MGT 312

Strategic Management

TU BHM · Semester 8 · Recent BHM syllabus series

Requirement: elective
Credits: 3
Past papers: 1 papers

Syllabus

What this course covers and how the teaching time is divided.

Strategic Management Syllabus

Official TU PDF

Tribhuvan University

Faculty of Management

Office of the Dean

Bachelor of Hotel Management (BHM)

Course Title: Strategic Management

Course Code: MGT 312

Semester: Semester 8

Nature of Course: elective

Full Marks: 100

Pass Marks: 50

Credit Hours: 3 Cr.

Curriculum: Recent BHM syllabus series

Course Description

Starting from the establishment of a company’s direction by preparing mission statement and vision, this course will proceed to the identification of opportunities and threats emerging from the external environment and assessment of strengths and weaknesses ar ising from the internal environmental forces. Development of tools needed to match opportunities and threats with strengths and weaknesses will be the next step. Concepts of removing possible hurdles in the implementation of strategy will be followed by the discussion on the implementation of strategy. Finally, issues related to strategic evaluation and control will be discussed. Course Outcomes Upon completion of this course, students should be able to: Establish and evaluate mission statement, long t erm objective, vision, and short term plan for the business; Analyze the external and internal environment and identify opportunities, threats, strengths, and weaknesses of the firm and thereby formulate appropriate strategies for business; Plan pre-implementation and implementation phase; and Monitor and evaluate implemented strategies.

Course Objective

This course aims to familiarize students with the basic concepts of strategic management and enable them to formulate, implement, and evaluate strategies for businesses. The course also aims to develop comprehensive and integrated view of business. The ultimate objective is to develop skill of practical and integrated application of different fields of management in order to make strategic decisions. Course Description Starting from the establishment of a company’s direction by preparing mission statement and vision, this course will proceed to the identification of opportunities and threats emerging from the external environment and assessment of strengths and weaknesses ar ising from the internal environmental forces. Development of tools needed to match opportunities and threats with strengths and weaknesses will be the next step. Concepts of removing possible hurdles in the implementation of strategy will be followed by the discussion on the implementation of strategy. Finally, issues related to strategic evaluation and control will be discussed. Course Outcomes Upon completion of this course, students should be able to: Establish and evaluate mission statement, long t erm objective, vision, and short term plan for the business; Analyze the external and internal environment and identify opportunities, threats, strengths, and weaknesses of the firm and thereby formulate appropriate strategies for business; Plan pre-implementation and implementation phase; and Monitor and evaluate implemented strategies.

Course Contents:

Lecture hours show the approximate classroom time allocated to each unit.

Meaning of strategy and strategic management
Strategic Management Model
Characteristics of strategic management
Formality in strategic management.

Mission and mission statement
Vision
Strategic intent
Strategic objective vs. Financial objective
Policies
Long term and short term objectives.

PEST analysis - political, legal, economic, socio -cultural, technological, ecological, and international environment analysis framework (individualism vs. collectivism, totalitarian system vs. democracy, common law vs. civil law system
Determinants of cultu re
State of technological stage
Impact of ecological and international factors)
Industry and competitive analysis - Porter’s five force model
Monitoring competition.

Resource to competitive advantage pyramid
internal analysis approaches - value chain
functional approach
and Resource based view (RBV)
Benchmarking.

Porter’s five generic strategies, Grand Strategies (concentration, market development, product development, innovation, vertical and horizontal integration, concentric and conglomerate diversification, retrenchment/turnaround, divesture, liquidation, bankruptcy, joint venture, and strategic alliance)
Corporate level analytical tools - BCG and GE nin e cell matrices
Business level analytical tools - grand strategy selection matrix and grand strategy cluster.

Matching existing organizational structure, leadership, and organizational culture wi th newly chosen strategy.

Functional plan - finance, Marketing, HR, R & D, Production operations, MIS, and general management work plan.

Difference between strategic and operational control
Strategic control tools - premise control, strategic surveillance, Implementation control, and special alert.

Past exam papers

Complete papers are arranged by official model question paper.

Dean's Office Official Model Question Paper

Report problem

Tribhuvan University

Faculty of Management

Office of the Dean

Official Model Question Paper / Dean's Office Blueprint

Course: MGT 312 · Strategic Management

Level: Bachelor of Hotel Management (BHM) · Semester 8

Full Marks: 60

Time: 3 hrs.

Candidates are required to give their answers in their own words as far as practicable. Figures in the margin indicate full marks.

Group A

Brief Answer Questions. Attempt ALL questions. (5 × 2 = 10)

[5*2=10]

What is Formality in Strategic Management?

[2]
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Formality in Strategic Management

The degree to which strategic planning activities, roles, schedules, and decision-making processes are formally documented, structured, and systematically followed throughout an organization.
Define a Strategic Business Unit (SBU).

[2]
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Strategic Business Unit (SBU)

An autonomous operational division or product-market segment within a large diversified enterprise that has its own distinct mission, identifiable competitors, and dedicated executive management with full profit-and-loss accountability.
What is the BCG Growth-Share Matrix? Name its four quadrants.

[2]
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BCG Growth-Share Matrix

A portfolio analysis tool evaluating business units based on Market Growth Rate and Relative Market Share: 1. Stars, 2. Cash Cows, 3. Question Marks, 4. Dogs.
Differentiate between cost leadership and differentiation strategies.

[2]
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Cost Leadership vs. Differentiation
- Cost Leadership: Competing by driving operational costs to the absolute industry minimum to offer low prices.
- Differentiation: Competing by offering unique, superior product attributes for which customers willingly pay a price premium.
What is a Turnaround Strategy?

[2]
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Turnaround Strategy

A retrenchment strategy adopted by an underperforming or financially distressed firm focused on aggressive cost-cutting, asset divestment, and restructuring to halt decline and return to profitability.

Group B

Descriptive Answer Questions. Attempt any THREE questions. (3 × 10 = 30)

[3*10=30]

Explain the Strategic Management Model. Detail the interplay between environmental scanning, strategy formulation, strategy implementation, and strategic evaluation.

[10]
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The Comprehensive Strategic Management Model
1. Environmental Scanning (SWOT / PESTLE): Monitoring external macroeconomic, technological, and competitive forces alongside internal resource strengths and weaknesses.
2. Strategy Formulation: Establishing long-term organizational vision, setting quantitative objectives, and formulating corporate, business, and functional strategies.
3. Strategy Implementation: Translating strategic plans into organizational reality by aligning organizational structure, allocating capital budgets, and leading cultural change.
4. Strategic Evaluation and Control: Measuring actual performance against benchmarks, evaluating variances via the Balanced Scorecard, and initiating corrective actions.
Explain the BCG Matrix and GE/McKinsey Nine-Cell Matrix as portfolio planning models for a diversified hotel and leisure corporation.

[10]
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Portfolio Planning Matrices in Hospitality

1. BCG Growth-Share Matrix:
- Cash Cows (Low Growth, High Share): Core city business hotels generating high steady cash flows; used to fund emerging ventures.
- Stars (High Growth, High Share): Luxury adventure eco-resorts in booming destinations; require capital reinvestment to defend leadership.
- Question Marks (High Growth, Low Share): New virtual cloud kitchen startups; require capital injection to become stars or should be divested.
- Dogs (Low Growth, Low Share): Outdated highway motels; candidates for liquidation.
2. GE/McKinsey 9-Cell Matrix:

Evaluates business units across Industry Attractiveness (market size, growth rate, margins) and Business Unit Competitive Strength (brand equity, technological capabilities, location advantage), categorized into: Invest/Grow, Selectivity/Hold, or Harvest/Divest.
Discuss the strategic challenges of Strategy Implementation. Why do up to 70% of formulated strategies fail during execution in the service industry?

[10]
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Strategy Implementation Failures in Hospitality
1. Organizational Resistance to Change: Frontline staff and supervisors cling to entrenched operating habits due to fear of unfamiliar systems.
2. Misaligned Organizational Structure: Attempting to execute an agile digital guest strategy within a rigid, bureaucratic hierarchy.
3. Resource Starvation: Inadequate allocation of capital budgets and training hours to support strategic imperatives.
4. Poor Internal Communication: Failure of senior leadership to cascade the strategic vision down to shift workers.
5. Lack of Performance Alignment: Incentivizing managers purely on short-term quarterly profits rather than long-term strategic execution milestones.
Explain Strategic Alliances and Joint Ventures in global hotel brand expansion. Compare management contracts with franchise agreements.

[10]
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Strategic Alliances and Hotel Expansion Models
1. Hotel Management Contract:
  
  Mechanism: Property owner retains real estate ownership and operational financial risk, while an international hotel chain (e.g., Marriott, Hyatt) operates the hotel using its brand, systems, and personnel in exchange for a base management fee (2–4% of revenue) plus an incentive fee (8–10% of gross operating profit).
2. Franchise Agreement:
  
  Mechanism: The owner operates the property independently while licensing the brand name and reservation distribution network, paying a royalty fee (4–6% of sales).
3. Joint Ventures:
  
  Two corporations create a shared legal entity to share equity capital, localized political knowledge, and brand technology (e.g., local developer partnering 50/50 with an international hotel chain).

Group C

Comprehensive Answer / Case Analysis Question. (1 × 20 = 20)

[1*20=20]

Case Study: Strategic Acquisition & Portfolio Diversification at Annapurna Hospitality Group

Annapurna Hospitality Group (AHG), a leading Nepalese hotel conglomerate operating two five-star properties in Kathmandu and Pokhara, is evaluating a NPR 1.2 billion capital deployment plan. AHG’s core luxury city hotels face decelerating revenue growth due to market saturation. The board is debating three strategic alternatives:
- Alternative 1 (Related Concentric Diversification): Develop a chain of 6 mid-scale 3-star business hotels under a new brand name (‘Annapurna Express’) along major commercial transit corridors (Biratnagar, Butwal, Nepalgunj, Bhairahawa).
- Alternative 2 (Market Development & Luxury Eco-Tourism): Acquire and redevelop a heritage wildlife safari lodge in Chitwan National Park and an ultra-luxury tented camp in Upper Mustang.
- Alternative 3 (Backward Vertical Integration): Acquire a 500-acre organic agriculture and dairy farm in Makwanpur to supply 100% of the group’s F&B operations.
As Chief Strategy Officer: a. Conduct a Strategic Evaluation of the three alternatives using Suitability, Feasibility, and Acceptability (SFA) criteria. b. Formulate a final strategic recommendation for AHG with clear rationale. c. Design a corporate risk management framework for the chosen strategy. d. Establish key implementation milestones for a 36-month execution horizon.
[20]
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Strategic Portfolio Evaluation & Corporate Growth Blueprint: AHG

a. Strategic Evaluation using SFA Framework
1. Alternative 1 (Mid-Scale Business Express Hotels):
  
  Suitability: High; capitalizes on rising domestic business travel along trade corridors.
  
  Feasibility: High; lower construction and operational cost per key.
  
  Acceptability: Strong steady cash flow yields (18–22% ROI).
2. Alternative 2 (Luxury Eco-Tourism - Chitwan & Mustang):
  
  Suitability: High; aligns perfectly with AHG’s luxury brand DNA and captures ultra-high-margin foreign leisure spending.
  
  Feasibility: Moderate; seasonal access risks in Mustang and strict conservation regulations in Chitwan.
  
  Acceptability: High ADR (USD 350+), establishing prestigious global brand equity.
3. Alternative 3 (Backward Integration - Farm):
  
  Suitability: Low to moderate; farming requires agricultural expertise outside AHG’s core management capabilities.
  
  Feasibility: Distracts executive leadership from hospitality operations.
  
  Acceptability: Low financial return on invested capital compared to hotels.
b. Strategic Recommendation

Adopt a Hybrid Growth Strategy combining Alternatives 1 and 2 (65% Alternative 1 / 35% Alternative 2) while rejecting Alternative 3 (farm supplies can be secured via contract farming without capital acquisition):
- Deploy NPR 750 million to roll out the ‘Annapurna Express’ mid-scale chain to generate high-volume, recession-resilient domestic cash flows.
- Deploy NPR 450 million to acquire the Chitwan luxury safari lodge to strengthen international brand prestige and complete a ‘Golden Triangle’ luxury circuit (Kathmandu - Pokhara - Chitwan).
c. Risk Management Framework
- Construction Overruns: Enforce guaranteed maximum price (GMP) contracts with Tier-1 contractors.
- Brand Dilution: Maintain strict brand separation: ‘Annapurna Luxury Collection’ distinct from ‘Annapurna Express’.
d. 36-Month Implementation Milestones
- Months 1–12: Complete Chitwan lodge refurbishment and launch flagship Annapurna Express in Bhairahawa near the international airport.
- Months 13–24: Open Annapurna Express locations in Butwal and Biratnagar; achieve central reservation engine integration.
- Months 25–36: Complete Nepalgunj and Dhangadhi properties; achieve overall portfolio EBITDA of NPR 280 million.

Strategic Management

Syllabus

Strategic Management Syllabus

Faculty of Management

Course Description

Course Objective

Course Contents:

Unit 1. Introduction

Unit 2. Company Direction

Unit 3. External Environment Analysis

Unit 4. Internal Analysis

Unit 5. Strategic Options and Choice Techniques

Unit 6. Post-formulation and Pre-implementation Phase

Unit 7. Implementation Phase

Unit 8. Strategic Evaluation and Control

Suggested Readings:

Chapter-wise questions

Past exam papers

Dean's Office Official Model Question Paper

Faculty of Management

Brief Answer Questions. Attempt ALL questions. (5 × 2 = 10)

Formality in Strategic Management

Strategic Business Unit (SBU)

BCG Growth-Share Matrix

Cost Leadership vs. Differentiation

Turnaround Strategy

Descriptive Answer Questions. Attempt any THREE questions. (3 × 10 = 30)

The Comprehensive Strategic Management Model

Portfolio Planning Matrices in Hospitality

1. BCG Growth-Share Matrix:

2. GE/McKinsey 9-Cell Matrix:

Strategy Implementation Failures in Hospitality

Strategic Alliances and Hotel Expansion Models

Comprehensive Answer / Case Analysis Question. (1 × 20 = 20)

Strategic Portfolio Evaluation & Corporate Growth Blueprint: AHG

a. Strategic Evaluation using SFA Framework

b. Strategic Recommendation

c. Risk Management Framework

d. 36-Month Implementation Milestones

Chapter notes & lecture slides