One-Year Strategic Plan for Bondi Hotel
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AI Summary
The strategic plan carried out for Bondi Hotel reflects the existence of both opportunities and challenges for the hotel firm in terms of carrying out its operations in and around the Bondi beach. Effective recommendations and strategic directions for Bondi Hotel are outlined based on the carrying of both macro and micro environmental analysis and thereby in development of innovative service offerings over the annual period.
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Bondi
Hotel 1
One-Year Strategic Plan for Bondi Hotel
Hotel 1
One-Year Strategic Plan for Bondi Hotel
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Bondi
Hotel 2
Executive Summary
The strategic plan carried out for Bondi Hotel reflects the existence of both opportunities and
challenges for the hotel firm in terms of carrying out its operations in and around the Bondi
beach. Effective recommendations and strategic directions for Bondi Hotel are outlined based on
the carrying of both macro and micro environmental analysis and thereby in development of
innovative service offerings over the annual period.
Hotel 2
Executive Summary
The strategic plan carried out for Bondi Hotel reflects the existence of both opportunities and
challenges for the hotel firm in terms of carrying out its operations in and around the Bondi
beach. Effective recommendations and strategic directions for Bondi Hotel are outlined based on
the carrying of both macro and micro environmental analysis and thereby in development of
innovative service offerings over the annual period.
Bondi
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Table of Contents
Introduction......................................................................................................................................5
Background..................................................................................................................................5
Information to the topic...............................................................................................................5
Critical Analysis of the Business Environment...............................................................................5
Analysis of the Macro Business Environment.............................................................................5
Application of PESTLE Analysis............................................................................................5
Analysis of the Micro Business Environment.............................................................................8
Application of Porter’s Five Forces Analysis..........................................................................8
Strategic Direction for Bondi Hotel...............................................................................................10
Application of the Porter’s Generic Approach..........................................................................10
Mission and Vision Philosophy.................................................................................................11
Mission..................................................................................................................................11
Vision.....................................................................................................................................11
CSR Objectives..........................................................................................................................11
Ethical Objectives......................................................................................................................12
Objectives and Goals.................................................................................................................12
Practical Recommendation to Decision Categories.......................................................................12
Conclusions....................................................................................................................................13
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Table of Contents
Introduction......................................................................................................................................5
Background..................................................................................................................................5
Information to the topic...............................................................................................................5
Critical Analysis of the Business Environment...............................................................................5
Analysis of the Macro Business Environment.............................................................................5
Application of PESTLE Analysis............................................................................................5
Analysis of the Micro Business Environment.............................................................................8
Application of Porter’s Five Forces Analysis..........................................................................8
Strategic Direction for Bondi Hotel...............................................................................................10
Application of the Porter’s Generic Approach..........................................................................10
Mission and Vision Philosophy.................................................................................................11
Mission..................................................................................................................................11
Vision.....................................................................................................................................11
CSR Objectives..........................................................................................................................11
Ethical Objectives......................................................................................................................12
Objectives and Goals.................................................................................................................12
Practical Recommendation to Decision Categories.......................................................................12
Conclusions....................................................................................................................................13
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Recommendations..........................................................................................................................13
References......................................................................................................................................14
Hotel 4
Recommendations..........................................................................................................................13
References......................................................................................................................................14
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Bondi
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Introduction
Background
Bondi Hotel operates as a HOTS hotel that carries outs its operation in and around Bondi beach
area. The hotel is observed to face increasing competition from both domestic and international
players.
Information to the topic
The report focuses on carrying out a strategic plan for Bondi Hotel based on incorporation of
macro and micro environmental analysis. Inferences gained from the analysis would help in
generating strategic directions and practical recommendations for the firm.
Critical Analysis of the Business Environment
Analysis of the Macro Business Environment
The analysis of the macro business environment of Bondi Hotel is to be carried out based on the
application of PESTLE Analysis. The PESTLE Analysis is identified as an effective planning
tool employed for undertaking strategic decisions based on evaluation of the impacts of diverse
factors like political, economic, social, technological, and legal and environment on the business
(Rastogi & Trivedi, 2016).
Application of PESTLE Analysis
Political Impacts -The local government is focusing on the development of the
Bondi beach area through the generation of open spaces
-Growth in transportation facilities for taking interested
stakeholders to beaches and other tourism destinations.
Hotel 5
Introduction
Background
Bondi Hotel operates as a HOTS hotel that carries outs its operation in and around Bondi beach
area. The hotel is observed to face increasing competition from both domestic and international
players.
Information to the topic
The report focuses on carrying out a strategic plan for Bondi Hotel based on incorporation of
macro and micro environmental analysis. Inferences gained from the analysis would help in
generating strategic directions and practical recommendations for the firm.
Critical Analysis of the Business Environment
Analysis of the Macro Business Environment
The analysis of the macro business environment of Bondi Hotel is to be carried out based on the
application of PESTLE Analysis. The PESTLE Analysis is identified as an effective planning
tool employed for undertaking strategic decisions based on evaluation of the impacts of diverse
factors like political, economic, social, technological, and legal and environment on the business
(Rastogi & Trivedi, 2016).
Application of PESTLE Analysis
Political Impacts -The local government is focusing on the development of the
Bondi beach area through the generation of open spaces
-Growth in transportation facilities for taking interested
stakeholders to beaches and other tourism destinations.
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-The local government also aims at generating higher levels
of safety and security during the night time for enabling
greater consumer flow to hospitality and entertainment
establishments (Waverley Council, 2014).
Economic Impacts -It is recorded on an average that around 2.2 million visitors
tend to visit Bondi on annual basis.
-The most important attractions in Bondi are visiting to
beaches, cafes and restaurants and also for carrying out of
sightseeing activities.
-The government agencies and other commercial authorities
are focusing in acting in a collaborated fashion for the
economic development of the region in terms of strengthening
local businesses.
-Gross Regional Product (GRP) of the Waverly region where
Bondi beach is located is AUD 2.71 billion ( Waverley
Council, 2015).
Social Impacts -The growth in the number of international visitors to Bondi
grew by around 13 percent along the period ranging from
2015 to 2016 amounting to 1.6 million.
-Visitors from international markets like China, United
Kingdom, United States of America and New Zealand visit
the region.
-Domestic visitors visit Bondi for visiting their relatives,
touring and also for business purposes (Destination NSW,
2016).
Technological Impacts -The hospitality firms in Australia are focusing on the use of
Hotel 6
-The local government also aims at generating higher levels
of safety and security during the night time for enabling
greater consumer flow to hospitality and entertainment
establishments (Waverley Council, 2014).
Economic Impacts -It is recorded on an average that around 2.2 million visitors
tend to visit Bondi on annual basis.
-The most important attractions in Bondi are visiting to
beaches, cafes and restaurants and also for carrying out of
sightseeing activities.
-The government agencies and other commercial authorities
are focusing in acting in a collaborated fashion for the
economic development of the region in terms of strengthening
local businesses.
-Gross Regional Product (GRP) of the Waverly region where
Bondi beach is located is AUD 2.71 billion ( Waverley
Council, 2015).
Social Impacts -The growth in the number of international visitors to Bondi
grew by around 13 percent along the period ranging from
2015 to 2016 amounting to 1.6 million.
-Visitors from international markets like China, United
Kingdom, United States of America and New Zealand visit
the region.
-Domestic visitors visit Bondi for visiting their relatives,
touring and also for business purposes (Destination NSW,
2016).
Technological Impacts -The hospitality firms in Australia are focusing on the use of
Bondi
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social networking and other multi-channel interfaces for
generating greater awareness in consumer market.
-Further, Point-of-Sales or POS scanners are installed for
generating easy checkouts and also tracking the inventory
movement.
-Food wastage is minimized based on demand anticipation
based on use of efficient software (Divisekera & Nguyen,
2018).
Legal Impacts -The managers in the Australian hospitality firms are required
to take care of the safety and hygiene standards at workplace
and also render effective compensation to staffs and also
restrict discriminatory practices in the hotels.
-Regarding generation of alcohol the employees are required
to follow the industry and licensing standards and in cases of
doubts are needed to ask politely for age proof.
-Strict monitoring and quality standards are required to be in
place for sustenance of food quality and hygiene standards
(Wagen & Goonetilleke, 2015).
Environmental Impacts -The hotel firms are required to reduce and monitor the level
of greenhouse gas emissions
-The hotel managers are also required to reduce the level of
water and food wastage.
-Use of LED lighting is required to be made in the hotel
premises with also checking the wastage of electrical uses
(Milanés-Montero, Stone, & Pérez-Calderón, 2014).
Hotel 7
social networking and other multi-channel interfaces for
generating greater awareness in consumer market.
-Further, Point-of-Sales or POS scanners are installed for
generating easy checkouts and also tracking the inventory
movement.
-Food wastage is minimized based on demand anticipation
based on use of efficient software (Divisekera & Nguyen,
2018).
Legal Impacts -The managers in the Australian hospitality firms are required
to take care of the safety and hygiene standards at workplace
and also render effective compensation to staffs and also
restrict discriminatory practices in the hotels.
-Regarding generation of alcohol the employees are required
to follow the industry and licensing standards and in cases of
doubts are needed to ask politely for age proof.
-Strict monitoring and quality standards are required to be in
place for sustenance of food quality and hygiene standards
(Wagen & Goonetilleke, 2015).
Environmental Impacts -The hotel firms are required to reduce and monitor the level
of greenhouse gas emissions
-The hotel managers are also required to reduce the level of
water and food wastage.
-Use of LED lighting is required to be made in the hotel
premises with also checking the wastage of electrical uses
(Milanés-Montero, Stone, & Pérez-Calderón, 2014).
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Political situation The political situation is favorable for Bondi Hotel owing to
government’s focus on development of transportation facilities and
enhancement of security measures.
Economic situation The growth of both international and foreign tourists with
government focus on developing local companies is favorable for
Bondi Hotel.
Social situation Bondi is continually attracting the flow of tourists from both
international and local regions which is a favorable factor.
Technological situation Management of Bondi Hotel is required to focus on use of
multichannel interface for creating awareness about the hotel
business. It is also required to implement POS in its operations.
Legal situation Management of Bondi Hotel is required to look after safety and
hygiene factors of its employees. It also requires licenses for
incorporation of alcohol in its menu.
Environmental situation Bondi Hotel is required to bear an effective environmental footprint
for reducing emission of greenhouses gases and wastage of water,
electricity and food.
Analysis of the Micro Business Environment
The Porter’s Five Forces Model focuses on analyzing the micro business environment of an
industry based on five main forces like the bargaining power of the consumers and suppliers,
existence of substitutes, rivalry among the existing firms and finally the threat of foreign firms in
the industry (Indiatsy, Mwangi, & Mandere, 2014).
Application of Porter’s Five Forces Analysis
Bargaining Power of Consumers -The tourists both domestic and international focus
on making online comparisons between hotels
Hotel 8
Political situation The political situation is favorable for Bondi Hotel owing to
government’s focus on development of transportation facilities and
enhancement of security measures.
Economic situation The growth of both international and foreign tourists with
government focus on developing local companies is favorable for
Bondi Hotel.
Social situation Bondi is continually attracting the flow of tourists from both
international and local regions which is a favorable factor.
Technological situation Management of Bondi Hotel is required to focus on use of
multichannel interface for creating awareness about the hotel
business. It is also required to implement POS in its operations.
Legal situation Management of Bondi Hotel is required to look after safety and
hygiene factors of its employees. It also requires licenses for
incorporation of alcohol in its menu.
Environmental situation Bondi Hotel is required to bear an effective environmental footprint
for reducing emission of greenhouses gases and wastage of water,
electricity and food.
Analysis of the Micro Business Environment
The Porter’s Five Forces Model focuses on analyzing the micro business environment of an
industry based on five main forces like the bargaining power of the consumers and suppliers,
existence of substitutes, rivalry among the existing firms and finally the threat of foreign firms in
the industry (Indiatsy, Mwangi, & Mandere, 2014).
Application of Porter’s Five Forces Analysis
Bargaining Power of Consumers -The tourists both domestic and international focus
on making online comparisons between hotels
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based on information from review websites and
social media networks and thereby makes online
reservations.
Bargaining Power of Suppliers -The local suppliers tend to have increased
bargaining potential over the regional hotel
businesses in Australia regarding sourcing of food,
wine and design products (Tourism Accomodation
Australia, 2018).
Existence of Substitutes -Existence of hostels, motels and also residence of
relatives tend to appear a low-cost option for
tourists (Cheng, 2013).
Rivalry among existing firms -The internal rivalry in the hotel industry tends to
increase based on existence of ‘on premise’ hotels
that encourages the growth of liquor sales and
gaming inside the premises as against ‘off-premise’
hotels that encourages sales of liquor products
outside premises (Lacap, 2014).
Threat of entry of foreign firms -The existence of liberalization policies in the
tourism and hospitality sector in Australia renders
increased threat to the domestic players
(Commonwealth of Australia, 2015).
Consumer’s bargaining power -Bondi Hotel needs to incorporate multichannel
interfaces for rendering greater awareness about its
services and also encourage consumers to make
reservations through website.
Supplier’s bargaining power -Bondi Hotel’s management is required to carry on
Hotel 9
based on information from review websites and
social media networks and thereby makes online
reservations.
Bargaining Power of Suppliers -The local suppliers tend to have increased
bargaining potential over the regional hotel
businesses in Australia regarding sourcing of food,
wine and design products (Tourism Accomodation
Australia, 2018).
Existence of Substitutes -Existence of hostels, motels and also residence of
relatives tend to appear a low-cost option for
tourists (Cheng, 2013).
Rivalry among existing firms -The internal rivalry in the hotel industry tends to
increase based on existence of ‘on premise’ hotels
that encourages the growth of liquor sales and
gaming inside the premises as against ‘off-premise’
hotels that encourages sales of liquor products
outside premises (Lacap, 2014).
Threat of entry of foreign firms -The existence of liberalization policies in the
tourism and hospitality sector in Australia renders
increased threat to the domestic players
(Commonwealth of Australia, 2015).
Consumer’s bargaining power -Bondi Hotel needs to incorporate multichannel
interfaces for rendering greater awareness about its
services and also encourage consumers to make
reservations through website.
Supplier’s bargaining power -Bondi Hotel’s management is required to carry on
Bondi
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effective interaction with its suppliers for sourcing
quality food and liquor products.
Threat of Substitutes -Bondi Hotel is required to design innovative
service offerings for attracting customers.
Rivalry among existing firms -Bondi Hotel requires to work based on the ‘on
premise’ model for countering internal competition
in the industry.
Threat of foreign entry -Bondi Hotel needs to incorporate a wide range of
media for promoting its services and also to work
in enhancing the level of customer satisfaction.
Strategic Direction for Bondi Hotel
Application of the Porter’s Generic Approach
Michael Porter’s Generic Strategies indicate to three different strategies like cost leadership,
product/service differentiation strategy and finally the segmentation or the focused strategy
approach. The three different strategies are ideally divided into two categories, strategic scope
and strength associated to the demand and supply dimensions. Market segmentation or focused
strategy is associated to the demand dimension while cost leadership and differentiation to the
supply dimension (Tanwar, 2013).
Hotel 10
effective interaction with its suppliers for sourcing
quality food and liquor products.
Threat of Substitutes -Bondi Hotel is required to design innovative
service offerings for attracting customers.
Rivalry among existing firms -Bondi Hotel requires to work based on the ‘on
premise’ model for countering internal competition
in the industry.
Threat of foreign entry -Bondi Hotel needs to incorporate a wide range of
media for promoting its services and also to work
in enhancing the level of customer satisfaction.
Strategic Direction for Bondi Hotel
Application of the Porter’s Generic Approach
Michael Porter’s Generic Strategies indicate to three different strategies like cost leadership,
product/service differentiation strategy and finally the segmentation or the focused strategy
approach. The three different strategies are ideally divided into two categories, strategic scope
and strength associated to the demand and supply dimensions. Market segmentation or focused
strategy is associated to the demand dimension while cost leadership and differentiation to the
supply dimension (Tanwar, 2013).
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Bondi
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(Tanwar, 2013)
The understanding of Porter’s Generic Strategy reflects that Bondi Hotel can differentiate on its
service offerings through incorporation of Wi-Fi in its premises that would help in enhancing the
level of customer satisfaction in accessing different devices without requirement of internet.
Mission and Vision Philosophy
Mission
The mission of Bondi Hotel is to focus on attracting both international and domestic tourists and
enhance the level of their dining experiences.
Vision
The vision of Bondi Hotel is to focus on enhancing the level of customer satisfaction based on
the generation of innovative product and service offerings.
CSR Objectives
Hotel 11
(Tanwar, 2013)
The understanding of Porter’s Generic Strategy reflects that Bondi Hotel can differentiate on its
service offerings through incorporation of Wi-Fi in its premises that would help in enhancing the
level of customer satisfaction in accessing different devices without requirement of internet.
Mission and Vision Philosophy
Mission
The mission of Bondi Hotel is to focus on attracting both international and domestic tourists and
enhance the level of their dining experiences.
Vision
The vision of Bondi Hotel is to focus on enhancing the level of customer satisfaction based on
the generation of innovative product and service offerings.
CSR Objectives
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- To reduce greenhouse gas emissions and in conserving water, food and electricity
resources.
- Looking after the needs and aspirations of the local communities.
- Enhancing the productivity of employees through development of training programs.
Ethical Objectives
- To focus on ethical sourcing of quality food and wine products from suppliers.
- To generate effective compensation and training to employees based on industry
standards.
Objectives and Goals
- To enhance the level of market share and revenue potential in the long run.
- To potentially minimize the emissions levels of greenhouse gases and conserve natural
resources.
- To focus on use of recyclable materials.
Practical Recommendation to Decision Categories
Food and Beverage Focus on generation of both regional and other continental dishes
along with innovative cuisines.
Reservation Reservations would be encouraged through use of website and social
media platforms.
Management The management is required to focus on incorporation of tangibles
like tidying of guest rooms, use of effective atmospherics and
maintenance of entertainment and Wi-Fi services.
Price Rates Focusing on differentiated service offerings Bondi Hotel the hotel
firm can tend to incorporate over market average prices for such.
Hotel 12
- To reduce greenhouse gas emissions and in conserving water, food and electricity
resources.
- Looking after the needs and aspirations of the local communities.
- Enhancing the productivity of employees through development of training programs.
Ethical Objectives
- To focus on ethical sourcing of quality food and wine products from suppliers.
- To generate effective compensation and training to employees based on industry
standards.
Objectives and Goals
- To enhance the level of market share and revenue potential in the long run.
- To potentially minimize the emissions levels of greenhouse gases and conserve natural
resources.
- To focus on use of recyclable materials.
Practical Recommendation to Decision Categories
Food and Beverage Focus on generation of both regional and other continental dishes
along with innovative cuisines.
Reservation Reservations would be encouraged through use of website and social
media platforms.
Management The management is required to focus on incorporation of tangibles
like tidying of guest rooms, use of effective atmospherics and
maintenance of entertainment and Wi-Fi services.
Price Rates Focusing on differentiated service offerings Bondi Hotel the hotel
firm can tend to incorporate over market average prices for such.
Bondi
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Conclusions
The report reflects that the macro environmental factors in Australia are quite conducive in
carrying out hotel operations in and around Bondi beach. The Bondi Hotel is required to attract
buyers through operating based on multichannel interfaces and interact with its supplier base. It
also requires working in designing of differentiated and innovative service offerings for
attracting and retaining customers.
Recommendations
- To design innovative services and food menus.
- To potentially use of diverse social networking platforms for generating greater
awareness.
- To work based on intranet portal for training employees.
Hotel 13
Conclusions
The report reflects that the macro environmental factors in Australia are quite conducive in
carrying out hotel operations in and around Bondi beach. The Bondi Hotel is required to attract
buyers through operating based on multichannel interfaces and interact with its supplier base. It
also requires working in designing of differentiated and innovative service offerings for
attracting and retaining customers.
Recommendations
- To design innovative services and food menus.
- To potentially use of diverse social networking platforms for generating greater
awareness.
- To work based on intranet portal for training employees.
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References
Waverley Council. (2015). Waverley Economic Development Strategy 2015-2010. Waverley :
Waverley Council.
Cheng, D. S. (2013). Analyze the Hotel Industry in Porter Five Competitive Forces. The Journal
of Global Business Management , 9 (3), 52-57.
Commonwealth of Australia. (2015). Australia’s International Tourism Industry. Sydney:
Productivity Commission.
Destination NSW. (2016). Bondi Visitor Profile. Australia: Destination NSW.
Divisekera, S., & Nguyen, V. K. (2018). Determinants of innovation in tourism evidence from
Australia. Tourism Management , 67, 157-167.
Indiatsy, C. M., Mwangi, M. S., & Mandere, E. N. (2014). The Application of Porter’s Five
Forces Model on Organization Performance: A Case of Cooperative Bank of Kenya Ltd.
European Journal of Business and Management , 6 (16), 75-85.
Lacap, J. P. (2014). Competitiveness and Sustainability of the Hotel Industry: The Case of Hotels
in Pampanga. Business Management and Strategy , 5 (1), 115-127.
Milanés-Montero, P., Stone, C., & Pérez-Calderón, E. (2014). ENVIRONMENTAL
REPORTING IN THE HOSPITALITY INDUSTRY: AN INTERNATIONAL
ANALYSIS. Environmental Engineering and Management Journal , 13 (10), 2531-2540.
Hotel 14
References
Waverley Council. (2015). Waverley Economic Development Strategy 2015-2010. Waverley :
Waverley Council.
Cheng, D. S. (2013). Analyze the Hotel Industry in Porter Five Competitive Forces. The Journal
of Global Business Management , 9 (3), 52-57.
Commonwealth of Australia. (2015). Australia’s International Tourism Industry. Sydney:
Productivity Commission.
Destination NSW. (2016). Bondi Visitor Profile. Australia: Destination NSW.
Divisekera, S., & Nguyen, V. K. (2018). Determinants of innovation in tourism evidence from
Australia. Tourism Management , 67, 157-167.
Indiatsy, C. M., Mwangi, M. S., & Mandere, E. N. (2014). The Application of Porter’s Five
Forces Model on Organization Performance: A Case of Cooperative Bank of Kenya Ltd.
European Journal of Business and Management , 6 (16), 75-85.
Lacap, J. P. (2014). Competitiveness and Sustainability of the Hotel Industry: The Case of Hotels
in Pampanga. Business Management and Strategy , 5 (1), 115-127.
Milanés-Montero, P., Stone, C., & Pérez-Calderón, E. (2014). ENVIRONMENTAL
REPORTING IN THE HOSPITALITY INDUSTRY: AN INTERNATIONAL
ANALYSIS. Environmental Engineering and Management Journal , 13 (10), 2531-2540.
Bondi
Hotel 15
Rastogi, N., & Trivedi, M. K. (2016). PESTLE TECHNIQUE – A TOOL TO IDENTIFY
EXTERNAL RISKS IN CONSTRUCTION PROJECTS. International Research Journal
of Engineering and Technology (IRJET) , 3 (1), 384-388.
Tanwar, R. (2013). Porter’s Generic Competitive Strategies. IOSR Journal of Business and
Management (IOSR-JBM) , 15 (1), 11-17.
Tourism Accomodation Australia. (2018). THE INNOVATION REVOLUTION
TRANSFORMING AUSTRALIA’S HOTEL INDUSTRY. Sydney: TAA.
Wagen, L. V., & Goonetilleke, A. (2015). Hospitality Management, Strategy and Operations.
Sydney: Pearson Higher Education AU.
Waverley Council. (2014). Bondi Junction Vision Community and Stakeholder Engagement
Process . Sydney: University of Technology.
Hotel 15
Rastogi, N., & Trivedi, M. K. (2016). PESTLE TECHNIQUE – A TOOL TO IDENTIFY
EXTERNAL RISKS IN CONSTRUCTION PROJECTS. International Research Journal
of Engineering and Technology (IRJET) , 3 (1), 384-388.
Tanwar, R. (2013). Porter’s Generic Competitive Strategies. IOSR Journal of Business and
Management (IOSR-JBM) , 15 (1), 11-17.
Tourism Accomodation Australia. (2018). THE INNOVATION REVOLUTION
TRANSFORMING AUSTRALIA’S HOTEL INDUSTRY. Sydney: TAA.
Wagen, L. V., & Goonetilleke, A. (2015). Hospitality Management, Strategy and Operations.
Sydney: Pearson Higher Education AU.
Waverley Council. (2014). Bondi Junction Vision Community and Stakeholder Engagement
Process . Sydney: University of Technology.
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