STRATEGIC

MANAGEMENT FOR THE

TOURISM AND
HOSPITALITY INDUSTRY
WEEK 2: - CORPORATE GOALS AND VALUES
- BUSINESS CASE
1. Strategic Direction
• Strategic direction refers to decision-making about the most
important problems that arise in an organization, but its also
aboutformulate a strategy and implement it.
• In the strategic direction, the four basic components of any strategy
must be defined and outlined:
1. Strategic Direction
a. The scope or field of activity - define the company's field of activity
b. The distinctive capabilities or competencies - the resources (physical, technical,
financial, human, ...) and the skills (technologies, organizational, directive, ...)
present and future that the company owns and dominates
c. Competitive advantages - These are the characteristics that the company can
and must develop to obtain and / or strengthen a position of advantage over its
competitors
d. Synergy - the exploitation of interrelationships between different activities,
resources, skills, organizational units, etc. of the company to create more value,
than that that would be derived from a separate action of certain elements.
1. Strategic Direction - Phases
Strategic Analysis

FUTURE EXTERNAL INTERNAL

ORIENTATION ANALYSIS ANALYSIS

• Value creation • General context • Internal analysis

• Orientation and • Competitive of the company
values: vision, context
mission,
company goals
 1. Strategic Direction
Strategic Analysis

Future Orientation • Through mission and vision, we try to establish the essence of the
business, and the most ambitious possible goals.

• The company goals are about orienting the strategic actions to achieve
• Value creation the mission and vision.
• Orientation and values:
vision, mission, • For the success of a project, it's necessary that all these definitions are
company goals, social enmarked within a series of values that give a certain frame to these
responsibility actions.

• Corporate social responsibility and business ethics constitute the

fundamental concepts from which these values are revealed
1. Strategic Direction

VISION

MISSION

COMPANY
GOALS

COMPANY
VALUES
2. Vision
• A strategic vision has to describe the aspirations of management for
the future, and draws a path for the long term direction of the firm
• It's distinctive and specific
• It comunicates what is desired from an organization, and it offers the
management team a reference in order to take strategic decissions.
2. Vision
• A well-communicated vision is a tool to engage the company
personnel. It helps to reiterate the basis for the new direction, to
address the concerns of employees, calm fears, raise the mood and
report ongoing progress.
• It's better when the management captures the vision of the company
in a catchy-easy to remember slogan
• It should be easily and well expressed in one or two paragraphs, and
management must be able to explain it to the own staff and external
parties in less than five minutes.
2. Vision

Enriching people's lives Be the global colombian premium To be the best bakery in the world, and a
coffee brand, preferred by its quality world leader in the food industry, where
and welfare generation in its our people make difference every day
surroundings
2. Vision – How to write it
• Concise: short, between 11 and 22 words, easy to communicate and
remember.
• Clear: it should aim directly at a basic objective, which can be easily
understood, without additional explanations.
• Future-oriented: useful for a long period of time.
• Stable: it cannot change continuously or be affected by technological
or environmental changes in the short term.
• Challenging: it must motivate people to achieve it.
• Abstract: it can admit diverse interpretations
• Inspiring: it should be desirable for members of the organization
2. Vision – Results
1) A good vision clarifies the views of management
2) Reduces the risk of making meaningless decisions
3) It's a tool to gain the support of the members of the organization
4) The lower level managers set business units / operational goals, and
thus design strategies alligned with the company's global strategy.
5) It helps the organization prepare for the future
2. Vision – Types
• Quantitative: There is talk of a specific figure

• Competitive: I compare myself to the competition or industry

• Superlative: When you want to be number 1 or the best

2. Mission (Company mission statement)
• The company mission statement describes the purpose and current
business of the company "who we are, what we do and why we are
here”
• It communicates the purpose of a company with a very specific
message, enough to give the company its own identity.
• It meets the following characteristics:
• Specifies customer needs
• Identifies customer groups
• Grants the company its own identity
2. Mission
• Examples

•To refresh the world in mind, body

Make better food so that people To enhance the lives of our
and spirit.
live a better life customers by creating and
•To inspire moments of optimism
enabling unsurpassed vacation
and happiness through our brands
and leisure experiences
and actions.
•To create value and make a
difference.
2. Mission
Steps to write a company mission statement:

1. Determine what the company intends to accomplish in its

environment.

2. What the company intends to do.

3. Who is it for? - This is influenced by elements such as: the history of

the organization, the preferences of management and / or owners,
external factors, resources and capabilities.
3. Setting company goals
• The well-established objectives are specific, quantifiable or
measurable, and contain a deadline for their achievement.
• The defined and concrete objectives should:
• Focus efforts and align actions throughout the organization.
• Serve as measurement standards to track the company's performance and
progress.
• Motivate and inspire employees to work harder
3. Setting company goals
• The great gap between the desired future and the current reality of a
company, makes the effort necessary to achieve it a considerable one.
• To overcome these lags and move towards the right direction, the
organization must disaggregate the vision into intermediate and less
ambitious objectives, called strategic objectives or company goals.
• The strategic objectives answer the question: how will we become
what we aim to be?
3. Setting company goals
They should have 4 essential elements:
1. Adequate or consistent with the mission and vision
2. Successive. It means it must give the organization time to digest one
objective before launching another, since the overload of
simultaneous objectives can hinder its achievement
3. Realistic. They should be attainable given the resources of the
organization and the conditions of the environment
4. Challenging. Despite the above criteria, they must be an important
challenge for the company and create a sense of urgency that
mobilizes the organization
4. Company Values
It should include 3 important aspects:

1. Action guides that try to influence the behavior of the members of

the organization in the way of doing business
2. Commitment to ethical behavior.
3. Relationship with stakeholders
4. Company Values
• Example

The Coca Cola Company Values

Leadership: The courage to shape a better future.

Collaboration: Leverage collective genius.
Integrity: Be real.
Accountability: If it is to be, it's up to me.
Passion: Committed in heart and mind.
Diversity: As inclusive as our brands.
Quality: What we do, we do well.
5. Corporate social responsibility (CSR)
• Corporate social responsibility (CSR) is a self-regulating business
model that helps a company be socially accountable — to itself, its
stakeholders, and the public
• By practicing corporate social responsibility, companies can be
conscious of the kind of impact they are having on all aspects of
society including economic, social, and environmental
• To engage in CSR means that, in the normal course of business, a
company is operating in ways that enhance society and the
environment, instead of contributing negatively to them
5. Corporate social responsibility (CSR)
There are four types of CSR
1. Environmental Sustainability Initiatives - Environmental sustainability initiatives
enacted by businesses generally focus on two main areas: limiting pollution
and reducing greenhouse gases
2. Direct Philanthropic Giving - Philanthropic initiatives include the donation of
time, money or resources to charities and organizations at local, national or
international levels
3. Ethical Business Practices - The primary focus on ethics is to provide fair labor
practices for businesses’ employees as well as the employees of their suppliers
4. Focus on Economic Responsibility - An example of economic responsibility is
when a company modifies its manufacturing processes to include recycled
products, which could benefit the company by potentially lowering the cost of
materials and also benefit society by consuming fewer resources
5. Corporate social responsibility (CSR)
Examples
6. Case work- week 3
1. Choose a company in any given industry
2. Identify its vision, mission, values ​and strategic objectives. Discuss
how these concepts are defined and analyze the advantages that
their design represents for the company.
3. Find out about the Corporate Social Responsibility of the company.
Review its actions and content, and propose some improvements
you identified could be made.
¡THANK YOU!