The document discusses various strategic management concepts for tourism including strategy formulation, modernization, diversification, integration, takeovers, joint strategies, divestment, liquidation, and strategic choice. It provides definitions and examples of these concepts. The strategy formulation process involves setting objectives, evaluating the environment, setting targets, analyzing performance, and choosing a strategy. Modernization aims to improve current business processes. Diversification expands into new markets or products. A takeover case study examines Kraft's acquisition of Cadbury. Joint strategies and divestment are discussed as options.

1. ‘ Strategic Management for Tourism’ L-303 ,Unit – 3 Group 3 Sec – B PGDM (TL) 2010-12

12. Formulation of Strategies MODERNIZATION, DIVERSIFICATION, INTEGRATION

16. Modernization Strategy Framework

19. DIVERSIFICATION

26. INTEGRATION

29. Takeover and Joint Strategies

49. Divestment & Liquidation Strategy

63. Process of Strategic choice and the factors affecting it

64. Results of the strategy formulation process Results of Process Strategic Intent Strategic Assessment Available Options Chosen Strategy CONTEXT

65. Choosing a strategy from among strategic options Choice Criteria/ No options identified Strategic Intent Strategic Assessment Available Options Logically viable options/ Chosen Strategy Feasible but Unaligned Options Aligned but Infeasible Options

67. What Options are available? Structure for making strategic choice Options of method on how to progress Options about products, markets and services Options to improve resources & capabilities Making the Choice Choice Criteria -Assessment -Intent Theoretical Frameworks for making strategic choice Who should be involved in the Choice? Linking into available strategic options Chosen Strategy

68. Options for Markets and Products Market Need Present New Present New Product Product Development Diversification (related or unrelated) Market Development Corporate Strategy Market Geography (the third dimension) New Present ‘ Do Nothing’ Withdraw Consolidate Market penetration

73. The Strategy Clock High Low Low High Price Perceived Added Value Low price/ added value 1 2 3 4 5 6 7 8 Low Price Hybrid Differentiation Focused Differentiation Strategies Destined for ultimate failure

75. Corporate Portfolio Analysis

81. Corporate mission Resource allocation Corporate objectives Identify strategic business units Explore synergies Corporate development Components of corporate strategy

82. Long-term profitability Increase volume Improve productivity Expand market Market penetration Cost reduction Increase prices Rationalise product mix Stimulate primary demand Enter new segments Win competitor’s customers Fixed costs Variable costs Strategic Focus

91. Experience Curve

100. Experience Curve Graph

101. Life-Cycle Strategies

114. BOSTON CONSULTING GROUP MATRIX

116. Relative Market Share and Market Growth To understand the Boston Matrix you need to understand how market share and market growth interrelate.

126. BCG MATRIX WITH CASH FLOW

130. BCG MATRIX Scorpio Commander Bolero

131. CONCLUSION Though BCG MATRIX has its limitations it is one of the most FAMOUS AND SIMPLE portfolio planning matrix ,used by large companies having multi-products.