It is an evident fact that the corporate world is based upon competition and it is a necessity that every business has its own competitive strategy. It is commonly accepted that the people working for a firm are one of its main assets and one of the factors in determining its progress along with the customers. Workers' qualities, attitudes and behavior in the workplace, together with other critical factors like their behavior with the customers, play an important role in determining a company's success or lack of it. Strategic Management, in its real form, has come into attention and focus over the last 20 years. The functional execution has undergone transformation in terms of its description as a substantive job under one head.
This chapter would focus on the background content about the strategic management and how it is important for success of organisations. This chapter would incorporate different aspects like objectives, background, structure of the research etc. Different research questions are also formed in this chapter that would give an idea about how the entire research would flow. The aim of this paper is to assess the role of strategic management in a business and how does it contributes to the success of a business.
1.1 Title of the Research
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Importance of Strategic Management in Hotel Business
1.2 Background of the Research
Strategic management is considered to be one of the major success criterions for any business enterprise. Broadly speaking, the researcher set out to underline the need and importance of understanding the effects of Strategic Management for an organization. More specially, the objectives of this research are to investigate what role Strategic Management plays in success of an organization in the present competitive environment. Gaining a better understanding as to what value effective strategic-management can have on an Hotel Industry specifically, the case study of Crown Plaza Hotel, Heathrow has been conducted.
1.3 Objectives of the Research
Effective strategic management is considered to be one of the major success criterions for any business enterprise. The main objective of this paper is to determine the magnitude of strategic management in any successful business. The paper aims on achieving the following objectives:
To ensure that how branding is associated with the success of an organisation.
Understanding the true spirit and concept of human resource management
To measure the effects of human resource management in the success of any business
Factors which could improve the human resource development within the organization
The link between the human resources management and high performance
1.4 Research Justification
The underlying principle in the study is prior to the various investigations of the past researchers regarding the impact or influence of different management strategies in developing the market. Therefore, there is a growing interest in picturing the development of the national economy. This very same aspect triggered on describing the possible ways that effective management can contribute to ride along the flows of economic trends through the use of its performance.
1.5 Research Questions
The aim of the paper is to identify and understand the different management strategies and their contribution in success of an organization. Zikmund (2003) states that formulating a series of research questions can add clarity to the research problem. Welman and Kruger (2001) recommend that once research problems have been identified, the problem be further refined by posing one or more research questions. The research will attempt to answer the following queries:
What is strategic management and how it is implemented by different organisations?
What is the importance of effective strategic management for an organization?
What are the basic features and aspects strategic management addresses?
Has strategic management played a vital role in the success of Hotel industry?
1.6 Overview of the dissertation structure
The entire report consists of certain areas which are listed and discussed below:
1. Introduction: This chapter revolves introduces the main aspects of the research. This chapter includes title and what is the objective of research. Besides that, this chapter gives background of research. The entire chapter concludes with different research questions and an overview about the research methodology that what strategy of research will be used in this research paper. . . . . . . . .. . . . . . . . .. . . . . .
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2. Literature Review: This chapter analyses the basic concepts of strategic management and its key aspects , the chapter also includes basic definitions functions of management and other aspects. These concepts are explained in detail with respect to different theoretical models. Emphasis of this chapter is laid on the theories that are directly associated with the scenario of strategic management. Therefore, it can be said that this chapter would give an overall idea about all the major aspects and terminologies that are directly and indirectly associated with the scenario of strategic management. Furthermore, this chapter would form a mindset of the reader that whether strategic management is beneficial in the short and the long run or not. . . . . ... . . . ... . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . .
3. Research Methodologies: The research methodology that is used in the research is discussed in this chapter. Although there are different methods of doing the research but due to the limitations of research only secondary and primary sources are used. Secondary sources are extensively used in this paper and the entire research is based on books, peer-reviewed journals, scholarly articles etc. However, the primary research is done through questionnaires. Case study of Hotel Crown Plaza has also been conducted in this research.
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4. Findings and Analysis: The findings and different interpretations of the results are included in this chapter and all the results that are achieved are interpreted into meaningful form for further research and analysis. A competitive analysis is undertaken in this regard which would clarify the statement that effective strategic management is beneficial for the success of an organisation or not. Both secondary and primary data are used to analyse the final result and the results and questionnaires are utilised in this research to develop results.
5. Conclusions and recommendations: The entire research is summarised in this chapter and limitations of the research and certain recommendations are also discussed in this research paper. Besides that certain recommendations are also presented in this dissertation. This chapter can actually be considered as the crux of all the chapters as it summarises other chapters and concludes with the final results.
This chapter as implied by the name sets up the scene for the entire dissertation and it focuses on different aspects like background of the research, objectives of the research and review of the methodology. The methodology section depicts that both quantitative and qualitative analysis will be used. The introduction chapter gives up an overview of the entire dissertation and it also elaborates the facts that what other chapters are included in this dissertation and what are their contents.
Chapter 2: Literature Review
The term Strategic management can be defined as a field that primarily cater with the major emergent and anticipated inventiveness executed by the general managers on behalf of the owners, involving employment of assets, to augment the performance of companies specifically in external environments. It necessitates identifying the company's vision, mission and objectives, presenting plans and policies, normally in terms of programs and projects, which are formulated to accomplish these objectives, and then assigning resources to execute the plans and policies, programs and projects. A reasonable scorecard is commonly utilized to ascertain the general performance of the compnaty and its advancement with regardt to its objectives. Prominent management theorists and topical studies have advocated that strategy requires to initiate with stakeholders prospects and exercise an enhanced balanced scorecard which comprises all the stakeholders.
Strategic management is a stage of managerial actions under setting goals and over Tactics Strategic management presents overall course to enterprise and is intimately connected to the field of Organization Studies. In the business administration it is functional to converse about "Strategic Alignment" among the company and its environment or "Strategic Consistency." In accordance with the Arieu (2007), "There is strategic consistency when the actions of an organization are consistent with the expectations of management, and these in turn are with the market and the context." Strategic management deals not only the management squad but can also embrace the Board of Directors and all other stakeholders of the company.
"Strategic management is an continuing process that assesses and pedals the business in which the company is connected; evaluates the competitors and describes strategies and goals to convene all potential and current competitors; and then reassesses every strategy on annual basis [i.e. regularly] to ascertain how it has been executed and whether it has succeeded or desires substitution by a fresh strategy to fulfill altered situations, fresh technology, fresh competitors, a fresh economic environment., or a fresh political, financial, environment or social." (Lamb, 1984)
2.2 Strategic Formation
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The term Strategic formation can be described as a amalgamation of 3 major procedures which narrated below:
Executing a competitor analysis, self-evaluation and situation analysis: both external and internal; both macro-environmental and micro-environmental
Simultaneous with this evaluation, objectives are defined. These objectives should be corresponding to a time-line; several are in the short-term and some are on the long-term. This engages formulating mission statements, vision statements, overall corporate objectives, tactical objectives, and strategic business unit objectives.
These objectives ought to be in accordance with the situation analysis, propose a strategic plan. The plan presents the particulars of how to attain these objectives.
2.3 The Strategic Hierarchy
In the majority corporations there are numerous levels of management. Strategic management is rated as the uppermost level in the manner that it is the broadest - pertaining to every elements of the company - while also integrating the greatest time horizon. It provides direction to corporate culture, corporate goals, corporate missions, and corporate values. Characteristically business-level competitive strategies and functional unit strategies comes under this broad corporate strategy.
Corporate strategy relates to the overarching strategy of the diversified compnay. This type of a corporate strategy responds the matter of "which businesses should we be in?" and "how does being in these businesses create synergy and/or add to the competitive advantage of the corporation as a whole?" Business strategy relates to the cumulative strategies of a strategic business unit (SBU) or single business compnay in a diversified organization. As per the definition presented by Michael Porter, a compnay ought to devise a business strategy that integrates either differentiation, cost leadership, or focus to attain a long-term success and reliable competitive advantage. Alternatively, as per Renée Mauborgne and W. Chan Kim, a company can achieve high development and profits by presenting a Blue Ocean Strategy that splits the preceding value-cost trade off by concurrently following both low cost and differentiation.
Functional strategies deals with marketing strategies, legal strategies, human resource strategies, financial strategies, supply-chain strategies, fresh product development strategies, and information technology management strategies. The importance is on medium and short term tactics and is restricted to the domain of every department's functional liability. Every functional department endeavors to do its part in achieving overall corporate objectives, therefore to a little degree their strategies are derivative from broader corporate strategies.
Many organizations experience that a functional organizational structure is not an professional way to systematize actions so they have reengineered according to SBUs or procedure. A SBU is a semi-autonomous unit that is typically accountable for its own fresh product decisions, hiring decisions, price setting and budgeting. An strategic business unit is dealed as an internal profit centre by company's headquarters. A technology strategy, for instance, though it is concentrated on technology as a resources of attaining a company's overall objective, may comprise proportions that are ahead of the scope of an engineering organization, IT department or a single business unit.
A supplementary level of strategy called operational strategy was optimized by Peter Drucker in his theory of management by objectives (MBO). It is extremely constricted in focus and deals with day-to-day operational actions like scheduling criterion. It ought to function within a budget but is not at autonomy to regulate or generate that budget. Operational level strategies are conversant by business level strategies which, in turn, are conversant by corporate level strategies.
While the turn of the millennium, some organizations have reverted to a simpler strategic structure motivated by advancement in the information technology. It is experienced that information management systems should be utilized to create common goals and allocate information. Strategic divisions are considered as to hinder this course. This perception of strategy has been detained under the rubric of dynamic strategy, popularized by Carpenter and Sanders's textbook. This work assembles on that of Eisenhart and Brown as well as Christensen and represents organization strategy, both corporate and business, as essentially embracing continuing strategic transforms and the unspoiled assimilation of strategy formulation and implementation. This sort of implementation and change are normally constructed into the strategy through the pacing and staging facets.
2.4 Nature of Strategic Management
The strategic-management course does not stop when the organization decides what strategies to follow. There ought to be a transformation of strategic consideration into strategic exploit. This transformation is greatly easier if employees and managers of the compnay appreciate the business, feel a part of the organization, and through participation in strategy-formulation actions have become dedicated to serving the company be successful. Exclusive of commitment and understanding, strategy-implementation efforts face main troubles. Implementing strategy influences a compnay from top to bottom; it impacts all the divisional and functional areas of a setup. It is ahead of the principle and extent of this text to scrutinize all the business administration perceptions and tools significant in strategy implementation. Even the most technically faultless strategic plan will provide modest purpose if it is not executed. Several companys lean to fritter an inordinate amount of money, time, and endeavor on formulating the strategic plan, dealing wiht the circumstances and means beneath which it will be executed as postscripts! Transforms approachs during evaluation and implementation, not during the plan. A technically deficient plan that is executed well will attain more than the faultless plan that is not exectued in an optimistic manner.
2.5 Prime task
Peter Drucker says: "The prime task is to think through the overall mission of a business". Strategic management tries to bring together qualitative and qualitative information. Intuition rests on:
Intuitions help in decision making where:
Little or no precedence exists
A choice from various possible alternatives is needed
Highly interrelated variables exist
Albert Einstein said "Imagination is more important than knowledge, because knowledge is limited, whereas imagination embraces the entire world."
2.6 Internal Strengths and Weaknesses/Internal assessments
Internal weaknesses and strengths are a company's manageable actions that are performed particularly inadequately or well. Recognizing and further assessing company's strengths and weaknesses in the practical areas of an industry is a vital strategic-management action. Companies endeavor to follow strategies that exploits on internal strengths and progress on internal weaknesses. Superiority or relative deficiency is significant information. Also, strengths and weaknesses can be defined by rudiments of being rather than performance. As an example, strength may engage possession of natural resources or an notable repute for quality. Strengths and weaknesses may be determined relative to a organization's own objectives. As an example, high levels of inventory earnings may not be strength to a organization that requests never to stock-out.
2.7 Benefits of Strategic management
The effective utilization of strategic management leads to various benefits as it initiates and influences various actions, appears to be proactive factor in shaping the organization's future and devise better strategies. These strategies are logical, systematic, and acquire rational approach.
2.7.1 Financial Benefits
Research indicates that companies utilizing strategic management perceptions are more successful and profitable in comparison with the companies not exercising strategic management. Businesses utilizing strategic management themes demonstrate major development in sales, productivity, and profitability as compared to companies devoid of systematic planning activities. High-performing companies lean to do methodical planning to set up for future fluctuations in their internal environments and external environments. Organizations with planning systems extra closely resembling strategic management premise usually exhibit finer long-term financial outcomes. High performing organizations appear to create additional informed conclusions with good anticipation of both short term and long term consequences. On the other hand, organizations that execute scantily frequently connect in activities that are limited and do not reproduce fine forecasting of potential conditions. Strategists of low performing companies are normally inattentive with solving internal troubles and meeting paperwork time limits. They usually undervalue their competitors' strengths and miscalculate their own company's strengths. They normally attribute feeble performance to unmanageable features such as technological change, poor economy or foreign competition.
2.7.2 Non- financial Benefits
In addition to offering various financial benefits, strategic management presents additional non-financial (tangible) benefits, such as an improved awareness of external threats, an enhanced accepting of strategies being implemented by competitors, augmented employee output, abridged confrontation to transforms, and a clearer comprehension of performance-reward associations. Strategic management augments the trouble-prevention potentials of companies since it encourages interaction amongst manager's at all functional and divisional levels. Communication can facilitate organizations to turn on their employees and managers by fostering them, sharing objectives with them, authorizing them to assist in advancement of the service or product, and appreciating their assistance. Additionally to empowering employees and managers, strategic management normally brings discipline and order to the organizational setup. It can be the foundation of an effective and efficient managerial system. Strategic management may renovate buoyancy in the present business strategy or summit to the want for remedial actions. The strategic management progression presents a foundation for rationalizing and identifying the requirement for change to all employees and managers of an organization; it assists them view transformations as an opportunity instead of rating them as threat.
2.8 The Industry Business Cycle
Industries respond in dissimilar ways to the business cycle fluctuations of the economy (Berman and Pfleeger, 1997). Several industries are extremely vulnerable to economic dangles, while others are comparatively impervious to them. For those industries that are illustrated as cyclical, the timing and degree of these fluctuations differs broadly. The industries that faces only modest increases through expansionary phases may also undergo only gently during reductions and those that recover greatest from downturns may also sense the impact of a recession earlier and more strappingly than other industries. Churchill and Lewis (1984) examined how over thousand small organizations adapted to a recession. Medoff and Fay (1985), through a little survey of one sixty eight plant managers, scrutinized the labor alteration of organizations in downturns and noted that organizations maintained more workers than were instantly required. Aaker and Mascarenhas (1989) summarized that organizations do certainly regulate their strategies methodically over cycle stages, and managers ought to sustain flexibility with respect to the strategy options exhibiting varying associations with productivity over the cycle, and utilize their leading, contemporaneous, or lagging effects.
2.9 Strategy Evaluation
Companies are mainly vulnerable when they are at the climax of their success. R.T. Lenz "Strategy evaluation alerts management to potential or actual problems in a timely fashion."
Systematic Review, Evaluation & Control:
1. Strategies turn out to be archaic
2. Internal environments are vibrant
3. External environments are vibrant
2.9.1 Michael Porter's five forces
Michael Porter's 1979 framework utilizes perceptions developed in Industrial Organization (IO) economics to derive five forces that institutes the magnetism of a market. Porter referred to these forces as the microenvironment, to distinct it with the additionally general term macro environment. They comprises of those forces close to an organization that influence its capability to deal with its customers and generate profit. A modification in any of the forces usually needs an organization to re-examine the marketplace. Five Forces the negotiating power of customers, and suppliers, the threat of fresh competitors, and the threat of substitute products and services unite with additional variables to affect a 5th force, the intensity of competition in an industry. A number of persons argue that a 6th force ought to be included to Porter's list to embrace a diversity of stakeholder clusters from the task environment. This force is described as "Relative Power of other Stakeholders". Governments, Creditors, Local Communities, Shareholders are examples of these stake holders.
Chapter 3: Research Methodology
This dissertation was conducted in order to determine the importance of strategic management in an organization with special emphasis on Hotel Industry. The focus of the assessment is to analyze the effects of effective strategic management and answer the research questions as laid down in Chapter 1. In order to gather the essential data, the researcher used the both qualitative and quantitative approaches. The survey and interview methods were the two research instruments used for the data-gathering. The data gathered from the survey was then processed and analyzed which was later compared to the Likert scale for data interpretation. For better understanding the effects of strategic management, a case study of Hotel Crown Plaza Heathrow has also been conducted in this research.
The techniques used in this study are there to analyze the data presented in the research. The research conception, methods applied to the research and rationalization of the research methodology applied are discussed within the presented chapter. Various approaches such as quantitative, qualitative, and Likert scale approach are explained in the following chapters with their respective limitations and advantages. The chapter also sheds light on the most appropriate data collection methods for the current research. The data collection procedures utilised the primary and secondary research are also reviewed in this chapter.
There are two main methods of research: qualitative and quantitative. Though both of the methods have their own significance, the researcher used exploratory quantitative research design for this study because a survey methodology to gather data from a large population is easily quantifiable, and the use of the Likert-type scale is familiar and a previously tested type of instrument (Neuman, 2003).
Research questions dictate the selection of methods. The consistency between research questions and research design is the standard criterion for high quality studies (Newman, Ridenour, Newman, & DeMarco, 2003).
3.2 Research Methodology
Research methodology pertains to estimating historical data from the preceding researches, articles, books and other sources as well as carrying on a personal research in order provide views that can increase human knowledge regarding a specific topic. The main objective behind the research is to enhance the knowledge of the readers within a specific area and present convincing facts in any discipline.
Research methodology depends upon deducing from the researches that had taken place previously and justification of the details of those studies. It also takes into account the analysis and examination of a specific part of a discipline to provide a new and fresh viewpoint (Kumar 2002).
It is not possible to have an effective research by only interpreting and collecting the data. The data should always be backed by conclusion from other available researches. The means through which the data is composed, evaluated and the form in which the results are presented should be such that the research is termed effective. Processes through which people try to determine unknown and discover new ideas is termed to as research. The methodology in a research describes the methods through which data is composed, interpreted and analysed to form a conclusion in a particular area of study (Goddard and Melville 2004)
3.3 Quantitative Approach
The quantitative methods of the positivist paradigm are usually applied to researches done in medical sciences to evaluate the connection among different variables related to human health, infections and diseases (Ulin, Robinson and Tolley 2004).
The quantitative approach interprets and lays down results by applying numerical data and making use of the data associated with measurements. This approach is based on statistical and numerical data. A variety of statistical techniques are applied to the numerical data acquired from research subjects and other sources. Quantitative approach is applied to various scientific areas for example psychology, for the purpose of testing research hypotheses after assessment of data obtained from different sources. The similarity and disparity present in the statistical and numerical data are demonstrated through the research that is based on this approach. The researcher cannot tamper with the components and data of the research. In case another research is conducted using similar mathematical and statistical methods and same data, it should produce the same results.
The data, whose statistical analysis is composed through research in the quantitative approach, is carried out by using measures of central tendency or averages. The capable relationship of the collected data in a population is tested by applying statistical processes such as regression and correlation (McNabb 2002).
3.3.1 Advantages and Limitations
Research that has quantitative approach has various limitations and advantages at the same time. The amount of time taken for collecting, evaluating and presenting data of numerical nature is very minimal and in case changes in the variable occur, it can easily be identified and measured. As numerical data is quite objective and easy to understand than subjective data therefore the objectivity of the quantitative approach helps the users of the research and researchers themselves in evaluating variables and evaluating results. The limitations of this approach includes the over simplicity and its incapability to provide desired results. In real life, it becomes difficult to apply quantitative approach to common situations. Moreover the data used in this approach has to be objective as the statistical techniques would not have been proved useful when applied to subjective data. The results obtained from a research using quantitative approach may only be relevant for a specific research and would be difficult to utilise in generalised conditions. The specific variables of a situation are focussed in this approach and some other important variables may be ignored (French, Reynolds and Swain 2001).
3.4 Qualitative Approach to Research
The qualitative approach establishes a new hypothesis instead of testing the previously presented hypothesis. This is contrary to what happens in quantitative approach. The strength, concentration and richness of an occurrence or problem are tested by the qualitative approach by analysing behaviour patterns and life experiences. The approach is mostly applied to research studies that involve finance, social sciences, behavioural studies and economics. The quantitative approach puts emphasis on data and interpretation of data presented in a research whereas the qualitative approach stresses the abilities of the researcher and the interaction that takes place between the participants and the researcher. This approach presents the view point that the knowledge, abilities, personal beliefs and perception of the researcher play a very vital role in the outcome of the research.
Researches performed in areas of finance, economics, social sciences and other areas of study where numerical and statistical data is not available and quantitative approach to research cannot be applied, the qualitative research approach is applied (Burns and Grove 2004).
3.4.1 Advantages and Limitations
The qualitative approach also has advantages and limitations just like the quantitative approach. This approach has a major advantage of being flexible which allows it to be moulded according the changing scenarios and situations. The deep involvement of the researcher in the entire process makes this research much more useful than the quantitative approach reason being that this approach uses more open ended questions in the interviews and questionnaire. The participants of the research offer creative and descriptive answers that are more useful for the research process. When the researcher and the participant's knowledge come together, it helps in drawing valid and logical conclusions.
The open ended questions and interviews work as a rich source of knowledge and information. The main limitation of this approach is the biasness of the researcher and the participants in the area of research. The emphasis on subjectivity and limited scope is another disadvantage of this approach as it is possible that if the same sample is used for another research in the same area, it might produce different results.
The amount of time spent on qualitative approach is quite higher than quantitative approach while analysis and evaluation of the data in this approach is also complicated (Harrison 2001).
3.5 Case Study Approach to Research
In this research, Case study approach has also been utilized in order to understand the importance of strategic management in success of Hotel business. The case approach to do research is based on the qualitative approach to research in the interpretive paradigm. This perspective focuses on the study of a particular entity, phenomenon and event. This research carried with this approach sheds light on the specific area of research rather than evaluating other components and factors. The reason why case study approach is also known as the exploratory approach is because it deeply investigates the research area and the problems related with it. The researcher is provided with a situation or case similar to the one being researched to help in identifying data and help determine the causes and effects of the variables prevalent in the current research (Jupp 2006).
The researcher can effectively identify the variables and elements of the case in this approach and carry out an analysis to determine the cause and effect relationships and arrive at a logical conclusion at the end of the research process (George and Bennett 2005).
Under this approach, the research carried out is based on factual information and actual data rather than speculation. Factual information is obtained from the participants involved in the research or the company to which the participants belong. Factual information analysis helps the researcher in evaluating the trends and patterns in the current research.
The researcher would not be able to reach a suitable conclusion or make any recommendations regarding the research based on speculation and assumptions in the absence of appropriate facts (McNabb 2004).
3.5.1 Advantages and Disadvantages
There are different advantages and disadvantages of the case study approaches like the research approaches. A more detailed and comprehensive analysis of the scenario is provided by this approach. The varying point of views provided on the single case enhances the cause and effect relationship of variables. The researcher is able to provide a true and clear picture of the case due to the methods in the case study that enables the researcher in recognising the basics of a case. The main limitation of this approach is its inability to generalise from a specific case. The researcher might use ways for the purpose of arriving at the normal conclusion.
The data collected in a case study may be prejudiced due to various reasons including the biasness of researcher, participants or the sources used in the research may be biased. Another disadvantage of the case study approach is the degree of objectivity and subjectivity in the research (Duff 2007).
3.6 Deductive Method
One of the methods n the quantitative approach is the deductive method which is the process of arriving at conclusions by narrowing down the research process by the end of the research. In the deductive method, for the purpose of deriving a conclusion, a researcher starts with various principles and logical rules.
If the principles the researcher starts with are correct then the conclusions of the research are also correct. The researcher starts from general premises and principles of logic and ultimately arrives at a specific conclusion after deducting these premises or principles (Mitra and Bokil 2008).
The deductive approach is based on establishing research hypothesis based on previous researches rather than establishing new hypothesis. This approach is also known as top down approach and travels from a generalised pattern to a more specific pattern for the purpose of deriving conclusion.
It is important to note that this method accepts or rejects a previously established hypothesis instead of devising a new hypothesis (Belkaoui 2004).
3.7 Inductive Method
The inductive method pertains to formulation of a particular hypothesis about something that was previously unknown. For the purpose of arriving at generalised conclusions in an inductive approach, a particular research area is selected and various assumptions, facts or principles are implemented onto the research. Researches based on the inductive method should offer a clear step by step flow of research and give details of the components of the research to avoid ambiguity (Goldbort 2006).
Within an Inductive approach, a new hypotheses and principles are established instead of establishing the formerly established research hypothesis. Inductive approach is a reliable method of research in the area where facts are unknown or have been interpreted inappropriately.
The area of research or study that needs to be assessed is chosen first and additional research is carried out by including data from various sources such as journals, books, previous researches and other sources. The inductive approach is very helpful in researches where the researcher has a lower level of knowledge about a specific research area (Garmo 2009).
3.8 Primary Data
Primary data is the data that has been collected with the aim of evaluation that is related to the current research and that has no past existence. Data collected through primary research has many advantages over the other sources of data available.
The main reason why the current research is most relevant is because primary data is carried out for the current research. The amount of time spent on the primary data collection is the main limitation of the primary data. Another limitation related to primary research is the cost incurred by the researcher for the purpose of carrying out the research. The cost can be due to getting an effective questionnaire designed, transportation travelling expenses, fax expenses, telephone expenses and other costs relevant to the collection of primary data in the research (Tull and Hawkins 1993).
3.8.1 Primary Data Collection Methods
There are many data collection techniques and methods available that can be implemented during a research. The two main elements of the survey research techniques are questionnaires and interviews.
The method of observation pertains to observation made by the researcher in making a cause and effect relationship among variables. Focus group discussions are one of the most commonly used means for collecting data using personal observation (Shank 2004). Observations are basically based on focus group discussions for the aim of collecting primary data.
3.9 Secondary Data
The data acquired from secondary sources is very important in forming the base for the primary research to be carried out. Cost and time effectiveness are the biggest advantages of the secondary sources which attracts the users to use these sources. The limitations of secondary sources entails to reliability of the source and difficulty in finding recent and relevant data.
The secondary data is collected from articles, books, journals, reports and other reliable sources. Moreover other sources such as public libraries, Universities and government sources can also be used for the collection of secondary sources. These sources have extensive data available on different research areas. Data can also be collected from directories and catalogues available in libraries or internet (Reid and Bojanic 2009).
3.10 Proposed Research Strategy
The researcher needs to opt from a particular research strategy and execute a specific methodology out of the several methodologies accessible for the research to be successful.
The present research has been carried out by implementing quantitative approach to analyse the relationship between strategic management and success of an organisation. The qualitative approach has been applied on both the secondary and primary sources. Likert scale approach has been applied.
A Likert scale involves a series of declarative statements. The person is asked to point out whether he agrees or disagrees with the each statement provided. Commonly five options are provided such as "strongly agree," "agree," "undecided," "disagree," and "strongly disagree."
The Likert scale requires the individuals to make their own decision according to their level of agreement. The number beside each reply becomes value of that reply. This is the reason why they are also called 'summated scales' (Bucci 2003). Most of the reasearchers use this format for assessing participants' opinion of usability'.
As far as the questionnaire is concerned the questionnaire were sent to different senior managers and middle level managers of different Hotels. About 50 questionnaires were mailed because the sample size for this study was about 50 members of an organisation. However, out of 50 questionnaires only 21 individuals responded back. However, the results and analysis in the later chapters are evaluated through both primary and secondary data analysis.
3.11 Limitations of the research
The proposed research methodology has various limitations due to different issues in the methodology as well as the application of it in the current research. The limitations of the current research with respect to the research strategy and its application are described below as the findings and conclusions of this report rely heavily on the proposed research strategy. The various limitations of this research include biasness of the researcher and respondents, accuracy and reliability of secondary sources, time and cost constraints.
3.12 Validity of the research
Validity is concerned with whether the findings are really about what they appear to be about. The information collected from the above mentioned and discussed sources will be have a validity reason being that they will be gathered from the genuine sources such as the websites and details taken from the individuals. Therefore it will be the information at its purest form and will 100% validity.