PART I

INTRODUCTION TO STRATEGY

UNIT 1
INTRODUCTION TO STRATEGIC MANAGEMENT

PRE-TEST
(Chapter 1)

Name: Gil glen L. Magdua Score ______________

Course/Year/Section BSHM 3C___ Date _______________

TRUE or FALSE: Read each statement below carefully. Place a T on the space provided before each number if
you think a statement it TRUE otherwise place an F if you think the statement is FALSE.
T 1. Olsen, West and Tse conceptually developed the coaliqnment concept in Hospitality and
Tourism.
T 2. Structure management deals with two distinct phase; formation and implementation strategy.
T 3. The essence of strategy formation is to ensure that firms was able recognize need to change
its configuration.
T 4. What an organizations aims to achieve in a definite period is called goals.
T 5. Objectives describes where the organization to go from where it is in the present.
F 6. Mintzberg and his colleagues describes positioning as school both deliberate and emergent.
T 7. The firms should engage in constant evaluation of its market position.
T 8. Strategy implementation is the process of putting strategy into action.
F 9. Strategy analysis pertains to strength and weaknesses analysis.
T 10. Von Clausewitz states that strategy was “open-minded and creative”.
F 11. SWOT analysis does not gave the firm an overview of the various factors the organization had
to deal with it.
T 12. Structure follows strategy likewise strategy follows structure.
F 13. The firms internal environment influence the strategy formulation and implementation
processes.
T 14. The organization must identify first its competitive environment prior to its mission, goals and
objectives.
T 15. Transformational leadership forms the essence of strategy.
 Enhancement Activity
(Chapter 1)

Name: Gil glen L. Magdua Score ______________

Course/Year/Section: BSHM 3C Date _______________
ACTIVITY No. 1.1
1. Choose an H&T organization and research this company’s vision, mission, goals and objectives.
Critically evaluate and compare them to those of other H&T companies. What are the similarities and
differences? Which aspects do you like in these statements and why?

(Write your answer below in paragraph form, at least 100 words)

Cebu Pacific and Philippine Airlines have different visions; Cebu Pacific sees themselves as stronger nations
where cultures and communities are connected, meaningful connections are made, and lives are enriched by
the opportunities and experiences we make possible; whereas Phil Air wants to be the preferred airline and
the pride of all Filipinos. Their goal is to provide people with diverse perspectives with safe, dependable travel
experiences so they can live richer, more fulfilling lives. They constantly work to enhance current processes
and procedures with customers in mind in order to increase and preserve profitability even if they provide low
cost fares.
 Enhancement Activity
(Chapter 1)

Name: Gil glen L. Magdua Score ______________

Course/Year/Section: BSHM 3C_____ Date _______________
ACTIVITY No. 1.2
Direction: Supply the needed answer to each exercises.
Exercise 1.0. Study questions, briefly explain what is being asked.

1.1. Explain the origins of strategy and strategic management.

The origin of the word strategy comes from the Greek strategos, which means “general” literal means
leader of the army.
The origin of strategic management is in the 1950s and 1960s, strategic management was viewed from
a general management perspective, with emphasis on the role of the leader.

1.2. Why there are different schools of thought on strategic management? Do you think it is confusing to
have several different views on strategic management?

Different schools of thought on strategic management might be due to the fact that there are
numerous techniques to managing a business. Each school of thought provides a distinct set of ideas,
models, and methods for developing and implementing a strategy.

1.3. Do you think it is important for Hospitality and Tourism to have strategic management, mission, goals,
objectives and tactics? If yes, why? If no, why not?

A strategic management procedure is necessary for the hotel sector. The benefit of strategic planning is seen
in the necessity of anticipatory planning for the industry's success. This is due to the fact that if they don't
plan, they will fail to plan. To achieve corporate objectives, the sector needs a strategic management process
that gives it cohesion, direction, and a sense of identity. Industry-wide strategic management will assist in
efficiently and effectively achieving organizational goals.
 Mastery Test
(Chapter 1)
Name: Gil glen L. Magdua Score ______________
Course/Year/Section: BSHM 3 C Date _______________

I. TRUE or FALSE: Read each statement below carefully. Place a T on the space provided before each
number if you think a statement it TRUE otherwise place an F if you think the statement is FALSE.
II.
T 1. Olsen, West and Tse conceptually developed the coaliqnment concept in Hospitality and
Tourism.
T 2. Structure management deals with two distinct phase; formation and implementation strategy.
T 3. The essence of strategy formation is to ensure that firms was able recognize need to change
its configuration.
T 4. What an organizations aims to achieve in a definite period is called goals.
T 5. Objectives describes where the organization to go from where it is in the present.
F 6. Mintzberg and his colleagues describes positioning as school both deliberate and emergent.
T 7. The firms should engage in constant evaluation of its market position.
T 8. Strategy implementation is the process of putting strategy into action.
F 9. Strategy analysis pertains to strength and weaknesses analysis.
T 10. Von Clausewitz states that strategy was “open-minded and creative”.
F 11. SWOT analysis does not gave the firm an overview of the various factors the organization had
to deal with it.
T 12. Structure follows strategy likewise strategy follows structure.
F 13. The firms internal environment influence the strategy formulation and implementation
processes.
T 14. The organization must identify first its competitive environment prior to its mission, goals and
objectives.
T 15. Transformational leadership forms the essence of strategy.

II. ENUMERATION AND ESSAY

Direction: List the main school of thought and explain their premises on strategic management in the box
below.

NO School of Thought Premises on Strategic Management

This school emphasizes the importance of a firm’s position within

Design School the context in which it operates. The environment is used as a
1.
reference while gauging the firm’s strategies, and the emphasis is
on how it develops its structure in order to support the strategy.
This school conceptualized strategy to include a structured, step-
Planning School by-step approach. Mission and vision statements were set, and
2. goals were clearly spelled while detailing the objectives that would
lead to the accomplishments of those goals.
It views strategy formation as consisting of a few strategy types.
3.
Positioning School This school emphasis on strategy typologies.
It pertains to decision-making and the process of strategy
Entrepreneurial School formation. The central role of strategy formation lies with the
4. leader, whose “intuition, judgment, wisdom, experience and
insight” are at the heart of decision making and the leader’s vision
and his or her leadership style influence the organization’s
strategic posture.
it emphasizes strategy formation from the perspective that the
5.
Cognitive School decision maker’s cognition and mind drive strategy making. The
cognitive skills of managers influence their perspectives of how
they perceive the environment.
It supports the notion that strategy making is based on a
Learning School foundation of learning. The strategy maker is constantly learning
6.
about the process of strategy formation and its various elements
in a complex environment.
Power School It views strategy formation from a power perspective, with
7. negotiation at the crux of the process.
The emphasis is on the organization as a collective whole and
Cultural School strategy formation as comprising social interaction. Strategy is
8.
deliberate in that the members are engaged in the process that
involves collective action.
9. Environment School It's describing strategy formation as reactive.
It views strategy as transformational.
10. Configuration School
 UNIT 2
Strategic management in Hospitality and Tourism

PRE-TEST
(Chapter 2)

Name: Gil glen L. Magdua Score ______________

Course/Year/Section: BSHM 3C Date _______________

I. ESSAY:

1. In your own words, how do you understand Hospitality Industry? Give as many examples as possible.

Restaurants, lodging facilities, casinos, amusement parks, special events, cruises, entertainment, and
other travel-related activities are all included in the hospitality sector. As a result, not only are
businesses dependent on this sector, but also consumers, workers, and economies.

2. What is Tourism in international context? Discuss your answer.

The two types of international travel are inbound (arrivals) and outbound (departures). The World
Tourism Organization (WTO), a branch of the United Nations, is the source of the data. The number of arrivals
and departures is referred to as inbound and outbound tourist data. When discussing tourism internationally,
it is meant when a foreign visitor enters a nation and travels throughout it. As of 2006, there were 842 million
foreign tourists arriving worldwide, an all-time high. International tourism generated more than $2.4 billion
every day in 2006, according to estimates of the industry's receipts, which were estimated to be around $883
billion in the same year (UNWTO, 2007). Positive growth has been observed within the H&T sector. The H&T
industry has experienced positive growth. This growth has not only been observed in developed parts of the
world but also in developing parts of the world. Following economic, sociocultural trends and developments,
more people will be participating both in domestic and international tourism. In meeting this growing
demand, many new H&T business will be opened, new tourist destinations will emerge, and new tourism
services and products will be introduced.
 ENHANCEMENT ACTIVITY
(Chapter 2)

Name: Gil glen L. Magdua Score:______________

Course/Year/Section: BSHM 3C Date:_______________
Case 2.1
Instruction: Read the case carefully and understand what it has to do with the topics discussed in this Chapter
and answer all the questions below in the space provided.

ANSWERS:
1. Yes, Mark should accept the offer cause it’s an opportunity for him to explore in a new environment
that suits his personality wherein to interact more on people. Considering the offer will benefit him not
just his pocket but also his physical and mental state which he will work with less pressure.

2. Mark must choose between taking a job as a manager of a restaurant and one of an ice cream
business. Although both roles call for management and leadership abilities, the two positions call for
different skill sets. A wide range of talents are necessary for managing a restaurant, including problem-
solving, leadership, communication, customer service, a positive outlook, social skills, financial
 management, etc. Effective communication skills with both his team and customers are essential for a
restaurant management.

3. Customers make a difference between running an ice cream plant and a restaurant. Instead of going to
the factory to purchase the goods and use the services, customers visit a restaurant. It is essential to
hire quality employees for proper service and to monitor food quality for customers when managing a
restaurant. The day-to-day management of the restaurant is another aspect of management.
 MASTERY TEST
(Chapter 2)

Name: Gil glen L. Magdua Score: ______________

Course/Year/Section: BSHM 3 C Date: _______________
I. TRUE OR FALSE: Read each statement carefully and answer the word True if the statement
is correct and write the word False if the statement is wrong.
True 1. The cost structure of hospitality and tourism firms influences their managerial and resource
allocation decisions.
True 2. Hospitality and tourism organizations offer combination of tangible and intangible products.
True 3. H&T organization must communicate with and motivate their customers to actively participate in
the service delivery process.
False 4. H&T organizations are not labor intensive because personal interaction and experiences are
important parts of services.
True 5. The full utilization of service capacity is a strategic task for many H&T organizations.
6. H&T not only need to develop new products and service concepts as an ongoing basis, but they
also need to control their cost and manage their human resources wisely.
False 7. We can meaningfully separate strategy from its industry context or from its internal
organizational context.
8. A sufficient of exposure to the mainstream and the limited number of strategy specialists are
both likely to be contributing factors.
False 9. H&T industry is not often named as the number one industry worldwide in terms of generation
of income and employment.
False 10. A food and beverage operator may not view the industry as a dining experience with the focus
on menu offerings and food service.

II. MULTIPLE CHOICE: Each question is a multiple-choice question with four answer choices. Read each
question carefully and choose the ONE best answer by encircling the letter of your choice.

1. These terms encompass travel, accommodation, food services, gaming, recreation…

a. Travel and Transport c. Hospitality and Tourism
b. Non-guaranteed Tourism Organization d. Accommodation, F & B, Entertainment…

2. Customers cannot often see, feel and taste services offered by Hospitality and Tourism industry.
a. Inseparability c. Perishability
b. Simultaneity d. Intangibility

3. This has implications on decision-making practices, resource allocation, operations…

a. Inseparability c. Perishability
b. Simultaneity d. Intangibility

4. The human element results in variations of service delivery process.

a. Simultaneity c. Intangibility
b. Heterogeneity d. Inseparability
 5. Influences firms in their managerial and resource allocation decisions.
a. Perishability c. Cost Structure
b. Heterogeneity d. Labor Intensive

6. Hospitality and Tourism industry must communicate with and motivate their customers to actively
participate in the service delivery process.
a. Labor Intensive c. Inseparability
b. Simultaneity d. Intangibility

7. Hospitality and Tourism industry rely primarily in their employees.

a. Perishability c. Cost Structure
b. Heterogeneity d. Labor Intensive

8. Demand for Hospitality and Tourism Organization’s services often fluctuates considerably.
a. Inseparability c. Perishability
b. Simultaneity d. Intangibility

9. Hospitality and Tourism industry includes the following except;

a. Local Government Unit c. Country Clubs
b. Non-Profit Organization d. Farms

10. Named as the number one industry worldwide in terms of generation of income and employment.
a. Hospitality and Tourism Industry c. Business Sector
b. Small Medium Enterprises d. UNWTO

III. ENUMERATION AND ESSAY: (20 points)

1. Enumerate the characteristics of hospitality and tourism organizations and explain each characteristic
in your own understanding.

The characteristics of hospitality and tourism organizations are:

Inseparability – Customers were invited and permitted to participate in the design of the process of
supplying goods and services by the business.
Simultaneity – organization that offers and provides its goods and services simultaneously.
Perishability - It serves as an example of how something cannot be stored or prepared in advance since it
will decay.
Intangibility - It can be felt even though it cannot be touched.
Heterogeneity – It simply means that there are differences in the products or services provided.
Cost structure - the money the company made from selling its products and services.
Labor intensive – securing a large team in order to grow and offer top-notch service to customers.
Part 2
STRATEGY CONTEXT

Part 2 establishes the key dimensions of the external and internal contexts in which both the strategy content
and the strategy process are embedded. The specific dynamics and nature of the hospitality and tourism
industry and organizations are emphasized throughout.

UNIT 3
The Hospitality and Tourism Context
PRE-TEST
(Chapter 3)

Name: Gil glen L. Magdua Score: ______________

Course/Year/Section: BSHM 3C Date: _______________

ESSAY: Put your answers on the space provided in paragraph form.

1. What is the task environment, and how does it influence the firm? Discuss your answer.

An organization's external environment has an impact on its capacity to accomplish its objectives. The task
environment can include any company or customer with direct contact with an enterprise. Sectors of the task
environment examples include labor supply, suppliers, customers, and competitors.
 ENHANCEMENT ACTIVITIES
(Chapter 3)

Name: Gil glen L. Magdua Score ______________

Course/Year/Section: BSHM 3C Date _______________
ACTIVITY 3.1

Instruction: Choose a hospitality industry and analyse it based on the use of Porter’s five forces model. Use a
diagram and explain the flow.

A business analysis model called Porter's Five Forces assesses an organization's competitiveness and explains
why (and how) various industries can maintain varying degrees of profitability. Utilizing the level of industry
competition, this tool is used to assess the industry's attractiveness. The first is the clients' ability to bargain.
This speaks to the power of consumers to drive down costs. The mass booking or purchase of hotel rooms by
organizations like tour operators is a prime illustration of this. Hotels might cut their rates as clients have more
negotiating power. If consumers have significant bargaining power, suppliers will have a tough time raising
prices and may even suffer losses. The suppliers' negotiating position comes in second. Compared to the
customers' negotiating power, this factor typically doesn't threaten the hotel industry as much, but it can
nevertheless exert considerable pressure on the business. The industry is more appealing and offers more
opportunity for profit the lower the supplier power. Threat of new competitors comes in third. The ability of
the new company to enter the market will determine how strong this force will be. Opening a hotel in a
heavily competitive area will make it challenging to acquire an advantage in the hotel industry, which presents
numerous barriers for new entrants. Threats of substitution are the fourth. The hotel sector faced few and far
between alternative threats in the past, but as technology has advanced, hoteliers now face a significant
challenge from new disruptions. The level of rivalry between competitors is the final factor. The hotel sector is
regarded to have highly fierce competition. The competitiveness of an industry is determined by a variety of
factors. The more hotels in the area that compete with one another and provide nearly identical goods and
services, the less competitive the company may be. A new company entering the market results in more
competition and a stronger need for differentiation.
 ENHANCEMENT ACTIVITIES
(Chapter 3)

Name: Gil glen L. Magdua Score: ______________

Course/Year/Section: BSHM 3C Date: _______________

ACTIVITY 2

Instruction: Relate your current experience visiting hospitality industry (hotel, restaurant, fast food chain,
café, spa, saloon, etc.) Analyze and compare how general and task environments affect its operation (please
see Figure 3.1).

The hotel sector uses a lot of resources and energy, which can be bad for the environment and for the
business. Examine some of the environmental and sustainability concerns facing this sector of the economy
and discover the advantages of sustainable development. Water wastage from lengthy guest showers and
sizable pools is a common problem at many resorts and hotels. In restaurants, water is used for washing
dishes, and frequently the equipment is ineffective at conserving water. Energy use -- This has an effect on all
hospitality-related businesses. In addition to producing a lot of garbage and carbon dioxide, which contribute
to climate change, the hotel sector also uses a lot of electricity and water. In order to reduce waste production
and environmental contamination, hotels must adopt long-term sustainable policies. Technology may improve
the hotel sector in a variety of ways. Robotics, for instance, can reduce staff workload and costs while artificial
intelligence (AI) chatbots can enhance the visitor experience. Mobile ordering can also increase efficiency.
According to the study's findings, the hospitality sector is significantly harmed by political trends that are going
in the wrong direction. The industry experienced declining revenue. A decrease in the average length of stay,
overnights, and visitor flow was reported by the lodging facilities. Political, economic, social, technical, and
environmental forces make up the macroenvironment, often known as the PESTE environment. The business
will be most affected by significant changes in any component, and the number of hospitality businesses will
be constrained.
 MASTERY TEST
(Chapter 3)

Name: Gil glen L. Magdua Score: ______________

Course/Year/Section: BSHM 3C Date: _______________

I. MATCHING TYPE: Match column A with Column B by putting the letter the right answer of your choice
from Column B on the space provided before each number in Column A.
(2 points each)

Column A
E 1. Potential Competitors
A 2. Competitiveness among
Industry incumbents
F 3. Buyer’s influence
D 4. Supplier Influence
C 5. Substitute Products
Column B
A. This threat is high when the industry growth
rate has slowed down.
B. High brand loyalty enables firms to mitigate
this risk.
C. Fads, tends, and consumer buying behaviour
influence markets to pursue alternative
products.
D. Threat is high when suppliers can control the
quality and price of raw materials.
E. The loss of potential gain from other
alternatives when alternative is chosen.
F. Threat when buyer’s buying power and
influence on the firm is high.

II. ENUMERATE AND EXPLAIN

1. In your own words, how do you understand Environmental Scanning? And how this is achieved in the
hospitality and tourism firms? Discuss your answer.

Environmental scanning is a procedure that methodically examines and analyzes pertinent data to find
external opportunities and risks that may have an impact on decisions in the future. It should be utilized as a
step in the strategic planning process and is closely tied to a SWOT analysis. To make the environmental scan a
viable tool, each organization must determine which external influences have the greatest impact.
Environmental scanning is the continuous observation of patterns and events in the internal and external
environments of an organization that have an impact on its success now and in the future. The findings are
very helpful in defining objectives and tactics.
 UNIT 4
THE ORGANIZATIONAL CONTEXT

PRE-TEST
(Chapter 4)

Name: Gil glen L. Magdua Score: ______________

Course/Year/Section: BSHM 3C Date: _______________

EXCERCISE:

1. Please identify the stakeholders of an H&T company, discuss what each stakeholder may expect from
this company, and explain how they can try to achieve their expectations. You may compare and
contrast different stakeholders’ influences on this company’s direction in terms of their power and
interest.

Shareholders/investors - They forecast that the business will open up new markets, grow more profitable, see
a rise in stock prices and dividend payments, and attract more investors. They want the business to grow so
they can get a better return on their investment. They make an effort to do this through monitoring how the
business is run, exerting influence over key decision-makers, and/or limiting the flow of resources.

Customers- The business must treat its clients with the decency they merit. additionally, to meet their
demands, expectations, and other needs. They try to do this by engaging in a company boycott.

Employees- They may anticipate remaining involved and productive with the appropriate salary ranges and a
pleasant working environment. They make an effort to influence the managers by striking to achieve their
goals.

Suppliers – They want the company to build a strong rapport with them and demonstrate commitment to a
reliable, high-quality supply relationship. Likewise, prompt payment within the pre-agreed deadline. They try
to do this by boycotting the company's products and refraining from purchasing them.

Bankers – They hope for a successful working partnership. They anticipate being able to refuse the firm a loan
in order to succeed.

Community- They anticipate a positive working relationship because tourism can aid in and safeguard the
preservation of historical and cultural monuments and even serve as an inspiration for the creation of new
community activities. They could put pressure on the company.
 ronquillo/gonzales `

ENHANCEMENT ACTIVITY
(Chapter 4)

Name: Gil glen L. Magdua Score ______________

Course/Year/Section: BSHM 3C Date _______________
Activity 4.1
ESSAY:
1. What are the implications of centralized organizational structure for an H&T organization operating
internationally? Research on an international H&T organization that you can make as an example base
on the information that you can identify in their websites.

A company can simply focus on achieving its vision with the help of a centralized management structure.
There are open lines of communication, and the top executive may explain the organization's objective to the
workers and guide them in achieving it. Retaining top-down authority over organizing, directing, and
controlling is the main result of centralization. The additional effects will depend on the management
philosophy. Plans to alter tourism will not succeed without sufficient and appropriately focused investments,
according to "the World Tourism Organization (UNWTO), the United Nations agency responsible for the
promotion of responsible, sustainable, and universally accessible tourism." Investment is a top focus for
UNWTO, which is closing financial shortages to create a more resilient and sustainable industry that benefits
everyone..

MASTERY TEST
(Chapter 4)

Name: Gil glen L. Magdua Score ______________

Course/Year/Section: BSHM 3C Date _______________
I. IDENTIFICATION:
Financial function 1. It is concerned about identifying the main sources of funding and financing the
operations of an organization in a cost-effective way.
16
 `
ronquillo/gonzales

Marketing function 2. It deals with the management of demand by developing and implementing appropriate
pricing policies and running campaigns and programmes through various channels, including television,
magazines and internet.
Human resources 3. It functions carries out a careful analysis of how human assets of an organization add
value to the organization and contribute to sustainable competitive advantage.
Operations function 4. It deals with the day-to-day operations of the system in order to ensure that the
organization has an appropriate systems and procedures in place and delivers consistent quality of services
and products.
Functional structure 5. It is a functional activity undertaken by an organization, such as operations, marketing,
human resources and finance.
Multidivisional structure 6. It refers to having separate divisions based on products, services and geographical
areas.
Boundary systems 7. These systems ensure that organizational member’s activities fall within the acceptable
domain of activity.
Diagnostic systems 8. These systems focus on goal achievement for the business and for each individual in the
business.
Interactive systems 9. These systems give managers tools to impose consistency and guide creative search
process.
Belief systems 10. It is the explicit set of organizational definitions formally communicated by senior managers
through mission statements and credos that give basic values, purpose and direction.

II. ESSAY: (10 points)

1. What are the factors in an organization’s internal environment that have influence on and a bearing on
its functioning?
Financial resources including finance, investment possibilities, and income sources are a few areas that are
frequently regarded as internal issues. the company's physical assets, including its premises, machinery, and
facilities. Human resources include volunteers, target markets, and workers. access to patents, copyrights, and
trademarks, as well as natural resources.
Currently used procedures include department hierarchies, software systems, and staff programs.
Softer factors like company culture and image, the importance of key employees, operational effectiveness,
and potential must also be taken into account by businesses.

17
PART 3
STRATEGY CONTENT
UNIT 5
BUSINESS-LEVEL STRATEGIES

PRE-TEST
(Chapter 5)

Name: Gil glen L. Magdua Score ______________

Course/Year/Section: BSHM 3C Date _______________
Modified TRUE or FALSE: Read each statement below carefully. Place a T on the space provided
before each number if you think a statement is TRUE otherwise place an F if you think the
statement is FALSE then supply the correct answer. (2 points each)

____T______1The firm's resources and competencies are altered based on current

and emerging opportunities.
_F, primary__2 The firm's secondary focus is to achieve high efficiency and productivity
so, the cost of production is optimized.
F, above-average profits a firm is able to generate _3 Competitive advantage is may be derived
from
targeting the segment.
_____T_____4A repositioning strategy, including a name change to Disneyland Paris,
has resulted in an effective turnaround that has made the firm profitable.
_F, actions__5 In the hotel business, managers often introduce strategy that lead to
operational improvements.
_____T_____6Large firms become larger by acquiring smaller firms that occupy small-
niche markets.
_____T_____7The attractiveness of the industry is important if the firms are to create
and sustain value addition.
____T______8A good strategy should be accompanied by a clear definition of the
industry and the products and services.
F, advantage_9 A disadvantage could also be created if the firm is able to provide
products and services to the market that are superior to the
competitions.
_____T_____10 Fierce competition between firms leads to price wars, increased
marketing expenses, and lower profit margins, even if firms employ cost-
cutting measures to squeeze out more profits.
_F, recognize_11 Firms does not recognize one another's strengths and weaknesses,
including the generic-level strategies they pursue.
____T______12 Small firms that are not able to sustain growth during the shakeout
phase exit the market.
___T_______13 Environmental changes lead firms to take incremental measures
___T_______14 strategy needs to have continuity, which many managers fail to consider
 in their pursuit of operational excellence
_F, McDonald's_15 Jollibee’s product innovation of offering a veggie burger in the Indian
market is a good example of the link between market factors and the
need to innovate.

POST TEST
(Chapter 5)
Name: Gil glen L. Magdua Score ______________
Course/Year/Section: BSHM 3C Date _______________

Modified TRUE or FALSE: Read each statement below carefully. Place a T on the space provided
before each number if you think a statement is TRUE otherwise place an F if you think the
statement is FALSE then supply the correct answer. (2 points each)
____T______1The firm's resources and competencies are altered based on current
and emerging opportunities.
_F, primary__2 The firm's secondary focus is to achieve high efficiency and productivity
so, the cost of production is optimized.
F, above-average profits a firm is able to generate _3 Competitive advantage is may be derived
from
targeting the segment.
_____T_____4A repositioning strategy, including a name change to Disneyland Paris,
has resulted in an effective turnaround that has made the firm profitable.
_F, actions__5 In the hotel business, managers often introduce strategy that lead to
operational improvements.
_____T_____6Large firms become larger by acquiring smaller firms that occupy small-
niche markets.
_____T_____7The attractiveness of the industry is important if the firms are to create
and sustain value addition.
____T______8A good strategy should be accompanied by a clear definition of the
industry and the products and services.
F, advantage_9 A disadvantage could also be created if the firm is able to provide
products and services to the market that are superior to the
competitions.
_____T_____10 Fierce competition between firms leads to price wars, increased
marketing expenses, and lower profit margins, even if firms employ cost-
cutting measures to squeeze out more profits.
_F, recognize_11 Firms does not recognize one another's strengths and weaknesses,
including the generic-level strategies they pursue.
____T______12 Small firms that are not able to sustain growth during the shakeout
phase exit the market.
___T_______13 Environmental changes lead firms to take incremental measures
___T_______14 strategy needs to have continuity, which many managers fail to consider
 MASTERY TEST
(Chapter 5)

Name: Gil glen L. Magdua Score ______________

Course/Year/Section: BSHM 3C Date _______________

Differentiation: Given the statement below briefly differentiate each other as how it is being
used in the lesson. Legibly write your answer in the box below. (5 points each)

Competitive advantage --- is defined Sustainable competitive advantage

as the ability of a firm to create
above-average profits from its
1.
business activities as compared to its
competitors or competitive set.
--- it depends in the length of time
that a company may achieve
between
above-average profits compared
to the competitors in a given
market.

Cost leadership --- companies use this
method by keeping their costs low.
When compared to rival companies
2. in the same market, low cost refers to
the total cost of producing goods and
services.
Cost focus --- It is concerned with
gaining a cost advantage in the
target market sectors..It happens
between when a business makes an effort
to entice customers by providing a
low price.

differentiation strategies --- This differentiation focus strategies ---

approach arises from a company's
goal of offering distinctive products
3. and services to its clients in
comparison to the competitors.
It involves differentiating the
company's specialty products and
between
services within the particular
targeted market sectors.

Resources --- can be tangible and Capabilities --- relate to a firm's

intangible. Tangible resources like
physical, financial, and technological,
4. and intangible resources like
operating, marketing, and brand
name, etc.
skills, routines, and activities. Like
decision making, creativity,
between knowledge building, sharing, and
retention-related activities.

5. variety-based positioning --- It refers between Access-based positioning --- based

to the products and services that a on market segmentation to find
company can produce based on its customers who may be reached in
particular competencies and a variety of ways.
 operations.

ENHANCEMENT ACTIVITY
(Chapter 5)

Name: Gil glen L. Magdua Score ______________

Course/Year/Section: BSHM 3C Date _______________

Case analysis: Given the case below understand and briefly explain each of the questions in the
case.
As Jerry met with his executives to discuss the situation the general manager, Tracy Lee,
provided more information. She described the hotel as mainly targeting the upscale and luxury
business market segments (75 percent), while also attracting the upscale and luxury leisure
market segments (25 percent). The hotel's main competitors are Four Seasons, J.W. Marriott,
Shangri La, Mandarin Oriental, Landmark Hotel, and Conrad Hotel, which are all located within
a two-mile radius. There is fierce competition among the hotels in this market segment, and
firms have resorted to price-cutting tactics during economic downturns before.
The products and services of the Great Eastern Hotel have been unique and of high
quality. Guests have been particularly satisfied with the ambience of the hotel given that it has
focused only on its core market segments for business. The rooms have been designed and
appointed to satisfy its market segments. In fact, there has been coherence among product
(tangible aspects) and service quality (intangible aspects). However, the economic downturn
has raised questions about how the hotel would maintain its market.
1. Should the Great Eastern Hotel redefine its market segments? Explain why and make
assumptions. What are the pros and cons? (5 points)

Because its customers are satisfied with the way it conducts business and the goods and
services it offers in its current segment, I do not believe the Great Eastern Hotel needs
to redefine its market segment. I think the hotel needs innovation to maintain its market
share.

2. What are the hotel’s options in terms of changing its current market positioning? (5
points)

Jerry and the executive committee must maintain the hotel's current market stance, and
they must do so in the uncomfortable environment. They must resolve a number of
important problems in order to do this. One of these could be evaluating the hotel's
mission, vision, goals, strategies, and objectives as they currently stand and how well
they correspond to the market.
3. How could the hotel go about changing its positioning if it is necessary? (5 points)
 The hotel may need to change its positioning in order to maintain its competitive
advantage and keep up with the rapidly evolving competitors. As technology develops
and society's needs and wants change, this generation.

4. What is the current business strategy of the hotel? Is this well-defined, and is a change
necessary? Explain why and do a pros and cons analysis. (5 points)

Although the hotel's current business strategy is clear, the only thing that is constant in
life is change. Change is necessary because society's requirements and demands—or, to
be more accurate, those of its customers—are changing. As time goes on, everything
around us—products, technology, etc.—changes.