Hospitality and Strategic Management

Question: Discuss about theHospitality and Strategic Management. Answer: Organizations Structure Organizational structure refers to a system used to define hierarchical order within a given organization. The structure entails authority levels, communication flow, job roles, responsibilities and rights of employees. Also, it is meant to ensure that the organization achieves its goals and ensure continuity of the business operation. Among the central concepts in an organizational structure include: formalization, a hierarchy of authority, complexity, specialization, and more. To start with, Formalization refers to guidelines, procedures, and policies used to ensure an organization operates within the set standards. Secondly, centralization refers to a state where most of the powers and authority is centralized to top management obligated with the major decision making. Hierarchy of authority refers to Levels of governance structure from top to bottom of the organization. In addition, complexity aspect defines how various components in a given organization are linked up together into one. And finally, the specialization dimension defines the extent to which a given organization divides its chores into various jobs. The advantage is that the process makes them very proficient in those specialized areas. For a hotel, the structure will prove the best alternative. Consequently, the sales, standard, and quality of services will be provided at the highest level. The Pros and Cons of Flattening the Organization Structure Flattening the organization structure comes with various sorts of merits and demerits. Notably, the points are self-explanatory. Some of the advantages include better communication, flexibility, and quicker response to emergencies, employment of multi-skilled staff, minimal chain of control, enhanced empowerment, and staff motivation and reduced budget costs. Contrary, the structure has some weaknesses. Just to mention, it creates confusion and can eventually result in management struggle for power, hinders the organization growth, reduces specialization and not suitable for large organizations. Strategic Direction An organizations strategic direction is what defines the system on how an enterprise works regarding its objectives. Also, it shows how to achieve the goals, using the required resources and the path that the organization should take. Some of the key metrics to assess in the formulation of strategic direction include the vision, the culture, and mission and more. The direction from the pronunciation, give an insight of leading or propelling something towards a particular place. The Importance of the Mission Statement A mission statement portrays a significant value to the organization. First and foremost, it will lead to the establishment of the organization vision. It acts as a link between the present and the future by stating the objectives in short-term and also in long-term. Another aspect introduced by the mission statement involves Culture. Organizational culture creates an alignment with business goals. The mission itself defines organizations principal general purpose and a reason why it exists. It will position the existing and the new restaurant in the right guidance and allocation of the resources across the chain. Just, it acts as an inspiration to staff thus very key to the operation of any firm. Among the components includes customers, products/ services, markets, technology, existence, philosophy, self-concept, public image, and employees. Most importantly the nine elements incorporate the relationship of the mission with other forces that affects the success of the enterprise. To be specific, other benefits of the mission statement concerning the restaurant includes the following; establishing the direction the restaurant, providing a way to clearly communicate the vision to all stakeholders of the restaurant, helping in making wise decisions regarding services to offer, keeping of the restaurant operations on track, improving the profitability of the organization and its market share, improving job satisfaction among employees, and more. "Porter's models" is a tool used to assess and provide understanding on how organizations interact with each other. Also, it provides crucial information to find out where power and weakness lies. The entry of new restaurants into the market has posed a significant challenge for most of the restaurants. Having worked in the hospitality industry, taking the restaurant will be the best option. Porter presented five elements that affect the success of business. To start with, he identified suppliers among the fundamental forces. He suggested for the analysis of the bargaining power of the vendors. The manager should find out the numbers of suppliers of a similar product, and the strength they have over you. Secondly, the bargaining powers of buyers should be analyzed. Thirdly, the analysis of Substitutes on the market from potential competitors will assist determine the nature of marketing strategy to apply. It is, therefore, essential to analyze the ability of customers get the alternative product or service that they can use to substitute yours. Also, Potential entrants should be a factor in mind. It involves the examination of the ability of other players to enter the market. If there are barriers for others to enter the market, then few people will be willing to get into the market thus more power, which is the case with our case study. Lastly, before the purchase, one must explore the level of market competitors. The analysis will base on the number of competitors and their capabilities in the market at Aukland City. The more the number of competitors in the market who have the same product or offer the same service, the less the power you will have. In conclusion, the analysis above justifies the reason for taking up the purchase of the casual dining restaurant at the Aukland City.