The term “strategy” originated from the Greek word meaning “general.” Strategic management was first developed in the 21st century.

Policies are day-to-day operational activities. Tactics are broad guidelines for decision-making.

The traditional perspective uses SWOT analysis for strategy formulation. The resource-based view emphasizes acquiring superior resources for competitive advantage.

Stakeholder theory limits responsibility only to stockholders. Stakeholder theory expands responsibility to groups affected by company activities.

Inseparability means production and consumption occur at different times. Simultaneity means services are created and consumed at the same time.

Perishability refers to services losing value if unsold. Tangibility means services are purely intangible.

Hospitality organizations are labor-intensive because personal interaction is key. Installing machines can fully replace human labor in hospitality services.

External environments are fully controllable by the organization. Implementing strategies could mean organizational change.

Financial resources include land and buildings. Physical resources include equipment and access to raw materials.

Heterogeneity means services are standardized across all units. Variability in services is common in hospitality organizations.

Cost structure influences managerial decisions in hospitality firms. Luxury hotels typically have low property costs and minimal labor needs.

The stakeholder view was developed as a response to complexity and change. The traditional perspective ignores external environments.

Strategic management originated from military concepts. Sun Tzu and Clausewitz influenced early strategic thought.

Hospitality services can be inspected for quality before delivery. Simultaneity makes quality control challenging in hospitality services.

A hotel manager notices declining guest satisfaction scores. She considers three actions: invest in staff training, upgrade physical facilities, or reduce room rates. Which is the most strategic first step?

A restaurant chain wants to expand during a pandemic. Which strategy aligns with current consumer trends?

A luxury hotel faces high operating costs and low occupancy. Which factor most influences its inability to cut costs?

A fast-food brand wants to maintain quality across multiple branches. Which challenge is most relevant?

A café wants to differentiate itself in a competitive market. Which approach best reflects the resource-based view?

A hotel group is deciding whether to standardize all guest experiences or allow customization. Which characteristic makes standardization difficult?

A food delivery app wants to dominate the Philippine market. Which strategy is most effective based on current trends?

A resort wants to ensure consistent service quality despite simultaneous production and consumption. Which measure is most effective?

A hotel in Boracay wants to attract foreign tourists post-pandemic. Which government policy supports this goal?

A restaurant experiences unsold meals at closing time. Which concept explains this loss?

A lodging company wants to double its market share by 2026. Which external factor is most critical?

A hotel chain considers acquiring a competitor to strengthen its position. Which strategic perspective does this reflect?

A restaurant wants to attract millennials who value convenience. Which option best fits this trend?

A hotel manager wants to improve competitive advantage by leveraging intangible assets. Which example fits?

A food chain faces rising competition from street food vendors. Which strategic move ensures long-term success?