Hospitality Strategic Management CONCEPTS and CASES SECOND EDITION CATHY A ENZ JOHN WILEY & SONS, INC This book is printed on acid-free paper ϱ Copyright © 2010, 2005 by John Wiley & Sons, Inc All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the web at www.copyright.com Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at http://www.wiley.com/go/permissions Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose No warranty may be created or extended by sales representatives or written sales materials The advice and strategies contained herein may not be suitable for your situation You should consult with a professional where appropriate Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages For general information on our other products and services, or technical support, please contact our Customer Care Department within the United States at 800-762-2974, outside the United States at 317-572-3993 or fax 317-572-4002 Wiley also publishes its books in a variety of electronic formats Some content that appears in print may not be available in electronic books For more information about Wiley products, visit our Web site at http://www.wiley.com Library of Congress Cataloging-in-Publication Data Enz, Cathy A., 1956Hospitality strategic management : concepts and cases / Cathy A Enz — 2nd ed p cm Includes bibliographical references ISBN 978-0-470-08359-8 (cloth) Hospitality industry—Management Strategic planning I Title TX911.3.M27E56 2009 647.94'068—dc22 2008021438 Printed in the United States of America 10 Dedicated to my parents Richard and Betty Enz, two remarkable people CONTENTS Preface xiii About the Author xix CHAPTER Strategic Management Introduction The Origin of Strategic Management The Traditional Perspective The Organization as a Bundle of Resources: The Resource-Based View The Organization as a Network of Stakeholders 11 The Strategic Management Process Situation Analysis Strategic Direction Strategy Formulation Strategy Implementation 13 16 16 18 19 Global Competitiveness in the Hospitality Industry 20 Variables Affecting Strategic Management 21 Strategic Thinking Strategic Planning Can Drive out Strategic Thinking Characteristics of Strategic Thinking Motivating Managers and Employees to Think Strategically 21 22 23 27 vi CONTENTS Strategic Management in the Hospitality Industry 28 The Foodservice Industry—The Players 28 The Lodging Industry—The Players 29 Key Points Summary 33 Review Questions 34 Critical Thinking and Application Questions 34 CHAPTER The Environment and External Stakeholders 36 Introduction 38 Assessment of the Broad Environment The Sociocultural Context The Economic Context The Political Context The Technological Context Change and Interdependence among the Broad Environmental Forces Gathering Information on International Environments 39 40 47 48 50 54 56 Analysis of External Stakeholders and the Operating Environment 58 Porter’s Five Forces, Economic Power, and Industry Characteristics 59 External Stakeholders, Formal Power, and Political Influence 69 Managing the Operating Environment Economic Actions Political Strategies Partnering with External Stakeholders 70 71 72 74 Key Points Summary 76 Review Questions 78 Critical Thinking and Application Questions 78 CHAPTER Strategic Direction 80 Introduction 83 Creating a Strategic Direction 83 Key Influences on Direction 86 Mission Statements 89 CONTENTS vii Organizational Vision 94 Organizational Values 95 Social Responsibility 99 Enterprise Strategy 102 Ethical Frames of Reference 105 Codes of Ethics 108 Ethics in Global Environments 110 Key Points Summary 111 Review Questions 112 Critical Thinking and Application Questions 113 CHAPTER Organizational Resources and Competitive Advantage 114 Introduction 116 Internal Analysis and Competitive Advantage 117 Sustainable Competitive Advantage 117 Value-Adding Activities The Value Chains of Winemakers Value-Chain Activities The Tourism Value Chain 120 120 121 124 Tangible and Intangible Resources 125 Resources and Capabilities 126 Financial Resources 127 Financial Ratios 128 Physical Resources 130 Architectural and Sustainable Design 131 Human-Based Resources 134 Strategic Leadership 134 Ownership and Management 140 Employees 143 Structure and Culture 144 viii CONTENTS Knowledge-Based Resources 148 Internal Knowledge Creation and Organizational Learning 150 Knowledge Creation 150 Knowledge Creation and Interorganizational Relationships 152 General Organizational Resources Patents, Copyrights, Trademarks, and Servicemarks Brands and Organizational Reputation Superior Relationships with Stakeholders 155 155 156 159 Key Points Summary 160 Review Questions 162 Critical Thinking and Application Questions 162 CHAPTER Strategy Formulation at the Business-Unit Level 164 Introduction 167 Generic Business Strategies Cost Leadership Differentiation Best Value Focus 167 172 179 185 188 Competitive Dynamics 189 Strategies That Reflect Competitive Dynamics 191 Resources, Industry Structure, and Firm Actions 197 Strategic Group Mapping 199 Developing a Strategic Group Map 200 Key Points Summary 201 Review Questions 202 Critical Thinking and Application Questions 203 CHAPTER Corporate-Level Strategy and Restructuring 205 Introduction 207 Concentration Strategies 210 Advantages and Disadvantages of a Concentration Strategy 211 662 INDEX Economic stake, 64 Economic theory, limitations, 106106 Economies of scale, 172 entry barrier example, 66 factor, 174, 176 EEOC See Equal Employment Opportunity Commission E.I du Pont de Nemours Powder Company, control innovation, 329 Eisner, Michael, 323 Electronic tourism markets, 390–393 Emergency strategy, deliberate strategy (contrast), 8–9 Emerging economies, 417 Employees, 143–144 stakeholders, 421–422 strategic thinking, motivation, 27 turnover, 473e outcomes, 143–144 Enactment adaptation, contrast, 14t principle, Enron, accounting scandal, 49 Enterprise integrated perspective, creation, 22–23 strategy, 102 term, usage, 102 Enterprise resource planning (ERP) systems, 391 Entrepreneurial culture, maintenance, 375 Entrepreneurial discovery, 362 Entrepreneurial failure, sources, 380 Entrepreneurial start-ups, 359 first-year agenda, 372t Entrepreneurial success, 381 Entrepreneurial tasks, 361 Entrepreneurs capital sources, 367t cash-flow problems, 371, 373 failure causes, 377–378 rates, 378 resources/capabilities, 127 sole strategist, 138 Entrepreneurship, 359 Entry criteria See Markets Entry barriers/substitutes, 66–69 Environmental analysis, 21 case study, 433–435 Environmental determinism, 7–8 review, Environmental discontinuities, impact, 340 Environmental opportunities, advantage, Environmental responsibility, 100 Environmental threats, neutralization, Environmental uncertainty occurrence, 266 origination, 266–267 Environments components, 38 fostering, 135 EPS See Earnings per share Equal Employment Opportunity Commission (EEOC), 295 Ernst & Young, CKO nomination, 328 Etap, cost leadership, 172 Ethical decision making, concerns, 102 Ethical dilemma, 105 handling, 107–108 Ethical issues, 106 Ethics See Global environments codes, 108–110 systems, 108–110 Ethnic foods, benefits, 45 European, Middle East and Africa (EMEA) unit, responsibility, 308 European lifestyle hotel companies, 181t–182t European Union, 20 Exclusive contracts, 191 Executives compensation, 141–142 leadership styles, 140 Exit barriers, existence, 64 Expedia, online travel service, 190, 392 attention, absence, 219 Experience Economy,The (Pine/ Gilmore), 180 Experts, opinion (solicitation), 53–54 Extended-stay hotels, 30 External environment components, 16 division, 38 External knowledge, source, 152 External stakeholders analysis, 58–70 formal power/political influence, relationship, 69–70 impact, 16, 86 management tactics, 71t, 264t–265t network, 191 partnering, 74–76 tactics, 264t–265t relationships, 125 F Fairmont Hotels and Resorts, 143 Fairmont Resorts, Hotels Green Partnership Program, 133 Family-centered economies, 416 Farr, Sam, 261 Fast-food restaurants, definition, 29 Fast-service restaurants, definition, 29 Federal Bankruptcy Code, Chapter 11 protection, 240–241 Feedback loops, indication, 14–15 usage, 87 Feedback control, 327–328 flowchart, 334f systems, 331–339 development, steps, 333t examples, 332 INDEX 663 Feedforward control, 327–328 illustration, 341f usage, 339–343 FelCor Lodging Trust, strategic planning, 18 Fertitta, Tilman, 286 Fiduciary responsibility, impact, 142 Financial audits, control, 332 Financial controls, strategic controls (contrast), 329–331 Financial donations, 267 Financial intermediaries, partnerships, 286–287 Financial position, strength, 191 Financial ratios, 128, 130 list, 131t Financial resources, 10 impact, 127 importance, increase, 130 usage, 127–130 Financial synergy, 320 Firms See Hospitality firms actions, 197–199 foreign investments, usage (reasons), 400t operating leverage, 366 resources/capabilities, 126f size, relationship, 65 strategy/structure/rivalry, 419 First-mover advantage, 192–193 Five forces, 58–60 Five Star Living, 56 Fixed costs, existence, 64 Focus, 188–189 strategic option, 168–169 strategies, 188 risk, 188 Food safety audits, process, 334 Foodservice industry, components, 28–29 Foreign direct investments, 405, 407 example, 408 Foreign environments, stakeholder management, 420–424 Foreign exchange rates, economic factors, 47 Foreign investments exporting/contracting, 405–408 usage, reasons, 400t Foreign market, questions (examples), 413t Foreign-trade balances economic factors, 47 relevance, 48 uncertainty, 48 Formal integrators, 327 Formal power external stakeholders/political influence, relationship, 69–70 meaning, 69 Formal structure, 303 Forward integration, 214–215 Four Seasons culture, 144 local market adaptation, 404 manager promotion, 145 Resort Bali, 423 vision, 69–70 Franchise partners, selection, 409 Franchising, 376–377 Freeter, 110 Friedman, Milton, 101 Front-of-house service, back-ofhouse food preparation (separation), 305 Full-service restaurants, eat-in service, 29 Full vertical integration, substitutes, 219–220 Functional departments, team formation, 314 Functional-level decisions, 19 Functional-level resource management, 289–296 characteristics, 290 Functional-level strategies, 18 Functional-strategy audit, 291 conducting, 292t–293t Functional structures, 310–312 inappropriateness, 311 orientation, 311 G Gates, Bill, 22 GDS See Global distribution systems GDSS See Group decision support system General differences, identification, 41 Generally accepted accounting principles (GAAP), 332 General manager (GM) issues, 311 General organizational resources, 155–160 Generational awareness, 42 Generational cohorts, 42 Generation X cohort, 43 Generation Y cohort, 42 term, usage, 43 Generic business-level strategies, 170t Generic business strategies, 167–189 Generic products, differentiation (absence), 62 Geographic areas, attitudes/beliefs, 41 Geographic region, societal composition, 40 Geographic structures, 312–314 flowchart, 313f Gilmore, James, 180 Gladwell, Malcolm, 57, 58 Glenmont Capital Management, LLC, equity capital deployment, 370 Global alliances, importance, 272 Global brands consistency, challenge, 157 ranking, 157t–158t Global competition, 411 Global distribution systems (GDS) evolution, 592–593 operation, 176 Global economic forces, monitoring/prediction, 47t Global economic influences, 39 Global economy, changes, 148 664 INDEX Global environments, ethics, 110–111 Global expansion brand sustainability, 514 requirement, 420 Globalization (increase), strategic management (implications), 20–21 Global markets, financial capital exchange, 20 Global organizations, uncertainty (sources), 48 Global stakeholders, 419–424 Global strategies, 402–405 pursuit, 403 Goals, concept, 337 Goizueta, Roberta, 134 Golden Nugget, development, 165 Google Inc., performance, 390 Government agencies/administrators, partnerships, 273 intervention, 194 policy entry barrier example, 68 influence, stakeholders, 423–424 Gramercy Park Hotel, club/garden development, 131 Green, Peter, 454 customer closeness, 460–461 general manager arrival, 477, 480 vision, 457–459 Green building, long-term economics, 132 Greene, Paul, 173 Green initiatives, 100 Group bookings, increase (pressure), 312 Group-centered economies, 416–417 Group decision support system (GDSS), 341 Grover Vineyards, establishment, 363 Guanxi, stakeholder relationships, 498–499 Guerard, Michel, 362 Guest comment daily report, 462e–467e Guest comment scores, 473e Guest requests, responses (increase), 52 Guests, checking in/out ability, 151 H Hamel, Gary, 22, 85 Harrah’s Entertainment, LBO, 243 Heavenly Bed Starwood Hotels & Resorts launch, 4–5 Westin sales, Heinritze, Michael, 214 Hellman, Warren, 234–235 Hempel, Anouska, 131 HERE See Hotel Employees and Restaurant Employees International Union Hierarchy overload, 311–312 High-capacity utilization, 172 impact, 173–174 importance, 173–174 High-level managers, impact, 96 High-performance cultures, 145 High-volume purchases, 60 Hiller Hotels, 453 actual income, 475e–476e annual returns, 477e communication, 471 culture, 471–472 forecast income, 478e–479e general manager arrival, 477, 480 investment/value/returns, 477e Phoenix market performance, 474e profitability, 472–477 project perspective, 454–455 quarterly bonus program, 469e–470e sale, 480–481 selection/orientation/training, 468–472 strategic planning, 459–460 Hilton, Conrad (lodging industry initiation), 360 Hilton Hotels Corp acquisition, 66 attributes, conjoint study, 337 express check-in service, 290 Situation-Target-Proposal (STP) continuous improvement process, 347 stakeholder value delivery, 336 vision, 90 Hilton International, TWA purchase, 213 Hilton-UNITE HERE agreement, 284 Holiday Inn development risk, 27 global relaunch, 501 Holiday Inn Express, strategy, 172 Home Inns, growth, 415 Hong Kong Disneyland, 192 Hospitality business, competition, 3–4 divisions, 59 executives, study, 102 unions, impact, 280–284 Hospitality firms environmental factors, 57 long-term contracts, usage, 220 strategic management, 424–425 Hospitality industry community/citizen impact, 274–275 composition, 65 global competitiveness, 20–21 strategic management, 28–32 tourism, relationship, 554–555 Hospitality Valuation Services (HVS), 57, 196 Hotel Employees and Restaurant Employees International Union (HERE), 281 Hotel Workers Rising campaign, 282 Hotel Indigo, design, 84 Hotels bookings, Internet usage, 51 INDEX 665 companies, global expansion, 406f competitors, 31t consortium, 314 design See Sustainable hotel design functional structure, 311f industry competitive analysis, 494–499 under-demolished characteristic, 64 management/franchising, selection, 85 performance, comparison, 497e power position, 590–591 revenue/demand, 175f size, strategic-group map, 199f Hotels Green Partnership Program, 133 Houdre, Harve, 100 Human-based resources, 134–143 Human resources (HR), 10 strategy, 295 HVS See Hospitality Valuation Services Hypercompetition, 65 Hypothesis development, 27 Hypothesis-driven, strategic thinking characteristic, 27 Hypothesis testing, 27 I Icahn, Carl, 213 Iger, Robert, 323 IHG See InterContinental Hotels Group IHOP Corporation, Applebee’s International acquisition, 229 Il Giornale, 567 Imitation organizational discouragement, 195 Imitation, barriers, 194–196 Immigrants, example, 357–358 Implementation/control, recommendations (combination), 440–441 Improving Public Diplomacy through International Travel Act, TIA/TBR support, 261 Incentives, 386–387 Incremental innovations, 382 India domestic hotels, 556–559 economy, 552–553 hotels, 555–559 average performance, 556t Indian Ocean tsunami, 550f Indian tourism, indicators/ domestic pipeline hotel statistics, 554t Industries analysis, 434 competition, Porter’s five forces, 61f competitive tactics, 72 competitors, presence, 64 consolidation, 230–231 definition, difficulty, 60 downturns/shocks, experience, 85 evolution (tracking), strategicgroup map (usage), 200–201 growth, 64 maturity, 212 profitability impact, 60 preservation/stabilization, 71 strategic issues, 434–435 structure, 197–199 Industry Revolutionaries, 22 Inflation impact, 48 rates, economic factors, 47 Informal referral system, 316 Information advantage, 62 gathering, 56–57 Informed Meeting Exchange (INMEX), 282 Initial public offerings (IPOs), 370–371 process, 371f Inkpen, Andrew, 155 Innovations adoption, 190 corporate entrepreneurship, relationship, 380–393 design, adoption, 52–53 encouragement/discouragement, factors, 384t fostering, 382–388 stifling, 385 technologies, impact, 52 types, 382–383 Innovative companies, ranking, 388t Innovative enterprise, process, 383–388 Innovative Travel Marketing, barter exchanges, 279 Institutional differences, 416–417 example, 416f Intangible quality, stakeholder search, 144 Intangible relatedness, 222 Intangible resources, 125–127 Integrative knowledge, 149 Intelligence collection/dissemination, 342–343 management, responsibility, 343 Intelligent opportunism, 26 Intent-focused, strategic thinking characteristic, 24 InterContinental Hotels and Resorts, operating regions, 308 InterContinental Hotels Group (IHG) Bass acquisition, 485 brands ownership, 169, 172 portfolio, 171f portfolio management, 499–501 CEO resignation, 137 China entry case study, 482 mode selection, 488 provinces/cities/brands, analysis-484e, 483e reason, 486–488 competitive advantage, 498–499 666 INDEX InterContinental Hotels Group (IHG) (continued ) disposal activities, 490e expansion, 485–486 future, 502–503 history, 482–486 hotel room count, ownership type, 490e hotels (Asia-Pacific region), types, 491e lodging brands, 500e Priority Club Rewards, 71–72, 84 Interest rates credit availability, impact, 48 economic factors, 47 impact, 48 inflation, impact, 48 Interlocking directorate interorganizational relationship, 74t occurrence, 76 Intermediaries, 582 Internal analysis, 117–120 Internal efficiency, orientation, 311 Internal environment, 435–436 Internal knowledge, creation, 150 tasks, association, 152t Internal organization, components, 16 Internal processes, customers (involvement), 268, 270 Internal resource analysis, stakeholder analysis (combination), 159–160 Internal stakeholders, impact, 86 International airlines, competitors (alliances), 271–272 International alliances, 408–411 International cultures, dissimilarities, 111 International environments, information gathering, 56–57 International market selection, 411–419 International Spa Association (ISPA), advocacy, 260 International strategies, implementation, 318 Internet e-commerce, relationship, 389–393 sites, usage, 51 Interorganizational relationships advantages/disadvantages, 256–262 characteristic, commonness, 76 forms, 74t knowledge creation, 152–155 network, 153 organizational fit, impact, 262 participation, advantages, 259t tourism cluster, 255 Interrelated businesses, services, 28 Intrapreneurship, 381 Inventions, protection, 156 Investment strategy, focus, 127 ISPA See International Spa Association Israeli/Palestinian tourism ministries, cooperation, 273 Isutani, Minoru, 50 J JetBlue Airlines load factor, 174 low-cost leadership strategy, 168–169 no-frills flights, 172 point-to-point system usage, 22 Jinjiang brand hotels, 500e Johnson & Johnson, responsibility, 93 Joie de Vivre Hotels, initiation, 374 Joint decision making, limitations, 261 Joint venture, 408 creation, 75 interorganizational relationship, 74t knowledge transfer, facilitation, 154t Jumeirah Group, 188–189, 422 Justice and Equality Movement (JEM), rebel group, 37 K Kaplan, Robert, 335 Kasikci, Ali, 151 Kerkorian, Kirk, 286–287 Kimpton Hotels & Restaurants, 180 King’s Seafood Company, sustainable seafood, 105 Klinger, Georgette, 241 Kmart, Chapter 11 filing, 241 Knowledge creation, 150–152 interorganizational relationships, 152–155 facilitation, 150 intangible asset, 148 managers, 327 retention, 150–151 sharing, 151 transfer, facilitation, 154t utilization, 152 Knowledge-based resources, 148–155 KnowledgeWeb (KWeb), 328 Krivulka, Angela, 241 L Labor movement, condition, 504–505 Labor productivity, outcomes (importance), 143–144 Labor unions, partnerships, 280–286 Landry’s Restaurants Inc., bondholder meeting, 286 Lateral capability, building, 325 Lateral organization, 325–327 Laurent-Perrier Champagne, brand recognition, 417 Lawrence, Harding, 141 LBOs See Leveraged buyouts Leadership approaches, 139–140 differences, 140 model, 134–135 participative styles, 139–140 styles, 140 See also Executives Leadership in Energy and Environmental Design (LEED), 132 certification, 133–134 INDEX 667 Learning curve effect, 178 illustration, 178f Learning effects, 172, 178–179 Legal form, selection, 374–376 Legal responsibilities, 99 Legal theory, limitations, 106 Legislation, avoidance, 41 Le Meridien Hotels and Resort, Forte PLC, hostile takeover bid, 226 Leo-Andrieu, Grace, 50–51 Leverage, 128, 130 Leveraged buyouts (LBOs), 242 innovations, 242 Lifestyle, experience (relationship), 179–182 Limited partnership, establishment, 375 Liquidity ratios, 128 Living contract creation, 284 usage, 283 Load factor, 174 Local communities, partnerships, 274–275 Local outsourcing, 178 Lodging companies, focus, 188 Lodging industry components, 29–32 hypercompetition characteristics, 65 Lodging Interactive, research, 44 Long-term food trends, distinction (difficulty), 45 Long-term oriented, strategic thinking characteristic, 26 Low-cost carriers, impact, 194 Low-cost commuter airline, success/ decline, 291 Low-cost competitive strategies, 294 Low-cost leadership, 168 description, 172 Low-cost positions, creation, 172 Lutèce, inertia, 88 M Macaroni Grill, casual-dining concepts, 231 Management ineffectiveness, impact, 227t ownership, relationship, 140–142 simple structures, 305–307 structure, development, 135 Management information system (MIS), development, 341 Managerial attention, 196–197 Managerial tasks, importance, 150 Managers control systems, usage, 327 direct contact, 326 dominance, 147 strategic thinking, motivation, 27 synergy creation, 224 Mandarin Oriental Hotel Group direction, 81–82 strategic direction, example, 81–83 Market-centered economies, 416 Marketing channels, usage, 222 policy, impact, 345 research, 267 usage, 41 strategy, 291, 294 Markets conditions, 379 entry criteria, 408 tactics, 405–408 geographic broadening, 230 globalization, increase, 190 position, superiority, 191 Marriott, John/Alice, 26 Marriott, J.W (value creation), 85 Marriott Corporation, backward-integrated hotel developer, 215 Marriott Hotels Marriott Way, 93 spirit, 92 success, 12 vision, 94 Marriott’s Automated Reservation System for Hotel Accommodations (MARSHA), 176 Martinez,Victor, 52 Massclusivity, 56 Master franchises, 410–411 rights, 411 Mastering the Dynamics of Innovation (Utterback), 52 Matrix management, TIA description, 317 Matrix structures, 314–318 McCain Foods USA product, health, 277 regulation, reduction, 276 McCann, Fergus, 56 McCoy, Bowen, 108, 109 McDonald’s brand strength, 223 Chipotle investment, community efforts, 100 India operation, 349 Japan partnership, 407 multibranding, 223 products, uniform quality, 303 revitalization plan, 2–3 sales, increase, 214 standard operating procedures, usage, 133 McFarland, Ed, 149 Media conglomerates, purchases, 228 inclusion, pursuit (difficulty), 279 partnering strategy, inclusion (pursuit, difficulty), 279 partnerships, 278–280 Mental models, possession, 25 Mergers due diligence process, impact, 234–235 performance, 232–234 Mergers and acquisitions (M&As), 229–236 desire, 230 paradox, 235 Porter evidence, 234 668 INDEX Mergers and acquisitions (continued ) problems, 233t success/failure, 234–236 MeriStar Hospitality, acquisition, 66 Merl, Jody, 279 Merrill Lynch, employees (pride), 351 Michels, David, 141 Milagro Properties Development, 169 Millennials, term (usage), 42 Mine host, 28 Mintzberg, Henry, 22 Mirage Resorts, Inc., 165 MIS See Management information system Mission statements, 16–17 See also Organizational mission statements effectiveness, 93–94 ideals, communication, 90 multiple uses, 91t usage, 89–94 Mixed-use developments complexity, 253–254 synergy, 254 Modular structures, outsourcing, 324–325 Monaghan, Thomas, 211 Monopoly power, competition/ concentration (relationship), 64–66 Moral obligations, 99 Morrison Restaurants, processes (usage), 20 Motel brand, impact, 173 Motel 6, cost leadership, 172 Multibusiness organization, strategy formulation, 19f Multiconcept operators/ franchisors, 29 Multidivisional structures flowchart, 320f unrelated-diversification strategy, interaction, 320 usage, 318–319 Multidomestic strategies, 402–405 Multimarket competition, 194 Multinational firms, pressure (application), 283 Murphy, Danny, 99 Mystery shoppers, usage, N Nadherny, Ferdinand, 140 NAFTA See North American Free Trade Agreement National advantages See Countries National Labor Relations Act (NLRA), 506 National Restaurant Association impact, strengthening, 73 Nation’s Restaurant News, full-service restaurants division, 29 Neeleman, David, 294 Networks business constellations, 75 interorganizational relationship, 74t structures, 314 Neubauer, Joseph, 134, 235 Neutrality agreements, 284–286, 508–510 See also Card-check neutrality agreements effect, 508–509 signing, 285 reasons, 509–510 New-business formation, government encouragement, 49 New-product launches, competitive tactics, 72 New-service introductions, competitive moves/countermoves (examples), 64 New World vineyards, characteristics, 121 N Generation, 43 Nish, Wayne, structural inertia, 89 Noncore functions, outsourcing, 324–325 Norman, William, 317 North American cruise lines/brand positioning, 444e North American Free Trade Agreement (NAFTA), 20 border/trade opening, 412, 414 Northwest Airlines, workforce reduction, 239 Norton, David, 335 O Objectives, concept, 337 Occupational Safety and Health Administration (OSHA), 295 Offshoring, 178 O’Leary, Michael, 115 Oligopolies, cooperation, 65, 272 Omni Hotels, operation, 228 Online agencies branded web sites, contrast, 585–587 problems, 591–592 Online hospitality distribution, 587 Online travel agencies, hotels (response), 587–588 Online travel agents, supplier direct online bookings (contrast), 586f Online travel services, spread, 584–585 On-site segments, positions, 28–29 Operating environments analysis, 58–70 components, 38 management, 70–76 relationship, 39 Operating goals creation, 337–338 facilitation, 338–339 Operations establishment, 373–374 Operations strategy, 295–296 Opportunistic, strategic thinking characteristic, 26 Opportunities creation/recognition, 41, 362 evaluation, 439–440 origin, 56 INDEX 669 Organizational control, 327 Organizational crises, 346–347 Organizational design, changes, 243–244 deliberation, 306 Organizational fit, 223–224 leadership approaches, 139–140 problems, 227t Organizational knowledge/ learning, 10 Organizational learning creation, 150 facilitation, partnerships (impact), 262–263 fostering, 138–139 Organizational mission statements, 102 Organizational performance, increase, 225–226 Organizational reputation, brands (relationship), 156–159 Organizational resources, 10 See also General organizational resources acquisition/development, 10–11 analysis, 435–437 strain, reduction, 211 Organizational responses, examples, 39 Organizational sectors, 256 Organizational structures, 302 characterization, 303, 305 dimensions, 304t performance, connection, 303 Organizational systems, potential realization, 118 Organizational values, 95–111 small talk, importance, 137 Organizational vision, 94–95 creation, 135, 136 Organization of Petroleum Exporting Countries (OPEC) cartel, price establishment, 272 Organizations advantages, awareness/ realization, 118 chart, 305 core values, establishment, 135 culture, 144 defining, 145t strengths/weaknesses, 144–145 customer access (improvement), vertical integration (usage), 216 design, 302–303 ethics, 102 five forces analysis, 60 flexibility, increase, 323 forums, establishment, 150 future, envisioning, 136 history feedback, 87 media inclusion, difficulty, 279 organizational fit, pursuit, 226 orientations, 147 regulation, impact, 49 resource-based view, 9–11 resource bundles, 9–11 categories, 10 illustration, 11 scheme, 39f social system, leader impact, 137 stakeholder network, 11–13 strategic flexibility, 196 strengths, advantage, structuring process, decisions, 306–307 success, absence (factors), 147–148 weaknesses, neutralization, Organizing strategies, 506–508 Orient-Express Hotels Ltd., 317 OSHA See Occupational Safety and Health Administration Outsourcing, 172 approach, 270 impact, 176–178 Overconfidence, impact, 147 Overhead cost allocation process, 332 Owner/manager structure, 305 Ownership management, relationship, 140–143 performance comparison, 497e stake, meaning, 69 structures, 30–32 P Page, Larry, 390 Partial vertical integration, strategies, 219 Partnering, buffering (contrast), 267–268 Partners, selection, 262–267 Partnerships activist groups, involvement, 276–278 building, 288 competitors, involvement, 271–272 customers, involvement, 268, 270 financial intermediaries, involvement, 286–287 government agencies/administrators, involvement, 273 labor unions, involvement, 280–286 local communities, involvement, 274–275 management, 287–289 media, involvement, 278–280 opportunism risk, 262 public interest groups, involvement, 277–278 risk/cost minimization, 260 selection, 31 suppliers, involvement, 270–271 Patents, 155–156 possession, 191 Peabody Hotel Group, business intelligence (usage), 341 Peet’s Coffee & Tea Inc., partnership, 260 Peetz, John, 328 Pegasus Solutions, Inc., 312 Pélisson, Gilles, 136 Peninsula Hotel Group, 83 Penrose, Edith, 10 People Express, pattern (alteration), 291 670 INDEX People for the Ethical Treatment of Animals (PETA), 275–277 Performance evaluation, 437 Perry, James B., 25 Personal computers, emergence, 52–53 Pets.com, initiation, 391 Petty, Ron, 43 Phantom Horse spa, usage, 41 Phillips, R.H (wines), 122 Physical assets, usage, 148 Physical resources, 10 usage, 130–134 Pickens, Don, 169 Pine, Joseph, 180 Pioneers, organization orientations, 147 Planned changes, impact (evaluation), 83–84 Planning processes, formalization, 93 responsibility, sharing, 403 PMSs See Property management systems Point-to-point system, JetBlue usage, 22 Political context, 48–50 Political influences, 39 external stakeholders/formal power, relationship, 69–70 Political power, origin, 69 Political strategies, 72–73 Polynesian hospitality, theme values, 99 Population characteristics, usage, 41 Porter, Jon, 261 Porter, Michael, 60, 296 Five Forces, 59–69, 434 analysis, 60 scheme, 61f focus strategy, 196–197 generic strategy types, proposal, 167–168 M&A evidence, 234 natural-resource advantages, 419 strategic option, 167–169 Portfolio analysis See Destination portfolio analysis management, 244–247 planning, 245 Post-merger integration, ease, 234 Post-war cohort, 42 Power of We,The (Tisch), 269 Practice, community, 326 Preferred alliance programs, usage, 270 Premise control, design, 342 Premium Ingredients Group, distribution (exclusivity), 260–261 Premium products, benefits, 45 Preussag AG, 215 Price-fixing, impact, 65 Primary stakeholders, scheme, 39f Priority Club Rewards (InterContinental Hotels), 71–72, 84 Private-sector employer (restaurant industry), 29 Process controls, 346 illustration, 344f Process development, 150 Product-centric marketplace view, 269 Products commoditization, 399 development, 150 differentiation, 63 absence, 62, 64 entry barrier example, 66–67 innovations, 382–383 obsolescence, 212 quality, customer concern, 62 substitute qualification, 68–69 Profitability dependency, 141 ratios, financial success measure, 128 Profits, responsible behavior (contrast), 100–102 Pro-forma financial statements, 363 Project-matrix structure, 316f Properties acquisition, 238 value, creation, 335 Property management systems (PMSs), 307 Property-specific goals, 338 Psychic income, 450 Public health activists/lawyers, restaurant efforts, 276 Public interest groups, partnerships, 277–278 Public-relations efforts, 267 Puck, Wolfgang (partnering), 258 Putnam, Andrée, 131 Q Quality best value, relationship, 185–186 improvements, competitive tactics, 72 Quasi-integration, 219 Quick-service restaurants, definition, 29 Quinn, James Brian, 295 R Radical innovations, 382 impact, 53 Real estate investment trusts (REITs), 18 financial benefits, 130 investment group, 369 selection, 31 subcontracting property management, 177 Recommendations, evaluation, 439–440 Reengineering, impact, 243–244 Reference, ethical frames, 105–108 Regulatory agencies, regulation development, 49–50 Regulatory compliance, ensuring, 267 Related diversification, 220–222 INDEX 671 Relatedness See Intangible relatedness; Tangible relatedness Relational ability, 152 Relational skills, CEO development, 152 Relationships, development/ management, Religion, limitations, 106 Renewal, business change, 237 Renovation, capital improvements (relationship), 458e Reorientation business change, 237 impact, 236–237 Reputation, perspective, 159 Reservations, U.S chain channel mix (shift), 589f Resource-based view, 9–11 economic thought, impact, 10 stakeholder view, conceptual link, 160 Resource-conversion processes, learning, 230 Resources, 126–127 analysis, 436–437 areas/activities, identification, 336–337 bundle, 9–11 competitive value, determination (questions), 119f entry barrier example, 68 firm access, 258 imitation, difficulty/cost, 118–119 industry structure/actions, relationship, 197f list, 10 management See Functional-level resource management market values, 117 position, 197–199 sharing, advantages, 260 substitute, availability, 118 term, usage, 126 uniqueness, 117–118 Responsible behavior, profits (contrast), 100–102 Restaurants chains, Europe introduction, 414 industry, quick-service segment, 213 Restructuring See Strategic restructuring business change, 237 Retaliation, threat, 193–194 Retrenchment, 237–238 Return on investment (ROI), 329–330 Revenue-collection agencies, regulation development, 49–50 Revenue per available room (RevPAR), 128, 329 financial indicator, 64 R.H Phillips, wines, 122 Ricardo, David, 10 Risk reduction, 226 Ritter, Kurt, 407 Ritz-Carlton Gold Standards, 456e Ritz-Carlton Tysons Corner, program innovation, 387 Rivals, countermoves, 198–199 ROI See Return on investment Romney, Edgar, 281 Rosenberg International Center of Franchising (RCF), 376 Rosen Hotels & Resorts, employees, 360–361 Royal Caribbean International responsibility, 88 strategic direction, 86 Rumelt, Richard, 226–227 Rushmore, Steve, 196 Ryanair cost-saving capabilities, 115–116 no-frills flights, 172 profitability, 116–117 Southwest emulation, 294 S Sales force expansions, competitive moves/countermoves (examples), 64 Sales impact, 312 Salespeople, organization orientations, 147 Salty’s Seafood Grills, values, 96 Sarbanes-Oxley Act (2002), 49 SAS Group, operating losses, 327 SBU See Strategic business unit Schaenerman, Jr., Lewis G., 326 Schattner, John, 140 Schrager, Ian, 131 Schuessler, Jack, 138 Schultz, Howard, 95, 398, 566–567 Schumpeter, Joseph, 190 Schwan’s Food Company, partnering, 258 Scientific knowledge, 148–149 S corporation (Subchapter S corporation), 375–376 Seacology, win-win situations (necessity), 268 Sea Containers Ltd., activities, 317 Second Baby Boom, term (usage), 42 See green program, 562 Segmentation differentiation, contrast, 182–184 grouping, 183 strategy, 30 Self-interest, community, 101 Seneca Gaming Corporation, 108 Service advertising, 222 culture, creation, 145 delivery, conflict, 311 development, 150 methods, competitive tactics, 72 substitute qualification, 68–69 Service-centric marketplace view, 269 Service Employees International Union (SEIU), 281 Servicemarks, 155–156 Severe acute respiratory syndrome (SARS), 549–550 Shangri-La Hotels and Resorts, philosophy/vision/mission, 17 672 INDEX Shared distribution channels, impact, 320 Shareholder returns, comparison, 382 Sharp, Isadore, 134 Sheraton, customer-service promise, 339 Sherwood, Simon M.C., 317 Simon, David, 232 Simpson House Inn, socialization (usage), 346 Site selection, establishment, 373–374 Situation analysis, 16 impact, strategic management, association, 20 summary, 438 Six Sigma, 186–187 Small talk, importance, 137 Smith, Roger, 329 Smith Travel Research, hotel performance information database, 57 Social responsibility, 44–45 belief, 69 components, 99 stakeholder theory, alignment, 98 usage, 99–102 Social system, leader impact, 137 Societal trends, analysis, 41 Society, composition, 40 Sociocultural context, 40–46 Sociocultural influences, 39 Southwest Airlines hub-and-spoke operating model rejection, 22 ideas, usage, 115 Special interest groups, 276–277 organizations, considerations, 278 St Regis, property (distinction), 183 Stakeholder-based advantages, 412 Stakeholders analysis, 420 internal resource analysis, combination, 159–160 approach, emergence, 12 consideration, strategic direction (impact), 21 economic dependence, 69 expectations, violation, 105 intangible quality search, 144 interdependencies, 296 management, 262–267 effectiveness, 268–287 techniques, 267 map, 13f network, 11–13 partnering decision, 263f relationships, 159–160 roles, 70f selection, 267 strategic importance, 263f uncertainty, impact, 263, 266 strategic priority, establishment, 267 theory resource-based view, conceptual link, 160 values/social responsibility, alignment, 98 Standard products, differentiation (absence), 62 Star Alliance, formation, 272 Starbucks Coffee, Tea and Space, 398–399 balance sheets, 576e cash flows, 577e CEO replacement, 575–578 commoditization, 564 customer care, 572–573 economic times, difficulty, 573–575 expansion risk, 565 experience, 184, 571 guiding principles, 596 income statements, 575e initiation/birth, 95, 566 IPO, 568 McDonald’s, threat, 565–566 mission, 569–570 Schultz purchase, 567–568 senior leadership, 579e–580e social responsibility, 570–571 transformation, 578–581 vision, 569 work environment, 571–572 year-end financial ratios, 574e Starck, Philippe, 131 Start-up capital, securing, 366–371 Starwood Hotels & Resorts airport arrivals, 555 average performance, 558t brand expansion, 562–563 usage, 561–562 business environment, trends/ opportunities, 552–553 business strategy, foundation, 120 case study, 552 company overview, 561 competition, 555–559 crisis, focus, 239 cultural adjustment, 559 expansion, 555–559 hassle factor, 557–558 Heavenly Bed launch, 4–5 hospitality industry, 554–555 India expansion, 559–561 market, planned expansions, 560t lodging response, 406 market challenges, 555–559 premier/distinctive properties, 183 Six Sigma, 186 skilled labor, discovery, 558–559 strategic process, strategy implementation, 183 tourism, 554–555 Sternlicht, Barry, 239 Steward, role, 139 Stock options, CEO alignment, 142 Stop and Shop Companies, Inc., dialogue (encouragement), 326 Strategic alternatives, creation, 14t Strategic architecture, crafting, 23 INDEX 673 Strategic business unit (SBU) structures, 320–321 flowchart, 321f Strategic controls financial controls, contrast, 329–331 measurable operating goals, creation, 337–338 operating goals, facilitation, 338–339 resource areas/activities, identification, 336–337 system, goals (determination), 335 term, usage, 331 Strategic control system, 327 Strategic direction, 16–18 creation, 73–89 evaluation, 435–436 influences, 87f internal/external stakeholders, impact, 86 strategic management, association, 20 strategies, 438–439 Strategic fit, 223 problems, 227t Strategic flexibility, 196 source, 127–128 Strategic-group map, 199–200 development, 200–201 dimensions, 201t example, 199f Strategic group mapping, 199–201 Strategic leadership, 134–140 literature, 135 Strategic management future, 424t origin, 5–13 perspectives, 6t combination, 14t resource-based view, 9–11 stakeholder approach, 12 study, 90 traditional perspective, 6–9 variables, impact, 21 Strategic management process, 13–20 activities, 13–14 association, 20 illustration, 7f, 15f modifications, absence, 32 Strategic plan, development, 438–441 Strategic planning, 459–460 analytical process, 22 effectiveness, executives, involvement, 48 Strategic planning processes practice, strategic thinking, contrast, usage, 23 Strategic restructuring, 236–244 Strategic surveillance, business intelligence (relationship), 340–343 Strategic thinking, 21–27 characteristics, 23–27 elements, 24t combination, 27 long-term orientation, 26 present, importance, 26–27 strategic planning, impact, 22–23 Strategy definition, 17 development, 135, 138 form filling, 23 formulation levels, 18–19 strategic management, association, 20 implementation, 19–20, 255 details, association, 21 strategic management, association, 20 Strategy implementation, 14 tactics, 302 Strengths, weaknesses, opportunities, and threats (SWOT), analysis, 16 basis, 20 usage, 438 Structural inertia, 88 motivation, 89 Structure culture, relationship, 144–148 development, 138 Stuck-in-the-middle companies, 169 Subsidies, usage, 49 Substitutes, 66–69 products, impact, 68 Subunits, dominance, 147 Sudanese Liberation Movement (SLA), rebel group, 37 Sunland Park Racetrack and Casino, mission, 89–90 Superior resources, possession, 10 Suppliers direct online bookings, online travel agents (contrast), 586f economic power, 62–63 number, scarcity, 63 partnerships, 270–271 relationships, establishment, 270 Supply-and-demand economics, 185 Support activities, 122 core activities, breakdown, 122 description, 123–124 Sustainability, 131–132 report, Aspen Ski Company usage, 278 Sustainable competitive advantage, 117–119 Sustainable design, 131–134 Sustainable hotel design, 132t Sustainable hotelkeeping, importance, 100 Sustainable Seafood Forum, 102 Swiss Federal Institute of Technology, recognition, 266 Switching costs, entry barrier example, 67–68 SWOT See Strengths, weaknesses, opportunities, and threats Synergy creation, 222–226 requirements, 224f diversification sources, 225t forces, impact, 227t organizational fit, absence, 223–224 674 INDEX T Tacit knowledge, articulation (difficulty), 149–150 Taj Hotels Resorts and Palaces, portfolio, 19 Talbott, Barbara, 144 Tangible relatedness, 222 Tangible resources, 125–127 See also Intangible resources Task forces, coordination form, 326 Tata Group business sectors, 228 decision-making levels, 19 SBU structure, usage, 321 Tax incentives, usage, 49 TBR See Travel Business Roundtable Teamsters, The, 281 Teamwork, systems/incentives, 386–387 Technological advances, 172 impact, 176 Technological change difficulty, 51 interaction, 53–54 monitoring, 51 Technological context, 50–54 Technological developments, monitoring, 53 Technological environment, differences, 57 Technological-forecasting efforts, 53–54 Technological futures, scenario development, 54 Technological influences, 39 Technological innovations, 50 characteristics, 52–53 forms, 51 Technological knowledge, 148–149 Technology, reference, 50–51 Thinking in time, 26 Thomas, Dave, 91–92 Thornton, Terry, 449–451 Threats, origin, 56 Tipping Point,The (Gladwell), 57 Tisch, Jonathan, 269 Tokyo DisneySea, 192 Tony Roma’s, franchise partners, 410 Top management team (TMT), 135 Total Quality Management (TQM), 140, 186 Total travel segment revenue booked online, percent, 585f Tourism cluster, interorganizational relationships, 255 hospitality industry, relationship, 554–555 industry, value chain, 124f infrastructure, 57 support systems, availability, 57 term, usage, 28 trends/figures, 515e value chain, 124–125 Touristik Union International (TUI), 62, 214–215 TQM See Total Quality Management Trade associations interorganizational relationship, 74t nonprofit characteristic, 75 Trade dress, 148 Trademarks, 155–156 Trade secrets, possession, 191 Transaction costs, level, 218–219 Trans fats, usage/avoidance, 45 Transformation, business change, 237 Transnational strategies, 402–405 standardization, 403 Transnational structures, 324–325 problems, 324 Trans World Airlines (TWA), Hilton International (purchase), 213 Travel industry, organizational sectors, 256 paths, usage, trends/figures, 515e Travel and tourism, term (usage), 28 Travel Business Roundtable (TBR) establishment, 260 support See Improving Public Diplomacy through International Travel Act Travel Industry Association (TIA) impact, 73 mission, 73 partnership, 260 support See Improving Public Diplomacy through International Travel Act Travelocity, online travel service, 190 attention, absence, 219 Travelport, acquisition, 66 Travel purchase decisions, nontransactional sites (impact), 587f Travel revenue booked online, percent, 583f Travel services online, movement, 582 Travis, Nigel, 140 Treasure Island, development, 165 Trends identification, 53–54 information, 54 usage, 44–45 Trendwatch (web site), consumer trend location, 56 TrueYou spas, losses, 241 Trump Entertainment Resorts (TER) letter of intent, 24 misleading earnings statements, 331 TT Resources, master franchise rights, 411 TUI See Touristik Union International Turnaround strategies, 237–239, 294 Twin Bridges Marriott Motor Hotel, 26 Tyco International, accounting scandal, 49 U Uncertainty impact See Stakeholders occurrence See Environmental uncertainty INDEX 675 Uniform System of Accounts for Restaurants (USAR), 371 Uniform System of Accounts for the Lodging Industry (USALI), 371 Unionization, avoidance, 284–285 Union of Needletrades, Industrial, and Textile Employees HERE (UNITE HERE), 282 choices, 513 Local 75, representation, 283 merger, 505 negotiations (2006), case study, 504 strategy, change, 510–512 Union of Needletrades, Industrial, and Textile Employees (UNITE), 281 Unions employers, cooperation, 282 management, relationships (complexity), 285–286 negotiations (2006), case study, 504 organizing strategies, 506–508 Uniqueness, achievement, 180, 182 United Food and Commercial Workers (UFCW), 281 Universalist theory, limitation, 106 Unrelated diversification, 226–229 Upstream growth, 214–215 U.S airline industry, Porter’s five forces, 67f U.S Green Building Council (USGBC), LEED certification, 133–134 U.S hotel/lodging leisure/unmanaged gross bookings/channel growth, 588f U.S market, maturing, 583–584 U.S travel market offline/online channel/sector, 584f US Airways, workforce reduction, 239 Utilitarian theory, limitation, 106 Utterback, James, 52 V Vacation ownership interests (VOIs), 183 Value-adding activities, 120–125 analysis, example, 123f Value-based culture, unification, 96 Value-chain activities, 121–124 cumulative effects, 124 Value-creating activities, purchasing, 177 Value creation, 85 Values attributes, 180 chains, 120–121 communication, 138 differences, 110–111 guidance, 98 societal change, 98 stakeholder theory, alignment, 98 statements, usage, 96 ValuJet, savings (passing), 179 Vendors, preferred alliance programs (usage), 270 Venture attractiveness (determination), economic model (usage), 365f capital, 368–369 capitalists, start-up capital source, 368–369 management, 371–376 partners, impact, 262 Vertical integration, 230 corporate-level strategy, 208 skills, 219 strategies, 214–220 See also Partial vertical integration advantages/disadvantages, 216, 217f substitutes See Full vertical integration transaction costs, impact, 217–218 usage, 218 Virgin Atlantic Airways, diversification, 85 Virgin Group, branded company creation, 86 Viruses, cruise line impact, 347 Vision See Organizational vision clarity, 383–385 communication, 136 enactment, empowering, 136 understanding, 94 Visionary leadership, stages, 136 Vision statements, 16–17 Vitale, Deborah A., 25 VOIs See Vacation ownership interests W Wachner, Linda, 244 Walsh, Richard, 44 Walt Disney Company brand exploitation, 157 brands portfolio, usage, 323 competition, impact, 191 tax breaks/treatment, 275 Web bookings, impact, 392 Wendy’s Hamburger Restaurants, initiation, 91–92 Westward Hilton and Towers actual income, 475e–476e annual returns, 477e bankruptcy/purchase, 455–456 case study, 453–457 communication, 471 culture, 471–472 forecast income, 478e–479e general manager arrival, 477, 480 investment/value/returns, 477e modifications, 461 Phoenix market performance, 474e profitability, 472–477 project perspective, 454–455 quarterly bonus program, 469e–470e sale, 480–481 selection/orientation/training, 468–472 strategic planning, 459–460 vision, 457–459 Whistle blower, 98 676 INDEX Whitbread diversification, 206–207 strategy, 206 Whole Foods Market core values, 103t–104t success, 101 sustainable agriculture, commitment, 101–102 Wholesalers See Banyan Tree Wholly owned subsidiary, 408 W Hollywood Hotel and Residences, mixed-use project, 253–254 Wi-Fi, feature standardization, 184 Williamson, Oliver, 218 Wilson Wilson, Kemmons, 27, 484 Holiday Inn creation, 360 Wine industry, value chain, 121f Winemakers, value chains, 120–121 Wire Act of 1961, 195 Witzel, Jay, 315 Workforce reductions, 238–239 AMA survey, 239 commonness, 238 WorldCom, accounting scandal, 49 World Tourism Organization (WTO), 67, 420 World War II cohort, 42 WTO See World Tourism Organization Wyndham Hotels & Resorts, REIT shift, 307 Wyndham International, acquisition, 66 Wynn, Steve, 165 Wynn Las Vegas, Tower Suites, 165–166 Y Yester, Brenda, 451 Young Arab Leaders, 369 Yum! Brands Inc growth strategy, 300–301 restaurant openings, 409 Yvonne’s Southern Cuisine, venture, 368 Z Zarmati, Maurice, 449 ... A., 195 6Hospitality strategic management : concepts and cases / Cathy A Enz — 2nd ed p cm Includes bibliographical references ISBN 978-0-470-08359-8 (cloth) Hospitality industry? ?Management Strategic. .. beyond what is tried and proven Effective strategic management includes both strategic thinking and strategic planning Strategic Planning Can Drive out Strategic Thinking e The term strategic thinking... between the strategic planning process and strategic thinking, and that both are a part of effective strategic management The strategic planning process tends to be a rather rigid and unimaginative