BML209 - COMPETITIVE ADVANTAGE IN THE CONTEMPORARY SERVICE ENVIRONMENT

Course Outline and Assessment

SEMAL Dr Andrew Clegg

Competitive Advantage in the Contemporary Service Environment

BML209: Competitive Advantage in the Contemporary Service Environment

Competitive Advantage in the Contemporary Service Environment

Competitive Advantage in the Contemporary Service Environment

Introduction

The aim of this module is to examine the importance of competitive strategy in securing a position of competitive advantage in the contemporary service environment. The module is designed to introduce students to basic management principles and contextualise approaches to competitive strategy and competitive advantage by examining indicative sectors across the service environment, such as tourism, events, retail, and hospitality. The module will also look at how competitive advantage is influenced by key issues such as entrepreneurship, particularly in relation to micro-business and SMEs, and how wider forces of globalisation are impacting on business strategy.

Learning Outcomes

Knowledge and Understanding: On successful completion of this module students will be able to: 





 

Learning Strategy

Define and explain the concepts of strategy and competitive advantage, and understand the need for strategic management within the service sector Evaluate the influence of internal and external influences on the management function, competitive strategy and competitive advantage Critically evaluate business and entrepreneurial approaches to developing competitive strategy and competitive advantage Communicate effectively in written form Demonstrate research skills and interpret, evaluate and synthesise material

The key themes will be introduced around a lecture programme, augmented with the use of videos, in-class activities and group discussion to address the conceptual and applied aspects of the management process, competitive strategy and competitive advantage. To facilitate an understanding of these areas guest speakers draw from businesses across the local service sector will also form an important part of the module to highlight aspects of entrepreneurial activity amongst micros and SMEs, and the types of motivational and attitudinal factors influencing the management process, the adoption of competitive strategy and business competitiveness.

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Competitive Advantage in the Contemporary Service Environment

Module Content

13/9/13:

Week 1: Introduction to the Service Sector

20/9/13:

Week 2: Understanding Competitive Advantage and Competitive Strategy

27/9/13:

Week 3: Induction Week: self-directed session

4/10/13:

Week 4: Analysing the Business Environment for Competitive Advantage: External Perspectives

11/10/13:

Week 5: Analysing the Business Environment for Competitive Advantage: Internal Perspectives

18/10/13:

Week 6: Entrepreneurship and Competitive Advantage

25/10/13:

Week 7: Competitive Advantage through Technology and Innovation

1/11/13:

Week 8: READING WEEK

8/11/13:

Week 9: Globalisation, Internationalisation and Competitive Advantage

15/11/13:

Week 10: Competitive Strategy: Sector Case Studies - Presentations [1]

22/11/13:

Week 11: Fieldtrip/Guest Speakers (TBC)

29/11/13:

Week 12: Managing People for Competitive Advantage

6/12/13:

Week 13: Competitive Advantage through Business Clustering

All sessions for BML209 will be taught in Dome 1.01. The specific learning outcomes for each session are provided on a weekly basis, and can be accessed via the BML209 Moodle homepage.

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Competitive Advantage in the Contemporary Service Environment

Module Outline

Topic 1:

Introduction to the Service Sector This introductory sessions looks at the key characteristics of the service sector, and the important role of planning and management.

The session also introduces you to the concept of strategy, and the key elements within the strategy process.

Learning Outcomes • • • • • •

“Competitive strategies

are conscious policies and procedures developed by companies to ‘strategically align themselves with the turbulent environment and select appropriate strategies to create defensible competitive positions” [Tse and Olsen (1991), Strategic Management in the Hospitality Industry, Chapman and Hall, London]

To identify the structure, size and key characteristics of the service sector To consider the need for planning and management in the service sector [why, what and who?]

Identify the different scales within the planning and management process Define and explain the concept of strategy Distinguish between the different elements of the strategy process Identify the advantages of a successful strategy

Topic 2:

Understanding Competitive Advantage and Competitive Strategy Drawing on frameworks for competitive strategy developed by Porter and Poon, this session examines the definitions of competitiveness and competitive advantage, with reference to examples drawn across the service sector. This is an important session as it provides the basic outline and structure for both elements of the assessment.

Learning Outcomes • •

• •

To discuss the definition of competitiveness and competitive advantage To critically consider the strategic direction available to businesses and examine relevant frameworks and approaches for generating strategic options for businesses in the service sector To examine and utilise Porter’s (1980) generic strategy framework To evaluate alternative frameworks for examining strategy, with reference to Poon’s competitive strategy concepts

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Competitive Advantage in the Contemporary Service Environment Topic 3:

Analysing the Business Environment for Competitive Advantage: External Perspectives The aim of this session is to examine the factors in the external environment that are influence competitive strategy and competitive advantage in the service sector. Reference is made to changing framework conditions, and discussion focuses around the key elements and drivers within the PESTLE environment.

Learning Outcomes • •

•

Evaluate the impact of the external environment on competitive advantage Critically consider the influence of changing framework conditions within the external environment, in relation to the emergence of a ‘New Tourism’ and impacts on competitive advantage Distinguish between, describe and evaluate the features of the PESTLE (political, economic, socio-cultural, technological, legal and environmental) environment

Topic 4:

Analysing the Business Environment for Competitive Advantage: Internal Perspectives

“If you don’t have a

competitive advantage, don’t compete” [Jack Welch, Business Leader and CEO]

The aim of this session is to examine the factors in the internal environment that are influence competitive strategy and competitive advantage in the service sector. Key tools such as the Product Lifecycle and SWOT are considered against specific business case studies that provide the basis of an internal resource audit.

Learning Outcomes • • • • •

To understand the nature of the internal environment for competitive advantage Conduct a resource analysis within business environment Apply the Boston Group Consulting (BCG) Matrix and Product Lifecycle as tools as part of an internal resource analysis Summarise strategic analysis through the use of a SWOT report Understand the relationship between the SWOT presentation and detailed internal and external analyses

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Competitive Advantage in the Contemporary Service Environment Topic 5:

Entrepreneurship and Competitive Advantage The nature of competitive strategy is often influenced by the entrepreneurial characteristics of the individual(s) running the business - think Richard Branson or Alan Sugar. Equally, the business strategy of SMEs or micro-businesses is often influenced by lifestyle considerations that place less emphasis on profit maximisation. The aim of this session is to examine the concept of enterpreneurship, and the factors influencing the entrepreneurial process.

Learning Outcomes • • • •

Define and evaluate the concept of ‘entrepreneurship’ Examine the relationship between entrepreneurship and small business Evaluate the factors influencing the entrepreneurial process Reflect on why an understanding of entrepreneurship is critical in the context of the service sector

Topic 6:

Competitive Advantage through Technology and Innovation Innovation is an important part of competitive advantage, whether it be new product development or innovation in process, for example systems development, marketing, e-commerce, service quality, or human resource management. The aim of this session is to examine what factors influence the very nature of innovation within the service sector, with a particular reference to the adoption of new technologies.

Learning Outcomes • • • • • •

To critically examine the role of innovation and technology in creating and facilitating competitive advantage To consider why service sector and technology are so compatible To evaluate different perspectives on the innovation mix To examine how innovation and technology relate to the strategic management process and competitive advantage To identify the application of technologies in specific sectors To examine the potential barriers to innovation and technology

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Competitive Advantage in the Contemporary Service Environment

“

Topic 7:

The creation of a global society means that tourism businesses have the ability to operate globally and many have opted for a competitive strategy of internationalistion... global enterprises establish both global strategies and global market presence”

Globalisation, Internationalisation and Competitive Advantage

[Knowles, T., Diamantis, D. and ElMourhabi, J.B. (2009), The Globalisation of Tourism and Hospitality: A Strategic Perspective, Continuum, London.

Learning Outcomes

The aim of this session is to consider the ways in which processes of globalisation and internationalisation are having an impact on competitive strategy and competitive advantage. The session examines the very nature of the globalisation process, and considers strategic responses with reference to examples from the hospitality sector.

1. Define globalisation and internationalisation 2. Examine the key elements and impacts of globalisation 3. Critically consider how globalisation has impacted on competitive strategy 4. Evaluate strategic responses to globalisation within the hospitality sector

Topic 8:

Managing People for Competitive Advantage For any organisation, well-trained, motivated and empowered staff are critical to achieving sustainable competititve advantage. This session will look at the role of people, and consider the ‘human context’ in competitive strategy. A specific focus is given to ‘empowerment’ to illustrate the importance of human resource management, within the wider strategic management process.

Learning Outcomes 1. Consider the ‘human context’ in the management process and the creation of competitive advantage 2. Identify key leadership qualities and make a distinction between management and leadership 3. To define empowerment and critically consider the external and internal factors influencing the empowerment debate 4. Identify the characteristics of empowered employees, and the related costs of empowerment 5. Evaluate a case study of empowerment in action and identify mechanisms for supporting empowerment

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Competitive Advantage in the Contemporary Service Environment Topic 9:

Competitive Advantage through Business Clustering The aim of this session is to examine the role clustering can have in helping businesses to achieve competitive advantage.

Consideration is given to the concept of business clustering with reference to examples taken from the marine and leisure industries. This session will be delivered by Dr Dawn Robins, who has been leading the University’s involvement in the CAMIS Project (Channel Arc Manche Integrated Strategy) of which business clustering has become an emergent theme.

Learning Outcomes 1. Understand the concept of Clustering and the differences with networks 2. Identify different cluster formations – in relation to the maritime industry 3. Appreciate the barriers to clustering 4. Recognise the benefits of cluster activities in relation to competitive advantage in the Tourism Industry

Module Resources

Module resources are available via the BML209 homepage on Moodle. Reading lists, online publications, weblinks and statistics are also available at www.tourisminsights.info. Specific business related resources are also available online via Business Source Premium, and you are strongly encouraged to take advantage of them. You will be introduced to the resources available to you during the programme. If you run into problems please do not hesitate to ask the SEMAL Subject Librarian for help. Some indicative titles to get you started are listed overleaf. Please note that given the range of different sectors that can be covered in the module, I do not provide recommended reading lists and it is your responsbility to engage with the academic literature to find suitable case studies.

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Competitive Advantage in the Contemporary Service Environment

Indicative Reading

Here are a few titles to get you started - please make full reference to the available reading lists and online resources.

CHEVALIER-ROIGNANT, B. AND TRIGEORGIS, L. (2012), Competitive Strategy: Options and Games, MIT Press, Cambridge, USA (available via Ebrary).

DANZIGER, P. (2006), Shopping: Why we Love it and How Retailers Can Create the Ultimate Customer Experience, Dearborn Trade, USA. ESTY, D.C AND WINSTON, A.S. (2006), Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value and Build Competitive Advantage, Yale University Press, London.

EVANS, N., CAMPBELL, D. AND STONEHOUSE, G. (2002), Strategic Management for Travel and Tourism, Butterworth Heinemann, London.

GRIMM, C.M., HUN. L. AND SMITH, K. (2005), Strategy as Action – Competitive Dynamics and Competitive Advantage, Oxford University Press, Oxford.

Recommended Reading

HANTON, P. (2007), Global Airlines – Competition in a Transnational Industry, Butterworth Heinemann, London.

HUGGINS, R. AND IZUSHI, H. (2010), Competition, Competitive Advantage and Clusters: The Ideas of Michael Porter, OUP, Oxford.

LEE-ROSS, D. AND LASHLEY, C. (2009), Entrepreneurship and Small Business Management in the Hospitality Industry, Butterworth Heinemann, London.

MARCUS, A. (2010), Management Strategy – Achieving Sustained Competitive Advantage, McGraw-Hill, London.

MARGRETTA, J. (2012), Understanding Michael Porter: The Essential Guide to Competition and Strategy, Harvard Business Review Press, Boston, USA. PAGE, S. (2009), Tourism Management – Managing for Change, Third Edition, Butterworth Heinemann, London.

PETTINGER, R. (2008), Competitive Strategy For Dummies, Wiley, Chichester.

POON, A. (1993), Tourism, Technology and Competitive Strategies, CABI Publishing, Oxon.

PORTER, M. (1998), Competitive Advantage – Creating and Sustaining Superior Performance, Free Press, London.

Recommended Reading

ROBSON, K. (2012), Service-Ability: Create a Customer Centric Culture and Achieve Competitive Advantage, Wiley, Chichester (available via Ebrary).

SCHAFLER, L. (2010), Social Media and the Retail Industry – A Guide to Building a Comprehensive Strategy and Action Plan, Wiley, Chichester.

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Self-Directed Activities

As part of the 150 hours for each module, you will also be asked to complete short tasks that will form part of the next lecture session.

While not assessed, these tasks are intended to support your own learning, and to explore specific issues covered during the module.

Specific tasks will be allocated on a weekly basis. It is essential that these tasks are completed, as student feedback resulting from these tasks will feature as an important part of the programme and, in particular, the surgery sessions. They are also designed to encourage you to start reading and exploring the resources that you have to hand.

Assessment

The assessment for this module will consist of an individual presentation (30%)(1,050 word equivalent) and a research essay (70%)(2,450 words) examining aspects of competitive advantage discussed in the module.

Research Essay: The aim of the research essay (70%)(2,450 words) is to examine aspects of the strategic management process discussed in the module in relation to specific sectors within the service environment.

You should address the following essay title: With reference to examples drawn across the service environment, critically compare and contrast the ways in which different sectors have sought to create a position of competitive advantage.

Guidelines The essay is asking you to compare and contrast how different sectors within the service environment have sought to create a position of competitive advantage. Along with a detailed discussion of competitive advantage you should also seek to contextualise your examples with reference to competitive strategy frameworks discussed in the module (e.g. Porter and Poon). You need to compare approaches taken by the different sectors (e.g. the use of information technology), but also attempt to demonstrate the types of strategy that may be inherent to a specific sector. Your answer must include

reference to real world examples, and be supported by clear, accurate and consistent reference to the academic literature.

You need to be selective in your choice of examples, and provide a

succinct and coherent discussion. You must draw on a range of examples, and not merely concentrate on one specific sector.

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Competitive Advantage in the Contemporary Service Environment The assessment criteria for the research essay are: •

Content quality and relevance in terms of applying specific aspects of the management process covered in the module, to the chosen business sector

•

Clear and logical structure, including introduction, main body and conclusion

•

Quality, choice and exposition of support material and case studies accurately referenced using appropriate referencing convention

•

Effective use of tables, figures and illustrations

Individual Presentation: The aim of the presentation is to examine competitive strategy within the service sector, using the frameworks for competitive strategy discussed during the module. Students will be split into small groups and asked to look at competitive strategy in key sectors such as retail, accommodation, attractions, transport (airlines and cruises) and travel intermediaries. The presentations will provide relevant examples that can be included in the research essay.

The assessment criteria for the presentation are: •

Structure and delivery of the presentation

•

Depth, knowledge and relevance of the subject in relation to the chosen research essay

•

Ability to convey information accurately and succinctly

•

The use and quality of visual aids

•

Evidence of background reading and the quality, choice and exposition of support material

Submission Dates

Key dates for your diary:

- The presentations will take place on Friday 15th November.

- The research essay must be submitted by 1pm Friday 13th December 2013.

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Competitive Advantage in the Contemporary Service Environment Work must be submitted directly via the SEMAL admin office. Students are asked to ensure that the submission of their work is recorded and that they take away a suitable receipt for their own records. Students are also reminded that they must submit an electronic of their work and this can be done via the BML209 Moodle homepage using the Turnitin Upload facility. Please note that failing to include an electronic copy will be regarded as a non-submission! Feedback on the work will be

provided as promptly as possible after the submission date, and I will endeavour to provide feedback within three working weeks.

In the event that you fail this module (which of course is highly unlikely), the reassessment will consist of a resubmission of a 3,500 word research essay focusing on different sectors to those considered in your first submission. The same assessment criteria will apply. Please note that students that have failed in the past have done so because they have not followed by guidance or not demonstrated a sufficient level of engagement with the academic literature. Background reading is essential!

Student Support

I can be found on the top of floor of the Dome (Room 2.14) on the Bognor Regis campus. If you have any problems please do not hesitate to come and see me. While I am usually around, consultancy work does take me off campus from time to time. Therefore while you are welcome to pop in informally, please email me to make an appointment (a.clegg@ chi.ac.uk/tel: 812017) to guarantee that I am in to see you. You can also contact me via Skype or Twitter - details are available on the Moodle homepage.

Evaluation

At the end of the module, you will have the opportunity to complete an evaluation form to comment on the overall structure, content and quality of the module. If you have any immediate concerns about the quality of the module then please do not hesitate to come and talk to me directly. The module evaluation form will be hyperlinked via the BML209 homepage on Moodle. The module evaluation for 2012-2013 is available on the BML209 Moodle homepage. You can also make comments throughout the course of the module by using the comment and suggestion wall that has been embedded into the BML209 homepage.

The University’s Commitment Charter (Section C) sets out the codes of behaviour that staff and students can expect from one another. Every member of the University community is expected to uphold the Charter commitments and to help to maintain a respectful and constructive learning environment for themselves and for others.

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Student Conduct

In contact (class) time, and outside of it, the University expects you to show consideration towards other students and the staff of the University. In lectures, seminars and workshops it is your responsibility to avoid behaviour which distracts the learning process for yourself and others. Behaviours which may seem insignificant to you, such as whispering to friends, or texting during a seminar, are almost always noticed! They can have an accumulative, negative impact on the group and the tutor. Such behaviours signal lack of respect for others - even if this was not your intention.

To help illustrate these points, here are some behaviours that students and tutors have found distracting: •

Talking or whispering in lectures, outside times set aside for group discussion

•

Talking or whispering while other students are making points

•

Interrupting other students or the tutor while they are talking

•

Habitually arriving late or leaving early (without forewarning the tutor)

•

Sending and receiving texts

•

Mobile phones ringing

•

Using MP3 players

•

Playing electronic games

•

Surfing the net in class

Students whose behaviour disrupts a class persistently may be asked to leave the session. However we are sure that as adult learners you’ll use common sense and be willing to help create the best possible learning environment for everyone.

Attendance

Students are reminded that attendance at all modules is compulsory. If you miss a session, for whatever reason, you should complete and submit a student absence form to the SEMLA admin office. It is also courteous to let the module tutor know of any absence in advance or immediately after the session that was missed. This should be completed as soon as possible from the date of absence. You are reminded that persistent absence can potentially result in your deregistration from the module.

The full University regulations regarding attendance can be found in your student handbook. You are also asked to arrive punctually for your lectures. Students that are persistently late will be marked as absent.

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