Strategic Management for Lord Wolseley Hotel: A Theoretical Analysis

This assignment provides a theoretical analysis of the micro and macro environment of Lord Wolseley Hotel, the importance of strategic management, and the influence of transformation on strategic direction. It also recommends Hotel Operation Training Simulation (HOTS) for enhancing the professional career of staffs.

MHC610 Strategic Hotel Management
Table of Content
s
Executive Summary..................................................................................................................... 1
1 Introduction.......................................................................................................................... 2
2 Theoretical analysis of the micro and macro environment of Lord Wolseley Hotel...............3
2.1 Micro environment.........................................................................................................3
2.1.1 SWOT.................................................................................................................... 3
2.2 Macro environment........................................................................................................3
2.2.1 PESTLE.................................................................................................................3
2.3 Theoretical analysis.......................................................................................................4
2.3.1 Total quality and strategic management theory......................................................4
2.3.2 Theory of planned behavior and Theory of reasoned action.......................................4
3 Argument for transformation of strategy into strategic management....................................5
4 Influence of transformation on strategic direction.................................................................6
5 Conclusion........................................................................................................................... 7
6 Recommendation................................................................................................................. 8
6.1 Hotel Operation Training Simulation..............................................................................8
7 References........................................................................................................................ 10
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MHC610 Strategic Hotel Management
Executive Summary
Strategies make the companies and organizations aware of the areas, which they have to
cover for achieving success. In other words, strategy can also be considered as the action
plan, which the companies and organizations make for altering the current business
scenario. Every personnel are entrusted with the responsibility to act according to the
developed strategies. However, the role of the managers is crucial in terms of regulating the
performance exposed by the staffs. These aspects reflect the significance of strategic
management in the workplace. This assignment, through the example of Lord Wolseley
Hotel, makes the personnel aware of the ways and means for managing the compliance
towards the developed strategies. One year strategic plan is the main highlight of this
assignment. Along with this, Hotel Operation Training Simulation (HOTS) gains an important
position in the assignment in terms of enhancing the professional career of the staffs.
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MHC610 Strategic Hotel Management
1 Introduction
Strategies or action plans are essential documents for the companies and organizations.
This is in terms of enhancing the productivity in an efficient and effective manner. The role of
the manager is important because they are the one in charge of managing the performance
and estimating its effectiveness towards the fulfillment of the identified goals and objectives
(Enz, 2009). One of the typical components of this plan is Hotel Operation Training
Simulation (HOTS). The word simulation can be correlated with the managerial role of
controlling the performance of the staffs.
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MHC610 Strategic Hotel Management
2 Theoretical analysis of the micro and macro environment of
Lord Wolseley Hotel
2.1 Micro environment
2.1.1 SWOT
Provision of accommodation in the close proximity of bars and restaurant makes Hotel
Wolseley a popular name among the customers. Sydney City Centre adds to the
geographical location of the hotel, enhancing the brand image of the hotel. Renovation of the
rooms and restaurant in the recent past has generated high revenue. The major drives
behind this are preservation of traditional values, old school, amusement parks for children
and well ventilated rooms. Viewing from the financial perspective, the travel agencies do not
bear the accommodation costs within the travel packages. This issue compels the tourists to
try alternative payment options. Indulging in partnerships with the travel agencies, for
sponsoring the accommodation cost would reduce customer worries regarding payment.
Exposing negligence attitude towards upgrading the financial parameter would add
vulnerability to the market position of the hotel in the competitive ambience.
2.2 Macro environment
2.2.1 PESTLE
Political unrest along with harsh policies heavily influences the smooth functioning of the
business activities in Hotel Wolseley. However, governmental initiatives regarding the tie up
between the hotel and the travel agencies enable the hotel personnel to serve the customers
efficiently and effectively. These initiatives act assistance for the hotel in terms of achieving
loyalty, trust and dependence from the customers. However, a vulnerable finance is an
obstruction towards this achievement. The administration of the hotel indulges in partnership
with the members of trade union, but there is an absence of strategic planning. This is the
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MHC610 Strategic Hotel Management
reason for failing in terms of luring the customers with prospective offers, schemes and
discounts. Not using the latest and modern software aggravates the complexities in terms of
fulfilling the needs, demands and requirements of the stakeholders and shareholders. Non-
compliance to the standards and protocols of the legislations is an addition to these
complexities. This non-compliance is also an evidence for contributing to the environmental
pollution. The presence of non-smoking rooms contradicts the previous proposition.
2.3 Theoretical analysis
2.3.1 Total quality and strategic management theory
Planning establishes a relationship between the two variables quality and management. For
developing effective plans, appropriate approach is needed, which is lacking in the
personnel of Lord Wolseley Hotel personnel, towards the execution of the business
activities. The typical components of this planning are- the current market environment,
competitors, potential risks, the resources available, competencies of the hotel staffs and the
scope and arena of the competitors. The creation of action plan is the keystone for the
personnel in terms of systematizing these considerations according to their priorities (Enz,
2009). Implementation of these action plans depends on the criticality of the hotel
requirements. Monitoring the effects after implementation makes the personnel aware of the
changes, which should be made for altering the business scenario.
2.3.2 Theory of planned behavior and Theory of reasoned action
Planning, before exposing a certain kind of behavior, results in the undertaking of
appropriate action. It can be considered as the medium between behavior and action.
Planning done by the managers of Hotel Wolseley, before the development of strategies, is
their reasoned action in terms of achieving efficient execution of the business activities
(Gamble, Thompson & Peteraf, 2014). Delving deep into the aspect, this planning may be
the outcome of a failure or an urge towards upgrading the current business scenario. This
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MHC610 Strategic Hotel Management
type of behavior, exposed by the manager, aligns with the advanced stages of developed as
proposed by Freud.
3 Argument for transformation of strategy into strategic
management
The top level managers, middle level managers and the low level managers equally hold
significant position in the strategic management. The low level managers are entrusted with
the responsibility of planning the strategies. The middle level managers assess the planned
strategies and direct these strategies to the top-level managers for final evaluation.
Taking the initiative towards making rough drafts of the plans and strategies is the reasoned
and planned behavior of the low-level managers. Organizing meetings with the top level
managers is a reasoned and justified behavior of the middle level manager. Taking prior
permission and appointments from the top level managers is accounted as a planned
behavior in terms of exposing strategic approach towards the enhancement of the hotel’s
productivity (Frynas & Mellahi, 2011). Involvement of the managers from all the three levels
aligns with the approach, which possesses flexibility towards the achievement of large-scale
customer satisfaction. Unity and coordination ties the managers of three levels.
Consciousness towards enhancing the quality of the services directly aligns with the aspect
of enhancing the corporate social responsibility. This consciousness is accounted as one of
the essential responsibilities of the manager. Quest for serving quality services to the
customers enhances the professionalism of the managers. Giving proper shape to this quest
through the creation of prospective strategies provides competitive advantage to companies
and organizations like Hotel Wolseley in Sydney. However, it should be the collaborative
effort of the managers of all the three levels.
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MHC610 Strategic Hotel Management
Unity and coordination is one of the other components, which assist the managers to
manage the proper implementation and execution of the developed strategies. This is
applicable for the managers of all the three levels. As a matter of specification, coordination
between the managers results in the smooth functioning of the business activities. Difference
of opinion is common between the managers and staffs of all the companies and
organizations. However, strategic planning can resolve this differentiation. Lack of
immediacy in adopting the means of negotiation can adversely affect the productivity of the
hotel. The impact can be serious in terms of conflicts, discriminations and harassments
between the managers, employees of Lord Wolseley and the employers.
4 Influence of transformation on strategic direction
Planning gives shape to the developed strategies and management is the assessment of
their effectiveness, appropriateness and feasibility in terms of the identified and specified
goals and objectives. One of the essential considerations of this planning is the mission.
Identification of the mission makes the personnel aware of the objectives, which should be
achieved. Herein, the theory of planned action and reasoned behavior can be brought in
terms of assessing the approach of the personnel towards making the plans for strategic
management (Gamble, Thompson & Peteraf, 2014).
Example of planned action is strategic planning results in the enhancing the efficiency of
business activities. Here, consciousness towards making plans and strategies reflects the
kind of training received by the personnel for enhancing their professionalism. Taking into
consideration the training received by the employees of Lord Wolseley is the reasoned
behavior of the managers regarding estimation about the labor to be extracted from them.
This estimates leads towards ensuring whether the identified mission would be achieved or
not.
Along with mission, vision occupies a significant position in planning. Vision enhances the
focus of the personnel in terms of reaching to the benchmark level of performance.
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MHC610 Strategic Hotel Management
Identification of vision enables the personnel to envision themselves in future (Gupta,
Wakayama & Rangan, 2012). The result of this is the exposure of planned and reasoned
behavior in terms of securing their market position in the competitive ambience. Delving
deep into the issue, this exposure would be ethical, if the personnel develop plans and
strategies regarding maintenance of transparency in the business activities. Displaying
inquisitiveness in luring the customers possesses flexibility towards enhancing the
parameter of corporate social responsibility of the hotel personnel. Consciousness towards
the responsibilities, which the personnel have towards the stakeholders and shareholders,
enhances the corporate image of the personnel (Wheelen et al., 2017). This enhancement
achieves perfection upon the presence of rationality within the thinking towards execution of
the allocated duties and responsibilities.
5 Conclusion
Strategic management is an important aspect among the business issues. This management
needs effective planning for the achievement of positive results. Rationality in this planning
helps the personnel to achieve loyalty, trust and dependence from the clients and
customers. This aspect brings the behavioral theory into the discussion on the application on
strategic management into the workplace of Hotel Wolseley. Micro and macro environment
of the Hotel enhances the clarity of the readers regarding the background of the Hotel and its
compatibility with the competitors. Recommendation of training seems beneficial towards
preparing the staffs for confronting the bigger challenges in the market.
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MHC610 Strategic Hotel Management
6 Recommendation
In view of the current competitive ambience of the market, training seems to be one of the
most important recommendations for the companies and organizations. This is in terms of
gaining the capability to confront the competitions imposed by the contemporary brands.
Training enhances the preconceived skills, expertise and knowledge of the employees of
Lord Wolseley for enhancing the productivity of the companies and organizations (Barney &
Hesterly, 2015). Apart from this, training results in the knowledge transfer from the managers
to the employees of Lord Wolseley. This motivates and encourages the employees of Lord
Wolseley to expose better performance. The following section shed light on the concept of
Hotel Operation Training Simulation (HOTS).
6.1 Hotel Operation Training Simulation
This concept perceives training as a game, where the participants are divided into groups.
After this, the team members are instructed to conduct virtual operation for the hotels having
500 rooms. The nature of this operation is competitive due to the participation of the
contemporary hotels. The operation is monitored by the managers. This operation is tagged
as a game in terms of detecting the winners for achieving large scale customer satisfaction
through the generation of high revenues.
Monitoring of the performance, exposed by the team members, should be done strategically.
Inclusion of CCTV cameras within the strategies would act as an innovative step towards
controlling the employee performance. Along with this, taking post training tests is also an
effective means for assessing the capability of the employees of Lord Wolseley. This is in
terms of making practical application of the learnt skills in the execution of the workplace
operations.
The grounds of the competition are generation of high revenue for achieving financial
stability. This is through the means of providing quality products and services. Here, training
occupies an important position.
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MHC610 Strategic Hotel Management
Creation of the team is an important aspect, which also should be strategic. Taking into
consideration Tuckman’s stages of team development would help the managers of Lord
Wolseley Hotel to select rightful candidates in business operations. The effectiveness of this
selection can be accessed through the performance of the candidates in the tests. Here, the
perception of game is questioned. On the contrary, the concept can be considered as the
strategic approach towards preparing the employees of Lord Wolseley for facing the
challenges from the contemporary brands.
Here, training involves various aspects- management, communication, approach to the
assigned duties and responsibilities among others. The responses of the employees of Lord
Wolseley should be appraised in the performance appraisals. Attention should be placed on
the ways and means adopted by the employees of Lord Wolseley for the carrying out the
assigned duty. This would act as a kind of valuation for the efforts they put in for exposing
better performance.
The employees of Lord Wolseley should be encouraged regarding the planning which they
need to do for approaching the duties and responsibilities. Telling them about the
significance of setting goals would make them aware of self-organization. Herein lays the
appropriateness of evaluation, which would help the employees in upgrading the standards
and quality of the performance of Hotel Wolseley as a whole.
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MHC610 Strategic Hotel Management
7 References
Barney, J. B., & Hesterly, W. (2015). Strategic management and competitive advantage
concepts and cases. Pearson.
Enz, C.A., 2009. Hospitality strategic management: Concepts and cases. John Wiley and
Sons.
Frynas, J. G., & Mellahi, K. (2011). Global strategic management (2nd ed.). Oxford, UK:
Oxford University Press, USA.
Gamble, J. E., Thompson, A. A., & Peteraf, M. A. (2014). Essentials of strategic
management: the quest for competitive advantage (3rd ed.). New York, NY: McGraw-
Hill Irwin.
Gans, J., & Ryall, M. D. (2017). Value capture theory: A strategic management
review. Strategic Management Journal, 38(1), 17-41.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence.
Upper Saddle River, NJ: pearson.
Gupta, A. K., Wakayama, T., & Rangan, U. S. (Eds.). (2012). Global Strategies for Emerging
Asia. John Wiley & Sons.
Hill, C. W., & Jones, G. R. (2012). Strategic management cases: an integrated approach.
Cengage Learning.
Jenkins, M., Ambrosini, V., & Collier, N. (Eds.). (2016). Advanced strategic management: A
multi-perspective approach. Macmillan Education.
Peteraf, M., Gamble, J., & Thompson Jr, A. (2014). Essentials of strategic management: The
quest for competitive advantage. McGraw-Hill Education.
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Pinto, J. K. (2015). Project management: achieving competitive advantage. Prentice Hall.
Rees, G., & Smith, P. (Eds.). (2017). Strategic human resource management: An
international perspective. Sage.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic
management and business policy. Pearson.
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