic management is to gain sustainable competitive advantages in the market.

The formulation of a sound strategy facilitates a number of actions and desired results that would be difficult otherwise. A strategic plan, when communicated to all members of an organization, provides employees with a clear vision of what the purposes and objectives of the firm are. The formulation of strategy forces organizations to examine the prospect of change in the foreseeable future and to prepare for change rather than to wait passively until market forces compel it. Strategic formulation allows the firm to plan its capital budgeting.
On the other hand, a firm without a clear strategic plan gives its decision makers no direction other than the maintenance of the status quo. The firm becomes purely reactive to external pressures and less effective at dealing with change. In highly competitive markets, a firm without a coherent strategy is likely to be outmaneuvered by its rivals and face declining market share or even declining sales.

Barriers in communication

Muddled messages – the sender let the receiver unclear about the intend of the sender
Stereotyping – causes people to act as if they already know the message that is coming from the sender or worse, as if no message is necessary because everybody already knows.
Wrong chanel – oral, written, video comunication used when another would be necessary
Language – each new employee needs to be taught the language of the company
Poor listening skills – not being prepared to listen
Interuptions – cause by something more pressing, rudeness, a drop-in visitor, an emergency
Physical distractions – different kind of noises

Article: Overcoming barriers to comunication by B.L. Erven from Ohio University

Verbal Communication Barriers
Attacking (interrogating, criticizing, blaming, shaming).
“You Messages” (moralizing, preaching, advising, diagnosing).
Showing Power (ordering, threatening, commanding, directing).
Other Verbal Barriers: shouting, name calling, refusing to speak.

Nonverbal Communication Barriers
Flashing or rolling eyes.
Quick or slow movements.
Arms crossed, legs crossed.
Gestures made with exasperation.
Poor personal care.
Staring at people or avoiding eye contact.

http://www.coachingachievement.co.uk

What is service?

Services are economic activities offered by one party to another, most commonly employing time-based performances to bring about desired results in recipients themselves or in objects or other assets for which purchasers have responsibility.
In exchange for their money, time and effort, service customers expect to obtain value from access goods, labor, professional skills, facilities, networks and systems; but they do not normally take ownership of any of the physical elements involved.

Services Marketing by C. Lovelock and J. Wirtz

Handling guest complaints

It is important to train your staff on the tools they need to properly handle complaints. Here are some tips on handling complaints for your next meeting:

– Listen without interrupting. When guests are first voicing their complaint, it is important to listen interactively without interrupting. Most guests first need to vent some frustration by telling their “story” complete with some dramatic details.

– When in person, demonstrate your attentiveness by maintaining eye contact and having neutral facial expressions. Over the phone, be sure to add some “verbal nods” such as “I see,” “okay,” and “alright.”

– Once the guest starts to slow down after venting their story in full detail, it is time for a statement of empathy followed by an apology. Empathy statements show “I can understand how you must feel; I can imagine I might feel the same way given the circumstance.”

– To show empathy, paraphrase and re-state their complaint. This not only shows that we understand the details, but also provides validation for the speaker. “Ms. Young I can understand that this must have been frustrating for you. With such a big event planned for this evening I’m sure the last thing you needed was a hotel room without hot water.”

– Apologize. As simple as it is to apologize, far too often guest services associates offer no apology at all, or what’s worse, offer a trite, insincere comment such as “I’m sorry” without meaning it. When you read negative guest reviews or negative comment card postings, a common issue is that “No one seemed to care; no one even apologized.” An apology is not an admission of fault; it simply says that the intentions were good.

– Restate options. Guests who complain want results. Ideally we can just give them what they want or need. Yet in the real-world of hotels, sometimes it isn’t that easy. For example, if a guest wants a particular room type when absolutely none are available, try to offer at least two alternative choices to pick from. Here is an example:

“Unfortunately Mr. Perez all of our pool view double rooms are occupied this evening. What I can do for you is to put you in a poolside king room and send in a rollaway bed, or I can offer you a garden view double room for this evening.”
By training your staff to be on the lookout for un-voiced guest complaints, and helping then understand how to draw-out the details and properly resolve the issues, we can reduce the odds that the incident surfaces in an online posting. Instead of having a disgruntled guest becoming the hotel’s worst nightmare, we can possibly turn that same guest into an apostle to help spread the good news about the great service they received to turn things around.

by Doug Kennedy – June 2, 2010 (published at http://www.HotelWorldNetwork.com)

Inter-communication vs. Intra-communication

Inter-communication takes place “outside” – in other words, it is in the open domain and may be considered in the three ways below:
– Inter-personal communication involves the exchange of message/information/dataacross communication channel from one person to another or one group to another.
– Inter-organizational communication describes communication between separate organizations – for example, a negotiation for a long-term business agreement such as a supplier and development chain or network.
– Internet communication uses a computer-based system that is open to the users – eg World-Wide-Web. Individuals and companies are able to buy, sell, advertise, investigate – in fact, conduct all manner of communication processes – in a way that might be person-to-person, person-to company, or company-to-company.

Intra-communication takes place “inside” the individual/body/group/network/organization and may be considered in the three ways below:
– Intra-personal communication takes place “inside” the person; the process of intra-personal communication involves the transmission of data/information/feelings between the various senses or pathways.
– Intra-organizational communication classifies communication that is internal within the organization: it describes the use of company magazines or newsletters which are used as the communication channel.
– Intranet communication is a form of communication channel using computer-based technology harnessed by the organization to allow internal communication to take place – eg an internal email network.

Managing for Results by Gillian Watson & Kevin Gallagher

Span of control

Is the number of people/subordinates that can be effectevely managed by one manager. It is an organizational theory term that refers to how relationships are structured between leaders and subordinates in organizations. A wide span of control exists when a person qversees many subordinates. A narrow span of control exists when a leader oversees few subordinates.

http://www.12manage.com

What is a FTE?

Full Time equivalent (FTE) – Ratio of total number of paid hours during a period (part time, full time, contracted) by the number of working hours in that period Mondays through Fridays.

http://www.businessdictionary.com

For one FTE Housekeeping Employee:
(based on Dutch CEA)

Total working hours per year : 1976 hours (based on 38 hours per week, for one FTE)
Paid Holidays : 25 days OR 190 hours
Public Holidays : 5 days OR 38 hours
Active working hours a year for 1 FTE : 1748 hours

This 1748 active working hours exclude the illness (usually 6 – 8%), training time (usually 1 – 2%), daily briefings + de-briefings + annual job evaluation/assessment meetings (usually 0.5 – 1 %).

Generally +1600/year

Hotel classifications and characteristics

a) Based on location:

City center – located in the heart of city within a short distance from business center, shopping arcade. Rates are normally high due to their location advantages. They have high traffic on weekdays and the occupancy is generally high.

Motels – located primarily on highways, they provide lodging to highway travelers and also provide ample parking space. The length of stay is usually overnight.

Suburban hotels – located in suburban areas, it generally have high traffic on weekend. It is ideal for budget travelers. In this type of hotel rates are moderately low.

Airport hotels – set up near by the airport. They have transit guest who stay over between flights.

Resort hotels – also termed as health resort or beach hill resort and so depending on their position and location. They cater a person who wants to relax, enjoy themselves at hill station. Most resort work to full capacity during peak season.

Floating hotels – established on luxury liners or ship. It is located on river, sea or big lakes. In cruise ships, rooms are generally small and all furniture is fixed down. It has long stay guest.

Boatels – house boat hotels which offers luxurious accommodation to travelers.

Rotels – hotel on wheel, trains providing a luxurious hotel atmosphere. Their interior is done like hotel room. They are normally used by small group of travelers.

b) Based on Size of Property:

Small hotel – hotel with 100 rooms and less may be termed as small hotels.

Medium sized hotel – hotel which has 100-300 rooms is known as medium sized hotel.

Large hotels – hotel which have more than 300 rooms are termed as large hotels.

Mega hotels – are those hotels with more than 1000 rooms.

Chain hotels – these are the group that have hotels in many number of location.

c) Based on the Level of Service:

Economy/ Budget hotels – meet the basic need of the guest by providing comfortable and clean room for a comfortable stay.

Mid market hotels – suite hotel that offers small living room with appropriate furniture and small bed room with king sized bed.

Luxury hotels – offer world class service providing restaurant and lounges, concierge service, meeting rooms, dining facilities. Bath linen is provided to the guest and is replaced accordingly. These guest rooms contains furnishing, artwork etc. prime market for these hotels are celebrities, business executives and high ranking political figures.

d) Based on the Length of Stay:

Transient Hotel – guest stays for a day or even less, they are usually five star hotels. The occupancy rate is usually very high. These hotels are situated near airport.

Residential hotels – guest can stay for a minimum period of one month and up to a year. The rent can be paid on monthly or quarterly basis. They provide sitting room, bed room and kitchenette.

Semi residential hotels – incorporate features of both transient and residential hotel.

e) Based on Theme:

Heritage hotel – guest is graciously welcomed, offered room that have their own history, serve traditional cuisine and are entertained by folk artist. These hotels put their best efforts to give the glimpse of their region.

Ecotels – use eco friendly items in the room.

Boutique hotels – provides exceptional accommodation, furniture in a themed and stylish manner and caters to corporate travelers.

Spas – a resort which provide therapeutic bath and massage along with other features of luxury hotels.

f) Based on Target Market:

Commercial hotel – situated in the heart of the city in busy commercial areas so as to get good and high business, hey cater mostly businessmen.

Convention hotels – large convention complex and cater to people attending a convention, conference.

Resort hotels – for tourists who want to relax and enjoy with their family. The occupancy varies as per season. The atmosphere is more relaxed.

Suite hotels – offer rooms that may include compact kitchenette. They cater to people who are relocating act as like lawyers, executives who are away from home for a long business stay.

Casino hotels – with predominantly gambling facilities, cater leisure and vacation travelers. Gambling activities at some casino hotels operate 24 hours a day and 365 days a year.

http://www.hotel-industry.learnhub.com