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“ PLEKHANOV Russian University of Economics ” Discipline – “The economic

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Lesson’s plancompetences of the discipline;composition of the course competencies;the difference between management systems;classification of strategies;the quantitative theory of strategic changes in the hotel business.

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Слайд 1“PLEKHANOV Russian University of Economics” Discipline – “The economic

strategy of development of the hotel enterprise”
S. S. Skobkin,

Doctor of economics, Professor, Department of hospitality, tourism and sport industry

Theme 1: “Strategic governance and strategic management”

“PLEKHANOV Russian University of Economics”    Discipline – “The economic strategy of development of the

Слайд 2Lesson’s plan
competences of the discipline;
composition of the course competencies;
the difference

between management systems;
classification of strategies;
the quantitative theory of strategic changes

in the hotel business.
Lesson’s plancompetences of the discipline;composition of the course competencies;the difference between management systems;classification of strategies;the quantitative theory

Слайд 3Competences of the discipline

Competences of the discipline

Слайд 4Early 20th
century
The 70s of the
20th century
Great Britain

USA

The answer to

the
specific order
of professional sphere
Business use of concepts
of "competence",

"core
competencies“ in connection
with the problem
of determining the
qualities of a successful
professional.

A bit of history

Early 20thcenturyThe 70s of the 20th centuryGreat BritainUSAThe answer to thespecific order of professional sphereBusiness use of

Слайд 5Education
Professional sphere
Knowledge
Ability
Skills
Competence
European Council
The concept of competence

Education Professional sphereKnowledgeAbilitySkills CompetenceEuropean CouncilThe concept of competence

Слайд 6What is a competence?
Glossary of terms of European Training Foundation

(ETF, 1997)
The ability to do something well or effectively.
The compliance

with the requirements for a job.
The ability to perform specific work functions.
What is a competence?Glossary of terms of European Training Foundation (ETF, 1997)The ability to do something well

Слайд 7The concept of competence
Competence – the alienated, predetermined social requirement

(norm) to the educational preparation of the student for effective

and productive activity in a certain area.
Competence - a student possession of the relevant expertise, including his personal attitude to this expertise, and the subject of activity.
The concept of competenceCompetence – the alienated, predetermined social requirement (norm) to the educational preparation of the

Слайд 8Competence - already established quality of individual as a student

with the minimum experience in a given field.
Competence - a

set of personal qualities of the student (value-semantic orientations, professional knowledge, abilities and skills), due to the experience in a specific socially and personally important field.

The concept of competence

Competence - already established quality of individual as a student with the minimum experience in a given

Слайд 9Composition of the course competencies
A graduate who has been trained

in The general education program 43.03.03 - Hotel business -

the profile and qualification a bachelor, mastering the discipline “Economic strategy of the development of hotel enterprises” must have the following competencies in accordance with the requirements of the Federal educational standard :

General professional competence OPC- 2 - the ability to organize the work of executors.
As a result, the development of competence OPC-2 student must:
Composition of the course competenciesA graduate who has been trained in The general education program 43.03.03 -

Слайд 10Composition of the course competencies
know: the theoretical foundations of modern

hotel management system and other means of accommodation; management functions;

methods and management styles; types of motivation and incentives of staff of the hotel business;
be able to: apply to the professional activity of the basic systems and hotel management functions, methods of motivation and stimulation of the personnel of the hotel business; develop job descriptions, the provisions of services and departments;
possess: skills of hotel management, strategy and tactics of the hotel, organization and coordination of the performers, promotion and supervision of professional activities.
Composition of the course competenciesknow: the theoretical foundations of modern hotel management system and other means of

Слайд 11Composition of the course competencies
Professional competence of the PC-4 -

a willingness to analyze the results of the functional departments

of hotels and other accommodation facilities, the level of customer service, make the appropriate conclusions
As a result of the development of the competence of the PC 4, the student must:
know: the theoretical foundations of the macro and micro economy, patterns of development of the industry and the system of basic macro- and microeconomic indicators of hotel services market; the theoretical basis of business planning and analysis of hotels and other means of accommodation;
Composition of the course competenciesProfessional competence of the PC-4 - a willingness to analyze the results of

Слайд 12Composition of the course competencies
be able to: conduct analysis of

key indicators at the macro and micro level, using statistical

methods and methods of financial and economic analysis to model and predict the results of the activities of the hotel enterprise;
possess: methods of information collection, processing and analyzing of indicators at the macro and micro level, forecasting and planning of the hotel business; evaluating of business results.
Composition of the course competenciesbe able to: conduct analysis of key indicators at the macro and micro

Слайд 13The difference between management systems

The difference between management systems

Слайд 14Comparative characteristics of management systems (I. Ansoff)

Comparative characteristics of management systems (I. Ansoff)

Слайд 15The difference between management systems
The table shows that successive management

system focused on increased the level of instability and less

predictable future. From this perspective, I. Ansoff gives the following classification of management systems:
1. Control of execution (after the fact).
2. Management by extrapolation, when the pace of change is accelerating, but the future is still possible to predict by extrapolation of past trends.
The difference between management systemsThe table shows that successive management system focused on increased the level of

Слайд 16The difference between management systems
3. Management is based on anticipating

changes. The pace of change has accelerated, however, it is

possible to predict the chances and dangers of the external environment and to consider them when developing the strategic plan.
4. Management is based on flexible emergency solutions when many important tasks occur so rapidly that they cannot in time be foreseen.
The difference between management systems3. Management is based on anticipating changes. The pace of change has accelerated,

Слайд 17The term "strategic management"
In the world of specialized literature there

is an established understanding that the term the strategic planning

(both in theory and in practice) is replaced in the 1980s by the term the strategic management.
Strategic management is treated as a broader concept: in addition to the strategic planning, it includes the implementation of strategies and strategic control.
The term

Слайд 18The term "strategic management"
Limited capacity of the formal systems of

planning in the formulation of strategic decisions became apparent in

the mid-1970s.
In the era of floating exchange rates, high inflation and growing international competition (especially painful due to unforeseen successes of Japanese and Chinese firms) the authority of technically complexed planning models has fallen significantly.
The term

Слайд 19The term "strategic management"
Proponents of strategic planning were cut off

from understanding the real competitive advantage in a constantly changing

environment.
The entire subsequent history of the theory and practice of strategic management marked decrease in the recognition of the effectiveness of the classical concept of strategic planning.
In 1980-ies leaders of different sectors of the global economy, without abandoning completely from the phraseology of planning, finally and dramatically revise its basic principles in favor of more flexible methods of managing their long-term development.
The term

Слайд 20The essence of the concept of strategic management
Strategic management -

is a chain, consisting of four key elements:
1. Strategic Diagnostics

(for strategic decision-making needs an accurate diagnosis and prognosis of the state of the external environment and internal condition of the company).
2. Selection of the strategic objectives (they appear as a compromise ambitions, capabilities and limitations, and then checked for "strength" through the analysis of strategic alternatives (ways of achieving the strategic goals), evaluation of the benefits and risks associated with the implementation of a strategic alternative).
The essence of the concept of strategic managementStrategic management - is a chain, consisting of four key

Слайд 21The essence of the concept of strategic management
3. Strategic planning

as a task to reduce the gap between the current

state and in which the company seeks to achieve, which is solved by the implementation of projects to ensure the implementation of changes, leading the company to the target.
4. Strategic Controlling - monitoring and control of implementation of the strategy (the top management of the company should be able to monitor the process of implementation of the strategy on key performance indicators and strategic plans to adjust or revise the strategic goals if necessary).
The essence of the concept of strategic management3. Strategic planning as a task to reduce the gap

Слайд 22Strategic management and strategic planning

Strategic management and strategic planning

Слайд 23The difference between strategic governance and strategic management
It should be

noted that the terms "strategic governance" and "strategic management" are

often used interchangeably, although there is no complete identity. This is due to their structural basis - the terms "governance" and "management".
There are many definitions of "governance". In general, governance is the activity aimed at achieving certain goals.
The difference between strategic governance and strategic managementIt should be noted that the terms

Слайд 24The difference between strategic governance and strategic management
The term “governance"

is broader than "management", and is applied in different spheres

of human activity, in living and non-living systems: for example, the governance of the state, technical systems, etc.
In General we can say: strategic governance is an activity on the development of the mission critical goals of the organization and the external environment by changing the organization and its external environment.
The difference between strategic governance and strategic managementThe term “governance

Слайд 25The difference between strategic governance and strategic management
Strategic governance is

a continuous process of selecting and implementing the goals and

strategies of the organization. The effectiveness of strategic governance depends on three strategic macro site installations of the organization: the growth, protection and development and depending on the environment possible predominance of one or another.
In modern conditions a fundamental change in the economic system of the country, its attempts to integrate into the world economy prevailing value can get the installation to enhance the competitiveness of the organization.
The difference between strategic governance and strategic managementStrategic governance is a continuous process of selecting and implementing

Слайд 26The difference between strategic governance and strategic management
"The English

word "management" - as pointed out by professor B. A.

Reisberg, - meaning in translation into Russian language of "management" and less versatile in comparison to Russian, and refers only to administrative management, leadership.
Therefore, the word "management" should be interpreted in the English language not as a governance in the broad sense of the word, and as the management, administration, organization of the case.
The difference between strategic governance and strategic management

Слайд 27The difference between strategic governance and strategic management
Management relates primarily

to commercial and entrepreneurial type, although in recent years this

term has been used in a more extended plan: towards non-profit organizations, to government governance of the regional economy, if the latter are used for corporate management techniques.
The difference between strategic governance and strategic managementManagement relates primarily to commercial and entrepreneurial type, although in

Слайд 28The concept of the strategic management
the strategic management is

a continuous process of selecting and implementing the goals and

strategies of the organization;
the effectiveness of strategic management depends on three strategic guidelines of the company: growth, protection and development;
the predominance of a particular guidelines depends on the state of the environment.
The concept of the strategic management the strategic management is a continuous process of selecting and implementing

Слайд 29The strategic management process includes:
the establishment of the mission that

forms the sphere of activity of the enterprise;
a definition of

objectives - the expected desired results;
the development of strategies, i.e. planning of action aimed at achieving the set goals;
building a "hierarchical tree of strategies";
the implementation of strategies;
evaluation of the implementation of the strategy and making adjustments.
The strategic management process includes:the establishment of the mission that forms the sphere of activity of the

Слайд 30Classification of strategies

Classification of strategies

Слайд 31The organizational levels of strategies :
Modern business, as a rule,

presents the following levels of strategies:
The corporate (corporate level).

Sophisticated and complex
The business (enterprise level).
The complex, integrated and planned
The functional (division level of the enterprise). Simplified and specified - purpose and plan
The operational (level of lower level executive).
Simplified and specified - work order
The organizational levels of strategies :Modern business, as a rule, presents the following levels of strategies:The corporate

Слайд 32Corporate level
Corporate (portfolio) strategy is a strategy that describes the

overall direction of growth of the enterprise, the development of

its production and marketing processes.
It shows how to manage different types of businesses to balance the portfolio of products and services.
Strategic decisions at this level are the most difficult, as relate to the enterprise as a whole. The product strategy of the company is defined and coordinated at this level.
Corporate levelCorporate (portfolio) strategy is a strategy that describes the overall direction of growth of the enterprise,

Слайд 33Corporate level
Historically, the first business was a single-product. Then the

era of diversification of production brought to the management of

large multi-product enterprises.
The major aim of the corporate strategy is the choice of business units of the company in which to invest.
Corporate levelHistorically, the first business was a single-product. Then the era of diversification of production brought to

Слайд 34Corporate level
Corporate strategy includes:
the allocation of resources between business

units on the basis of portfolio analysis;
the decision to diversify

production to reduce economic risk and achieve the effect of synergy;
changes in the structure of the Corporation;
decision on merger, acquisition, joining the company or other integration patterns;
a single strategic orientation units.
Corporate level	 Corporate strategy includes:the allocation of resources between business units on the basis of portfolio analysis;the

Слайд 35Corporate level
An important decision taken at the corporate level, is

the decision to finance products or the business units on

a budget and not on a purely commercial basis.
For example, the target program for the new product is formed, which includes its promotion on the market, and it is financed from the General budget of the corporation.
The role of the criterion of sustainability of the business unit (product) is significantly reduced, since at a certain stage allowed profitableness, if such a strategy is justified from the standpoint of long-term goals (e.g., market shares).
Corporate levelAn important decision taken at the corporate level, is the decision to finance products or the

Слайд 36Business level
The Business strategy is developed at the level of

business units, and it is a strategy to ensure the

long-term competitive advantages of business units in the company.
This strategy is often translated into business plans and shows how the company will compete on the specific market (for example, holiday and travel market), to whom and at what prices to sell products or service, how to advertise it, will achieve victory in competition, etc.
Business levelThe Business strategy is developed at the level of business units, and it is a strategy

Слайд 37Business level
This strategy is also called competitive strategy.
Obviously, the

business strategy for fast food restaurants will differ from strategies

for hotels.
For enterprises with a single view of corporate strategy coincides with the business strategy.
Business levelThis strategy is also called competitive strategy. Obviously, the business strategy for fast food restaurants will

Слайд 38Functional level
Functional strategy — a strategy which is developed by

the functional departments and services of the enterprise on the

basis of corporate and business strategy. This strategy of marketing, financial, production strategy, etc.
The purpose of the functional strategy is the allocation of resources of the Department (service), the search for effective behavior of functional units within the overall strategy.
Functional levelFunctional strategy — a strategy which is developed by the functional departments and services of the

Слайд 39Functional level
For example, a typical strategy of the marketing department

can focus more on developing ways to increase sales of

company products in comparison with the previous year.
Financial strategy of the enterprise can be designed to accelerate the turnover of funds, the decrease in the level of receivables.
Functional levelFor example, a typical strategy of the marketing department can focus more on developing ways to

Слайд 40Stages of strategic management

Stages of strategic management

Слайд 41The quantitative theory of strategic changes in the hotel business

The quantitative theory of strategic changes in the hotel business

Слайд 42The origin of the theory
The quantitative theory of strategic changes

in the hotel business was developed by A. M. Rugman

and JR DeCroze at the Faculty of Management of the University of Toronto in Canada in 1991. They revealed the regularity that in strategic development international hotel chains use simultaneously two models of behavior:
1. Hotel chains realize their competitive advantages, applying their own corporate technologies and standards everywhere.
2. Hotel chains increase competitive advantages as a result of the evolutionary process of developing the product, their brand, in order to meet the conditions of competition and take the leading position in the market.
Nevertheless, the strategic process of the development of a hotel enterprise sometimes is disturbed by unforeseen changes in the business environment, so all the changes make the firms adapt their strategies to these changes.
The origin of the theoryThe quantitative theory of strategic changes in the hotel business was developed by

Слайд 43The concept of the theory
Large hotel companies, successfully working in

the market, are responding to revolutionary changes in the business

environment by introducing quantitative changes into their strategic courses.
Based on this observation, a quantitative theory of strategic changes was formulated, meaning that the number of successive changes leads to a qualitative change in the strategy.
Constant changes are introduced into the strategy, however, the strategies of hotel companies are changing in a cardinal way rather seldom.
The concept of the theoryLarge hotel companies, successfully working in the market, are responding to revolutionary changes

Слайд 44Strategic changes
The quantitative theory of strategic change can be successfully

illustrated by the example of changes in the strategies of

the leading American chains over the past seventy years.
For example, Marriott Corporation has only changed its strategy twice since its inception in 1927 to the present. At first, the firm's strong orientation toward expansion after the recession of 1974-1975 was noted here, and then - the decision to leave in 1989 the market of catering services and the organization of catering on the passenger aircraft.
Strategic changesThe quantitative theory of strategic change can be successfully illustrated by the example of changes in

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