Fundamentals of Strategy - Case Study 2
1. What elements contributed to the success of the sustainability concept of Scandic Hotels?
• The Scandic Hotel has many aim and visions. The most important one is to offer simple and accessible accommodation. In order to achieve it, they want to simplify their procedures, be present on the locations where people are travelling and taking care of the customer’s needs.
• They want to be more than just a hotel. They want to be an inspirational place for people, and also, be a place of meeting for those inspired people. People travelling for business or pleasure should come to Scandic Hotels. They desire that people are going to become increasingly ...view middle of the document...
⇒ “Our aim is to help Scandic’s guests to recharge their batteries and to reinvigorate them by having an uncomplicated approach and by offering simple and accessible accommodation (…) where people can come together, meet others and be inspired (…). Scandic shall, therefore, lead the way and work continuously to promote both a reduction in our environmental impact, and a better environment.”
Vision: Scandic’s vision is rather broad; maybe a bit too much considering the fact that is is just a hotel. It is not very progressive especially when talking about environment and sustainability and remains inaccurate.
⇒ “We want to be more than just a hotel. (…) We believe that people are going to become increasingly conscious of the choices they make – and we want those conscious people to opt for Scandic because we are a good choice in every way – economically, socially and environmentally.”
3. Explain the strategy executing and monitoring stages
The strategy executing means: putting the strategic plan into action. Managing this step is an operations-oriented, the objective is to “shape the performance of core business activities in a strategic supportive manner.” The execution of the chosen strategy is considered as successful if financials goals are achieved or beaten thanks to a smoothly progression and if management strategic vision makes progress.
Scandic Hotel decided to issue a clear policy in consultation with a specialist partner ‘The Natural Step’ in 1994 on a course of sustainability.
To execute the chosen strategy of sustainability, Scandic decided firstly to build an internal competence. Thanks to training programmes provided top-down. Existing managers have been reoriented into internal trainers and “a programme developed with local adaptations in the content based on local regulatory conditions.”
One of the issue to reach their strategy is to use the internal resources: by stimulating local ideas to collect, share and implement them into the company. For example, at each hotel an employee was nominated as ‘environmental’ networker.
In the corporate dimension, the willingness of innovating and reducing cost and environmental impacts is highlighted by the identification and the optimisation of repetitive procedures commons for each hotels. Two principals objectives were identify: reducing and eliminating waste and product innovations.
The strategy monitoring has been done thanks to the measurement of the progress in three different dimensions. First, the financial result gave them indications of how well...