Strategic Briefing Hots Hotel

The study analyzes the external environment of Hots hotel and focuses on recommending the essential actions that can contribute towards the greater future growth of the organization.

Running head: STRATEGIC BRIEFING HOTS HOTEL
STRATEGIC BRIEFING HOTS HOTEL
Name of the Student
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Author Note

STRATEGIC BRIEFING HOTS HOTEL 1
Executive Summary
The study is focused towards the essential analysis of the various external and internal factors
that affect the business proposition of an existing hotel, Hots. The location of the hotel is Bondi
Beach in Australia and the operational area have been essentially assessed in accordance of its
significance. Moreover, the macro and micro environment of operation of the hotel have been
analyzed. Moving forward the current position of the hotel and the overreaching strategies to
tackle the significant challenges have been discussed. The study has utilized tools such as the
PESTEL, Porte’s Five Forces and Competitor analysis to derive essential implications. The plan
for one year have been provided in accordance of the same. The implications of the study point
towards significant business opportunities for the future of the organization.

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Table of Contents
Introduction......................................................................................................................................2
Critical analysis of macro and micro environment..........................................................................3
Intended Overreaching strategy.......................................................................................................5
PESTEL.......................................................................................................................................5
Porter’s five forces.......................................................................................................................6
Industry and Competitor Analysis...............................................................................................7
Decision categories and application in first year at Hots................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

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Introduction
The study analyzes the external environment of Hots hotel and focuses on recommending
the essential actions that can contribute towards the greater future growth of the organization.
The most important implications that can be derived from the analysis of the external factors will
be utilized towards forming the strategic requirements for the hotel. The Hots hotel is located in
a coastal region of Australia. The industry is witnessing resurgence after a significant period of
stagnancy. Hence, the significant decisions that need to be taken by the hotel needs to be focused
through the study. The external factors need to be critically analyzed in order to derive essential
implication in regards to the future progress path of the organization.

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Critical analysis of macro and micro environment
The background of the hotel needs to be considered for the analysis of the environment
within which it will operate. The hotel in the last one year has not been able to perform in
accordance of the essential standards for productivity. The hotel was opened in the middle of the
20th century. The hotel offers traditional hotel services in the area with 250 guest rooms and other
essential facilities.
The location of the hotel is in Bondi beach. The beach witness growth and development
in the 1980s as people got more affluent they started to spend more towards the travel and
tourism in the coastal areas. The 1990s were a period of further growth and consolidation of the
development occurred as the growth the soft and the service industry meant that the hotel
industry in the area received a further boost (Salvioni, 2016). The population of the area
increased to 160, 000. The tourism industry and the hotel industry were both booming. However,
in the 2000s the industry in the Bondi beach area received a significant setback as the travelling
trends changed and people started to give more importance to the other travel destinations.
The past one year for the hotel has not been up to the mark. The hotel has failed to make
good revenue and the consumer value has decreased as they have failed to offer any services of
extra value. With the dawn of new age travel and tourism the prospects of traditional hotels have
received a setback. Moreover, the business consumers have not been greatly addressed by the
services of the hotel. In essence, the activities surrounding the hotel in the past year have not
been able to add any significant value to the services that are being offered. The financial data of
the hotel are not good and in future the hotel can face further issues.

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The vision and mission of the organization, given the micro environment should be to
strive to become a three star hotel and provide both business and leisure oriented customers with
wide range of services. The ethical dimensions of the HOTS hotel should be to ensure good
working environment for the workers and to provide services that are at par with the prescribed
legal requirements. The organization should focus on CSR activities that concern the
environment of the Bondi beach. The development of environment friendly working conditions
would work in the favor of the organization and the local area. The objectives that should be
focused are increasing the services offered, effectively increasing the revenue by 50% by the end
of the first year and providing more services to attract the business customers. The essential
goals should be focused towards becoming a three star hotel within a span of two to three years.

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Intended Overreaching strategy
PESTEL
The PESTEL analysis tools are usually utilized for the external analysis that includes the
political analysis, economic analysis, social, technological, legal and the environmental aspects
of the country that creates impact on the business in that country.
Political The political condition of the country was mostly favorable for the hotel and
the local authorities had provided the minimum rate of taxes for the
emerging business. Also the government has utilized the taxes for effectively
establishing the seafront facilities which has less impact on the business.
Economic The country faces the economic boom in the 1980s which has declined in
1990s. Moreover the low rate of taxes has made it more favorable for the
hotel to continue its business in Australia. The economic impact of the
country on the hotel is moderate for the hotel.
Social The hotel being located one of the tourist destinations they gain the
opportunity of getting more customers. Most of the time it is found out that
in the 1st and the half quarter of the year people travels for spending their
leisure time. Therefore this can be said that the social impact of the place is
high for the hotel.
Technological The technological advancement has been rapidly increasing which provides
the hotel a opportunity for becoming more technologically advanced like the
people can pre-book their stay and they can impose digital management

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methods for their customers. Therefore the technological impact is high for
the hotel.
Environmental The hotel is located on the coastal areas that provide a good environmental
value for the hotel to attract more customers. The effect of environmental
factors on the hotel is low.
Legal There are few legal standards of Australia that the hotel are required to meet
in the business market for legalizing the hotel as one of the star hotel and the
business are required to maintain the business ethics (Hirte, Speidel &
Schlüchtermann, 2018, June). The legal impact on the hotel is high to
moderate.
Porter’s five forces
Bargaining power of Suppliers
The hotel suppliers involve the food and beverage suppliers, kitchen utensils suppliers,
electricity suppliers and others. The hotel has the healthy relations with the suppliers thus they
don’t face any bargaining pressure of the suppliers and as the hotel has become one of the largest
emerging business they faces very low bargaining pressure of the suppliers (Zinovieva et al.,
2016).
Bargaining Power of Buyers
The buyers bargaining pressure is moderate for the hotel as it is located in one of the
most favorable locations so the clients generally chooses it for their good location and services.

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Threat of New Entrants
The threat of the new entrants are quiet high for the hotel as the Australian government
has impose low tax rate on the emerging business, more and more new business are entering in
this business field and provides the same services.
Substitute products
The threat of the substitutes are moderate as the emerging business are trying to provide
the services like the best hotels although there are less amount of hotels in the local area around
the hotel. There can be growth of the substitute business in the future in that place because the
conferences are increasingly going on in such area regarding growth of rent halls.
Competitive rivalry
The competition is going on increasing in such business fields as most of the hotels are
emerging up providing the same type of services. There are various hotels coming up with some
innovative factors and provides services at low price that attracts more customers. Thus the
competitive rivalry for hotel is high.
Industry and Competitor Analysis
This can be said that since the hotel is located at one of the favorable place along with the
influx of the tourist the competing factors are mostly high for the hotel. The hotel industry allows
most of the emerging business to enter in the business field and the emerging business are
coming up with the innovative factors, traditional values and provide low price services that
makes the competition for the existing business to compete in the business market. In essence, it

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can be said that the company need to take steps to provide customers with services that other
companies are not providing. In this context this could mean better business class services, spa
services, beach safari services, diving and other new services.

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Decision categories and application in first year at Hots
The first category is in relation to the rates. The rates of the hotel need to attract the
business and the leisure consumers. At peak time of the leisure consumers, the hotel should offer
special rates to the leisure customers. At peak times of the business consumers the business
oriented customers should be given special discounts.
In relation to the refurbishments, the hotel needs to incorporate a conference room within
its premises. This can be rented to the various businesses in the future. Moreover, it will be good
to address the growing number of business conferences that are being held across the city.
The employees should be trained in relation to the modern standards of customer service.
The organization needs to incorporate special training for the bartenders, waiters and other
servicemen. The training facilities should change to incorporate the changes that are made with
regards to the organization.
The food and beverage offerings should portray the local produce. Hence the local
seafood available across the Bondi beach area needs to be specifically incorporated within the
offered menu. Drinks offerings should be increased and more choice should be given to the
customers.
The company is looking forward to using environment friendly products. Hence, better
steps should be taken to incorporate green technology. The usage of renewable energy could
further diminish the expenses that are incurred by the organization.

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Conclusion
In conclusion, it can be said the prospect of growth of Hots hotel depends on how it can
address the emerging customer base. Hence, it becomes important that essential steps are taken
to address the business oriented travelers and the seasonal leisure customers.

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