MGMT 371: Strategies
40 Cards in this Set
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situation analysis
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swot..where the org has been, is and will be...
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market
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advertises or promotes something
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market segment
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a group, families, business, corporate etc
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market demand
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demand for a specific product of specific time in specific market
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business market segment
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expenses paid.
demand higher level of service
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corporate contract segment
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all expenses not paid. company has contract..less demanding than business
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family segment
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leisure pleasure travelers pays from savings, shops for lower prices expects great service, room service restaurants etc
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affluent matture
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retired high disposable income, higher end activities spa golf etc
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international travelers
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lower importance on price than family, well educated travelers
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corporate/business meetings
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company covers all expenses
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association meetings
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attendance voluntary, price is very important
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operating budget define
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you continuously pay, salary rent food alcohol etc
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capital budget
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money spent on improvements, renovations technology etc
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yield management
range
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30-100%
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yield management define
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understanding, anticipating and influencing consumer behavior to maximize yield (profit)..managers sell to right customer right time at right price
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5 financial ratios
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leverage
liquidity
asset
profitability
market value
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leverage ratio
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long term liabilities on the balance sheet such as bonds banks focus most on this
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liquidity ratio
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short term obligations, current assets liabilities balance sheet
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asset ratios
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efficiency of how the firm uses assets to produce sales income statement(sales) and balance sheets(assets)
management focuses on this
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profitability ratios
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ability to generate profit
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market value ratio
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stock price price/earnings ratio market to book ratio
potential investors focus on this
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actual market share
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% of market that the company actually claims
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Diminishing Marginal Return
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If one input is increased while all others are held constant, the marginal product of that input will eventually decrease
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positioning map
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graph used to analyze the consumers perception of a product in comparison to others in a different area
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price sensitivity
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how the price of the product affects consumers buying habits measured by using the price elasticity of demand
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price sensitivity on business segment
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low, travel expenses are covered in order to conduct business 15% demand hotels
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PS on small business
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high, strict budget look for compromises in service 15% demand hotels
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PS corporate contract
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high, on contract for special rates
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PS families
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high, 80% travel on weekends looking for best deals 10% demand hotels
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PS affluent Mature
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low, unaffected by price, very wealthy want best service 10% demand hotel
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PS international travel
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low dont mind spending money half travel on week and other weekend 10%
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PS business meeting
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low not influenced by price paid for by company 15% demand
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PS association meeting
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high as the meetings are not mandatory, middle class, meetings are for personal benefit. 20% demand hotel
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operating efficiency
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ability to produce profit by generating sales
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OE range
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30-40%
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if OE is above the acceptable range
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you budget too little on operating expenditures
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OE is below acceptable range
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sales are too low, lower cost
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revpar
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measures financial performance in the hospitality industry hotels daily room rate X occupancy percentage
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total revpar
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revpar in a given perios
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gopar
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the total gross operating profit per available room. factors in operational cost and revenue generated
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MGMT 371: Final Exam