BUS304: Strategic Hotel Management

Running head: DOUBLE TREE
DOUBLE TREE
BUS304: Strategic Hotel Management and HOTS
Strategic Briefing Paper

DOUBLE TREE1
Table of Contents
Introduction......................................................................................................................................2
Analysis...........................................................................................................................................2
Part1: External environmental analysis.......................................................................................2
Part 2: Current Condition.............................................................................................................6
Part 3: Recommendations............................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

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Introduction
Entrepreneurship is a difficult task and the forming of a hotel or a resort, sounds easy but
is a difficult task because it can be considered to be a project which requires ample managerial
skills along with innovative strategies which would help the particular hotel in combating against
competition and make its standing in the business environment (Gamble & Thompson, 2011).
The primary purpose of the report is to prepare a strategic plan for the hotel Double Tree which
will be based in the Bondi beach. The plan will be presenting its first year operations by
analyzing its present condition and factors. It needs to be kept in mind that the particular study
just considers the viability of the particular business and does not present a well proposed
strategy which can be provided to the company at large. The report is divided into three parts
whereby the first part comprises of the external environment analysis using Micro as well as
macro environmental analysis using the tools of Porters five forces and PESTLE Analysis. In
addition to this, the overarching framework for the strategies of the hotels will be discussed
which will then be followed by certain recommendations based on the same, were provided. The
data used in this analysis has been taken from secondary sources.
Analysis
Part1: External environmental analysis
The external environment analysis comprises of the macro as well as the micro
environmental analysis which takes into consideration the factors which lie internal as well as
external to the firm. The external environmental factors which can affect Double Tree are factors
like Political, economic, Social, Technological, Legal and Environment factors. This will be
analyzed using the PESTLE Analysis (Jankoviċ & Krivačiċ, 2014).

DOUBLE TREE3
Political The political powers in Australia tend to place a huge amount of
Carbon Tax into the organization and this can have a huge impact
on the profitability of Double Tree. Hence, as a result, Double tree
needs to reduce its carbon emission footprints.
Economic This refers to the inflation and pricing of the hotel based on the
economic condition of the country at large. The hotel will be paying
certain taxes based on the services it provides and needs to ensure that
it looks out for different policies in support of the hotel. Also
comprises of factors like visa, pricing, and surcharges on the different
payments methods
Social The social factors tend to have an impact on the different choices of the
customers and the manner in which these choices have an impact on the
overall functioning of the firm. As the other hotels do not have lounges
and suits, the Double tree hotel with its services has a good scope of
performance and the company can earn well from serving these groups.
Technological
As the technology has improved greatly, features like internet booking,
quick check in facilities have changed the manner in which the hotel
industry functions. Moreover, Double tree can make use of modern
management system to ensure faster revenues.
Legal
The legislative regulations have changed considerably and due to this,
the health as well as the safety factors tends to have a huge impact on
the firm. Moreover, the penalty rates have changed considerably along
with laws like Lockout and revenue taxes.
Environmenta
l
With respect to environmental aspect factors like weather conditions of
the location of Double tree and the beach size, there are various
environmental considerations to be made by the hotel and ensure that it
follows considerable sustainable practices
The key learnings from the Macro environmental factors are as follows:
The Double tree needs to ensure that its practices are sustainable in nature, they make use
of advanced technology and that the security aspects as taken care of.
Micro Environmental