Strategic Planning for the Hospitality Industry

This presentation discusses strategic planning for the hospitality industry, with a focus on the vision and mission of Formule 1 hotel in England. It covers analyzing strategic direction, evaluating strategic options, and assessing the internal and external environment using various frameworks. The presentation also includes references for further reading.

Strategic planning for the
hospitality industry

Table of Contents
 Introduction
 Analyzing strategic direction
 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.

Analysing Strategic direction
 A strategic direction of the organization shared sense of purpose and objective.
 The company focuses on strategic area and long term achievement for business success.
 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.
 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.
 Culture- - Company culture involves a shared set of values and beliefs, especially work positive environment,
vision mission of company and their goals

Charles handy model of culture
 Power- In few companies the power remains in the hands of only some people and only
they have right to take strategic decisions.
 In hotel Formule 1, managers can be partial to someone, it creates negative
environment and more conflict between team-mates.
 Task culture- The hotel industry where teams are formed to achieve common goals or
to solve problems follow the task culture.
 Person culture- In few hotels the employees feel that they are more important than
their work.
 Role culture- According to educational qualification, interest and others the employees
is delegated responsibilities

External & Internal analysis
Primary activities • Inbound
logistics
• Operations
• Outbound
Logistics
• Marketing &
Sales
• Services
Support Activities • Infrastructure
of Hotel
• HR
management
• Technology
Development
• Procurement
activities

Contd.
Step 1; Examining sub-activities for each primary activity
Step 2: Determining sub-activities for support activity
Step 3: Determining Links
Step 4: Considering opportunities for value creation
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;
 Differentiation strategy
 Strong cost position

External Factors-ICE DRIPS of Formule 1
 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.
 Innovations
 Competitors
 Economic
 Demographics
 Regulatory
 Infrastructure
 Partners
 Social and cultural trends

Contd.
 Competitors: competitors are those which deals in the same variety of products and
services. Every organization has its competitors which affects the profits of the
business. 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: Economic factors are related to the increasing rates such as inflation,
exchange rates and downfall in the business. The company maybe affected by these
factors as these are the macro-environment factors on which there is no control of the
company. The organization should have control over these factors because it may leads
to downfall of the hotel because of decreasing profits.

CONTD…
 Innovations: This includes the types of new technology, equipment and other
sources which has change in the market. The company should focus on this factor
as it has direct impact on the productivity of the company.
 Infrastructure: These factors includes the facilities such as transport means,
services to the public, networks of the telecommunication, furnished rooms etc.

Assessing internal environment with the help
of McKinsey 7's framework
Hard
elements
• Strategy
• Structure
• Systems

Contd.
Soft
elements
• Staff
• Skills
• Style
• Shared Values

Evaluating strategic options
 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

CONCLUSION
 To conclude, strategic planning is a method used by hotel industry in order to achieve
short term, medium term and long term targets.
 From the above discussion, it is investigated that the hotel formule 1 has adopted
differentiation strategy to attract their customers and to satisfy its competitive
advantages.
 To success, the hotel needs to select one particular type of differentiation best suited to
target common market desires.

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.