Deck 2: Meeting Guest Expectations Through Planning

Question 1

Core values are not part of the mission statement.

Answer 1

False

Question 2

An excellent service strategy has three characteristics: quality, value, and service.

Answer 2

False

Question 3

Because hospitality services are largely intangible, having a strong brand image is very important in the hospitality field.

Answer 3

True

Question 4

The ability to imagine a future market opportunity that is currently unpopulated with competitors is called "Blue Ocean Strategy."

Question 5

The organization's mission statement will include, at a minimum, the following three elements: what the company does, who they do it for, and how they benefit society.

Question 6

Good plans attempt to bring rationality and stability to the organization's operations and efforts.

Question 7

Successful managers must have two skills or qualities: management ability and a service orientation.

Question 8

Although strategic planning is traditionally viewed as a management prerogative, more hospitality organizations are including their employees in planning.

Question 9

Yield management is an important capacity-planning concept for companies with non-perishable commodities.

Question 10

When evaluating an organization's core competencies, customers must first be informed about the results of previous surveys.

Question 11

If any change is forecast, an organization should reinvent itself and learn new core competencies.

Question 12

An example of finding a special niche would be to target a market by lowering the cost of the service product.

Question 13

The organization's mission statement articulates the organization's purpose.

Question 14

An excellent service strategy will emphasize providing value to guests above all; not far behind will be an emphasis on providing quality.

Question 15

Differentiation means to scrap the old strategic plan and build a different one.

Question 16

While a strong brand name is important to a business, it can be a disadvantage if it has negative associations in certain markets.

Question 17

The five key areas in which action plans should be established are Management, Sales, Capacity Utilization, Finance, and Marketing.

Question 18

A design day is used to decide which day of the year to build for when determining the design capacity of an attraction or facility.

Question 19

Generation Z is comprised of those born in the year 1997 or later.

Question 20

Some companies employing a low-price strategy still provide excellent customer service.

Question 21

The internal assessment allows the organization to identify its opportunities and threats as part of a long-term planning process.

Question 22

Today's forecasting tools are powerful enough to sufficiently replace managerial judgment.

Question 23

The organization draws conclusions about the future, uses the conclusions to make assumptions called strategic plans, and then bases its strategic premises on the strategic plans.

Question 24

According to Michael Porter, three service strategies include a lower price, a differentiated product, and finding a market niche.

Question 25

Three important factors that will influence future hospitality organizations are changing technology, the entry of Generation Y into the workforce, and changes in market segment definitions.

Question 26

Past performance is always a great measure of future performance.

Question 27

The management performance plan includes the idea that what gets managed gets measured and what gets measured gets done.

Question 28

The best of strategic plans may have to be changed, because the future is uncertain.

Question 29

Scenario planning and the Delphi technique are quantitative forecasting techniques.

Question 30

Managerial performance plans and marketing plans should be considered individually and as part of the entire strategic plan.

Question 31

The final step in the service strategy is to figure out how the service delivery system makes the service product available to the guest.

Question 32

The very plans that make a company competitive under one set of circumstances can make it uncompetitive if the management does not pay attention and react to changes in the marketplace.

Question 33

The mission statement articulates

A) the organization's market position
B) the organization's purpose and reason for existence
C) the organization's hopes for the future
D) the organization's five-year plan

Question 34

A strong brand promise

A) reduces customer uncertainty
B) encourages brand preference
C) guarantees customer loyalty
D) ensures quality service

Question 35

All action plans in the strategic planning process require funds. Therefore, a plan needs to be put in place to strategically use those funds.

Question 36

Qualitative forecasting tools use subjective information used to make projections.

Question 37

Predicting the economic impact of a new technology on the hospitality industry is a fairly simple challenge for qualified researchers.

Question 38

Some factors that will affect future hospitality organizations are predictable and simple, like estimating how many teenagers will be available for work in ten years.

Question 39

Hotel Roberto will be the highest guest rated, state-of-the-art, 5-star, boutique hotel in the Nashville area is an example of a mission statement.

Question 40

If turnover is seen as a potential issue in implementing a new service strategy, then a retention strategy to keep productive employees should also be implemented.

Question 41

Forecasting techniques are based on the idea that

A) the future is related to the past (Assessing the Environment; Quantitative Forecasting Tools)
B) the future can be predicted accurately
C) a good guess about the future is better that no guess at all
D) experts with the right tools can know the future with near certainty

Question 42

A good example of a quantitative planning tool is

A) scenario planning
B) the Delphi technique
C) brainstorming
D) statistical forecasting

Question 43

Successful yield management is best described as

A) making sure that every room in the hotel is sold at full price or rack rate
B) maximizing utilized restaurant food and minimizing wasted food
C) managing the sale of capacity units to maximize their profitability
D) ensuring value is more than cost

Question 44

Building physical capacity based on selecting a lower percentile day will NOT have a negative impact on

A) customer satisfaction
B) revenue
C) long-term attendance growth
D) cost

Question 45

The Delphi technique is best used for

A) scenario building
B) focus groups
C) brainstorming
D) forecasting sales

Question 46

The vision statement articulates

A) the organization's market position
B) the organization's purpose and reason for existence
C) the organization's hopes for the future
D) the organization's five-year plan

Question 47

Fast-food companies shifting to more ethically sourced ingredients such as cage-free eggs are an example of what strategy?

A) low-price provider
B) differentiation
C) market niche
D) competitive pricing

Question 48

Vegan restaurants are a good example of which strategy?

A) low-price provider
B) differentiation
C) market-niche
D) brand image

Question 49

Which hotel segment is most likely to employ a market niche strategy?

A) economy
B) luxury
C) extended stay
D) all suites

Question 50

As a low-cost carrier known for outstanding service, Southwest Airlines uses which strategy?

A) low-price provider
B) combined low cost and high value
C) market niche
D) Brand Image

Question 51

A core competency is

A) the sum of all essential functions of an organization
B) defined by a company's vision statement
C) what gives the company an important difference in providing customer benefits and perceived value
D) the financial strength of the company

Question 52

The ______ assessment leads to the generation of strategic premises about the future environment, while the ______ assessment leads to a redefinition or reaffirmation of organizational core competencies.

A) external; internal
B) internal; external
C) environmental; SWOT
D) SWOT; environmental

Question 53

Regardless of strategy, the best way to maintain success is

A) provide better quality and value than your competitors
B) invest in good marketing campaigns
C) constantly innovate and look for new market niches
D) hire and retain quality employees

Question 54

If an airline determines that food quality is not one of its core competencies, it should

A) improve the quality until it becomes a core competency
B) neglect food service in favor of focusing on other core competencies
C) look to accent its financial strength
D) it should sell its brand image

Question 55

Imitation by competitors is a downside of which strategy?
A) low-price provider
B) differentiation

A) brand image
B) high value

Question 56

A company using a ______ strategy looks for ways to distinguish itself from its competitors.

A) low-price provider
B) differentiation
C) market niche
D) brand image

Question 57

A company using a ______ strategy seeks to be the first to move into a market segment to meet an unfulfilled customer need.

A) low-price provider
B) differentiation
C) market niche
D) both B and C

Question 58

An example of a low-cost forecasting technique is

A) times series models
B) scenario development
C) econometric models
D) multiple regression

Question 59

With popular rides based on trademarked characters and films, Disneyland uses which strategy?

A) low-price provider
B) differentiation
C) market niche
D) competitive pricing

Question 60

Generation Y consists of those born from

A) 1977 to 1997
B) 1997 to present
C) 1985 to 2000
D) 1942 to 1976

Question 61

The design-day concept is based on the idea that

A) the organization has to decide how much quality to have available
B) guest demand is uncertain
C) one day is better than another
D) guest demand is predictable

Question 62

According to Leonard Berry, the most important component of an excellent service strategy is a commitment to

A) Service
B) Quality
C) Value
D) Achievement

Question 63

In a design day capacity for an amusement park, when the capacity is ______, the quality of the experience is ______.

A) met; at a high
B) exceeded; diluted
C) empty; high
D) met; increased

Question 64

Which of the following issues is LEAST important in managing labor?

A) Discipline
B) Staffing
C) Training and Development
D) Motivation

Question 65

Which three supplier types should be examined in an environmental forecast?

A) land, labor, and capital
B) resources, labor, and capital
C) raw materials, finances, and entrepreneurship
D) equity, assets, and perishables

Question 66

Regarding the chapter's strategic planning model, strategic premises are developed on the basis of

A) an environmental assessment
B) an internal audit
C) the organization's most comprehensive vision
D) key performance indicators

Question 67

Which of the following is an example of an action based on an internal assessment?

A) A restaurant adds smoothies to its menu after reading a report that Generation Z consumers appreciate freshness and customizability in menus.
B) A restaurant decides to open earlier on weekends after receiving many calls from customers trying to make brunch reservations.
C) A restaurant signs up with a third-party delivery service to compete with other restaurants on the service.
D) A restaurant decides to sign on and use UBER because all the competitors are increasing their revenue this way and there is no insurance cost to the restaurant.

Question 68

If the Hyatt Corporation were to take a stand on terrorism and institute a corporate-wide policy implementing security bag check-in at all hotels and deactivation of all side door key entry after hours; they would be responding based on

A) a terrorism threat
B) environmental assessment
C) internal evaluation
D) political event

Question 69

Regarding the chapter's strategic planning model, the internal audit seeks to identify

A) the important competitors in the marketplace
B) the organization's core competencies
C) key drivers of the accounting department
D) ambient conditions.

Question 70

When assessing future hospitality work, which statement is the most likely or accurate?

A) The next generation resembles the current generation in work ethic.
B) The next generation will be more psychologically motivated than the current generation.
C) The next generation of employees will be more diverse than the current generation.
D) Baby boomers will have minimal effect on the available workforce.

Question 71

A key driver is

A) a major force in the competitive environment
B) what differentiates a company from its competitors
C) something valued by a guest that drives guest satisfaction
D) the same as a core competency