Strategic Planning for the Hospitality Industry

This presentation discusses strategic planning for the hospitality industry, with a focus on Formule 1 hotel in England. It covers analyzing strategic direction, Porter's value chain model, internal and external analysis, and evaluating strategic options. The presentation also includes the hotel's vision, mission, and values, as well as its culture and use of the McKinsey framework.

Strategic Planning for the
Hospitality Industry

Table of Contents
 Introduction
 Analyzing strategic direction
 Porter’s value chain model analysis
 Internal and external analysis
 Evaluating strategic options
 Conclusion
 References

Introduction
 Strategic planning is defined as a process in which company leaders and managers determine
their vision and objective for the future needs as well as evaluate their strategic goals.
 The presentation, will give detailed information about vision mission statement of popular
Formule 1 hotel situated in England, providing quality services to their customers and employees.
 This presentation will give detailed information about vision mission statement of popular
Formule 1 hotel situated in England, providing quality services to their customers and employees.

1. Analysing Strategic direction of Formule 1
 The plan that the company implemented for in order to achieve progress towards its
objective, goals and fulfil its vision statements.
 It ensures management team and owner of the company can communicate the importance of
team members work and their efforts to achieve business goals.
 A strategic direction of the organization shared sense of purpose and objective.
 The firm needs to plan according to the preference and needs of customer and employees.
Strategic direction requires innovative thoughts, new ideas and careful planning on time.

CONTD…
Vision, mission and values of Formule 1 is enumerated below :
Mission – A hotel Formule 1 mission is to be offered the finest
facilities and quality services while providing a good place to
work for its employees and providing services to customers.
Vision-. Creating positive and comfortable environment that
maximizes service quality in order to meet hotel industry
standards.
Values- Values are individual beliefs that encourage people to act
one way or other.

CONTD…
Culture
Company culture involves a shared set of values and
beliefs, especially work positive environment, vision
mission of company and their goals. The hotel core
values and culture defines from inside to outside.
Thus, it is said the staff members and employees who
fit into their organizational culture do their best work
and provide great services to guest.
According to Charles Handy's model of culture,
organizational culture includes role, task , power and
person.

Charles handy model of culture
 The hotel industry where teams are formed to achieve common goals or to solve problems follow
the task culture.
 All the employees work together to form a team in order to contribute equally and complete task in
innovative way. Hotel formule 1 has adopted task culture to achieve common interests and
specializations.
 Hotel formule 1 has adopted task culture to achieve common interests and specialization.
 This hotel unit focuses on work allotment by taking into account skills and abilities of personnel.

2. Porter’s value chain model analysis and its
contribution in the business strategy of your selected
organisation.
Porter's value chain analysis's major focus
is on systems, the ways in which inputs
are converted into outputs that will be
bought by customers. So, porter has
explained various activities which are
common to all businesses and therefore,
has divided such activities into 2 major
parts i.e. Primary and support activities.
Formula 1 Hotel can make use of Porter's
value chain analysis to formulate various
strategies by paying attention to activities
which are performed in organization.
Various activities divided by porter are as
follows:

Contd.
Hotel Formule 1 can utilize Porter Value Chain by following the steps:

Contd.
Formula 1 Hotel can apply Porter Value Chain Analysis in order to have competitive
advantage in industry by creating value for guests. Hotel can offer different types of rooms
and allied services according to the requirements of customer and income level.
Hotel can have following strategies;

3. Critically assessing the internal and external
environmental factors affecting organisations
 External factors are termed as those factors which are outside the control of the
company and which may affect the profit of the business.
 These factors have direct impact on the objectives of the business. The company must
check these factors because it has a direct impact on the productivity of the company.
 The following factors affect the productivity of company are:
 Innovations
 Competitors
 Economic
 Demographics
 Regulatory
 Infrastructure
 Partners
 Social and cultural trends

Contd.
 Innovations: New and innovative technologies help the company for the fastest
production of the products. Formule 1 is the big hotel in England, so they must use new
technologies in their hotels which makes the customers attracts to visit and stay over there.
 Competitors: The organization also has many competitors as there are many other hotels
nearby. The cited hotel must do something new and unique in their hotels which makes the
guests attract to visit there.
 Economic: The organization should have control over these factors because it may lead to
downfall of the hotel because of decreasing profits.
 Demographics: The organization must also focus on these factors of demographic and
make prices of the rooms in the hotels. As customers will book the rooms according to
their income.

Contd…
 Regulatory: Due to Covid the organization must follow the laws, rules and regulations made by the
government which makes the country free from covid. As in this there is lots of government
interference so the organization must comply with the policies and laws made by them.
 Infrastructure: The cited hotel must have good infrastructure like furnished rooms and bathrooms,
gardens, furnished swimming pools which makes the customers attract to visit and have fun over
there.
 Partners: The organization share their capital to increase the productivity and reputation in the
market. But sometimes it may be not beneficial as both the firm may get in a big loss.
 Social and cultural trends: There must be lowed rates of the per rooms in the hotel because of the
pandemic. This makes the people attract that the market is thinking about them. The organization
can also provide their customers discount on the earlier bookings of the hotels.

Contd..
External environmental
Mc-Kinsey framework

Contd.

4. Evaluating strategic options for an organization
 With the help of this process the hotel target market and audience.
 Strategic options are target oriented alternatives that the company has towards the external
situation. By using Ansoff matrix the company provides strategic options with regard to the
growth of hotel.
.
 Market penetration
 Market development
 Product development
 Diversification
 The organization must focus on the related diversification
as in this the potential synergies are recognized among
the business existing and new market and products.
 Diversification is must for the company as it makes the
growth by increasing the profit of the organization and
achieve the planned goal.

CONCLUSION
 To conclude, strategic planning is a method used by hotel industry in order to achieve
short term, medium term and long term targets.
 By evaluating this report it is concluded that the company must focus on its
fundamental unique aim or purpose to compete in the market. With the help of
innovation and new technologies the hotel can attract new customers.
 By analysing, SWOT and PESTLE method it is investigated that the hotel needs to
focus on weaknesses, political and legal factors and try to solve problem with effective
model and theories.

References
 Abdullah, H. S., Salman, A. J. and Ahmed, I. A., 2019. Integrating the value chain and balanced scorecard to
evaluate the overall performance of a tourism organisation. African Journal of Hospitality, Tourism and
Leisure. 8(5). pp.1-11.
 Adiyia, B. and Vanneste, D., 2018. Local tourism value chain linkages as pro-poor tools for regional
development in western Uganda. Development Southern Africa. 35(2). pp.210-224.
 Auma, S. N. and Waithaka, T., 2020. INFLUENCE OF MARKET PENETRATION STRATEGY ON
ORGANISATIONAL PERFORMANCE OF PUBLIC UNIVERSITIES IN KENYA. International Research
Journal of Business and Strategic Management. 1(1).
 Bol, P. K., 2020. This Culture of Ours. Stanford University Press.
 Brook, O., O’Brien, D. and Taylor, M., 2020. Is culture good for you?. Manchester University Press.
 Chareanporn, T., Mingmalairaks, P. and Jongsureyaphas, C., 2020. Strategy Implementation to
Organizational Competency Development in Tourist Accommodation in Thailand: An Exploratory Research
with the McKinsey Seven S’s (7S’s) Approach. Journal of Management Science Chiangrai Rajabhat
University. 15(1). pp.154-175.