Strategic Hospitality Management (Distinction Criteria)

Strategic Hospitality
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
Books and Journals:..............................................................................................................11

INTRODUCTION
The hospitality industry is mainly categorised into three basic sections which are foods
and beverages, accommodations, along with travel and tourism where in each section, the
common goal and aim is only customers and their satisfaction with services. Organisations in
this industry are highly focused on their customers and clients so that they provide different
types of services. It is unique in its services as it supported so heavily on discretionary income
and free time. Accommodations covers companies such as motels, hotels, breakfasts and other
lodging services (Andrades and Dimanche, 2019). Food and beverages companies comprises fast
food chains, restaurants and other set-ups that give food and beverage. Travel and tourism covers
trains, airlines, ships and much more. All these companies aims in giving customer an enjoyable
experience. These fun and enjoyment can be indulged from eating a good meal, getting a good
night rest away from home, relaxing in a luxurious spa and ensuring each client is take care of is
dominant. The following essay is based upon some key concepts and approaches which help
companies comes in hospitality sector. It is also critically elaborate the formulation of corporate
strategy and its linkage to the process of strategic management. It will also explore the
application of strategic management process in the respective industry. Also, it will analyse the
process and challenges of implementing corporate strategy.
MAIN BODY
Strategy formulation can be understood as the process of opting the most suitable course
of actions for the attainment of business goals and objectives, and thereby succeeding the
organisational vision. Strategy can be formulated at three key levels, corporate level, functional
level and business level (Balogun and et.al.). Corporate level strategy is formulated for the
company as whole. It deals with selection associated to many business areas in which the firm
competes and operates. Corporate level strategy deals with the alignment of resource
deployments throughout a different set of business areas. The top level management is
accountable for making the corporate industry.
Corporate strategy is taken as significant element in determining organisation's future
growth and success by making lucrative profits and provide suitable objectives. It is covered
with key elements such as visioning, establishment of objectives, resource allocation and
prioritization of activities. Visioning enable companies in hospitality industry to set high level of

guidance while developing essential corporate values for firms. Establishment of objectives
transforming visioning into objectives for organisation which they desires to realise in upcoming
future. Allocation of resources is connected with properly apportioning accessible resources of
organisation to effectively realise the predetermined aims. It covers the assignment of both
human and fiscal resources and their maximum use of resources. Prioritisation is prime activity
of the formulation of corporate strategy as it lets hospital companies to take goodness from
potential resources. Porter's five forces is being used to formulate effective corporate level
strategy. It is covered with five forces of industry (Bhushan, 2019). Competitive rivalry is the
force that is present in the hospitality industry. In case of hospitality sector, the intensity of
competition is quite high as many companies in the industry are engaged in giving similar kinds
of services to their customers. With an aim to decrease the influence of this force, hoteliers are
required adopt unique corporate strategies in order to gain their competitive goodness. For
instance, Marriott Hotels and Resorts have focused their corporate strategy around luxurious
clients while putting high emphasis on giving best experience to the customers. Some of the key
competitors are Hilton, Hyatt, Four Seasons Hotels and much more. Threat of new market,
implies the risk connected with the entries of new start-ups in the industry. By effective
strategies and high amount of investments has the ability to diminish the market share of current
companies in the hospitality industry. In respect of the chosen industry, this force has less impact
on the existing companies as there are many laws and regulations which creates a barrier to enter
into market. Also, there is a necessity of high amount of investment and experience which is
complex in nature. For the current and existing companies such as Marriott, it is very essential
for them to adopt and implement new strategies to secure the position and to attract new
customers towards their brand (Bokareva and Yudina, 2020). The illustrated company can use
premium pricing for their services which helps in indulging highly satisfied services to their
customers. Bargaining power of suppliers, this threat or force explains the role of suppliers in
terms of rising cost of operations. It aims to focus on the number of suppliers or distributors exist
in the hospitality industry for the same kind of goods and services and switching cost of
organisation. In context to hospitality industry, the bargaining power of suppliers is high to
moderate as they have the power to drive up the cost of raw materials and operations. It is
essential for the organisations to implement corporate business strategies which helps in
overcoming this force by industry suppliers. They can build healthy relationship with their