Hyatt Hotels: A Case Study Analysis with SWOT, STEEP and McKinsey’s 7s Framework

This case study analysis of Hyatt Hotels includes a SWOT analysis, STEEP analysis, and McKinsey’s 7s framework. It covers the internal and external factors affecting the hotel industry, including social, technological, economic, political, and environmental factors. The analysis also includes the company's strengths, weaknesses, opportunities, and threats.

CASE STUDY ANALYSIS

Table of Contents
Introduction......................................................................................................................................2
The MICRO context........................................................................................................................2
McKinsey’s 7s framework...........................................................................................................2
The MACRO context...................................................................................................................4
STEEP analysis............................................................................................................................4
SWOT analysis................................................................................................................................6
Conclusion.......................................................................................................................................7
Reference list...................................................................................................................................8
1

Introduction
Hyatt hotels are taken to be one of the growing ventures within its respective industry. Favouring
over the venture, the following content would be dealing with the internal along with external
analysis for the mentioned venture. It would be carrying the SWOT along with STEEP and
McKinney’s 7s framework to comply with the content. On final context, an overall conclusion
would be procured for producing the outcome.
The MICRO context
McKinsey’s 7s framework
Figure 1: McKinsey’s 7s framework
(Source: created by author)
Strategy
The hotel mainly strategizes for producing the explicit cuisines along with procurer world class
service to their incoming customers. The hotel sheds its focus over the premium pricing strategy
for catering higher profile within the society. Apart from that of using festive schemes and
discounts, the hotel also focused to use the social media or their brand promotion (Alberti, 2016).
Structure
2
McKinsey’s
7s
framework
Strategy
Structure
Systems
Shared
values Style
Staffs
Skills

The hotel is having a centralized system of controlling with the members being divided into
management, workflow, human resources, customer segments and the external affairs. The
communication lines for the hotel stay explicit with extended communication toward the external
shareholders.
Systems
Consulting the financial aspects, the revenue system is having its base over the management
along with franchisee fees. Through such, the hotel earned an amount of $4.2 billion, with an
overall amount of $207 million, towards the shareholders. Apart from such, Hotel is also having
enhanced HR management along with operative strategies for catering the business management.
Shared values
The company aims towards fostering a common purpose along with a common culture through
sharing core values subtending to mutual respect along with intellectual honesty along with
integrity. Apart from such, the venture also seeks to provide humility along with technical
advancements and innovative culture (Brady et al. 2015).
Style
The Hyatt hotel group are working with attractive leadership style over their business operations
along with employee management. There is cooperation from the employee side for the hotel
group along with it has overseas expansion with strong brand recognition and perforated
balanced sheets.
Staffs
The hotel is having enormous number of staffs. For the venture, there are 95000 associates for
the entire Hyatt group among which there are employees by a number of 45000. The rest of
55000 associates are through 3rd party ownership along with hotel franchises.
3

Skills
The company has well equipped skills and competitive strategy for setting its place within the
hospitality industry. The main skills sustains within its employee management along with
managing the external shareholders for the catering the hotel serviceability (Prebensen, Chen,
and Uysal,. 2018).
The MACRO context
STEEP analysis
Figure 2: STEEP analysis
(Source: created by author)
Social
The social factors to be hindering the venture of Hyatt hotels are education level along with the
standards along with class and power structure within the society. Further, entrepreneur spirit
with broader societal nature is also taken to have contribution over the social causes.
Technology
4
STEEP
analysis
Social
Politics
Environ
ment
Economi
cs
Technol
ogy

Technological factors to be impacting the Hyatt hotels are technological diffusion rates along
with value chain structural impact within the service sector (Buil et al. 2016). The cost factor is a
considerable factor for lodging the technology within the industry.
Economics
The economic factors to be hindering the Hyatt hotels are many in number. One of the primary
concerns goes to the inflation rate of 2% within the Australian context, along with the interest
rates being sufficient higher. Apart from such, there are also the factors of labour cost along with
fluctuating efficiency within the financial markets. There are also presences of favourable
unemployment rate by a factor of 3% that are subjective to hamper the Hotel within a minor limit
(Raj and Griffin, 2015).
Politics
Over the Australian context, the political factors hindering the serviceability of Hyatt hotels are
the anti-trust lodging laws. Apart from such, the factor of bureaucracy along with interference re
also existent y virtue of Australian government within the lodging industry present. Further the
presence of wage regulations along with safety regulations are also a considerable factor within
the Australian context for the serviceability of Hyatt hotels (Ge et al. 2018).
Environment
Climatic changes along with weather comprise the major environmental factor for Hyatt hotels
within the Australian context. Through such, the customer availability for the hotel subjects to be
hampered. Apart from such, the waste management is also taken into consideration along with
promoting support towards renewable energy (To et al. 2015).
SWOT analysis
The SWOT analysis is comprised of four major factors namely the strength, weakness, threats
and opportunities.
5

Strengths
- Having franchise growths
- Hotel property ownerships
- Stronger distributive networks
- Major number of hotels around the
globe with 65% shareholding
Threats
- currency fluctuation
- Competition within the B2B market
through hotel guests and within B2C
market for franchise agreement
Weakness
- No share of incremental profits
- Improper capital management
- No share of incremental benefits
regarding franchise properties.
Opportunities
- Realigning corporate with regional
operations
- Sale of vacation owner properties
Table 1: SWOT of Hyatt hotels
(Source: created by author)
From the above table, it is evident that the hotel is equipped with both strengths and weakness
with equal amount of threats and opportunities. Regarding the incremental profit being a
weakness, it can be minimised through use of franchises growths value of the hotel. Further, with
the opportunity of realigning of corporate with that of regional operations, weakness of less
benefit sharing of franchise can be taken for being compensated. With having major amount of
hotels under Hyatt, the threat of competitive B2C market can be averted. Through having
stronger distributive networks, customer attracting can be done through brand endorsing
strategies (Viglia et al. 2016).
Conclusion
6

From the above content, various conclusions are to be derived. Contexting the micro analysis
pertaining to Mckinsey’s 7s strategic approach, the company’s internal infrastructure are
procured. The amounts of revenues generation along with shared value along with their strategies
for their growth are outnumbered through micro analysis. The MACRO analysis procured the
external factors affecting the hotel. The economic rates and the political factors are the
considerable one to hinder their working module. The swot analysis was effective to produce
conclusion regarding the internal factors. The company can use the strengths for overcoming
their threats, and catering the opportunities to get rid of the weaknesses.
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Reference list
Books
Prebensen, N. K., Chen, J. S., and Uysal, M. (Eds.). 2018. Creating experience value in tourism.
Oxforshire: Cabi.
Raj, R., and Griffin, K. A. (Eds.). 2015. Religious tourism and pilgrimage management: An
international perspective. Oxforshire: Cabi.
Journals
Alberti, G. 2016. Moving beyond the dichotomy of workplace and community unionism: The
challenges of organising migrant workers in London’s hotels. Economic and Industrial
Democracy, 37(1), 73-94.
Brady, S. R., Young, J. A., and McLeod, D. A. 2015. Utilizing digital advocacy in community
organizing: Lessons learned from organizing in virtual spaces to promote worker rights and
economic justice. Journal of Community Practice, 23(2), pp.255-273.
Buil, I., Martínez, E., and Matute, J. 2016. From internal brand management to organizational
citizenship behaviours: Evidence from frontline employees in the hotel industry. Tourism
Management, 57, pp.256-271.
Ge, H., Chen, S., and Chen, Y. 2018. International alliance of green hotels to reach sustainable
competitive advantages. Sustainability, 10(2), 573.
To, W. M., Martin Jr, E. F., and Billy, T. W. 2015. Effect of management commitment to
internal marketing on employee work attitude. International Journal of Hospitality
Management, 45, pp. 14-21.
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Viglia, G., Mauri, A., and Carricano, M. 2016. The exploration of hotel reference prices under
dynamic pricing scenarios and different forms of competition. International Journal of
Hospitality Management, 52, pp. 46-55.
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