Elaboration of Radisson Blu in the Global Hospitality Industry

This paper elaborates on Radisson Blu, a market leader in the global hospitality industry. It includes a situational analysis, internal analysis, and a plan for business expansion.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author Note

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Executive Summary:
The paper is focused in the elaboration of a market leader in the global hospitality industry,
Radisson Blu. The paper conducts a situational analysis where it is found that the chosen
organization is expected to face limited amount of issues in the various aspects such as
political, legal, social and environmental aspect. On the other hand, the paper summarizes
the findings of an internal analysis of the organization where the company was found of
being associated to a significantly ineffective business expansion strategy. In addition to this,
the paper creates a suitable plan for the business expansion of the chosen organization where
it covers the various aspects of the business such as promotions, pricing, human resources
and value creation.

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Table of Contents
Introduction:...............................................................................................................................3
Elaboration on the environmental factors:.................................................................................5
Expansion:..................................................................................................................................6
Cost Reduction:..........................................................................................................................7
Asset Reduction:........................................................................................................................7
Revenue Generating:..................................................................................................................7
Product Strategies:.....................................................................................................................8
Pricing Strategy:.........................................................................................................................9
Promotional Strategies:..............................................................................................................9
Competition:.............................................................................................................................10
HRM:........................................................................................................................................10
Conclusion:..............................................................................................................................10
References:...............................................................................................................................12
Appendix:.................................................................................................................................14

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Introduction:
The paper is focused in the elaboration of a company that is operating in the
hospitality industry of United States, Radisson Blu (Radissonblu.com. 2019). The mentioned
organization was established in the year 1960. Wolfgang M. Neumann, the president and the
chief executive officer of the mentioned organization, Knut Kleiven, the Deputy President
and Chief Financial Officer of the organization, Olivier Harnisch, the Executive Vice
President and Chief Operating Officer and Eric De Neef, the Executive Vice President and
Chief Commercial Officer of the organization are responsible for production of the visionary
leadership which plays a crucial role for the organization in the effective management of the
competition (Radissonblu.com. 2019). The Radisson Blu is considered to be the brand name
of the Radisson Hotels in European, African and Asian countries.
The hotels that are operated under the mentioned brand name are seen to be managed
by the Radisson Hospitality AB and the Radisson Hospitality Inc. is the main stakeholder of
the parent organization of the brand (Radissonhotelgroup.com. 2019). As mentioned earlier,
Radisson Blu is seen to manage more than 420hotels and along with that, the mentioned
brand is observed to have 102 new projects in their developmental list (Radissonblu.com.
2019). Hence it is pretty evident that the mentioned organization is a renowned name in the
global hospitality industry. As it is pretty evident that the mentioned brand serves the
customers with considerable number of luxurious hotels for their stay, the company mainly
provides the optimum quality service to the customers with the inclusion of a homely
environment and along with the developed modern facilities. With more than 420 hotels, the
company is observed to meet the demands of the customers in an effective manner. However,
102 new projects in the pipeline of the organization is pretty significant in stating the

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increasing demand of the organization and that claims the need of increasing the number of
hotels for the organization as well (Radissonhotelgroup.com. 2019).
The status of the business is expansion as the Radisson Blu is the expansion of the
parent company, Radisson Hotel Group. The organization serves the customers across the
world and that is pretty evident with its representation in the form of 420 hotels
(Radissonhotelgroup.com. 2019). The customers are seen to visit the mentioned organization
in a significant manner and that is pretty evident with the increasing sales of the organization.
In addition to this, the increasing profit of the parent organization is of great significance in
stating the increasing consumption of the customers of the organization.
The speciality of the business is the significant reach of the organization in the form
of more than 420 hotels across 75 countries. The significant expansion of the business from
the part of the organization is seen to be crucial in the effective management of the services
of the company. The significant expansion of the organization enables the company to reach
out to the customers with the services and the products and proves to be crucial for the
organization in the generation of the increased sum in the form of revenue.
The significant reach of the organization plays a crucial role in the development of the
organization as it enables the organization to develop a lucrative brand that have the potential
to attract the customers of the different countries and the societies. The significant
improvement in the brand recognition of the organization is one of main factor that provides
notable amount of competitive advantages to the mentioned organization. Apart from this, the
application of the modern technology in the services of the organization and in the
infrastructural development of the organization is seen to be significantly influential in the
success of the organization (Law et al. 2013). It was the first business hotel that got
established in Cyprus. Hence the monopoly of the industry that the mentioned organization

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experienced at that point of time, contributed to the success and growth of the organization in
a significant manner. However, the rich history of the excellent service from the part of the
mentioned organization is one of the crucial factor in the formation of an attractive brand
which can be used for the improvement in the business conduction of the organization.
On the other hand, there are considerable number of issues in the management of the
effective expansion plans that are affecting the organization’s success in expanding their
business to the new regions. The ineffective plan of expansion is seen to pose notable amount
of barriers to the organization in reaching out to a larger number of customers with the
products and services that they offer to the customers (Grobelna 2015).
Elaboration on the environmental factors:
Cyprus is a nation which was divided by Turkish Army in the year 1974 (Psaltis and
Cakal 2016). The mentioned nation faced limited number of issues in the political aspect
from the time of division which provides a significant base to the organizations operating in
the hospitality industry. Adding to this, the country is seen to be significantly well decorated
in terms of the security which is pretty evident with the considerably limited impact or threat
of the extremist organisations such as ISIS (Ingram, Tabari and Watthanakhomprathip 2013).
The political and the governmental impact on the hospitality industry of the mentioned nation
reflects the stability of Cyprus as a nation. In addition to the Political aspect, a significant
increment in the revenue of the national hospitality industry provides a concrete base to the
organizations in entering the mentioned industry. Adding to that, the government of Cyprus is
seen to be significantly favourable to the mentioned industry as it provides notable amount of
benefits to the society in the form of the economic development, societal development and
increased amount of employment of the local citizens.

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The introduction of the new hotel organizations into the mentioned industry provides
a significant scope of employment to the local citizens of the nation which is of great
significance for the society. On top of this, the growth of the mentioned industry has the
potential to convert the mindset of the citizens towards a more materialistic nature and that is
pretty evident with their adaptability towards the western culture (Zaei and Zaei 2013).
The incorporation of the technology for the infrastructural development of the
organizations with a precise focus on the facilities such as the elevators, Wi-Fi along with the
room decorations are notably contributing to the success of the organization as that influences
the customers of the organization for the repetitive purchases. In addition to this, a pleasant
environment and an improved ecology are considered to be key in the success of the
organization (Louca, Vogiatzakis and Moustakas 2015). However, the legal framework of the
mentioned nation is seen to have a strong impact on the business conduction of the
organizations as it forces the mentioned organization in ethical sourcing of the raw materials,
in the ethical structuring of the payment and rewarding policy along with the formation of the
work time characteristics.
Expansion:
The organization is one of the market leader of the global hospitality industry. The
parent organization of the company is seen to be significantly inclined towards the business
expansions and under such situation, the acquisition is considered to be best suited method
for the chosen organization. The acquisition provides notable amount of advantages to the
mentioned organization in the form of the entry to the new market for an improved business
conduction in a significantly easy manner along with the scope of using the infrastructure of
the other organizations. Considering the Boston Matrix, in spite of a notable growth in the
number of the customers, the organization can be termed as cash cows as it is seen to operate

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in a market which is experiencing a comparatively slower growth rate (Haltofová and
Štěpánková 2014). On the other hand, the organization, being one of the first hotel to get
established in the nation along with the opening of more than 420 number of hotels across the
globe in the name of the mentioned organization, is seen to have established their business in
a significant manner.
Cost Reduction:
With a precise focus on the standing of the company in the Boston matrix, it is pretty
evident that the organization will be able to reduce the costing by accommodating better
supply arrangements. The application of the strategy will be significant for the organization
in the effective and better sourcing of the materials for the production of the optimum quality
services (Jones, Hillier and Comfort 2014). Apart from this, it is pretty visible that the
mentioned organization has a significantly strong brand name which helps the organization to
attract a larger number of customers in an efficient manner. This enables the company to
invest a lesser amount of money in case of advertising regarding the products and services of
them. Hence the cost reduction in the aspect of the advertisement is pretty viable for the
mentioned organization.
Asset Reduction:
In addition to this, the selling of the assets will be a feasible option for the
organization in case of reducing the assets. The non-operational assets of the organization are
expected to be sold for the effective reduction of the assets of the organization. In order to
make sure that the financial stability of the organization is enriched, the company can lease
out the non-functional assets through other organizations.

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Revenue Generating:
The effective management of the debt of the company will be significant for the
organization in order to increase the revenue. The increasing rate of interest on the sum of the
debt of the company is a significant menace for the organization as that affecting the profit of
the organization. As the organization is unable to increase the profit, the infrastructural
development of the mentioned organization is seen to be affected in a notable manner (Yang
and Fik 2014). Hence the organization is facing the definite need of reducing the debt for
improving the financial sustainability.
Product Strategies:
With a precise focus on the augmented product in the Kotler’s five level product, the
organization needs to make sure that they be able to provide the services that is beyond
expectation of the customers and is capable of creating delight for the customers (Cgma.org.
2019). The organization is in need to make sure that the services of their employees is in
perfect alignment to the varying requirements of the customers. The capability of providing
unique service to the customers of the organization depends on the excellence of the
employees. Adding to this, the organization is expected to face notable amount of issues in
the production of the quality service to the customers of the organizations such as the
developmental needs of the employees of the organizations. The design of the effective
training and the developmental activities from the part of the organization will be significant
in meeting the developmental needs of the employees of the organizations.
Apart from that, the identification of the requirements of the new products or services
from the part of the organization through the effective interaction with the customers of the
organization, will be much needed for the organization in introducing new products or
services. The strategy will enable the company to achieve a larger number of customers

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through meeting the varied requirements of them. The major issue that the organization is
expected to face in the implementation of the strategy, is the achievement of the
infrastructure for the effective management of the processing of the new products or the
services of the organization and the investment from the part of the shareholders or the parent
organization is seen to be much needed for he mitigation of the above mentioned issue.
Pricing Strategy:
With a precise consideration to the economic condition of the destination market, the
company is expected to follow the standard pricing for their services. The infrastructural
development from the part of the organization along with meeting the training and the
developmental needs of the employees will be enable the organization and the employees of
it to respond to the competition in an effective manner. The infrastructural development from
the part of the organization will be significant in using the modern facilities for providing the
optimum quality experience to the customers of the organizations (Espino-Rodríguez and
Gil-Padilla 2015). The improvement in the quality of the services and the facilities from the
part of the organization will be enable it to add value to their services and the customers will
have the intention of paying additional prices as well. Other than the pricing of the services,
the company has the potential to add value to their business through the effective
management of the socially responsible activities (Benavides-Velasco, Quintana-García and
Marchante-Lara 2014). The effective management of the activities with a precise focus on the
impact of the activities on the societal development will be helpful for the organization in
increasing their reputation and corporate image of the organization.
Promotional Strategies:
`The target market for the company will be the youth generation belonging to the age
group of 22-42 years. The average income of the target customers is expected to be 27000

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Euro per annum. The email subscription, social media advertisements and the offline
promotional campaigns will be much needed from the part of the organization in order to
reach out to the existing and the probable customers of the organization. Other than this, the
message from the part of the organization regarding the production of the optimum quality
service and the scope of experiencing the improved modern facilities will be crucial to
motivate the customers of the organization for the repetitive purchases.
Competition:
With a precise focus on the high level of competition and the higher bargaining power
of the buyers of the organization, the company is seen to face notable amount of competition
from the competitor organizations such as Kanika Group of Hotels and the Intercontinental
Group (Kanika-group.com. 2019). Both the organizations are seen to be market leaders in the
mentioned industry which increases the level of competition for the organization. Adding to
that, the application of the competitive pricing policy is seen to be the main basis of the
competition in the industry, however with the application of the standard pricing policy, the
organization is seen to be face notable amount of difficulty in coping up with the level of
competition. On the other, the conduction of the training and the developmental activities
from the part of the organization is seen to place the company in a better position in case of
providing the quality services to the customers compared to the competitor organizations.
HRM:
With the increasing demand of the national and the global tourism industry, the
company is seen to face the need of continuous expansion which forces to expand their
workforces. With the continuous recruitment from the part of the organization, the company
faces a significant need of meeting the training and the developmental needs of the new
recruitments. The training of the employees will be based on the various aspects of the

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customer services. The basic skills that are expected from the part of the employees of the
organization are efficient communication, appropriate interpersonal skills and strong
emotional intelligence.
Conclusion:
On a concluding note, the mentioned organization Radisson Blu is observed to
conduct a sustainable business. However, with the increasing competition of the hospitality
industry, the company is experiencing notable amount of difficulty in operating in a
profitable manner. Under such situation, the company’s inefficient business expansion policy
is seen to be a major issue in the development of the organization. With a precise focus on the
issues, the produced recommendations have the potential to meet the concerns of the
organization in the long run in an efficient manner.

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References:
Benavides-Velasco, C.A., Quintana-García, C. and Marchante-Lara, M., 2014. Total quality
management, corporate social responsibility and performance in the hotel industry.
International Journal of Hospitality Management, 41, pp.77-87.
Cgma.org 2019. Kotlers Five Product Level Model. [online] Available at:
https://www.cgma.org/resources/tools/cost-transformation-model/kotlers-five-product-level-
model.html
Espino-Rodríguez, T.F. and Gil-Padilla, A.M., 2015. The structural and infrastructural
decisions of operations management in the hotel sector and their impact on organizational
performance. Tourism and Hospitality Research, 15(1), pp.3-18.
Grobelna, A., 2015. Intercultural challenges facing the hospitality industry. Implications for
education and hospitality management. Journal of Intercultural Management, 7(3), pp.101-
117.
Haltofová, P. and Štěpánková, P., 2014. An Application of the Boston Matrix within
Financial Analysis of NGOs. Procedia-Social and Behavioral Sciences, 147, pp.56-63.
Ingram, H., Tabari, S. and Watthanakhomprathip, W., 2013. The impact of political
instability on tourism: case of Thailand. Worldwide hospitality and tourism themes, 5(1),
pp.92-103.
Jones, P., Hillier, D. and Comfort, D., 2014. Sustainability in the global hotel industry.
International Journal of Contemporary Hospitality Management, 26(1), pp.5-17.
Kanika-group.com 2019. Kanika Group of Companies. Kanika Group of Companies Hotels,
Construction & Development in Cyprus. [online] Available at: http://www.kanika-
group.com/

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Law, R., Leung, D., Au, N. and Lee, H.A., 2013. Progress and development of information
technology in the hospitality industry: Evidence from Cornell Hospitality Quarterly. Cornell
Hospitality Quarterly, 54(1), pp.10-24.
Louca, M., Vogiatzakis, I.N. and Moustakas, A., 2015. Modelling the combined effects of
land use and climatic changes: Coupling bioclimatic modelling with Markov-chain Cellular
Automata in a case study in Cyprus. Ecological informatics, 30, pp.241-249.
Psaltis, C. and Cakal, H., 2016. Social identity in a divided Cyprus. In Understanding Peace
and Conflict Through Social Identity Theory (pp. 229-244). Springer, Cham.
Radissonblu.com 2019. Radisson Blu. [online] Available at: https://www.radissonblu.com/en
Radissonhotelgroup.com. 2019. Radisson Hotel Group. [online] Available at:
https://www.radissonhotelgroup.com/
Yang, Y. and Fik, T., 2014. Spatial effects in regional tourism growth. Annals of Tourism
Research, 46, pp.144-162.
Zaei, M.E. and Zaei, M.E., 2013. The impacts of tourism industry on host community.
European journal of tourism hospitality and research, 1(2), pp.12-21.

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Appendix:

Running head: MANAGEMENT
What are you going
to do?
Associated
theory/model
Why was this strategy
chosen?
What are the implications of the strategy
Cost/ Benefit, Suitability, Acceptability,
Feasibility
Implementation
advice
Positives Negatives
Expansion( Cost
Reduction,
Promotional
Strategies, Pricing
Strategies)
Boston Matrix
Kotler
Porter’s model
The organization has the
capability to increase their
generation of revenue through
the effective business
expansions.
Sustainability Cost Minimization of the
operational cost
will enable the
company to achieve
a larger margin of
profit for the
chosen
organization.

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Running head: MANAGEMENT