A strategy map can be considered as a diagram that helps people have a visual framework of what is used in the integration of objectives of an organization. The visual framework works within the perspectives of a balanced scorecard. A strategy map not only aims at portraying the causes of an effective relationship but also its effect on an organization. In order to process excellence, these effective relationships can link; certain abilities of human resources, capital of an organization, as well as information in the organization. A strategy map is used as a tool for provides an organization’s strategic goals.
A strategy maps’ main idea is that; it is not possible for individuals to be able to manage something that they are not able to measure. Similarly, people are not able to manage something that cannot describe. Therefore, in strategy mapping, one should be able to describe the objectives of an organization, its goals, and should also be able to describe the measures that are used in an organization.There are a number of steps involved in the process of strategy mapping. These processes include; selecting a value proposition, specifying an overriding objective and goal, selecting strategy of a customer, choosing an effective financial strategy, among others. A business organization would create a way by which it would measure and manage its performance when it is selecting these targets.AnalysisBackground: Glacier InnGlacier Inn was started as an ice hotel in Northern Minnesota. After an year of operation, the business did not meet its expected outcome.
The management needed to take action before it was too late. In order to achieve the hotel’s strategic objectives and goals, the management opted to use strategy mapping and a balanced scorecard (Beedle et al., 2007).
The most critical part was for the management to define what exactly it would have taken for them to succeed. This part helped them in determining the rest of the areas.Selecting a value propositionThe main idea that is behind value proposition is to select a dominant value proposition and then give a breakdown to customer value in it. In order to group value proposition, three main methods are used; product leadership, operational excellence, and customer intimacy.
It is however not possible for a business to lead in all areas(Veulliet, Stotter & Weck-Hannemann, 2009). It is important for a business to be more excellent in one while remaining competitive in the others. Glacier Inn hotel had to choose its main value proposition from various examples like; relation management, pricing at either high or low price or giving customer services.
This would, however, depend on what would have served the hotel best (Beedle et al., 2007). In this case study, Glacier inn, picked on product leadership.Choosing an effective financial strategyThere are three major categories of financial strategy. The three are; revenue, assets utilization and productivity. Despite it being essential for a business to put into consideration all these three, the value proposition that it selects in the second step, should determine what exactly would also be selected here(Veulliet, Stotter & Weck-Hannemann, 2009). In case a business picks operational excellence, the revenue strategy would then aim at competitive prices in order to drive volumes. On the other hand, if product leadership is picked, it would use premium prices for revenue growth.
This is because a customer’s intimacy gives more focus on cross selling so as to drive revenue growth. Management at Glacier Inn hotel picked product leadership. The business introduced other new products for it to increase its revenue(Beedle et al.
, 2007). The new products were not related to hotels in any way. This help to add unique feature to the business and it also highly increased the capacity it had. For its product strategy, the hotel decided to improve its proficiency in ice management. Glacier Inn also increased its operating efficiency, as well as the number of its staffs.Selecting strategy of its customerAfter selecting, the financial strategy, next the customer strategies are selected.
Customer strategies help in determine what exactly would achieve financial objectives (Veulliet, Stotter & Weck-Hannemann, 2009). Customer strategies are categorized into; gaining and retain new customers, minimizing cost for each customer, and increasing revenue on each customer. Similar to financial strategies, a business…