Assignment answers

1. What do you understand by mission and vision? Explain the differences and why are they necessary at the starting point in the process of formulating a strategy?
Vision Statements and Mission Statements are the inspiring words chosen by successful leaders to clearly and concisely convey the direction of the organization. By crafting a clear mission statement and vision statement, you can powerfully communicate your intentions and motivate your team or organization to realize an attractive and inspiring common vision of the future. "Mission Statements" and "Vision Statements" do two distinctly different jobs.

A Mission Statement defines the organization's purpose and primary objectives. Its prime function is internal to define the key measure or measures of the organization's success and its prime audience is the leadership team and stockholders.

Vision Statements also define the organizations purpose, but this time they do so in terms of the organization's values rather than bottom line measures (values are guiding beliefs about how things should be done.) The vision statement communicates both the purpose and values of the organization. For employees, it gives direction about how they are expected to behave and inspires them to give their best. Shared with customers, it shapes customers' understanding of why they should work with the organization.

While a business must continually adapt to its competitive environment, there are certain core ideals that remain relatively steady and provide guidance in the process of strategic decision-making. These unchanging ideals form the business vision and are expressed in the company mission statement.

Company Vision is What a Company Wishes to become or aspire to be. The mission statement describes the company's business vision, including the unchanging values and purpose of the firm and forward-looking visionary goals that guide the pursuit of future opportunities. MISSION STATEMENT 1. To create your mission statement, first identify your organization's "winning idea". 2. This is the idea or approach that will make your organization stand out from its competitors, and is the reason that customers will come to you and not your competitors 3. Next identify the key measures of your success. Make sure you choose the most important measures (and not too many of them!) 4. Combine your winning idea and success measures into a tangible and measurable goal. 5. Refine the words until you have a concise and precise statement of your mission, which expresses your ideas, measures and desired result.

VISION STATEMENT 1. First identify your organization's mission. Then uncover the real, human value in that mission. 2. Next, identify what you, your customers and other stakeholders will value most about how your organization will achieve this mission. Distil these into the values that your organization has or should have. 3. Combine your mission and values, and polish the words until you have a vision statement inspiring enough to energize and motivate people inside and outside your organization.

Guided by the business vision, the firm's leaders can define measurable financial and strategic objectives. Financial objectives involve measures such as sales targets and earnings growth. Strategic objectives are related to the firm's business position, and may include measures such as market share and reputation.

Vision /Mission Core Ideology Core Values Core Purpose Envisioned Future Audacious Goals Vivid Description

Core Ideology: Is the unchanging part of organization. It is the character of an organization, this would not change for a longer time even it were disadvantage. Core Values: The core values are a few values (no more than five or so) that are central to the firm. Core values reflect the deeply held values of the organization and are independent of the current industry environment Core Purpose: The core purpose is the reason that the firm exists. This core purpose is expressed in a carefully formulated mission statement. Like the core values, the core purpose is relatively unchanging and for many firms endures for decades or even centuries. This purpose sets the firm apart from other firms in its industry and sets the direction in which the firm will proceed Envisioned Future: Are the goals to be reached. It is classified into: Audacious Goals: These are the goals that the company would like to achieve. They are tough needs extraordinary commitment and effort. Vivid Description: These Goals are put into words that evoke a picture of what it would be like to achieve the Audacious Goals.

Example of Coca-cola company vision and mission strategy

OUR MISSION: Our mission declares our purpose as a company. It serves as the standard against which we weigh our actions and decisions. It is the foundation of our Manifesto. (1) To refresh the world in body, mind and spirit. (2) To inspire moments of optimism through our brands and our actions. (3) To create value and make a difference everywhere we engage.

OUR VISION: Our vision guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable growth. People: Being a great place to work where people are inspired to be the best they can be. Portfolio: Bringing to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners: Nurturing a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Being a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximizing long-term return to shareowners while being mindful of our overall responsibilities.

IMPROVED MISSION STATEMENT: (1) At Coca Cola we're committed to achieving business and financial success while leaving a positive imprint on society delivering what we call Performance with Purpose. (2) Our mission is to be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce financial rewards to in8vestors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

IMPROVED VISION STATEMENT: (1) Coca cola Co responsibility is to continually improve all aspects of the world in which we operate environment, social, economic creating a better tomorrow than today." (2) Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making Coca cola Co a truly sustainable company.

Why it is improved:

There is It is our vision to be the best and leading provider of food and beverage products in Malaysia, to facilitate the people of Malaysia and we emphasis on consumer more rather than competitors we among the top ten food and beverage companies in the world, by continually challenging present conventions and always staying a step ahead of the competition.

It is our mission to be the number one food and Beverage Company in Malaysia by providing our customers with the highest product quality in terms of taste, experience, and satisfaction. We will ensure this through an unwavering dedication to the

continuous development of our products and processes ensuring that we remain best in class. We will strive to hire the most competent and dedicated employees whose work ethic will set the standard in the industry. We will be paymasters, as we strongly believe that human resource is the only asset that truly appreciates over time.

2. What do you understand by pricing strategy? Discuss by

formulating a pricing strategy for a company, which is into fast food sector.

Product line pricing strategies can be further complicated by competitive activity by product, not exclusively by line. If you have five competitors for one of your products in the line, and then only two competitors for the other products in the line, you might use a different price strategy for the product with lots of competition, than the other line products. The challenge for businesses with this strategy will come from having too many competitors in the market. If there are too many competitors, each with a full line of products in the varying stages of the product life cycle, buyers will find it difficult to make decisions based on quality or service or value for the price. For new product in a new market, the cost mark-up is the most popular method. There is no need to think about pricing at all, just simply add an amount of profit on top of the cost and that is the final price. At first, the method may seem attractive but eventually the sellers will find out that their profit is not up to their expectation, and the customers are suspicious of the attractive price. Pricing your product or service is one of the most important issues that you need to tackle. You must be wondering as to what is the procedure to follow to develop the best pricing strategy for your company. While there is no particular approach that you must adopt, definitely, there are some important things that you should bear in mind while creating one. Other factors that affect your pricing strategy are the economics of your business. Depending on the current situation of your business's performance, your mark-on has to ensure sufficient profits to sustain your business. Sometimes, to increase your sales volume, you can lower your mark-on to price selected merchandise.

PRICING STRATEGY

Premium Pricing. Use a high price where there is a uniqueness about the product or service. This approach is used where a a substantial competitive advantage exists. Such high prices are charge for luxuries such as Cunard Cruises, Savoy Hotel rooms, and Concorde flights. Penetration Pricing. The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased. This approach was used by France Telecom and Sky TV. Economy Pricing. This is a no frills low price. The cost of marketing and manufacture are kept at a minimum. Supermarkets often have economy brands for soups, spaghetti, etc. Price Skimming. Charge a high price because you have a substantial competitive advantage. However, the advantage is not sustainable. The high price tends to attract new competitors into the market, and the price inevitably falls due to increased supply. Manufacturers of digital watches used a skimming approach in the 1970s. Once other manufacturers were tempted into the market and the watches were produced at a lower unit cost, other marketing strategies and pricing approaches are implemented. Captive Product Pricing Where products have complements, companies will charge a premium price where the consumer is captured. For example a razor manufacturer will charge a low price and recoup its margin (and more) from the sale of the only design of blades which fit the razor. Product Bundle Pricing. Here sellers combine several products in the same package. This also serves to move old stock. Videos and CDs are often sold using the bundle approach.

Promotional Pricing. Pricing to promote a product is a very common application. There are many examples of promotional pricing including approaches such as BOGOF (Buy One Get One Free). Geographical Pricing. Geographical pricing is evident where there are variations in price in different parts of the world. For example rarity value, or where shipping costs increase price. Value Pricing. This approach is used where external factors such as recession or increased competition force companies to provide 'value' products and services to retain sales e.g. value meals at McDonalds. Pricing Stategy From Burger King Pricing in an extremely pertinent aspect of the fast food industry. The research conducted was able to compare the Dollar Menu offered at McDonalds versus the Value Menu featured at Burger King. The research team was surprised to hear that everyone thought that the Value Menu was more expensive than the Dollar Menu. This was probably the largest shock of the research process. The Dollar Menu and the Value Menu are virtually the same, except college students perceive the Dollar Menu to be cheaper. A few minor changes could be made to ensure the college-age segment chose the Value Menu over the Dollar Menu, which will be one of the focuses of the quantitative research. Many of the respondents believe that Burger King should offer Rodeo burgers, double cheeseburgers, shakes, chicken nuggets and any type of chicken sandwich to the Value choices to really beef the menu up. Burger King promotions and advertisement methods need to be mentioned. Earlier, it was stated that The King is greatly approved by college students and is a positive tool for Burger King. A couple of the interviewees want Burger King to bring back the football commercials featuring the King. There was an overall consensus that Burger King did not advertise enough, or the advertisements were boring, for instance the whopper and whopper jr. commercials were not enjoyed. The King has become quite popular in pop culture.

Lastly, there was a consensus among the students that they said they would not go back to Burger King is the staff was unfriendly or rude. Also, someone found blue veins in her chicken nuggets, which now she find BK disgusting and will not go back there. Most of the respondents said that the store conditions were actually cleaner than other fast food restaurants. Focus groups and in-depth interviews helped the research team understand their target market, however if the process had to be repeated there would be a few things that could be changed. A few respondents commented on the chicken nugget quality and said that Burger Kings crown shaped nuggets are so unappetizing that they do not wish to go back there. The research team should have brought different types of chicken fingers (without the branding) to the focus group and this would of created a visual aid, so respondents could identify what they liked or disliked about each chicken piece.

Burger King faces some difficult challenges. Key to its future success will be maintaining its core strengthsan unwavering focus on quality and consistency while carefully experimenting with new options. These innovative initiatives could include launching higher-end restaurants under new brands that wouldnt be saddled with Burger Kings fast-food image. The company could also look into expanding more aggressively abroad where the prospects for significant growth are greater. The companys environment efforts, while important, should not overshadow its marketing initiatives, which are what the company is all about.

Example in Good fast Food Restaurant.

For pricing Good Fast Food will follow pricing strategy. Good Fast Food will sets an initial high price And then slowly lowers the price to make the food available all level of customers. The objectives of applying this strategy is to skin profit of the market layer by layer. Good Fast Food this pricing strategy will be effective with their target consumer because they offer their food menu for specific segment that have the interest about the something new and want to pay some extra for getting something innovative different and extra ordinary. Pricing & Cost Control

Competitive Pricing Model. Revenue calculations are based upon competitive price comparisons and established menu values in the current marketplace. The following are baseline assumptions on Average Check Totals, and Average Seat Turns: Daily average for lunch spending is $9.50 per person, dinner at $2050 per person; and $15.50 per person for After-Hours dining .Seat Turn averages are modestly estimated at:

Year 1: After-Hours = 0.7, Lunch = 1.0, Dinner = 1.0 Year 2: After-Hours = 0.7, Lunch = 1.0, Dinner = 1.0 Year 3: After-Hours = 1.0, Lunch = 1.0, Dinner = 1.25

Cost Control. Cost of goods sold have been calculated as a percentage of sales and will be monitored on a daily basis in order to keep Cost of Food within the range of 31 - 33%, and Cost of Drink & Juices below 9%. With a focus on Cost Control, we anticipate 6 months to fine tune the restaurant operations and manage our costs within the defined tolerance range. Inventory turnover and Accounts Payable. Accounts receivable turnover is calculated to be 0 days, as payment is rendered with service. Inventory is turned on a 7 day cycle as inventory is used daily within all categories, and accounts payable are projected to be 30 days.

3. Assume that a group of investors are planning to open a 5 star hotel somewhere in east of Malaysia. The hotel requires various functional strategies to be adopted. List out the suggestion that you would like to give them to plan and implement the functional strategies.
Customer satisfaction is at the heart of marketing. The ability to satisfy customer is vital for a number of reasons. For example, it has been shown that dissatisfied customers tend to complain to the establishment or seek redress from them more often to relieve cognitive dissonance and failed consumption experiences.

Customer satisfaction is defined here in Olivers (1997) terms: that it is the consumers fulfillment response. It is a judgment that a product or service feature, or the product or service itself, provides a pleasurable level of consumption related fulfillment . In other words , it is the overall level of contentment with a service/ product experience.

Buying influences on a traveler may, include satisfactory experience with a hotel, advertisements by a hotel or chain, recommendations, hotel locations, and preconceptions based on a hotels name or affiliation.

Travel agents are also influential The decision may be further influenced by the ease of making reservations and the reservations agent description of the hotel and its rooms. Guests may be loyal to a chain or property, and may be uncertain whether a change of brands will increase their satisfaction. They may also recognize that repeat patronage may lead to greater satisfaction of their needs.

The most important ingredient in a successful guest-relations effort is Top Level Commitment. Hotel Managers who are committed to marketing; Use strategies that focus on what is best for the guest. Talk about service routinely. Use guest- friendly systems. Exemplify all aspects of excellent guest relations as they interact with guests. Balance high-tech with high-touch; that is, they temper systems and methods with the personal factor. Market service to their guests. Measure service and make the result available to their employees.

Feasibility Study 1. Identifying Market Area Characteristics

This would include demographic information on potential guests in the general area of the proposed site, and it also analyses the positive and negative trends that may affect demand for the proposed facility. Examples include types of guests, demographics, income, number of children.

2. Evaluating The Proposed Site

The site of a proposed food service facility is one of the most important variables determining the eventual success (or failure) of the operation. The feasibility study evaluated the project site and area by researching the number of people i) ii) iii) In the surrounding metropolitan area. Living or working within walking distance Within easy driving distance.

3.

Analyzing the competition

The competition analysis helps establish pre-opening marketing strategies for the proposed food service facility. For example, the results of a feasibility study can help determine; a) b) c) d) The type and volume of demand for food and beverage service. The adequacy with which the competition satisfies the current demand. The strengths and limitations of the competition. The points of difference that must be established between the proposed facility and the competition.

4.

Estimating Demand

Making an estimate of Food & Beverage demand begins with an analysis of the market areas restaurant and bar sales.

5. Projecting Operating Results

Most feasibility studies project financial results for the first, second and third year of the operation.

6. Staying Current

Feasibility studies are usually conducted long before construction actually takes place (for newly constructed facilities) or a new operation is opened in an existing building.

a) Guest Surveys- A questionnaire completed by guests and used by Food Service Managers to define current markets and to improve the operation.

b) Guest Comment Cards- A short questionnaire completed by guests and used by Food Service Managers to define current markets and to improve the current markets.

Marketing strategy For the best results, marketing objectives should be; a) In writing. Everyone has the same information when objectives are put in writing. b) Understandable. Objectives will not be reached unless managers and employees can understand them. c) Realistic yet challenging. Objectives should not be set so high that personnel give up before they start; conversely, objectives should not be set so low that they present no challenge.

d) Specific and measurable. Objectives must be as specific and measurable as possible. Once the marketing objectives have been set, action plans with target dates must be created to reach them and employees should be encouraged to contribute ideas to action plan.

The major tools used to implement the marketing plan and reach marketing objectives are sales, advertising and public relations and publicity (radio, television,direct mail, newspaper & internet)

HOTEL DEPARTMENT

1. Rooms Division: In a statistics conducted by the U.S. Lodging Industry in 1995, it has been shown that the majority of hotels revenues (60.2 %) are generated from Rooms Division Department under the form of room sales. This very department provides the services guests expect during their stay in the Hotel. Lastly, the Rooms Division Department is typically composed of five different departments: a) Front Office b) Reservation c) Housekeeping d) Uniformed Services e) Telephone Beneath is a brief description of the different departments decomposing the Rooms Division Department, along with their related main responsibilities:

a) Front Office: Sell guestrooms; register guests and design guestrooms Coordinate guest services Provide information Maintain accurate room statistics, and room key inventories Maintain guest account statements and complete proper financial settlements

b) Reservation: Receive and process reservation requests for future overnight accommodations. With technology development, the Reservation Department can, on real time, access the number and types of rooms available, various room rates, and furnishings, along with the various facilities existing in the hotel

 There should be close relation-ships with Sales and Marketing Division concerning Large Group Reservations

c) Housekeeping: Inspects rooms before they are available for sale Cleans occupied and vacant rooms Communicates the status of guestrooms to the Front Office Department Cleans and presses the propertys linens, towels, and guest clothing (if equipped to do so, free of charge or for a pre-determined fee) Maintains recycled and non-recycled inventory items

d) Uniformed Services: Bell Attendants: Ensure baggage service between the lobby area and guestrooms Door Attendants: Ensure baggage service and traffic control at hotel entrance(s) Valet Parking Attendants: Ensure parking services for guests automobiles Transportation Personnel: Ensure transportation services for guests from and to the hotel Concierge: Assists guests by making restaurant reservations, arranging for transportation, and getting tickets for theater, sporting, or any other special events

5. Telephone Department: Answers and distributes calls to the appropriate extensions, whether guest, employee, or management extensions Places wake-up calls Monitors automated systems Coordinates emergency communications Protects Guest Privacy

2. Food & Beverage Department: According to U.S. Lodging 1995 statistics, F&B Department constitutes the second largest revenue generator of a typical hotel with an average of 23.1 for Food sales, and 8.6 % for Beverage sales. In a five-star hotel, Food and Beverage outlets might have the following forms: Quick Service Table Service Specialty Restaurants Coffee Shops Bars Lounges Clubs Banquets Catering Functions Wedding, Birthdays

3. Sales & Marketing Division: A typical hotel should usually have Sales & Marketing division. However, if the staff size, volume business, hotel size, expected group arrivals is low enough, the hotel might have marketing staff placed under the reservation department (i.e. No need for a Sales & Marketing Division). A typical Sales & Marketing Division is composed of four different departments: a) b) c) d) Sales Convention Services Advertising Public Relations

4. Accounting Division: The Accounting Division monitors the financial activities of the property. Some of the activities that are undertaken in the Accounting Division are listed below: a) Pays outstanding invoices

b) c) d) e) f) g) h) i)

Distributes unpaid statements Collects amounts owed Processes payroll Accumulates operating data Compiles financial reports Makes bank deposits Secures cash loans Performs other control and processing functions

5. Engineering and Maintenance Division: This very department maintains the property's structure and grounds as well as electrical and mechanical equipment. Some hotels might have this very division under different names, such as maintenance division, property operation and maintenance department

6. Security Division: Security division personnel are usually screened from in-house personnel, security officers or retired police officers, across certain physical skills, and prior experience. Some of the functions of the security division are listed below: a) Patrols the property b) Monitors supervision equipment c) Ensures safety and security of guests, visitors, and employees 7. Human Resources Division: Some of the duties of the human resources division are listed below: a) b) c) d) e) Responsible for external & internal recruitment Calculates employees' salaries, compensation, and tax withholding Administrates employees' paperwork, monitors attendance Maintains good relations with Labor Unions Ensures employees' safety and working conditions

8. Other Divisions: All the above mentioned departments and/or divisions should exist in a typical five-star hotel; however there might be some revenue generators that are specific to certain hotels but not existing in others. Below is a list of some possible extra or other divisions that might exist in a hotel:

a) b) c) d)

Retail Outlets (i.e.: Shops rented to outsiders or managed by the hotel) Recreation Facilities (ex: Fitness Center, Tennis Courts, and Cinema Saloons) Conference Centers Casinos

The major functions conducted by the Rooms Division Department are:

a) Reservation, registration, room & rate assignment b) Fulfills guest services and updates room status c) Maintains & settles guest accounts d) Creates guest history records e) Develops & maintains a comprehensive database of guest information f) Coordinates Guest Services

The sole priority of the Rooms Division Department shall be ensuring Guest Satisfaction, which happens when, guest expectations match what the hotel provides.

 In order to achieve Guest Satisfaction, front office department shall prepare:

a) Careful designed front office organization chart b) Comprehensive goals, strategies and tactics c) Planned work shifts d) Well designed job descriptions e) Well designed job specifications

The FRONT OFFICE is the nerve center of a hotel. Members of the front-office staff welcome the guests, carry their luggage, help them register, give them their room keys and mail, answer questions about the activities in the hotel and surrounding area, and finally check them out. In fact, the only direct contact most guests have with hotel employees, other than in the restaurants, is with members of the front-office staff.

The front office functions can be divided into five general areas:

1. reception 2. bell service 3. mail and information 4. concierge 5. cashiers and night auditors 6. Switchboard operator

Two major departments are represented in this list. The employees staffing the first four areas are in the rooms department. The fifth is the financial area, where guest charges are accumulated and posted to the bills, and all cash transactions are consummated. These are all accounting-department functions, and so the cashiers and night auditors are in that department. The Front Office organization chart shall be designed according to Functions. Doing so not only enhances the control the Front Office has over its Operations, but also provides guests with more specialized attention. Such a division according to functions, however, is not practical in middle and small size hotels due to the fact that these very hotels don't posses enough and sufficient monetary resources to ensure the existence of at least 3 jobholders (i.e. one for each shift) for each job position. Therefore, in middle size hotels, a front office clerk might be responsible for more than one work position. This is ensured via cross training. On the other hand, in small size hotels, one or two front office clerk(s) might be responsible for all front office activities.

A) Typical functions and positions under the Rooms Division Department: Front Desk Agent: Registers guests, and maintains room availability information Cashier: Closes guest folios, and properly checks out guests Accounts Receivable Clerk: Posts charges in correct guest folios and updates folios' outstanding balances Night Auditor: Controls the job of the Accounts Receivable Clerk, and prepares daily reports to management (ex: Occupancy Report and Revenue Report) Mail & Information Clerk: Takes Messages, provides Directions to Guests, and maintains Mail Telephone Operator: Manages the Switchboard and coordinates Wake-up Calls

 Reservation Agent: Responds to Reservation Requests and creates Reservation Records

Uniformed Service Agents: Handles Guest Luggage, escorts Guests to their Rooms, and assists guests for any bit of information requested