Introduction:3 Internal and Environmental Analysis 3 Strategic capability analysis 8 TOWS matrix

Running Head: Human Resource Management
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Strategic management for hospitality industry
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Contents
Introduction:.....................................................................................................................3
Assessment of internal and industry environments..........................................................3
Internal and environmental analysis.............................................................................3
The intensity of competitive rivalry..............................................................................4
Strategic capability analysis..........................................................................................8
TOWS matrix................................................................................................................9
Strategic statement..........................................................................................................11
Strategic direction and Goals and objectives..............................................................11
Competitive advantages..............................................................................................13
Stakeholder’s value creation.......................................................................................14
Intended business strategy..........................................................................................15
Marketing........................................................................................................................15
Marketing positioning strategy...................................................................................15
Perceptual mapping.....................................................................................................15
Examples of marketing mix........................................................................................16
Pricing tactics..............................................................................................................18
Appropriate advertising expenditure...........................................................................20
Performance year 0 to 3:.............................................................................................22

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Performance year 4 to 5:.............................................................................................22
Appropriate promotional campaign............................................................................22
Marketing strategy analysis........................................................................................23
Operational management................................................................................................23
Interpretation of operating result for last 3 years........................................................23
Appropriate staffing level...........................................................................................24
Performance in last 3 years.........................................................................................25
Projection year 4 to 5..................................................................................................26
Appropriate staff training budget................................................................................26
Refurbishment program..............................................................................................26
Maintenance program.................................................................................................26
Financial and operating result.........................................................................................26
Evidence of cost control..............................................................................................27
Profit and loss statement.............................................................................................27
Balance sheet...............................................................................................................28
Cash flow statement....................................................................................................30
Graphs and management tools....................................................................................33
Conclusion......................................................................................................................33
References.......................................................................................................................35
Figure 1: Porter's 5 forces model......................................................................................4

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Figure 2: PESTLE analysis...............................................................................................6
Figure 3: BCG matrix.......................................................................................................8
Figure 4: Pricing tactics..................................................................................................20
Figure 5: Advertisement.................................................................................................22
Figure 6: Staff Satisfaction.............................................................................................26
Figure 7: Profit and loss statement.................................................................................29
Figure 8: Balance sheet...................................................................................................31
Figure 9: Cash flow statement........................................................................................34

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Introduction:
The report has been prepared to evaluate the hospitality industry, current trend and the
prediction about the performance of the hotel bondi king. There are various factors which
affect the intensity of the competition, changes, prices, marketing factors etc in the industry.
These factors include low switching cost of services, large number of hotels working in the
market while offering a large variety of services to customer so competition increases.
Though,, it has been found that the position and the performance of the industry has
been better from last 3 years and the future evaluation has been done on the basis of past data
and the current trend of the industry, this report evaluates all the related factors of the
comapny such as marketing factor, strategy factor, financial factor, operation factor etc.
Assessment of internal and industry environments:
Internal and environmental analysis:
Porter’s 5 forces model:
Porter’s five forces model helps the company to analyse the external environment of the
industry so that the company can make the improved strategies accordingly.

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Figure 1: Porter's 5 forces model
The intensity of competitive rivalry:
There are various factors affecting the intensity of the competition in the industry.
These factors include low switching cost of services, large number of hotels working in the
market while offering a large variety of services to customer so competition increases. Higher
the threat, lower the attractiveness of hotels.
The threat of the entry of new competitors:
The threat of new entrants will remain in every business. From the entry of new
entrants the existence of existing firms comes into danger. Entry of new entrants depends on
the economies of scale achieve in the industry which include size and scope of the operations
(Dalken, 2014).
The threat of substitute products or services:

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This factor focuses on the customer propensity to substitute for a service. The hotels
can be seen in all price ranges, with changes in the level of services they are offering. If
customer is getting a low price service in same price then he will shift his demand.
The bargaining power of customers / buyers:
Bargaining of buyers can be considered as a power or control that buyer can exercise
over the market players. In this if bargaining power of buyers are high then the industry
attractiveness will come to be low and vice versa (Cheng, 2013).
The bargaining power of suppliers:
The bargaining power of suppliers refers to the how much power business suppliers
has in their hands and how much control they can access over the market to increase the
prices according to their wills. It also includes the number of hotels available in the market. If
the bargaining power of suppliers is high then industry will lose its attractiveness.
PESTLE analysis:
It is the analytical tool that helps the companies to analyse the external environment of the
company:

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Figure 2: PESTLE analysis
(Fragou et al, 2012)
Political factor:
In terms of political factors some factors should always be taken into consideration.
These factors include stability of the government in the economy, there should be less global
influence and no there are no changes in the legislation of the country.
Economical factor:
In globalised environment, Bondi is more profitable organisation. Economic factors
are of more concern factor for business s as it influenced the demand, cost, prices and profits
of the business. Other economic factors are also taken into account in the economy like
inflation rate, monetary policies of the country, employment provided by the business
(Sappey, 2014).
Socio-Cultural factor:
This factor helps the business to know more about the customer’s preferences and
choices they have and how company can attract them. For this some of the factors affect the