Critical Issues in Four Season Hotel

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
1

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.
2