Strategic Management Study of MSC CRUISES 1 MSC CRUISES COMPANY Strategic Management Case Study A. STRATEGIC MANAGEMENT PLANNING FOR FUTURE PROCESSES Success in any form of business is always welcome. However, it is even more enjoyable if it is attain having conquered some really huge obstacles, as it is then more refreshing than most. This is the case for huge companies, as well as those in the hospitality and other service industries, as competition is really stiff. To achieve success in such circumstances requires the proper handling of all business operations. This is where strategic business management practices come into play. Strategic planning refers to an organizational management activity employed to formulate and enact business priorities, focus energy and resources as well as the strengthening of operations[JAP97]. Essentially therefore, strategic management planning provides the guarantee that company employees, managers along with directors remain focused on a directional unity in the firm that creates a common agreement relating to the targeted outcomes/results, while also assessing and adjusting company operational direction. The disciplined nature of the activity helps firms that effectively implement it to produce highly fundamental decisions and actions which not only transform the company's routine but also guide the organization on what it is, who is served, its operational mandate as well as the reasons behind the things it does. In short, the existence of the firm is wholly reinvented through proper planning. This is what happened with MSC Cruises upon a stellar adoption and implementation of strategic planning. MSC Cruises stands to benefit immensely from their use of strategic planning in their operations. While the said benefits are not necessarily operations-related, it is nevertheless pertinent that such systems be installed in a business if they hope to enjoy more than ordinary success. This is because in the current competitive environment, ordinary is simply not good enough. The benefits of strategic management are far reaching. To start with, optimized strategic planning plays a key role in defining the vision, mission as well as future goals of a business entity[Mil94]. Therefore, it is noteworthy to point out at this instance that the company tenets Strategic Management Study of MSC CRUISES 2 being referred to here are more advanced than just the basic and ordinary pasting of company vision, mission and goals of the entity's official documents. It is about the acceptance, internalization and continued living by that which the company intends to be. This means that every employee would just exist as a key component of the business system that must thus work in tandem with the others to achieve the operational goals earlier set. MSC Cruises and its employees are not at this level yet. Despite having a clearly stated vision and mission, as well as their commitment to providing unbeatable services both offshore and on board, MSC Cruises still needs to optimize its services so as to lay the required foundations for a better and more alluring future for the company. The significance of planning is often illustrated by the fact every business entity runs on one form or another of an operational or financial plan. When firm strategy is incorporated into the picture, however, the results of the planning process are now more rewarding than ever. This reaffirms the necessity of strategic plans in the business environment. In this regard, therefore, strategic management planning not only distinguishes the said entity from the crowd, but it also plays an integral role in the identification and implementation of such suitable strategies that the entity requires so as to reach the desired operational, financial as well as management goals. Should this happen, the firm would have fulfilled its primary role of creating value and wealth to its stakeholders[REF10]. Strategic management is also known to improve the awareness shown by business entities in adapting to both their external and internal environments[CWH14]. Other than the operational benefits presented by such awareness, this allows the firm to identify with unquestionable clarity the competitive advantages available to them by using strategic plans. This way, every activity partaken by the business is coordinated and geared towards the realization of certain preset business objectives. In addition, strategy plans make it easier for companies such as MSC Cruises to increase the commitment levels of both managers and company directors towards the achievement of predetermined company objectives. This means that by MSC Cruises stands to benefit in terms of heightened operational efficiency, financial soundness as well as optimal management actions if it clearly articulates its targets, objectives and expectations to its internal stakeholders in a manner that ensures every individual is working to their optimal level[FRD09]. If achieved, this would make MSC Cruises incomparable with their competition. Strategic Management Study of MSC CRUISES 3 There exist other significant benefits of strategic management planning. For instance, the strategy planning process greatly improves the extent and scope of activity coordination within the business entity which in turn results into more efficient allocation and subsequent use of company resources. In fact, of a greater benefit to the efforts by MSC Cruises to embrace better communication as outlined by their agreement with WS is the fact that strategic plans have a way of enhancing communications between business managers of the different levels and functional areas. Though not the exact reason why WS was brought on board, it ensures that all of the MSC Cruises staff understand and do what has to be done long before the company's clientele and other stakeholders are brought into the picture. While nothing is guaranteed in business, MSC Cruises will see their position in the world of holiday cruises significantly boosted if they embraced the full extent of strategic planning. The practice takes a bit more time than ordinary planning, but just like any other business activity, the rewards are worth the extra mile. As such, it would be foolhardy for the firm to explore all their business options in a strategic way. This is especially true for a business of MSC Cruises' ambitions, one whose massive potential may only come undone if limited by the shortcomings of their management personnel and or systems. Otherwise, the future is bright. Strategic Management Study of MSC CRUISES 4 B. ROLE OF COMPANY VISION AND MISSION IN DEVELOPMENT MSC Cruises is meant for people in need of an escape from the tiring travails of their daily lives. As such, it is only fair that MSC Cruises deliver unto these people the desires of theirs, an achievement the firm has been consistently able to achieve. This was all because of their greater commitment to high quality customer service as well as unbeatable recipes. Generally, a company's vision statement refers to the operational road map that is used to indicate both what the goals of the company in question as well as the underlying foundational and transformational initiatives used to define then set a defined direction for the desired company growth trends[Luc98]. To this end, therefore, company vision statements often face a very limited number of revisions over the life of a business, quite the contrast to managerial, financial, operational as well as other goals formulated by the same company which tend to get updated from one operational period to another. On the other hand, an organization's mission statement is often viewed as the statement of purpose. This is because it is used as the easiest form and way that the company management and directors communicate the basic purpose for which the particular organization was formed and is being operated for[Dav14]. While this tends to remain unchanged for extended periods of time, it is neither rigid like the vision statement nor uncommon to find a company updating their mission statement. The latter is especially likely to happen when the organization evolves in such a way that it takes on either a new or an improved purpose, such that the old mission statement does not correctly summarize the reasons for the firm's existence. Under such circumstances, a change in the company mission statement is imperative. At this point, the role of these two tenets is clear. The vision points to the direction while the mission shows the way by dictating the company purpose. Admittedly, these are not the only roles of these two corporate tools. As noted earlier, both the vision and mission statements are important tools to an organization when it comes to the setting of priorities, the establishment of company unity as well as the directing of individual strengths needed in overcoming challenging circumstances and tasks. As a matter of fact, the two statements are known to keep entities ticking even during times of crises, as was the case with most medium companies during the 2008 economic recession[Sim12]. Strategic Management Study of MSC CRUISES 5 Just as mentioned above, the VMS could hold a firm together in difficult times. Similarly however, the VMS play a significant role in informing the decisions taken by company managers as well as its directors. This functionality has led to the common reference of organization vision statement as its future state in certain quarters, a phrase made possible by the fact that visions generally lead the way companies act so as to attain a desired position or state in the coming financial periods[JAP97]. Other significant benefits of the VMS include the ability to guide organizational strategic planning and implementation, clear definition of company standards as well as expectations of financial and other performance, while establishing a more productive and goal-oriented corporate culture. Such minor details bear immeasurable impact on the synergy exuded by the company as a whole. The above benefits are not conclusive in themselves. Nonetheless, the provide accurate justification as to how much MSC Cruises stands to benefit by planning their future development along the lines laid down by their company VMS. The significance of these statements is also boosted by the fact that they are easily received among the company personnel as well as within the various stakeholders the company deals with[Car14]. Even without the synergies created through unified approach to tasks and goals, the harmony generated could easily drive the company several miles into the future as long as it is tapped right. And you can trust the MSC Cruises management that have brought the company thus far to stay the course. Strategic Management Study of MSC CRUISES 6 C. STRATEGIES TO COMPETE IN HIGH VELOCITY MARKETS As of the present, MSC Cruises prides in its standing as an industry leader in cruising, with its market dominance spanning the Mediterranean, Brazil as well as South Africa. When this domination is considered in light of the company's other endeavors in other parts of the world, MSC Cruises then attains a true global touch in their operations. But that is not all. Business is just but a small part of human life, meaning that it is in most cases adherence to life unwritten rules of human living. Key among them is the fact that to whom much is given, much is expected[Luk]. Therefore, the added responsibility upon the company due to its widespread presences means that among other things, it must continue to develop and become better at doing its ordinary business. While this sounds simple enough, it is a responsibility that requires a number o strategic decisions to be made, some of which are discussed herein. i. Joint Ventures A joint venture refers to a business arrangement in which the concerned parties decide to pool their resources for the purpose of accomplishing a specific task ii. iii. iv. v. Mergers and Acquisitions Leveraged Buyouts First Mover Advantages Outsourcing Strategic Management Study of MSC CRUISES 7 Strategic Management Study of MSC CRUISES 8 D. LIST OF REFERENCES Carton, A. M., Murphy, C., & Clark, J. R. (2014). A (blurry) vision of the future: How leader rhetoric about ultimate goals influences performance. Academy of Management Journal, 57(6), 1544-70. David, F. R. (2009). Strategic management: Concepts and cases. Pearson. David, M. E., David, F. R., & David, F. R. (2014). Mission statement theory and practice: A content analysis and new direction. International Journal of Business, Marketing & Decision Science, 7(1), 95-110. Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge University Press. Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management theory: An integrated approach. Cengage Learning. Lucas, J. R. (1998). Anatomy of a vision statement. Management Review, 87(2), 22. Luke 12:48 King James Version. (n.d.). Miller, C. C., & Cardinal, L. B. (1994). Strategic planning and firm performance: A synthesis of more than two decades of research. Academy of Management Journal, 37(6), 1649-65. Pearce, J. A., Robinson, R. B., & Subramanian, R. (1997). Strategic management: Formulation, implementation, and control. Chicago, Illinois: Irwin. Simon, J., Puumalainen, K., Sjogren, H., & Syrja, P. (2012). The impact of global economic crisis on SMEs: does entrepreneurial orientation matter? Management Research Review, 35(10), 927-44. Strategic Management Study of MSC CRUISES 1 MSC CRUISES COMPANY Strategic Management Case Study A. STRATEGIC MANAGEMENT PLANNING FOR FUTURE PROCESSES Success in any form of business is always welcome. However, it is even more enjoyable if it is attain having conquered some really huge obstacles, as it is then more refreshing than most. This is the case for huge companies, as well as those in the hospitality and other service industries, as competition is really stiff. To achieve success in such circumstances requires the proper handling of all business operations. This is where strategic business management practices come into play. Strategic planning refers to an organizational management activity employed to formulate and enact business priorities, focus energy and resources as well as the strengthening of operations[JAP97]. Essentially therefore, strategic management planning provides the guarantee that company employees, managers along with directors remain focused on a directional unity in the firm that creates a common agreement relating to the targeted outcomes/results, while also assessing and adjusting company operational direction. The disciplined nature of the activity helps firms that effectively implement it to produce highly fundamental decisions and actions which not only transform the company's routine but also guide the organization on what it is, who is served, its operational mandate as well as the reasons behind the things it does. In short, the existence of the firm is wholly reinvented through proper planning. This is what happened with MSC Cruises upon a stellar adoption and implementation of strategic planning. MSC Cruises stands to benefit immensely from their use of strategic planning in their operations. While the said benefits are not necessarily operations-related, it is nevertheless pertinent that such systems be installed in a business if they hope to enjoy more than ordinary success. This is because in the current competitive environment, ordinary is simply not good enough. The benefits of strategic management are far reaching. To start with, optimized strategic planning plays a key role in defining the vision, mission as well as future goals of a business entity[Mil94]. Therefore, it is noteworthy to point out at this instance that the company tenets Strategic Management Study of MSC CRUISES 2 being referred to here are more advanced than just the basic and ordinary pasting of company vision, mission and goals of the entity's official documents. It is about the acceptance, internalization and continued living by that which the company intends to be. This means that every employee would just exist as a key component of the business system that must thus work in tandem with the others to achieve the operational goals earlier set. MSC Cruises and its employees are not at this level yet. Despite having a clearly stated vision and mission, as well as their commitment to providing unbeatable services both offshore and on board, MSC Cruises still needs to optimize its services so as to lay the required foundations for a better and more alluring future for the company. The significance of planning is often illustrated by the fact every business entity runs on one form or another of an operational or financial plan. When firm strategy is incorporated into the picture, however, the results of the planning process are now more rewarding than ever. This reaffirms the necessity of strategic plans in the business environment. In this regard, therefore, strategic management planning not only distinguishes the said entity from the crowd, but it also plays an integral role in the identification and implementation of such suitable strategies that the entity requires so as to reach the desired operational, financial as well as management goals. Should this happen, the firm would have fulfilled its primary role of creating value and wealth to its stakeholders[REF10]. Strategic management is also known to improve the awareness shown by business entities in adapting to both their external and internal environments[CWH14]. Other than the operational benefits presented by such awareness, this allows the firm to identify with unquestionable clarity the competitive advantages available to them by using strategic plans. This way, every activity partaken by the business is coordinated and geared towards the realization of certain preset business objectives. In addition, strategy plans make it easier for companies such as MSC Cruises to increase the commitment levels of both managers and company directors towards the achievement of predetermined company objectives. This means that by MSC Cruises stands to benefit in terms of heightened operational efficiency, financial soundness as well as optimal management actions if it clearly articulates its targets, objectives and expectations to its internal stakeholders in a manner that ensures every individual is working to their optimal level[FRD09]. If achieved, this would make MSC Cruises incomparable with their competition. Strategic Management Study of MSC CRUISES 3 There exist other significant benefits of strategic management planning. For instance, the strategy planning process greatly improves the extent and scope of activity coordination within the business entity which in turn results into more efficient allocation and subsequent use of company resources. In fact, of a greater benefit to the efforts by MSC Cruises to embrace better communication as outlined by their agreement with WS is the fact that strategic plans have a way of enhancing communications between business managers of the different levels and functional areas. Though not the exact reason why WS was brought on board, it ensures that all of the MSC Cruises staff understand and do what has to be done long before the company's clientele and other stakeholders are brought into the picture. While nothing is guaranteed in business, MSC Cruises will see their position in the world of holiday cruises significantly boosted if they embraced the full extent of strategic planning. The practice takes a bit more time than ordinary planning, but just like any other business activity, the rewards are worth the extra mile. As such, it would be foolhardy for the firm to explore all their business options in a strategic way. This is especially true for a business of MSC Cruises' ambitions, one whose massive potential may only come undone if limited by the shortcomings of their management personnel and or systems. Otherwise, the future is bright. Strategic Management Study of MSC CRUISES 4 B. ROLE OF COMPANY VISION AND MISSION IN DEVELOPMENT MSC Cruises is meant for people in need of an escape from the tiring travails of their daily lives. As such, it is only fair that MSC Cruises deliver unto these people the desires of theirs, an achievement the firm has been consistently able to achieve. This was all because of their greater commitment to high quality customer service as well as unbeatable recipes. Generally, a company's vision statement refers to the operational road map that is used to indicate both what the goals of the company in question as well as the underlying foundational and transformational initiatives used to define then set a defined direction for the desired company growth trends[Luc98]. To this end, therefore, company vision statements often face a very limited number of revisions over the life of a business, quite the contrast to managerial, financial, operational as well as other goals formulated by the same company which tend to get updated from one operational period to another. On the other hand, an organization's mission statement is often viewed as the statement of purpose. This is because it is used as the easiest form and way that the company management and directors communicate the basic purpose for which the particular organization was formed and is being operated for[Dav14]. While this tends to remain unchanged for extended periods of time, it is neither rigid like the vision statement nor uncommon to find a company updating their mission statement. The latter is especially likely to happen when the organization evolves in such a way that it takes on either a new or an improved purpose, such that the old mission statement does not correctly summarize the reasons for the firm's existence. Under such circumstances, a change in the company mission statement is imperative. At this point, the role of these two tenets is clear. The vision points to the direction while the mission shows the way by dictating the company purpose. Admittedly, these are not the only roles of these two corporate tools. As noted earlier, both the vision and mission statements are important tools to an organization when it comes to the setting of priorities, the establishment of company unity as well as the directing of individual strengths needed in overcoming challenging circumstances and tasks. As a matter of fact, the two statements are known to keep entities ticking even during times of crises, as was the case with most medium companies during the 2008 economic recession[Sim12]. Strategic Management Study of MSC CRUISES 5 Just as mentioned above, the VMS could hold a firm together in difficult times. Similarly however, the VMS play a significant role in informing the decisions taken by company managers as well as its directors. This functionality has led to the common reference of organization vision statement as its future state in certain quarters, a phrase made possible by the fact that visions generally lead the way companies act so as to attain a desired position or state in the coming financial periods[JAP97]. Other significant benefits of the VMS include the ability to guide organizational strategic planning and implementation, clear definition of company standards as well as expectations of financial and other performance, while establishing a more productive and goal-oriented corporate culture. Such minor details bear immeasurable impact on the synergy exuded by the company as a whole. The above benefits are not conclusive in themselves. Nonetheless, the provide accurate justification as to how much MSC Cruises stands to benefit by planning their future development along the lines laid down by their company VMS. The significance of these statements is also boosted by the fact that they are easily received among the company personnel as well as within the various stakeholders the company deals with[Car14]. Even without the synergies created through unified approach to tasks and goals, the harmony generated could easily drive the company several miles into the future as long as it is tapped right. And you can trust the MSC Cruises management that have brought the company thus far to stay the course. Strategic Management Study of MSC CRUISES 6 C. STRATEGIES TO COMPETE IN HIGH VELOCITY MARKETS As of the present, MSC Cruises prides in its standing as an industry leader in cruising, with its market dominance spanning the Mediterranean, Brazil as well as South Africa. When this domination is considered in light of the company's other endeavors in other parts of the world, MSC Cruises then attains a true global touch in their operations. But that is not all. Business is just but a small part of human life, meaning that it is in most cases adherence to life unwritten rules of human living. Key among them is the fact that to whom much is given, much is expected[Luk]. Therefore, the added responsibility upon the company due to its widespread presences means that among other things, it must continue to develop and become better at doing its ordinary business. While this sounds simple enough, it is a responsibility that requires a number o strategic decisions to be made, some of which are discussed herein. i. Joint Ventures A joint venture refers to a business arrangement in which the concerned parties decide to pool their resources for the purpose of accomplishing a specific task ii. iii. iv. v. Mergers and Acquisitions Leveraged Buyouts First Mover Advantages Outsourcing Strategic Management Study of MSC CRUISES 7 Strategic Management Study of MSC CRUISES 8 D. LIST OF REFERENCES Carton, A. M., Murphy, C., & Clark, J. R. (2014). A (blurry) vision of the future: How leader rhetoric about ultimate goals influences performance. Academy of Management Journal, 57(6), 1544-70. David, F. R. (2009). Strategic management: Concepts and cases. Pearson. David, M. E., David, F. R., & David, F. R. (2014). Mission statement theory and practice: A content analysis and new direction. International Journal of Business, Marketing & Decision Science, 7(1), 95-110. Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge University Press. Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management theory: An integrated approach. Cengage Learning. Lucas, J. R. (1998). Anatomy of a vision statement. Management Review, 87(2), 22. Luke 12:48 King James Version. (n.d.). Miller, C. C., & Cardinal, L. B. (1994). Strategic planning and firm performance: A synthesis of more than two decades of research. Academy of Management Journal, 37(6), 1649-65. Pearce, J. A., Robinson, R. B., & Subramanian, R. (1997). Strategic management: Formulation, implementation, and control. Chicago, Illinois: Irwin. Simon, J., Puumalainen, K., Sjogren, H., & Syrja, P. (2012). The impact of global economic crisis on SMEs: does entrepreneurial orientation matter? Management Research Review, 35(10), 927-44