Module 7- Execution Lecture Notes PDF

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MODULE 7 EXECUTION Entrepreneurship is an important force behind success in any industry. Dynamic and rapidly evolving hospitality, leisure, sport and tourism industries throughout the world. Major contributors to national economies and their growth and are guaranteed to grow both in terms of quanti...

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MODULE 7 EXECUTION

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Entrepreneurship is an important force behind success in any industry.

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Dynamic and rapidly evolving hospitality, leisure, sport and tourism industries throughout the world.

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Major contributors to national economies and their growth and are guaranteed to grow both in terms of quantity and quality.

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There are challenges though related to reaching growth targets and these relate to capacity, availability and skills of the workforce, developing new products and services, and ways of delivering these to the customer and so on.

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Emphasizes the relevance of the entrepreneurship in the Tourism and Hospitality Industry, its definition, its key concepts, and motivation which an important factor of being an entrepreneur

MODIFIED TRUE OR FALSE TRUE 1. Processes are critical repetitive tasks that are routinized to foster good strategy execution FALSE - HARD ASSETS 2. Soft assets are physical (channel, infrastructure, technology), financial and intangible assets (brand, IP, customer info). TRUE 3. Machinery is an organization structure that can deliver the value planned. FALSE – VALUE CHAIN 4. Resources is the strategic linkage or a series of value adding individual activities required to create, produce and deliver products and services to the customer that is the total business plan to create profit for the firm. TRUE 5. Leadership – having a sincere sense of mission and purpose while practicing good governance.

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It is only after all the tasks behind the four “gates” are accomplished that prosperity and success can be attained.

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The third gate is the execution gate, composed of machinery, methods and management skills.

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Value is actually created when formulated strategies are executed.

I. MACHINERY An organization that can deliver its intended value.

• II. Methods

Processes that institutionalize what needs to be done efficiently and

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effectively III. Management Skills entail knowledge of people handling and reward handling, and having

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leadership skills. •

The entrepreneur needs emotional quotient, or EQ to build the right culture to get things done.

EXECUTION •

is the practice side of managing activities, makes strategy come alive.

 A

great

combination

of

strategy

and

execution

can

reduce

uncertainty, lower cost, meet targets faster and can be a source of advantage.  Good

execution softens poor strategy and gives time for the

management to see and correct itsstrategy.  It is therefore important to think of execution during strategy formulation

and involve key people in execution from the beginning.

I.

MACHINERY •

is an organization structure that can deliver the value planned.

 Machinery or organization can only be articulated after the value

proposition in the offering model is defined.  This means strategy is the key driver of structure and value is created

only if the structure is inharmony with strategy.  This also means a change in strategy will necessitate a review of its

organization design to avoid any contradictions..

II.

METHODS •

systems and processes that allow the entrepreneur information and control.

value chain •

a way to look at two different types of business activities: the first action that creates value for a customer and the following action that supports the execution of the first action.

ENTREPRENEURS SHOULD ASK THEMSELVES TWO RELATED QUESTIONS:

1. What functions or business processes have to be done excellently to

achieve sustainable competitive advantage? (a value creation approach) 2. In what value chain activities would poor execution seriously weaken

strategic success? (a problem solving approach)

VALUE CHAIN •

Strategic linkage or a series of value adding individual activities required to create, produce and deliver products and services to the customer that is the total business plan to create profit for the firm.

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The value chain helps employees visualize and understand the role each department of an organization plays meeting the needs of other departments. In short, the value chain describes the primary activities needed to accomplish a firm’s task and asks the question “What’s the most efficient way to do what needs to be done?”

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Value chain is important especially for start-ups as it defines the time and effort required in each stage of the value chain before products can be sold to a paying customer.

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The time and effort needed also to estimate the cash flow required to get things going in the start-up.

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The value chain of a company’s strategy that is differentiated will differ from the value chain if the strategy is low cost.

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Differentiated versus low cost activities would be different in value and cost, hence, can drive competitive advantage.

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Materials – suppliers delivering orders is the most fundamental part in a value chain.

VALUE NETWORK / ECOSYSTEM  The value chain is an expanded supply chain.

Value network- expanded value chain that shows the involvement of other stakeholders in each value chain stage to cocreate value. It is also called the ecosystem.

 With an online business model, members of the value chain need not have

ownership of goods before they can resell, unlike the old manufacturing model where goods are passed on from one party to another.

RESOURCES a. Hard assets are physical (channel, infrastructure, technology), financial and

intangible assets (brand, IP, customer info) b. Soft assets are human assets like relationships, skills, and knowledge.

PROCESSES •

transform inputs into outputs.

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critical repetitive tasks that are routinized to foster good strategy execution.

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Includes managerial processes, operational processes and support processes.

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They support the value chain for better efficiency and effectiveness.

a. Managerial processes – govern the operation of a system such as

corporate governance (norms, metrics). b. Operational processes – are the sequence of value-adding activities that

function together (known as value stream) that adds value to the core process. c. Support processes – are procedures that support the core process, and

these are purchasing, accounting, technical and recruitment.

PROCESS •

Can be improved with productivity tools whenever available.

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Entrepreneurs must involve their team for inputs, must listen and be open- minded with feedback because team members who are intimate

or directly interacting with customers usually know the customers‟ pain points than their superiors, being the “sensors” of the company. •

Ensuring the employees have a voice is a great way to bond and identify talents within the company as well.

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Team members with sense making skills will be useful as your company grows.

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Begin with strategy-critical processes and ensure they are aligned with your value creation strategy.

CRITICAL PROCESSES •

Biggest effect on the attainment of goals, impact key factors for success and business strategy, solve problems encountered from a customer’s perspective or offer greater value for the firm.

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While two different items, resources and processes are treated together in the business model because they repeatedly deliver the value proposition and the value capture.

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They more focused the value proposition, the better for resources and processes to execute.

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Key processes rely on resources to get things done.

a. CAPABILITIES

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Structure comes after strategy.

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While the offering model answers where the firm will win, the operating model completes the picture by answering how the firm will win, identify capabilities needed to create an advantage.

b. COMPLEMENTORS

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Companies cannot do everything alone.

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They need other people to help them deliver the value proposition.

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Companies may want to do something fast but lacks the capabilities to do so. Outsourcing some functions appears to make more financial sense.

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c. CONFIGURATION AND COST

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Entrepreneurs are always reconfiguring how to grow revenues, increase differentiation, improve cash position while reducing cost.

III.

MANAGEMENT SKILLS •

Execution can be built via building infrastructure to increase capabilities, which are composed of coordination, commitment and competencies.

a. People – sharing meaningfulness and pride in their work while accomplishing required tasks. b. Rewards – attaining a sense of identity with financial blessings while accomplishing required tasks. c. Leadership – having a sincere sense of mission and purpose while practicing good governance....