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Topic 2

The document discusses organization strategy and project selection. It provides examples of compliance, strategic, and operational projects and asks the reader to classify nine potential projects for a hotel resort shifting focus to eco-tourism. It then discusses using a weighted scoring matrix to select projects, noting project 5 would be rated highest and project 2 lowest. Changing the weight of one criteria changes the highest projects. Strategic factors in weights should mirror critical organizational priorities.

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202 views4 pages

Topic 2

The document discusses organization strategy and project selection. It provides examples of compliance, strategic, and operational projects and asks the reader to classify nine potential projects for a hotel resort shifting focus to eco-tourism. It then discusses using a weighted scoring matrix to select projects, noting project 5 would be rated highest and project 2 lowest. Changing the weight of one criteria changes the highest projects. Strategic factors in weights should mirror critical organizational priorities.

Uploaded by

Dung Phạm
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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TOPIC 2: ORGANIZATION STRATEGY AND PROJECT SELECTION

Task 1: Strategic Management


Question 1: Describe the major components of the strategic management process.
Question 2: Explain the role projects play in the strategic management process.
Question 3: How are projects linked to the strategic plan?

Task 2: Organization Strategy


You manage a hotel resort located on the South Beach on the Island of Kauai in Hawaii. You are
shifting the focus of your resort from a traditional fun-in-the-sun destination to eco-tourism. (Eco-
tourism focuses on environmental awareness and education.) How would you classify the
following projects in terms of compliance, strategic, and operational? (See Appendix 1)
a. Convert the pool heating system from electrical to solar power.
b. Build a four-mile nature hiking trail.
c. Renovate the horse barn.
d. Launch a new promotional campaign with Hawaii Airlines.
e. Convert 12 adjacent acres into a wildlife preserve.
f. Update all the bathrooms in condos that are 10 years old or older.
g. Change hotel brochures to reflect eco-tourism image.
h. Test and revise disaster response plan.
i. Introduce wireless Internet service in café and lounge areas.
How easy was it to classify these projects? What made some projects more difficult than others?
What do you think you now know that would be useful for managing projects at the hotel?

Compliance Projects Strategic Projects Operational projects


- Launch a new promotional - Convert the pool heating
- Renovate the horse barn. campaign with Hawaii system from electrical to
- Build a four-mile nature Airlines. solar power.
hiking trail. - . Change hotel brochures to - Update all the bathrooms in
reflect eco-tourism image. condos that are 10 years old
- Test and revise disaster or older.
response plan. - Convert 12 adjacent acres
- Introduce wireless Internet into a wildlife preserve.
service in café and lounge
areas.
Task 3: Project Selection
The Custom Bike Company has set up a weighted scoring matrix for evaluation of potential
projects. Below are five projects under consideration.
a. Using the scoring matrix in the following chart, which project would you rate highest?
Lowest?
b. If the weight for “Strong Sponsor” is changed from 2.0 to 5.0, will the project selection
change? What are the three highest weighted project scores with this new weight?
c. Why is it important that the weights mirror critical strategic factors?
Answers:
A,

Criteria Strong Supports Urgency 10% of Competition Fill Weighted


sponsor business sales market total
strategy from new gap
products
2.0 5.0 4.0 3.0 1.0 3.0 18.0
Weight
(11,11%) (27,78%) (22,22%) (16,67%) (5,56%) (16,67%) (100%)

Project 1 9 5 2 0 2 5 68

Project 2 3 7 2 0 5 1 57

Project 3 6 8 2 3 6 8 99

Project 4 1 0 5 10 6 9 85

Project 5 3 10 10 1 8 0 107

A, Based on result in table, the project is rated highest is project 5 (107). The project is
rated lowest is project 2 (57).
B,
Criteria Strong Supports Urgency 10% of Competition Fill Weighted
sponsor business sales market total
strategy from new gap
products
5.0 5.0 4.0 3.0 1.0 3.0 21.0
Weight
(23,81%) (23,81%) (19,04%) (14,29%) (4,76%) (14,29%) (100%)

Project 1 45 5 2 0 2 5 95

Project 2 15 7 2 0 5 1 66

Project 3 30 8 2 3 6 8 117

Project 4 5 0 5 10 6 9 88

Project 5 15 10 10 1 8 0 116

If the weight for “Strong Sponsor” is changed from 2.0 to 5.0, the project 3 will be chose (117
point). Three highest project are: project 3, project 5, project 1.
C, because that’s all the directly support factors of organization’s long-run mission. They
frequently are directed toward increasing revenue or market share. So that when company
mark right point the weight mirror critical strategic factors, they exactly know who are the
strongest in market and what they are lack of.
Appendix 1: Classification of the Project

Items Definition Examples


Compliance Compliance projects are typically those  Building an auto parts factory
Projects needed to meet regulatory conditions destroyed by tsunami
required to operate in a region; hence, they  Recovering a crashed network
are called “must do” projects or emergency
projects.
Operational Operational projects are those that are  Choosing to install a new piece
Projects needed to support current operations. of equipment would be an
These projects are designed to improve example of the latter while
efficiency of delivery systems, reduce modifying a production process
product costs, and improve performance. would be an example of the
Some of these projects, given their limited former.
scope and cost, require only immediate  Total quality management
manager approval, while bigger, more (TQM) projects are examples of
expensive projects need extensive review. operational projects
Strategic Strategic projects are those that directly  New products
Projects support the organization’s long-run mission.  Research
They frequently are directed toward  Development
increasing revenue or market share.

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