Strategic Hospitality Management: Formulation, Assessment, and Implementation

This report discusses the formulation, assessment, and implementation of corporate strategy in the hospitality industry. It covers the process of strategy formulation, critical assessment of industry practices, and the effectiveness of different types of strategies. The report also highlights the challenges and issues faced by the industry in implementing these strategies.

Strategic Hospitality
Management

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Formulation of corporate strategy................................................................................................3
Critical assessment of industry practices.....................................................................................4
LITERATURE REVIEW................................................................................................................4
The process of corporate strategy formulation in the hospitality organization:..........................5
Implementation of corporate strategy and strategic management process:.................................6
Issue and challenges of implementation:.....................................................................................6
Effectiveness of corporate strategy:.............................................................................................7
Types of strategy:.........................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Strategic management for hotel industry describe the involvement of the management activity by
implement the different approaches and plans for achieving the success of the hotel industry.
Hotel industry need to develop strategic management in hotel industry for the betterment of the
company and for the better vision of the industry with employment generate and better
understanding of the competitive environment. This report includes the information about
strategic management of hotel industry by applying models and approaches. Also include the
critical analyses of the industry which includes the key factor.
MAIN BODY
Formulation of corporate strategy
Corporate strategy formulation and strategic management applied to hospitality industry.
Process of strategy formulationenvironmental analysis
Environment analysis includes both corporate and strategic formulation in the organization to
implement and make profitability. In strategic management there is a lot of phases which can be
described in categories as well. The formulation of a strategy deals with how hotel industry
implements their plan and solved their issues by applying such strategies. Strategy formulation
also refers to the performance activity of the hotel industry. In hospitality business the
formulation of a strategy is mainly based on the planning which identify the customer
satisfaction and the services provided by the hotel industry (Velikorossov, and et.al 2020).Gap analysis
Gap analysis between the existing position of the company and its future goals should be
implemented. In this hotel industry should develop and implement the strategy design according
to formulate appropriate strategy among the gap in the organization.Identification of mission and objective of industry
Mission of the organization refer the most fundamental purpose and it 's strategy formulation
explains purpose of an enterprise.Development of strategy alternatives:
Strategy alternatives indicates the large goals of hospitality industry and SWOT analysis
outcomes by which they are able to measures the opportunity and threat of the industry. This also

includes the experiences and analyzes through which organization and can formulate new
strategy (Bokareva, and Yudina, 2020).Evaluation of strategy alternatives:
After development of strategy the step which involve the evaluation and incur, risk and resource
implication in the hotel industry and contribution of mission and objective of the organization as
well.Choice of strategy
Choice to choose the best strategy is also essential in the hotel industry as they have to manage
and strategist every possible aspects. Choice of strategy is very essential step in hospitality
industry and therefore, wrong choice can also fatal for the organization.Development of tactics:
Hospitality industry should use aggressive advertising campaign to attract their customer
enhance their practices to attract the customers. Preparation of budgeting for advertising and
designing is also necessary.Implementation of tactics:
Practical step which should implement the tactical and operation practices under the management
and their responsibility for the implementation of tactical plans which they implement for the
betterment of the organization (Stoyanova,and et.al., 2019).Review of strategy
Every tactic that should be into the practice of organization should be strategist and formulation.
Progressive management should review in the success of the hotel industry. Strategy should be
revised in suitable manner for better productivity and strategy formulation for the future benefits.
Critical assessment of industry practices
The assessment of hotel industry practices is performed to manage functions and work
business management in productive manner to attain more and more customers towards hotel
industry (Tidd, 2021). To boost hotel industry productivity and profitability in desired manner by
emphasizing systematic structure of hotel industry. In order to this there are various factors that
occurred in this.
LITERATURE REVIEW
As per the viewpoint of Feldman, (2020), strategic management is past, present and future of
business organization. It is very clear that every business organization need strategic planning to

boost their organizational growth, strategies need effective management. According to the
author, corporate strategy is king of every business strategy because with clear corporate vision,
a business can achieve organisational goals.
The process of corporate strategy formulation in the hospitality organization:
Corporate strategy is one of the most important pillar of every business organization
mainly belonging to hospitality industry, corporate strategy allow business to focus on core value
of business. There are certain steps in formulation of corporate strategy, these are some:
Visioning and objectives: every corporate strategy start with a vision and certain objectives,
corporate strategy provide clear vision to business organization. In hospitality industry, hotel and
restaurant need to develop vision for their achievement of corporate strategy, these vision allow
company to stay clear throughout the process (Engert and Baumgartner, 2016). For example if
hotel want to develop core value, then need to be clear about the vision and need to provide clear
objectives to staff member, corporate strategy only can be formed if hotel have clear vision and
defined objectives for their employee.
Resource planning: resource play vital role in business organization, without resource a business
can not process further. This is major step in formulation of corporate strategy, a business need
to be clear about resource required in achievement of organizational goal. Every business of
hospitality industry need to focus on two most important resource such as human resource and
capital resource. When hotel plan to develop corporate strategy they look for long term progress
which need certain resource such as human resource and financial resource.
Designing and measuring: after understanding resource required in accomplishment of corporate
vision, next step fall under designing. Every business of hospitality industry need to have
corporate structure to create maximum value, business can have centralized or decentralized
deign. It is very clear that hotel business who have multiple branches need reporting structure
which allow them to create excellence in management.
Trade-off and KPI: in the process of corporate strategy formulation, setting strategic trade-off is
major step (Rugman and Verbeke, 2017). In the hospitality industry, it is important for hotel and
restaurant to have holistic view of every business they have. Corporate strategy only can be
formed if business have ability to analyse risk which will occur in process. In the process of
corporate strategy formulation, business need to set KPI at every level of process which allow
them to measure the accuracy of intended corporate strategy.

Contingency plan: every strategy develop by business organization have risk of failure which
means business might face huge losses. Corporate strategy are some of the most important
strategy of every business organization and have certain risk associated with them, to overcome
these resources, business need to have contingency plan which allow them to reduce risk and
stay prepare in any kind of failure.
Implementation of corporate strategy and strategic management process:
Evaluating resource: evaluating resource is first step in implementation process of corporate
strategy, it is very clear that every business organization have to examine resource which are
required in the implementation process. In hospitality industry, every hotel business need to
evaluate their resource (Feldman, 2020). Resource evaluation may include budgeting, human
capital and involvement of stakeholder.
Involve management: every business organization have to involve their management into
implementation process, this step is very important because without management, business will
unable to measure the outcome of these corporate strategy. In hospitality industry, when hotel try
to implement corporate strategy they need to be clear about management direction which allow
them to manage people and workplace.
Communication: every implementation process need tool of effective communication, without
communication a corporate strategy may suffer to succeed in business organization. Every
employee of business need to effectively communicate with each other in order to reduce risk of
failure. In hospitality industry, when hotel plan to implement corporate strategy they look for
betterment of communication in the workplace because gap in communication will lead to failure
of corporate strategy.
Define KPI: implementation process is incomplete without estimating key performance
indicator, performance of corporate strategy can be measure through different KPI such as
improved performance of business organization. Each part of strategy need KPI because this
allows company to measure whether the strategy is performing according to expected or not. In
hospitality industry, each hotel and restaurant business have to keep KPI at every step in
corporate strategy.
Issue and challenges of implementation:
Lack of resource: corporate strategy may result in failure if the business do not have enough
resource, it is very clear that every strategy need more than required resource in the

implementation process (Hernandez and Menon, 2021). Sometimes business fail to estimate the
actual resource required which result in overall failure of implementation process.
Organizational culture: sometimes diverse culture become the biggest challenge for business to
implement corporate strategy, culture is one of the most important part in implementation
process of every strategy. Corporate strategy of business may not suit any employee resulting in
conflict and resistance.
Lack of alignment: lack of alignment is one of the major issue in implementation process, it is
very clear that when business have poor communication system and weak alignment of
employee often lead to failure of corporate strategy. Strong alignment is glue which keep
employee stick to the intended plan and goals of the business organization, without alignment
implementation process can not be successful.
Effectiveness of corporate strategy:
Effective decision-making: corporate strategy allow business to improve their decision-making
process, this strategy provide clear vision to business and help them to define strategy at
corporate level (Daniel, 2020). When business deal in dynamic nature they often face various
challenges and issue for example, business may find difficult provide clear decision to employee
which result in poor alignment and failure of other business strategies. Corporate strategy help
organization to keep their vision and goals clear in front of employee which means their
decision-making process can be improved.
Strategic direction: every business organization need their business strategies to bring effective
outcome with the least utilization of resource. When business have strong corporate strategy then
they remain clear about other business vision and goals. Corporate strategy is king of every
business strategies which means without corporate strategy a business can not get clear direction
in achievement of organizational goals.
Types of strategy:
Corporate level strategy- In order to build hotel industry, the corporate strategy helps business to
achieve profitable through which hotel industry attains their desired targets and goals in
respective manner. It is implements in industry to maintain corporate culture of business by
which employees satisfy and work in systematic manner.
Growth strategy- This strategy determines by development as this emphasizes industry growth
plays key role in function of management. As their main objective is to grow business in order to

do so implementing various strategy such as make plan conducting their products into innovative
form by the hotel industry conducts growth of business (Haque, 2021). By this industry achieves
their growth and raise profitability. It takes place by deriving development of industry by
emphasizing growth strategy helps in developing function and performance in effective manner.
Business level strategy- In accordance to this, build new team for conducting business strategy
by recognizing various ideas and thoughts that derived in mind of employees. In manner to this
more ideas get and easy to select best idea for business to enhance industry efficiency. The
business strategy main aim is to conduct effective strategy that grows business in order to do so,
hotel industry emphasize this by interacting with more and more peoples through this investment
taken place and boost financial aspect of business. Also, growth of business is determined in this
to raise productivity and by emphasizing business strategy raise hotel industry performance.
This procedure helps business to grow and expand by conducting and emphasizing their
procedure into corrective action to boost productivity in effective manner. Their steps help hotel
industry to achieve their profitability through emphasizing this strategy helps in raising industry
productivity. By this industry achieves their desired targets and goals by working in hotel
industry function in systematic manner. It helps in smooth functioning of hotel industry as
facilitates growth of business by conducting profitability of business.
Other Issues and challenges of implementation
The problems and risks in hotel industry is implemented by taking strategic management
procedure and tools. It determines by various factors, through this hotel industry face difficulty
in industry due to which hotel industry productivity decreases and performance declines that
directly impact on industry function as it is essential for hotel industry to overcome barriers and
facilitate growth of hotel industry in order to perform their work in systematic manner and
overcome issues. The various issues and challenges that face by implementation is explained
below:
Legal issues- In accordance to hotel industry, it creates issues by legal elements as this develops
problems in terms of laws and legislation. As to maintain business and perform work the legal
factor plays significant role as it is essential part. This creates problem for industry by legal issue
through this determine risks for business. It creates issues because of legal element that create
problem for hotel industry by implementation of strategy that against laws and legislation (Khair
and Shah, 2021). Also, not performing their function in hotel industry by performing laws that

develops challenges for hotel industry. It faced by industry in performing activity as this
emphasize on impact of hotel industry performance because of legal issues is created in
management.
Confidentiality- In terms of hotel industry, the confidentiality is key factor, as it is maintained in
order to perform tasks. It creates challenges also because of not maintain confidential procedure
in strategy implementation by disclosing ideas with others that develop problem for hotel
industry because of not conducting confidentiality. This lead towards determine challenge and
issue for hotel industry due to this trust factor affect and create negative impact on performance
because of confidentiality factor.
CONCLUSION
The report has been concluded about corporate strategy execution and tactical management that
emphasize in hotel industry. It is summarizes of approaches and bench marking tools that helps
in determining industry functions. Also, facilitate literature studies and process of corporate
strategy exaction is examined in this. In this determines implementation of the strategy and
procedure to achieve growth of business and their risks, problems that arise in hotel industry
sector. Further, effectiveness of hotel industry is also has been described in the report to maintain
growth of business by understanding and focusing on their targets effectively to achieve hotel
industry performance and desired goals. The report has been reflected about hotel industry.

REFERENCES
Books and journals
Bokareva, E.V. and Yudina, E.V., 2020. Strategic management in the hospitality industry.
Revista Turismo Estudos & Práticas, (S4). pp.8-8.
Daniel, C.O., 2020. The Effect of Corporate Strategy to Company Performance. Asian Journal of
Business and Management, 8(1).
Engert, S. and Baumgartner, R.J., 2016. Corporate sustainability strategy–bridging the gap
between formulation and implementation. Journal of cleaner production, 113, pp.822-
834.
Feldman, E.R., 2020. Corporate strategy: Past, present, and future. Strategic Management
Review, 1(1), pp.179-206.
Hernandez, E. and Menon, A., 2021. Corporate strategy and network change. Academy of
Management Review, 46(1), pp.80-107.
Rugman, A. and Verbeke, A., 2017. Global corporate strategy and trade policy. Routledge.
Stoyanova,and et.al., 2019. Strategic Management of the personnel Development of industry
Companies. Academy of Strategic Management Journal. 18(3). pp.1-6.
Velikorossov, and et.al 2020. Strategic management.
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