New approach to strategic management of tourism enterprises: challenges and perspectives

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New approach to strategic management of tourism enterprises: challenges and perspectives

T. Kulinich T. Kulinich, PhD in Economics, Associate Professor of the Department of Management of Organizations, Lviv Polytechnic National University , V Papp V Papp, Doctor of Economic Sciences, Professor, Professor of the Department of Management, Management of Economic Processes and Tourism, Mukachevo State University , Y. Tymchyna Y. Tymchyna, Postgraduate student of the Department ofManagement of Organizations, Lviv Polytechnic National University

Abstract

Consequently, it shapes a qualitatively new approach to strategic planning. In particular, the nature of changes is multifaceted, as it affects both the process of assessing the external environment and formulating organizational goals, as well as decision-making techniques regarding the creation and maintenance of competitive advantages, ensuring profitability in the long term, and so forth.

The purpose of the article is to determine the content of the new approach to the strategic management of tourism enterprises emerging in the context of saturation of management processes with electronic and digital devices, tools, and systems, as well as to identify the challenges and prospects it creates. Within the research, it has been demonstrated that the high saturation of management processes with information technologies leads to their transition towards the practice of flexible strategic planning.

As a result of the research, it has been proven that strategic integration and the application of a new approach to strategic management create the following prospects for a tourism enterprise: a flexible and adaptive view of the process of resource preparation and allocation, efforts, and actions to achieve vision and mission, a focus on enhancing competitive advantages as a continuous process, increasing the speed of strategy implementation, reducing operational risks, increasing employee engagement, and enhancing customer support. It is because the Agile Manifesto, along with its principles of flexible development, are effective for constructing the development process of any product, project, or plan. It has been demonstrated that the application of Agile Manifesto principles entails embracing the core ideas of flexible development, which can pose numerous challenges for a tourism enterprise in adopting a new approach to strategic management. Among these challenges, the most significant is the likelihood of constant evolution of strategy, as it may give rise to the problem of unattainability of the final strategic iteration.

Keywords: strategy; flexible methodologies; strategic foresight; coordination; multifunctional project teams.

Анотація

Новий підхід до стратегічного управління туристичним підприємством: виклики та перспективи

Т. В. Кулініч,

к. е. н., доцент кафедри менеджменту організацій, Національний університет "Львівська політехніка"

В. В. Папп,

д. е. н., професор, професор кафедри менеджменту, управління економічними процесами та туризму, Мукачівський державний університет

Ю. А. Тимчина,

аспірант кафедри менеджменту організацій, Національний університет «Львівська політехніка»

Значне використання електронно-цифрових пристроїв, цифрових засобів та систем у керуванні туристичним підприємством призводить до зміни технологічного ландшафту і методології розробки стратегічного плану та формує якісно новий підхід до стратегічного управління. Зокрема, характер таких змін багатоаспектний, оскільки вони зачіпають сам процес оцінки зовнішнього середовища та формулювання організаційних цілей, а також техніку ухвалення рішень зі створення і утримання конкурентних переваг, забезпечення прибутковості діяльності в довгостроковій перспективі та інші аспекти. Відповідно до вищенаведеного, метою статті є визначення змісту нового підходу до стратегічного управління туристичним підприємством, який формується в умовах насичення процесів управління електронно-цифровими пристроями, засобами та системами, а також ідентифікація викликів та перспектив, які він створює. У межах дослідження доведено, що висока насиченість процесів управління інформаційними технологіями призводить до їх переходу на практику гнучкої розробки стратегічних планів (що розвинулася у межах принципів та ідей Agile Manifesto). В результаті дослідження доведено, що стратегічна інтеграція та застосування нового підходу до стратегічного управління формує для туристичного підприємства наступні перспективи: гнучкий та адаптивний погляд на процес підготовки та розподілу ресурсів, зусиль та дій для досягнення бачення та місії; погляд на посилення конкурентних переваг, як на безперервний процес; збільшення швидкості впровадження стратегій; зниження ризиків діяльності; підвищення залучення персоналу; збільшення підтримки клієнтів. Чисельні перспективи сформовані тим, принципи гнучкої розробки, які містить Agile Manifesto, є ефективними для будь-якого процесу розробки продукту, проєкту або плану. Доведено, що застосування принципів Agile Manifesto вимагає прийняття основних ідей гнучкої розробки, що може сформувати численні виклики для туристичного підприємства при впровадженні нового підходу до стратегічного управління. Серед цих викликів найбільш вагомим є імовірність постійної еволюції стратегії (оскільки що може сформувати проблему недосяжності фінальної стратегічної ітерації).

Introduction

Target setting. The relevance of the research is determined by the fact that the saturation of management processes in tourism enterprises with electronic and digital devices, digital tools, and systems collectively results in a shift in its technological landscape, the methodology of strategic plan development, and shapes to it a qualitatively new approach. Specifically, the nature of changes is multifaceted, as it affects both the process of assessing the external environment and formulating organizational goals, as well as decision-making techniques regarding the creation and sustenance of competitive advantages, ensuring long-term profitability, and so forth. The strategic management of a tourism enterprise has ceased to be static. It increasingly relies on iterative development. Iterative development shifts the focus to dynamic and evolving requirements and action plans, utilizing: tourism hotel business management digital

1. Access by multifunctional project teams to extensive data on the external environment;

2. Formulation of specific, measurable, and achievable goals;

3. Continuous analysis of competitive advantages;

4. Continuous optimization of costs, efficiency adjustments, and customer attraction efforts.

However, despite the prospects digital technologies offer in advancing the practice of strategic management for tourism enterprises, they also present a series of challenges. Without overcoming these challenges, it will be difficult for a tourism enterprise to adapt to the fast-paced market environment and achieve success in the highly competitive tourism industry.

Analysis of research and publications. The development and practice of managing tourism enterprises are subjects of active scientific research, and the scientific community has already made a significant contribution to studying this issue. The outlined issues are adequately addressed by leading researchers such as Voloshyna-Siidei V., Yevsieieva O., Maslyhan O., Syrtseva S., Nesterenko O., Harkusha S., Savitska O.P., Shapoval V.M., Gerasymenko T.V., Shpak M.V., and others. It is worth noting that the listed scholars are renowned experts in the field of tourism and strategic management. However, they have made a significant contribution to the development of theory and classical practice in managing tourism enterprises. Naturally, existing publications do not address the changes occurring in the field of strategic management with significant saturation of electronic-digital devices, digital tools, and systems. Therefore, to study and understand these changes, it is necessary to integrate the existing views of leading scholars on enterprise management in tourism with an analysis of the impact of digital technologies on this sector. Research in the field of digital innovations in tourism can help understand the specific changes occurring in this industry, the perspectives they offer for the strategic development of tourism enterprises, and the challenges they create.

The wording of the purposes of article (problem). The purpose of the article is to determine the content of the new approach to the strategic management of tourism enterprises emerging in the context of saturation of management processes with electronic and digital devices, tools, and systems, as well as to identify the challenges and prospects it creates.

The paper main body with full reasoning of academic results

Recent research in the digital innovations field in tourism [3] points out that the high prevalence of information technology management processes leads to their transition to the agile development practice of strategic plans.

Such flexible planning has effectively become the foundation gradually shaping a qualitatively new approach to strategic management in tourism enterprises through the formation of flexible methodologies, including:

1. Strategic foresight, within which there is the establishment of dynamic goals and the creation of flexible action programs to achieve them.

2. Organization, within which there is the project organizational structure construction, ensuring flexible distribution of authority and responsibilities (operating within short cycles), continuous analysis of professional qualities and personnel selection, and flexible staff training.

3. Execution, within which there is the implementation of flexible plans.

4. Coordination, within which there is ongoing alignment of action plans of all departments and their self-adjustment for dynamic development goals.

5. Control, within which there is continuous evaluation of the execution of flexible plans, identification of errors, and their correction.

The application of the outlined methodologies forms the fundamental principles of a new approach to the strategic management of tourism enterprises by the provisions laid out in Figure 1.

In particular, the flexible methodologies of strategic management we have identified for tourism enterprises create opportunities to minimize most long-term operational risks through flexible management functions aimed at consolidating the processes of developing a strategic plan into a series of short cycles called strategic iterations, the duration of which one or two weeks.

The application of the outlined methodologies forms the foundational principles of a new approach to strategic management for tourism enterprises, characterized by the strategic iterative and incremental development of strategic plans based on the principles of the Agile Manifesto. Thus, the core of strategic management is a cyclical process.

Figure 1. The concept of a new approach to strategic management of tourism enterprises

Note

1. Setting dynamic goals and creating flexible action programs allow enterprises to adapt to market changes and effectively respond to changes.

2. Building a project organizational structure and flexible distribution of responsibilities help enterprises create adaptive and efficient teams that can quickly react to changes in the internal and external environments.

3. Implementing flexible plans enables enterprises to effectively achieve their strategic goals and quickly adapt to market changes.

4. Ongoing alignment of action plans of all departments and self-adjustment of employees' subunits to achieve dynamic goals allow enterprises to be more flexible and effective amidst changes.

5. Continuous monitoring of the execution of flexible plans and real-time error detection allows enterprises to respond to deviations from strategic goals and adjust actions.

Source: formed based on [1; 4-5]

In this regard, each planned strategic initiative itself appears as a miniature programmed product and includes strategic tasks necessary to provide minimal functionality growth:

1. Prediction (including requirements analysis).

2. Organization and execution (aimed at designing long-term actions).

3. Coordination and control (including coding, testing, and documenting longterm actions).

A single strategic iteration typically does not encompass a complete strategic plan for a tourism enterprise. However, the strategic planning process commences with initial planning and concludes with the implementation of the finalized plan through cyclical interactions, representing stages of planning. The formation of a strategic plan involves the implementation of the following stages:

Stage 1: First strategic iteration - a ready-to-implement initial strategic plan (which may contain the main directions of its development for a period, for example, the next 3-5 years).

Stage 2: Intermediate strategic iterations - refined variations of the strategic plan. During this stage, the tourism enterprise can experiment with different strategic development options (specific actions) and refine its plan based on the experience gained and new insights (each strategic iteration contributes to the gradual improvement of the initial strategic plan).

Stage 3: Final strategic iteration - a ready-to-implement strategic plan. At this stage, the tourism enterprise possesses a ready-to-implement strategic plan that incorporates all nuances and requirements identified during the preceding iterations.

So, the process of using strategic iterations within the new approach to the strategic management of tourism enterprises entails their variability from the first to the last, as illustrated in Figure 2.

Figure 2. The process of employing strategic iterations in the new strategic management approach for tourism enterprises

Note

1. It allows for quicker response to market needs and implementation of strategic decisions.

2. It provides the opportunity for the enterprise to gradually refine its strategic plan, enhancing the effectiveness of strategic planning.

3. It creates the foundation for successful strategy implementation and achievement of set goals.

Source: formed based on [1; 4-5]

At each strategic iteration, a certain level of effectiveness in strategy implementation is attained. The unified management process, employing strategic iterations, divides the strategic management process into phases including initiation, creation of the initial plan, adjustment, and transition to a more effective plan variation.

The unified management process comprises phases with flexible management functions, as outlined by Fayol. Each phase is further divided into one or more strategic iterations, typically time-bound and partially effective. Based on the provided information, it is evident that the new approach to strategic management in tourism enterprises effectively integrates the principles of the Agile Manifesto into practice (see Figure 3).

Figure 3. The peculiarities arising in the practice of strategic management for a tourism enterprise when integrating Agile Manifesto principles

Source: formed based on [1; 2; 5-6]

We're talking about principles developed and adopted by 17 developers on February 11-13, 2001, at The Lodge at Snowbird ski resort in the mountains of Utah (signed by representatives of the following methodologies: Extreme Programming, Scrum, DSDM, Adaptive Software Development, Crystal Clear, Feature-Driven Development, Pragmatic Programming).

Among the principles of the Agile Manifesto that emerge in strategic management is a focus on a working strategic plan (as the best measure and progress trigger), supported by:

1. Improving the technical excellence of the strategic plan.

2. Simplicity (the art of avoiding unnecessary work and actions).

3. Continuous adaptation of management methodologies to changing circumstances.

4. Customer satisfaction through early and continuous adaptation of enterprise products and services to customer needs.

5. Daily communication between enterprise management and customers during the planning period.

Both the Agile Manifesto and the principles of agile development formed within it are effective tenets for constructing the development process of any product, project, or plan.

Therefore, the Agile Manifesto is ideally effective when developing a strategic plan

Strategic integration and the application of a new approach to strategic management offer the following perspectives for a tourism enterprise:

1. A more flexible and adaptive approach to resource allocation, efforts, and actions to achieve the vision and mission. In particular, after each strategic iteration, each team re-evaluates development priorities. Instead of a static planning process (which can quickly become outdated in a fast-paced market [4]), tourism enterprises can develop dynamic iterative planning processes that quickly respond to even minor market changes.

2. Viewing the strengthening of competitive advantages as an ongoing process. The application of strategic iteration enables tourism enterprises to more efficiently utilize their resources, respond more quickly to market changes, and more accurately anticipate and meet customer needs.

3. Accelerating the implementation of strategies. The approach based on strategic iteration allows enterprises to implement new strategies and initiatives more quickly, as they are developed and tested over short cycles.

4. Risk mitigation. Each strategy iteration allows the tourism enterprise to assess the effectiveness and correct errors made during the execution of each management function at early stages, helping to reduce risks and increase chances of success.

5. Increased employee engagement. Implementing agile strategic iteration can stimulate greater participation and interest from personnel in the strategic planning and implementation process.

6. Customer support increased. Quick response to changes in customer demands and the market allows tourism enterprises focusing on the Agile Manifesto (which emphasizes direct face-to-face communication with clients [4]) to retain and strengthen their customer base, creating more personalized and convenient services.

Table 1. Characterization of the key principles of agile Manifesto development integrated into the new approach to strategic management of tourism

Source: formed based on [1-3; 5]

Noted that the application of Agile Manifesto principles involves embracing the core ideas of agile development, including the following (see Table 1):

1. The personality of the tourism enterprise's strategy and its continuous evolution are more important than individual management processes and tools.

2. The working strategy is more important than its complete documentary support in planning (as documents specify what needs to be done to achieve strategic success but do not necessarily indicate how to do it most efficiently).

3. Reacting to market changes and focusing on customer needs are more important than adhering strictly to the strategic plan.

Therefore, in addition to the prospects, a new approach to the strategic management of a tourist enterprise can create numerous challenges. Among such challenges:

1. The likelihood of continuous evolution of the strategy. The necessity for constant evolution of the strategy may create uncertainty regarding the chosen direction of development and pose difficulties in defining stable and clear strategic objectives, etc.

2. The necessity of effective communication and collaboration. The implementation of flexible methodologies in strategic planning entails active communication and collaboration among all participants in the process. This can be a challenge for an enterprise with a complex organizational structure or where interdepartmental coordination is not high.

3. Complex change and risk management. Continuous market adaptation may demand rapid and effective change and risk management. The enterprise may encounter difficulties in determining development priorities and key management tasks. Additionally, there may be challenges in consistently allocating resources to respond to changes.

4. Instability in planning processes. Applying the core principles of flexible development can present challenges in ensuring the stability and reliability of planning processes, as the emphasis is placed on speed and flexibility. Tourism enterprise management must consider that rapid changes do not guarantee the quality and safety of their products and services.

5. The fostering of a culture of change and learning needs. The focus on continuous evolution and response to changes requires a developed culture of change, meaning the establishment of an open, confident, and change- supportive work environment where employees are receptive to new ideas and ready to implement new ways of working. If the values, beliefs, norms, approaches, and practices set that contribute to active support and acceptance of change within the organization are not adequately formed, the enterprise may encounter resistance to change among its personnel and the need for systematic training and support at each strategic iteration.

Taking these challenges into account and implementing a strategic approach based on the principles of the Agile Manifesto can help tourism enterprises effectively leverage the advantages of flexibility and adaptability to achieve strategic goals. Noted that among the challenges outlined by us, the most significant one in applying a new approach to the strategic management of a tourism enterprise is the likelihood of continuous strategy evolution (as it may pose a problem of the unattainability of the final strategic iteration).

Conclusions from this study and prospects for further exploration in this area

Within the research, it has been proven that a high intensity of information technology management processes leads to their transition into the practice of flexible strategic planning development. In this context, the following conclusions have been drawn:

1. Flexible planning serves as a foundation for gradually shaping a qualitatively new approach to strategic management in tourism enterprises through the formation of flexible methodologies in: strategic foresight (involves setting dynamic goals and creating flexible action programs to achieve them); organization (involves building a project-oriented organizational structure, ensuring flexible distribution of responsibilities and duties, continuous analysis of professional qualities and personnel selection, and flexible staff training); coordination (involves ongoing alignment of action plans of all departments and their adaptation to dynamic development goals); control (involves continuous evaluation of the execution of flexible plans, error detection, and correction). The application of these outlined methodologies forms the basic principles of a new approach to strategic management in tourism enterprises, characterized by the strategic iterative and incremental development of a strategic plan based on the principles of the Agile Manifesto.

2. Strategic integration and the application of a new approach to strategic management form the following perspectives for a tourism enterprise: a more flexible and adaptive view of the process of preparing and allocating resources, efforts, and actions to achieve vision and mission, a focus on enhancing competitive advantages as a continuous process, increased speed in implementing strategies, reduction of operational risks, enhanced employee engagement, increased customer support. This is because the Agile Manifesto and the principles of flexible development outlined within it are effective for structuring the development process of any product, project, or plan.

3. It should be noted that the application of the principles of the Agile Manifesto entails embracing the core ideas of flexible development, which can create numerous challenges for a tourism enterprise in adopting a new approach to strategic management. Among these challenges, the most significant is the likelihood of continuous strategy evolution, as it may pose a problem of unattainability of the final strategic iteration.

Future research perspectives lie in uncovering the content of flexible methodologies that form the basis of a qualitatively new approach to strategic management in tourism enterprises.

Література

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2. Карій О.І. Лемішовська О.С., Воськало Н.М. Обліково-аналітичний інструментарій в управлінні ризиками і забезпеченнями капіталу комерційного підприємства. Причорноморські економічні студії. 2021. Вип. 65. С. 104-111.

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References

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