Strategic Hospitality Management Assignment

Running head: STRATEGIC HOTEL MANAGEMENT AND HOTS
Strategic Hotel Management and HOTS
Name of the Student:
Name of the University:
Author Note:

1STRATEGIC HOTEL MANAGEMENT AND HOTS
Executive Summary
This paper will highlight the strategic plan of HOTS hotel in Sydney. The various models of
strategic management such as Porter’s five forces, value chain analysis, SWOT are discussed in
the paper. It has been found that HOTs hotel is trying to expand in other countries and it is trying
to implement various innovative ideas for the development of the hotel. The hotel is also trying
to develop eco-friendly techniques so that the customers become aware of the environment. The
hotel is designed for the luxury and the high class people. It is also becoming very difficult to
compete with the other competitors in the hotel and thus the hotel is trying to develop innovative
ways for its development.

2STRATEGIC HOTEL MANAGEMENT AND HOTS
Contents
1.0 Introduction................................................................................................................................3
1.1 Mission of HOTS Hotel.........................................................................................................3
1.2 Vision of HOTS Hotel...............................................................................................................3
2.0 Micro Environment Analysis.....................................................................................................4
2.1 SWOT........................................................................................................................................4
2.2 Porter’s Five Forces...................................................................................................................5
2.3 Value Chain Analysis............................................................................................................6
5.0 Corporate Social Responsibility..............................................................................................10
6.0 Conclusion...............................................................................................................................10
References......................................................................................................................................11

3STRATEGIC HOTEL MANAGEMENT AND HOTS
1.0 Introduction
HOTS hotel is a one of the leading hotel in Sydney. The hotel started its operation in
2008 and is providing services to the customers at an affordable rate. The hotel also has the
provision of bar and restaurant and it is budget friendly. The hotel is located in a very proper
place and it is only a short distance from the city center. HOTS hotel also has the provision of
online booking for its restaurant and bar where the people can spend quality time with their
friends and families. The hotel targets luxury and middle class families from various parts of the
country. This paper will provide the micro and the macro environment analysis of HOTS hotel.
Moreover, it will also highlight some of the strategies which are necessary for its operation and
which will help in improving the mission, vision, ethics, objectives, CSR and goals of the hotel.
Some theoretical models will also be discussed for the strategic recommendation of the hotel.
Practical examples of the hotel in its various areas of operation using the strategic models will be
discussed in the paper.
1.1 Mission of HOTS Hotel
To be a leader in the hotel industry of Sydney and creating heart filled experience for the
guests.
1.2 Vision of HOTS Hotel
To give the customers a warmth of hospitality by offering professional and personalized
services every time.

4STRATEGIC HOTEL MANAGEMENT AND HOTS
2.0 Micro Environment Analysis
2.1 SWOT
Strength
HOTS hotel has high brand recognition. The hotel also has good employee retention. The
constant technical innovation of the hotel has helped in improving customer experience and up
gradation of the business process. It is one of the leading aspirational brand and is best known in
this category. The hotel has developed sustainable policy to work in collaboration with the local
suppliers. The hotel also provides packages for wedding ceremonies, family fun, business travel
purpose and tourism (Australian Hotel Sector Outlook, 2017).
Weakness
Despite being a good brand, the hotel has limited market share. The operation of the hotel
is affected globally due to the different government policies and the parameters. Moreover, the
hotel also has limited focus on the business travelers. The hotel is also facing high debt due to its
stable position in the different financial issues. It is also experiencing backwardness in the field
of information and technology management. As the hotel is extending its business in different
areas, the company is becoming weak in its management (Ng & Lien, 2014).
Opportunity
The hotel is trying to merge with the other firms and businesses in Australia. The
enhancement is made by the company so that they can grow its services in the market and gain
customer loyalty. There are different types of planning and strategies which are used by
supervisors of the company so as to purchase and acquire the different types of assets that will

5STRATEGIC HOTEL MANAGEMENT AND HOTS
help in the generation of revenue of the restaurant. The hotel is also trying to develop different
types of direct marketing plan so as to expand its business in the market.
Threat
As there are many hotels in this area, it becomes difficult for HOTS to compete with the
other high class restaurants. The high rate of substitution of the customers is also an important
threat for the hotel management. There is high rate of fluctuation in the prices because of intense
and high competition among the operation of hotels in the foreign countries (Prideaux, 2013).
2.2 Porter’s Five Forces
Bargaining power of the buyers
The bargaining power of buyers has affected the hotel industry to a large extent. There
are many hotels in Sydney which are offering a wide range of services to its customers. It also
becomes easier for the customer to switch from one hotel to another if they do not receive proper
services. Therefore, it can be said that the bargaining power of the customers is high in this
industry (Yang & Sai, 2016).
Bargaining power of the suppliers
The bargaining power of the suppliers is comparatively less in this industry. This is due
to the fact that there are many hotels and suppliers who do not want to lose their customers.
There is increase in the demand for improved global information and booking in this industry.
The suppliers can exercise great power in the company over labor and experienced trained
personnel and thus it is of immense demand in this industry. The hotel will also have to maintain

6STRATEGIC HOTEL MANAGEMENT AND HOTS
a sustainable business strategy in the long period of time and this will be beneficial for the
hotel(Jean Paolo G Lacap RMP, 2014).
Threat of new entrant
In order to enter the hotel industry in Sydney, the company must be willing to invest a
huge sum of money and it will have to incur huge cost initially. It will also require a good
financial backup. Thus, the threat of new entrant is low in the industry.
Threat of substitute
The hotel industry is not threatened by major substitute products other than recession in
domestic travel which has replaced the international and overseas travel. Moreover, this industry
will be subjected to powerful customers if the marketing strategy of the hotel is to attract the
tourist which is in the case of HOTS hotel (Mose, 2015).
Rivalry among firms
There are many hotels in Sydney and thus it implies that the threat of rival is high in this
case. This is due to the fact that all the hotels are trying to stay in competition in the market at the
expense of others. This is one of the most important threat of HOTS hotel (Tang, Wang & Tang,
2015).
2.3 Value Chain Analysis
The value chain analysis of HOTs hotel is discussed in the table below (Mitchell, Font &
Li, 2015):
Primary Activities
Inbound Operations Outbound logistics Marketing and Service

7STRATEGIC HOTEL MANAGEMENT AND HOTS
Logistics
 Inventor
y control
and
stock
requisiti
on
 Provisio
n of
laundry
services
within
the hotel
premises
 Contract
or tie-up
with the
suppliers
or third
party for
providin
g food
and
beverage
s
 Vario
us
tools
and
equip
ments
are
used
for
delive
ry of
proper
servic
e
 Financial
products
and
services
are
provided
to the
customers
Sales
 Attractive
packages
such as
honeymoon
packages,
happy
hours, free
conference
room and
many more.
 Compleme
ntary spa
treatment
 Attractive
seasonal
discounts
 Free lunch
and dinner
 Warm
hospitality
service
Support Services
Firm
Infrastructure
 Provisi
on
quality
manag
ement,
long
term
Human Resource
 Staffs, executives
and customers of
the hotel
Technology Development
 Development of
various
software’s to
manage the
operation of the
hotel on a real
time basis
Procurement
 Different
facilities are
offered to the
customers which
makes the
operation and
functioning of
the hotel very

8STRATEGIC HOTEL MANAGEMENT AND HOTS
planni
ng and
finance
,
accoun
ting
service
s
smooth
3.0 Macro Environmental Analysis
3.1 PESTLE Analysis
Political Environment of Australia
The political environment of Australia us suitable for starting any kind of business and it
is a stable economy. Australia also shares good political relation with the other neighboring
countries and it is regarded as one of the prosperous economies in the world where people enjoy
decent standard of living. Thus, it will be beneficial for HOTS hotel to operate its business in
Australia. Australia ranks 15th among the 190 countries in the “ease of doing business”
(Australian Government, 2017). Therefore, it can be said that it is beneficial for HOTS hotel to
operate its business in Sydney without any political restriction.
Economic Environment of Australia
Australia has least market barriers and it is a developed and wealthy economy. The
business environment of Australia is open and suitable for any kind of business. The cross border

9STRATEGIC HOTEL MANAGEMENT AND HOTS
trade will also be beneficial for HOTs hotel in its business operation. Moreover, Australia ranks
fifth in the “index of economic freedom”. Therefore, it can be said that the economic
environment is suitable for the operation of HOTS hotel (Mitchell, Font & Li, 2015).
Social Environment of Australia
Australia ranks 10th among the countries with high literacy rate. Australia also has great
fondness of western culture and it will be beneficial for HOTs hotel to develop its marketing
strategy. The hotel also has the provision of attracting the customers by offering discounted
price.
Technological Factor of Australia
According to 2017 Global Innovation Index, Australia ranked 23rd in the global
innovation index. There has been considerable decline in the investment on research and
development. There is also an increase in the internet usage by the customers of Australia which
has accelerated the demand of HOTS hotel.
Legal Factor of Australia
Australia charges a corporate tax of 30% on the total revenue of the company. This is a
challenging factor for HOTS hotel as it has to earn higher profit after paying the taxes. The hotel
also needs to provide quality service so that it can survive in the Australian economy (McManus,
2013).
Environmental Factor of Australia

10STRATEGIC HOTEL MANAGEMENT AND HOTS
Australia is the top polluted nation and air pollution is posing a harmful effect on the
people of Australia. It is also necessary that the hotel must abide with the environmental laws of
the country and thus maintain environment sustainability.
5.0 Corporate Social Responsibility
The hotel will make significant improvement in three specific areas-environment,
opportunity and communities. The hotel will also employ youths of Australia. It will try to
recycle various products so that it will pose less threat to the environment. The hotel will also
help in reducing the carbon output, energy use, waste output and water use (Benavides-
Velasco,Quintana-García & Marchante-Lara, 2014)
6.0 Conclusion
Thus, it can be said that HOTS hotel can operate its business successfully in Sydney. This
is possible only if it manages its resources in a proper way. The hotel is trying to increase its
brand awareness and thus making it difficult to compete with the other competitors. It is also
offering loyalty programs so that the visitors can redeem and earn their points in airlines and
cruise tickets. The customers can get the information through the website of the hotel. They also
engage the media in the “Annual Corporate Responsibility Report”. The hotel purchased the
product from the physical distributed firms. This has helped in the movement of stocks from the
origin to the destination of the hotel. The hotel has developed sustainable policy on purchasing
the products from the suppliers and thus inspiring them to be sustainable. HOTS hotel can attract
the customers by offering services at a discounted price in its official website. To stay in
competition in the market at the expense of others, HOTS hotel must try to find out new

11STRATEGIC HOTEL MANAGEMENT AND HOTS
innovative strategies. Thus, it is necessary that to make a close study of the economic, legal,
technological, environment and other factors before starting its business in Australia.

12STRATEGIC HOTEL MANAGEMENT AND HOTS
References
Australian Government. (2017). austrade.gov.au. Retrieved 28 October 2017, from
https://www.austrade.gov.au/International/Invest/Why-Australia/Business
Australian hotel sector outlook. (2017). folkestone.com.au. Retrieved 28 October 2017, from
http://folkestone.com.au/wp-content/uploads/2016/07/Australian-Hotel-Sector-Oct-
2015.pdf
Benavides-Velasco, C. A., Quintana-García, C., & Marchante-Lara, M. (2014). Total quality
management, corporate social responsibility and performance in the hotel
industry. International Journal of Hospitality Management, 41, 77-87.
Jean Paolo G Lacap RMP, A. F. B. E. (2014). Competitiveness and Sustainability of the Hotel
Industry: The Case of Hotels in Pampanga. Business Management and Strategy, 5(1),
115.
McManus, L. (2013). Customer accounting and marketing performance measures in the hotel
industry: Evidence from Australia. International Journal of Hospitality Management, 33,
140-152.
Mitchell, J., Font, X., & Li, S. (2015). What is the impact of hotels on local economic
development? Applying value chain analysis to individual businesses. Anatolia, 26(3),
347-358.
Mose, J. A. (2015). The influence of industry competition on the performance of hotel firms in
Kenya. Prime Journal of Social Science, 4(9), 1169-1179.