Critical Issues in Four Season Hotel

This report discusses two critical issues faced by Four Season Hotel: obsolete technology and competition in the market. Solutions are suggested to update technology and attract more tourists. The implications of these solutions for the brand image and finance of the hotel are also discussed.

Four season Hotel
1. Exclusive Summary
As the group report in Four Season Hotel, we are mentioned two critical issues in the
hotel such as obsolete technology and some locations are not ideal compared with
other competitors in the same area because of late entry. The hotel needs to provide
more technologies for hotel services and develop more high-tech to creates more
personal experiences and save the energy, making robot trend in the hotel. Next, the
hotel needs to compete with other competitors in the market place about attraction
location in the same area but some locations wherever they mentioned to all
customers but is not ideal and similar with other competitors which mean not more
attractiveness to visitors. The target market not included all customers which mean
they need to develop more and follow and focusing more in tourist attraction around
their area. Therefore, they will beat other hotels and improve about tourism to be
better and more recommend and getting strong feedback from their loyalty
customers.
2. Contents
Four Season Hotel is currently facing the issue of obsolete technology and tough
competition as introduced in the project.
A SWOT Analysis is performed to identify the core areas which need to be focused
and for an in-depth analysis. It highlights the strengths, weaknesses, opportunities
and threats faced by the hotel in a tabulated form, with the help of which a SWOT
Matrix is prepared and opportunities and threats are analysed in tangent with
strengths and weaknesses.
Two critical strategic issues are identified which are obsolete technology with
ineffective bureaucracy and great competition in the market due to late entry.
After the identification of critical issues, solutions are suggested which is to update
technology and work to attract more tourists by partnering with airlines and
improving graphics and hospitality.
Reasons for the suggestions are discussed. Both the solution of updating technology
and partnering with airlines is supposed to increase the finance, but in the long run
they will attract more customers. Hence it will lead to more revenue generation and
improved brand image with individuality which is much needed.
3. Introduction
Four Season Hotel is a 5-star luxury hotel that is located in Sydney CBD with panoramic view
over the Opera House and Circular Quay. Its grand open in October 1982 founded by
Isadore Sharp with General Manager know as Bahram Sepahi. This hotel is one of the
highest professional accommodations in Sydney that all welcome to huge number of visitors
to come and stay every year.
In this report, we are discussing two critical issues in the Four Season Hotel such as
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a) Obsolete technology
b) Some locations are not ideal compared with other competitors in the same area
because of late entry.
Obsolete technology. The hotel need to provide newer technologies for hotel services
included: the robotics trend in hotels, technology to save energy, automating check-in and
check-out, creating more personal experience, technology to improve experiences, etc., …
The information taken from Rentokil.com are-
This information gathered is limited to two websites included:
a) Scribd.com
b) Four Season Hotel and Resorts.
4. Body
SWOT Analysis of Four Seasons Hotel
Strengths (S)
 Superior supply chain management
skills
 Effective service (benchmarked by
the market)
 Loyal customers
 Strong management team and great
execution.
 Brand Image.
Weaknesses (W)
 Bad Communication after customer
complaint due to bureaucracy.
 Diseconomies due to insufficient
integration after M&As.
 Obsolete Technology
 Some locations are not ideal
compared with competitors in the
same area because of late entry.
 Onerous staff, overlapped functions,
high operating costs
Opportunities (O)
 Partnership with international
airway.
 Emerging markets and expansion
abroad
 Purchasing power increased with
economic recovery
 Great investor popularity in stock
market because of the endorsement
of legendary investors, e.g. Bill
Gates, leading to easy access of
capitals
 Travelling becomes the vogue
among young middle class.
Threats (T)
 Lower cost competitors
 Similar branding and positioning
with other luxury hotels, lacking
individuality
 Future economic uncertainty due to
recent financial market turbulences
 Exchange rate fluctuation
 Airbnb becomes more and more
popular among young people for
better privacy, comfort and lower
cost.
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SWOT Matrix
Strengths Weaknesses
Opportunities  Effective service can be used in
emerging markets and
expansion abroad.
 Strong management team and
great execution can be used
great investor popularity in
stock market.
 Brand Image can be used
partnership with international
airways because airline can use
hotel’s image for advertised.
 Emerging markets and
expansion abroad because
diseconomies due to
insufficient integration
after M&As.
 Partnership with
international airway can
be bad communication
after customer complaint.
 Travelling becomes the
vogue among young
middle class because
obsolete technology.
Threats  Effective service because future
economic uncertainty due to
recent financial market.
 Brand Image because similar
brand and position with other
competitors.
 Strong management team and
great execution that’s why
airbnb becomes more and
more popular among young
people for better privacy,
comfort and lower cost.
 Some locations are not
ideal compared with
competitors in the same
area because of late entry
because similar brand and
position with other luxury
hotels, lacking
individuality.
 Obsolete Technology
because can be effect to
future economic
uncertainty due to recent
financial market.
 Onerous staff, overlapped
functions, high operating
costs because the hotel
has lower cost compare to
other competitors.
5. Identify 2 critical Strategic issues based on our SWOT analysis
The issue:
1. Ineffective Bureaucracy & Obsolete Technology
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There have been customer complaints in the past due to bad bureaucracy of the
staff and the administrators of the hotel. The hierarchical structure and the people
appointed at different levels are overworked with onerous tasks and overlapping
functions.
Due to obsolete technology in the hotel there is more manual work and the staff is
less which makes them overburdened. More staff cannot be employed due to
already large operating costs.
2. There is a lot of competition for the hotel in the area and also around the world.
They are competing against destination locations across many locations. Moreover,
although they have a good brand image but have no individuality and hence are in a
similar position with other hotels.
6. Explain its implications (Not more than 100 words)
1. If we upgrade the technology, there will be less manual work as tasks will get distributed
with the latest gadgets and devices. This will reduce the work of the staff and reduce the
overlapping of their functions. Also, they will not have to invest in appointing more staff
hence it will not affect the existing operating cost, although new technology will cost initially
but in the long term would be beneficial.
2. Need to target a larger audience by collaborating with international airways, improving
graphics, sending more attractive message or maybe by offering valuable seasonal sales.
This will also bring individuality.
7. Justify why the solution is strategic to the organisation and explain its implications for
the brand image of the organisation and the company’s bottom-line (finance)
1. The solution provided is upgrading technology and bringing in new gadgets and devices.
This solves the problem of overlapping functions and burdensome tasks on the staff as the
work gets shared by the machines. It also ensures no new appointment of staff hence no
hike in already high operating costs. Although initially installing new technology would lead
to some costs, but in the long run it ensures no burdensome tasks on staff so that they
perform tasks efficiently which leads to good bureaucracy. Also when a customer receives
good treatment by staff (improved hospitality) it leads to better communication, less
complaints and positive feedback which in turn improves the brand image of the hotel and
gives it individuality.
2. The task is to attract more tourists, so the hotel needs to partner with international
airways so that they can advertise the hotel and get more tourists. Focus should also be
placed on offering strategic seasonal sales so that they get attracted to the hotel and this
gives an edge over other hotels and generates individuality. This improves the brand image
of the hotel as more positive feedback will be given by both loyalty customers and new
customers. Money needs to be spent on partnering with airlines and in offering discounts,
but since it attracts customers and generates individuality so a cost-benefit analysis would
show that it is beneficial for the net finance of the hotel. Such solution will also help to
distinguish Four Season Hotel with other hotels as the increased hospitality and positive
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feedback will set a benchmark and also the discounts offered will improve the popularity
over other hotels.
Some locations are not ideal compared with other competitors in the same area because of
late entry. (Doris part)
Doris’s part: Take some example to explain and justify 3 important things:
1. Why the solution is strategic to organisation (location selection – CBD and compare
with other luxury hotel)
2. location selection & brand image hotels
3. location selection & Fianace
8. Conclusion
Finally, two critical issues that mentioned in this report will help the hotel improve and develop to
get better and to become one of the best hotels in Australia and the worldwide. It also make the
hotel more recommended and visitors will choosing Four Season Hotel as the wonderful place they
can stay and enjoy for their holiday.
9. References (APA style)
Four Seasons: Strategic Directions. (2017). Retrieved from
https://www.ukessays.com/essays/marketing/four-seasons-had-a-clear-strategic-direction-
marketing-essay.php
Four seasons hotels and resorts. (2016). Retrieved from
https://www.ukessays.com/essays/education/four-seasons-hotels-and-resorts.php
Four Seasons Hotel and Resorts SWOT Analysis | Recession | Risk. (2019). Retrieved from
https://www.scribd.com/doc/82587331/Four-Seasons-Hotel-and-Resorts-SWOT-Analysis
Four Seasons Hotels and Resorts | Luxury Hotels | Four Seasons. (2019). Retrieved from
https://www.fourseasons.com/
Hotel Four Season – Hotel Four Season. (2019). Retrieved from
http://www.hotelfourseasonsjam.com/
Featured Initiatives - Four Seasons Corporate Social Responsibility. (2019). Retrieved from
http://livingvalues.fourseasons.com/
Four Seasons Hotel Sydney in Sydney. (2019). Retrieved from
https://www.hotels.com/ho106005/four-seasons-hotel-sydney-sydney-australia/
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