Business Strategy for Four Seasons Hotel

This assignment analyzes the business strategies of Four Seasons Hotels and proposes recommendations for improvement. It examines the strengths and weaknesses of the organization and identifies opportunities and threats in the market. The assignment also discusses the competitive advantages of Four Seasons Hotel and suggests strategies for the organization to maintain its position in the market.

Business Strategy for Four Seasons Hotel 0
Title: Business Strategy for Four Seasons Hotel
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Business Strategy for Four Seasons Hotel 1
Executive Summary
Business Strategy of an organization works as a tool for directing an organization to the path
of success. Thus, it crucial that the organization should keep changing their strategies
according to their business objectives. In this assignment, the business strategies of Four
Seasons Hotels is analyzed. The various strengths of the organization like the high-quality
services and the attribute of continuous improvement helped in identifying the aspects, which
will help the organization in attaining the competitor’s advantages. The various weaknesses
highlighted the area where the organization requires immediate improvement. Thus, the
assignment has proposed a certain recommendation that is drawn by transforming the
weaknesses into strengths and changing threats into opportunities. The organization Four
Seasons Hotels have to adjust to the new social and technological trends that have changed
the demands of the customers and the working environment of the organizations.

Business Strategy for Four Seasons Hotel 2
Contents
Introduction................................................................................................................................2
Organization Profile & Issues....................................................................................................3
External Analysis.......................................................................................................................4
Internal Analysis........................................................................................................................7
Strengths.................................................................................................................................7
Weaknesses............................................................................................................................8
Opportunities..........................................................................................................................8
Threats....................................................................................................................................9
Competitive Advantages........................................................................................................9
Strategy Implication for the Organization................................................................................10
Action Plan...............................................................................................................................12
Conclusion................................................................................................................................13
References................................................................................................................................14
Appendices...............................................................................................................................17

Business Strategy for Four Seasons Hotel 3
Introduction
A business strategy can be defined as a set of actions and functions that are conducted
for the prime motive of fulfilling the organization’s objectives. The main business strategy of
an organization can be explained as a long-term initiative that is undertaken for the present
and future development of an organization. Generally, a business strategy is planned for a
period of three to five years. But with the frequent changes in the current working
environment, each organization is forced to make changes in their working styles and
approaches. The hospitality industry has also witnessed humongous changes in the last
decade and the organization of the hospitality industry has to include various different
approached depending on the various trends. From the changes in the demands of the
customers to the emergence of lifestyle hotel to the advancements in the field of technology,
the market has intensified in the hospitality industry. These changes have increased the
competition between organizations as each firm main motive is to offer the customers with a
great experience. The organization Four Seasons Hotel has a solid customer base in the
current market and it is due to the traditional approach of the organization that is “Treating
the customers in the same manner as we would like to be treated”. The organization has
followed this approach for ages and this is the key success factor of the organization. In this
assignment, the business strategies of the Four Seasons Hotel will be analyzed, to identify the
strengths and weaknesses of the organization, which will be utilized in the better formulation
of new business strategies that will help the organization to increase their customer base in
the current market. Also, these strategies will facilitate the organization to deal with future
changes and issues in an appropriate way. The Four Seasons Hotel is in need of new business
strategies to maintain their hold in the market.

Business Strategy for Four Seasons Hotel 4
Organization Profile & Issues
The Four Seasons Hotels is an international chain of hotels, which was founded in
1961. Since then the organization has spread its branches in over 47 countries and owning
more than 110 properties in the world. The founder of the organization Isadore Sharp was
architecture and had no experience in the field of hospitality. But he had an insight that
luxury hotels are the future of the hospitality industry. The organization formulated strategies
that were formulated to provide the customers with personalized service and thus, built the
culture of luxury hotels. For more than five decades, the organization has severed customers
with a high standard of personalized service that has helped the organization is becoming the
finest and the biggest brand of luxury hotels. The organization has set a benchmark in the
group of luxury hotels. This business strategy of the organization is termed as differentiation
approach and the various actions of the Four Seasons Hotels completely justify their
approach. This approach of the founder of the organization exhibited the organization’s
strategy of utilizing the new strategies for the development and expansion and also to use
them to tackle the threats to the organization (Four Seasons Hotel, Singapore, 2018).
But in the last decade, this has been identified that the organization has become too
comfortable with their strategies and have not modified their approaches in the last ten years.
This was easily identified as the hospitality industry has witnessed massive changes, which
the organization has completely ignored. This has affected the sales of the organization and
also their customer base. With the emergence of lifestyle hotels, luxury hotel brands have
suffered huge losses. This is due to the availability of equal and better services at lesser
prices. The demographic changes also provided support to the trend of lifestyle hotels, with
generation Y, becoming the biggest contributor to the hospitality and tourism industry. The
Four Seasons Hotel did not utilize this opportunity for the development of the organization
and thus, is struggling to maintain their position in the current market.

Business Strategy for Four Seasons Hotel 5
External Analysis
There are a number of factors that have affected the growth and development of the Four
Seasons Hotel. These factors are known as macro environmental factors. Some of the factors
that have affected the strategies of the organization are –
 Political
The political factors affected the functioning of an organization through the
intervention of the national and local government. This intervention can be conducted
by the addition of new government policies. The Four Seasons Hotel approaches have
suffered due to the new taxation policy that has been proposed in the latest income tax
amendment bill (Al-Oguiliy and Khasawneh 2015, p.74). This has affected the
working of the organization and due to this, the organization has to reformulate its
future strategies. Thus, the governance system of a country plays a crucial role in
affecting the organization’s objectives and policies. Also, the other political aspect
that is imposing pressure on the Four Seasons Hotel is the pressure due to the
international regulations.
 Economic
Some of the economic factors that can affect the working of an organization
are inflation rate, taxation rate, interest rate, exchange rate, the conditions of the labor
market, and many other different economic aspects. The Four Seasons Hotel’s
approaches have been affected due to the latest taxation bill. But according to the new
budget proposed by the ruling government, the hospitality industry will experience a
huge boost (Boz 2016, pp. 78-85). Also, the hospitality industry will attain more
opportunities to excel with the new Tourism Development Fund of the country, which
will ultimately help the Four Seasons Hotels for better success.
 Social

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Every nation has its own set of social norms for conducting business. These
social factors can help organizations in understanding the different ways to entice a
customer by fulfilling customer preferences. The social factors include the culture,
attitude towards specific services and products, traditions, the attitude associated with
health and safety, the demographic changes and many more. But, in the organization
Four Seasons Hotel, the organization is facing major issues due to the demographic
changes in the tourism industry (Gorondutse and Hilman 2017, pp. 150-161). The
new demands of the generation Y for lifestyle hotels have produced issues for luxury
hotels. The Four Seasons Hotel has not included this social trend in its strategies and
thus, the organization is facing a loss of customers.
 Technological
The one external factor that has impacted the growth and development of
organizations belonging to any field is technology. Though through technology, the
organizations have been facilitated with the opportunity of quick expansion, there are
several drawbacks too, which hamper the brand image massively. The technological
aspect has brought transformation in the various management functions of an
organization. The Four Seasons Hotels have been juggling to fulfill the sudden
changes in the demand of customers due to technology. The organization is severely
facing major issues as they have not incorporated changes in their approaches (Gucer
et al. 2016, p.206). Also, due to the massive utilization of technology in the
organization, there have been immense changes in the supply chain of the
organization. Thus, the Four Seasons Hotel is in need of redesigning their supply
change to increase the standard of flexibility in the organization and also, to formulate
a balance in fulfilling the needs of customers and to have an effective cost structure.
 Legal

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The laws of all the countries are different and these guidelines have to be
followed by all the organizations. The Four Seasons Hotels is an international brand,
thus, the organization has to follow the guidelines of both the international and local
market (Hertawan 2015, pp.90-108). Some of the legal factors that have to be taken
into consideration by an organization are business law, copyright law, discrimination
law, laws for data protection, and many more. For the Four Seasons Hotel in
Singapore, the organization has to adapt to the new licensing laws that have been
imposed by the government. This regulation has been added by the Singapore
Tourism Board under the Hotels Act.
 Environmental
In the last decade, the pressure on the organizations to fulfill their corporate
social responsibilities have intensified. For an organization, to follow methods and
functions that are sustainable and environmentally friendly is paramount. This is also
very crucial in the development of the brand image (Kala and Bagri 2016, p.240). The
Four Seasons Hotels has to abide by certain environmental factors like safe disposal
of waste, insurance policies, pollution regulations, climatic change, increasing
attention towards sustainability, saving water, and many other factors. In the
hospitality industry, the resources are wasted in abundance. Thus, it is the duty of the
organization to follow the various environmental regulations and guidelines that
encourage an organization to fulfill its corporate social responsibilities.
Thus, all these various factors affect the functioning of an organization. For the Four
Seasons Hotel, it is crucial that they focus on utilizing the advantages of different factors to
the organization’s benefit and also, address the various emerging issues in a planned and
organized manner (Kopaneli 2014, pp.472-487).

Business Strategy for Four Seasons Hotel 8
Internal Analysis
For identifying the strengths and weaknesses of an organization, the best tool that
should be utilized is the SWOT analysis. So, according to the analysis –
Strengths
 The Four Seasons Hotels have a huge brand name in the local and international
market. The organization have a good market share and have many loyal customers.
They also are the main leaders in the hospitality industry of Singapore.
 The organization has created his reputation in the market due to the high standard
services which it offers. Thus, the organization is immensely trustworthy, in the
opinion of the customer.
 The organization has incorporated innovation in all its strategies, which is beneficial
for addressing different issues in a better and creative way.
 The organization’s management team is very strong and all their approaches have the
main focus on the customers (Lacap, RMP, AFBE 2014, p.115).
 The organization’s approach of offering the customers with personalized services
helps in quick transformation of a non-customers into a loyal one.
Weaknesses
 The organization does not have skilled labor that incorporates each and every new
social trend in the organization’s strategies.
 In comparison to the other organizations, the Four Seasons Hotel is touted to be more
expensive. This has become more obvious after the emergence of lifestyle hotels that
offers luxurious services at budget prices.
 The organization, though have a powerful brand name, but its public relation
approaches are very less effective.

Business Strategy for Four Seasons Hotel 9
 The organization is secluded. It only targets elite people who have the wealth to spend
on luxurious services. The organization's approach thus is not diversified (Ofondu
2018, p.196).
 The organization does not use the advantages of technology to the fullest.
Opportunities
 The Singapore economy is growing at a rapid speed. The new budget proposed by the
government has exhibited huge potential for the development of the hospitality
industry.
 The organization has various opportunities to expand their customer base. Their huge
brand awareness in the market will help the organization expand in a better way.
 The Four Seasons Hotels have exhibited their interest in formulating a connection
with a popular airline. This will help in increasing the customer base of the
organization.
 The support by the Singapore Tourism Board will support the hospitality industry
immensely in the coming years (Pecheritsa 2015, pp.29-39).
Threats
 The biggest threat that the organization is facing from the new competitors that are
offering better services at a lesser price.
 The organization is struggling to deal with the various new trends in the market.
These trends are now continuous in nature, as they keep changing from time to time
(Popova 2017, pp.23-26).
 Due to the presence of lower cost competitors in the market. The organization facing
a price war. The Four Seasons Hotel has an adamant approach.
 The organization also faces an immense threat due to the emergence of cheaper
technology.

Business Strategy for Four Seasons Hotel 10
Competitive Advantages
The organization has an experience of more than 50 years, successfully working in the
market. So, it has numerous capabilities that can help the organization in attaining
competitive advantages over its counterparts. Some of the sources to attain competitive
advantages are –
 The organization has the abilities and knowledge to deliver excellent customer
experience. The organization has established a strong position in the market with its
excellence in personalized service. Thus, the organization has the abilities to serve
better than its competitors (Shairullizan KamalulAriffin, Nabiha Abdul Khalid and
Abdul Wahid 2013, pp.106-117 ).
 The organization has followed the strategy of differentiation for years. The
approach of offering the customer with a distinctive and unique value is the best
source of gaining competitive advantage.
 The organization also have an approach to building all their strategies and activities
around the position of the firm in the market. This provides the organization to
easily adapt to any changes (Sulistyawati 2015, p.15).
 The organization, like its differentiation approach, has always followed the strategy
of continuous improvement. The organization is responsible for introducing the
culture of luxury hotels, due to their approach of continuous widening their
knowledge about luxury hotels and for the betterment of their services.
 The organization’s strategies are in sync with their human resource strategy. This
facilitates the organization with the opportunity to shape and mold the organization
in an easy way. This also offers the organization with the chance, to train and push
the human resources for fulfilling the organization’s objectives.

Business Strategy for Four Seasons Hotel 11
Strategy Implication for the Organization
According to the various micro and macro environmental factors, the Four Seasons Hotel
requires the following strategies to address the numerous issues emerging in the organization
and also to easily adapt to the changes occurring in the hospitality industry. They are –
 The organization has to adapt to diverse approaches for increasing their
customer base.
The organization for maintaining their hold on the market have to broaden its
focus by targeting different and diverse audiences. The organization has to invest in
lifestyle hotels. It is crucial for the organization due to the demographic changes in
the tourism industry (Trini and Salim 2018, p.100). The organization excels in
offering luxurious services and thus, they have the potential to gain customers
belonging to any group in an easy manner.
 The organization needs to utilize the various advantages that are highlighted by
the economy of Singapore.
The economy of a country plays a crucial role in the development of an
organization. An organization is affected due to the rise and fall of the economy.
Thus, for the Four Seasons Hotels, it is crucial that they utilize the different
advantages for the success of the organization.
 The organization needs to utilize their strengths to the fullest.
The Four Seasons Hotel has the knowledge and experience in offering the
customers with great customer experience, due to their approach of delivering high-
quality services. The organization should utilize this trait in attracting new customers
from diverse groups (Walsh and Dodds 2017, pp.672-687).
 The organization has to focus on continuously improving its position in the
market.

Business Strategy for Four Seasons Hotel 12
As to maintain their position in the market as the key leader and to exhibit a
powerful brand image, it is crucial that the organization continuously works on
approaches that help in improving their position in the market. Even the biggest
organization has to continuously change their approaches, due to the increasingly
intense competition in the market.
 The organization is in need of better-skilled labor.
For the organization to completely ignore the changing trends in the market,
highlights the need for more skilled labor. The organization has to get inspired by the
excellent insight of its founder Sharp, who predicted the culture of luxury hotels, way
in advance. In the same manner, the organization requires a workforce that can predict
various changes that are expected to happen in the future and formulate strategies that
utilize them for the betterment of the organization (Baek Kim and Yean Chee, 2018).
 The organization has to win the current price war in the market.
The organization has to gain a competitive advantage by ending the current
price war in the market. The organization has to offer certain discounts to the
customers that are planned in accordance with the organization’s objectives. This will
help the organization in improving its position in the market.
Action Plan
In order to successfully implement the different strategies proposed above, it is crucial for
the organization to formulate an action plan. This action plan will provide the management of
the organization with a solid direction, helping them to conquer the market by utilizing their
competitive advantages. The action plan for the organization is –
 The organization has to invest in new properties that provide them with opportunities
to make their approaches diverse. The Four Seasons Hotel can utilize their attribute of

Business Strategy for Four Seasons Hotel 13
becoming a hotel operator rather than the hotel owner in Singapore too. The
organization has developed a huge customer base due to this approach all over the
world. This will strengthen the position of the organization in the market as the key
leader in the hospitality industry. This will also offer the organization with several
new opportunities to extend further (E. Petri, 2016).
 The organization has to build a solid regional management plan. This will include the
different aspects that will direct the organization in utilizing the different positive
traits offered by the fast boosting economy of Singapore. Also, the organization
regional management plan should include the changes that the organization requires,
depending on the changing preferences of the local customers.
 The organization has to make changes in their targeting and segmentation approaches.
The organization cannot restrict itself only to elite customers, especially after the
demographic changes brought by generation Y. The organization has to carefully
explore and examine the needs and requirements of the diverse targeted audience and
have to formulate strategies on that basis (Fah, 2018).
 The organization has to build effective public relation strategies. The organization has
to hire an effective public relations team that conveys the different changes conducted
by the organization and their approaches to targeting diverse groups. The Four
Seasons Hotels enjoy the reputation of an organization that offers luxury services only
to elite customers at exorbitant prices. The organization has to change its image and
thus, the organization requires a team that helps in revamping the position of the Four
Seasons Hotel in the market (Shah, 2016).
 The organization has to attain the help of a professional team that understands the
current trends and also have the potential to foresee the future ones too (Ong, 2018).
This is crucial for the organization to adjust to the upcoming changes way in advance.

Business Strategy for Four Seasons Hotel 14
Skilled labor will push the organization to continuously improve. In the current
working environment of the organization and the circumstances in the market, the
only way to survive for an organization is to continuously improve.
 The organization has to fluctuate their prices as to attain an upper head on its
competitors. This can be conducted by adapting to new pricing strategies. In the
current circumstances, the penetration pricing strategy will be appropriate for the
organization in ending the price war in the market (Nagabhushan and Ganeshan,
2014).
Conclusion
After all the analysis and recommendation, this can be formulated that the
organization Four Seasons Hotel enjoys a powerful position in the market which it should
utilize for further expansion. For effectively implementing it the organization requires a
workforce that incorporates and utilize the different trends that are introduced in the market.
According to the current changing conditions in the market, every organization has to
redesign their working styles. Also, a newly improved workforce is crucial for the
organization as it does not ignore any new trends introduced in the market. The organization
also have to utilize the various advantages that are provided due to the advancement in the
field of technology. The organization should follow their prime motive of offering the
customers with great customer experience. The organization should follow the same approach
while serving the new diverse audience that the Four Seasons Hotel is targeting, to increase
their market share.

Business Strategy for Four Seasons Hotel 15
References
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Five Stars Hotels in Jordan on Tourist Behavior. Business Management and Strategy, 6(1),
p.74.
Baek Kim, K. and Yean Chee, H. (2018). In Focus: Singapore, Preparing for a Smart
Future. [online] Hvs.com. Available at: https://www.hvs.com/article/8224-in-focus-
singapore-preparing-for-a-smart-future [Accessed 18 Feb. 2019].
Boz, D. (2016). Online Booking as A Marketing Strategy: A Survey on Hotels in
Antalya. IOSR Journal of Business and Management, 18(09), pp.78-85.
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[Accessed 18 Feb. 2019].

Business Strategy for Four Seasons Hotel 16
Gorondutse, A. and Hilman, H. (2017). Influence of differentiation strategy on performance
of hotels: the moderating role of environmental munificence. Journal of Business & Retail
Management Research, 11(4), pp.150-161.
Gucer, E., Pelit, E., Demirdag, Ş. and Arslanturk, Y. (2016). The Effects of Managers’
Business Ethics Applications on Employees’ Job Satisfaction: A Study on Hotels in
Turkey. Business Management and Strategy, 7(1), p.206.
Hertawan, Y. (2015). Influence Business Environment and Strategic Leadership To
Competitive Strategy and Business Performance (Studies in non-star hotels in Riau Islands
Province). Jurnal Bisnis dan Manajemen, 16(2), pp.90-108.
Kala, D. and Bagri, S. (2016). Designing the strategy map for hotels with key performance
indicators of balanced scorecard using DEMATEL technique. International Journal of
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Research Method Analysis of Case Studies in Business Hotels in Patras and in
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Lacap, RMP, AFBE, J. (2014). Competitiveness and Sustainability of the Hotel Industry: The
Case of Hotels in Pampanga. Business Management and Strategy, 5(1), p.115.
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[Accessed 18 Feb. 2019].

Business Strategy for Four Seasons Hotel 17
Ofondu, M. (2018). Assessing the Effectiveness of Innovation Management in the Hospitality
Industry: A Study of Selected Hotels in South-East, Nigeria. Business Management and
Strategy, 9(1), p.196.
Ong, Y. (2018). Capella Hotel Group to manage Regent Singapore from 2019. [online] The
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Seasons). Science and Modernity, 4(2), pp.29-39.
Popova, A. (2017). The Impact of Electronic Word-of-Mouth in Tourism on Hotels’ Business
Models Transformation. Business Strategies, 1(7), pp.23-26.
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of Malaysian hotels. Business Strategy Series, 14(4), pp.106-117.
Sulistyawati, S. (2015). Position Improvement Strategy for Balinese Tourism Human
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Tourism, 1(1), p.15.

Business Strategy for Four Seasons Hotel 18
Trini, D. and Salim, M. (2018). Customer Experience Marketing (CEM), Customer
Satisfaction and Customer Trust Affects Customer Loyalty: A Study on Star Hotels in Jakarta
Province. Business Management and Strategy, 9(2), p.100.
Walsh, P. and Dodds, R. (2017). Measuring the Choice of Environmental Sustainability
Strategies in Creating a Competitive Advantage. Business Strategy and the Environment,
26(5), pp.672-687.
Appendices
 SWOT Analysis
 Macro Environmental factors
 Demographic changes.

Business Strategy for Four Seasons Hotel 19
 Economic Factor

Business Strategy for Four Seasons Hotel 20