Strategic Hospitality Management: Formulation, Implementation, and Challenges

This report discusses the importance of strategic management in the hospitality industry, particularly in IHG Hotel and Resorts. It covers the formulation and implementation of corporate strategy, as well as the models and analytical tools used in strategic hospitality management. The challenges and issues faced in the process are also discussed.

Strategic Hospitality
management

Table of Contents
INTRDOUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................1
REFERENCES................................................................................................................................2

INTRODUCTION
Strategic management refers to the process of making strategies that are required by the
managers to meet the goals of the business and overcome the competition. The strategic
management helps the company in becoming more competitive because it allows the company to
examine the areas for the improvement of the operations(Siegel and Leih, 2018). It provides
understanding of the mission and vision of the company so that it can achieve the long term
goals of a business organisation. It act as guide for an organisation so that it can help in adapting
the changes in the business environment. Strategic management in hospitality industry is the
identification of the strategies to the managers so that the better performance of the organisation
can be achieved and the competitive advantage as well. It involves the efforts of establishing and
implementing the integrated plan in the organisation. It assists a business concern in providing
the framework of the decision making and enable to measure the progress of the organisation. It
helps in increasing the operational efficiencies in the operation of an entity.
Strategic management in hospitality provides the direction to organisation to move
towards the goals or set objectives by implementing the policies and plans with the allocated
resources. Thus, it helps in increasing the market share and profitability of an organisation. In
this report, IHG Hotel and Resorts has been taken into consideration which is a multinational
hospitality company headquartered in Denham, UK. The report will cover the the report will
cover the formulation of the corporate strategy and the strategic management in the hospitality
industry(Makadok, Burton and Barney, 2018). Further, it will discuss the models and the
analytical tools related to the strategic hospitality management. Moreover, it will explain the
implementation of the corporate strategy formulation and the strategic management in the
hospitality management. In addition to this, it will detailed the issues and challenges of the
implementation and the effectiveness as well.
MAIN BODY
Corporate strategy enables a business concern to set up the worth for the business by
setting long term goals, clearly defined the vision for the company and motivate the workforce to
improve their perforce to enhance the satisfaction level of the company(Ansoff and et.al., ,
2018). The corporate strategy is the continues process as it adjust with the changing that are
made in business environment. It has great importance in an organisation because it help in
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indicating the success for the future by providing the overview of the company. It enables the
corporate to identify existing and the potential problem so that it can be resolved to achieve the
objectives of the business. The corporate strategy helps the business in increasing the
profitability of the business. A proper corporate strategy assist the organisation in order to solve
the undesirable situation and provide an effective directions. A corporate strategy provide the
base to the IHG Hotel and Resorts in deciding the goals of a company, mitigate the risk and
enhancing the significant return to an organisation. It assist in gaining the market share by
targetting the new customers and expand the base of the customers. Thus, it will increase the
more competition in the market for which an effective strategy is made to overcome the
competitors(Konovalova and et.al., 2018). Therefore, it provides the sustainable growth to the
business by enhancing the profitability and the brand image of an organisation.
Strategic management in the hospitality is the strategic plan to monitor and analysis the
needs of the organisation to meet the goals of the business. The strategic management provides
financial and non- financial benefits to the organisation. This provides a sense of direction where
it defines the goals of the business by utilising the resources to the optimum level and provide
assistance in decision making(Koseoglu, Law and Dogan, 2018). It also helps in increasing the
operational efficiency by continuous monitoring the performance in order to ensure that the
effectiveness is enhanced by reducing the wastage. It enables the organisation to be proactive
rather that reactive and assist in increasing the durability or the sustainability. The strategic
management help the firms in analysing the change and communicate the needs to the
employees to adopt changes to the organisation. It assists in managing all the internal and
external activities of a concern and achieve the target of the business. With reference to the IHG
Hotel and Resorts, strategic management helps the business to provide good services to the
customers by ensuring that the business is operated in a smoothly manner. It provides the an
effective direction in order top gain the competitive advantage and also evaluate the applied
strategies and implement the new one in order to improve the performance of the business
organisation(Okumus band et.al.,2019). It combines the both strategic thinking and the strategic
planning so the it can attain the goals of the business. The tools and models the that are used by
the strategic management include the swot analysis, pestle analysis and porters five force model.
The strategic management in the hospitality industry helps in evaluating, implementing
and making the effective decision so that the objectives of the organisation can be achieved. The
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policies and the plans are developed to specify the process of achieving the desire result by
allocating the resources. In relation to the IHG Hotel and Resorts, the process of the strategic
management are described which includes the steps such as the first step is Goal setting whose
purpose is to clarify the goals of the business organisation(Stoyanova and et.al., 2019). It states
the long term and short term objectives and the ways of achieving these objectives. The
capabilities of the staff are evaluated and according to their abilities they are assigned task of the
organisation so that the goals of the organisation can be achieved easily. Thus the people in an
organisation are chosen to work on the process of the strategic management. In relation to the
IHG Hotel and Resorts, it organise the environmental scanning so that it can find the problem in
an organisation in order to carry out the process of strategic management. Therefore, it clarify
the objectives in detailed and align with the vision of the business. The second step of the
process is analysis which is done in order to get the vision of the business. The relevant data is
gathered by conducting the analysis of the internal dan the external factors that can affect the
growth of the business. The organisation focuses on understanding the needs for improving the
performance of the business so that it can reach to the success. As regard with the IHG Hotel and
Resorts, the management of the hotel examines the internal and the external issues that may
affect the operations of the business and identify the strength and opportunities to deal with the
problems(.Sabourin, 2021). The third step is strategy formulation which enable the organisation
to set down the certain objectives that can help in getting the goals of the business. The resources
of a business concern are determined in order to accomplish the defined goals. Thus the best
course of action is decided by the administration by scanning the environment and formulate the
effective strategy for the business. With reference to the IHG Hotel and Resorts, a company after
making the analysis plan for acquiring the resources in order to effectively doing the
operations of the businesses. It also implement the policies of the company also interact with the
management about the plan. It set plan to make the technological advancement to overcome the
competition. The fourth step of the process is strategy implementation where the strategy is
implemented with success to the organisation to get success. All the duties and the
responsibilities are assigned to the employee according to their skills and the knowledge in order
to attain the goals in an effective manner. It includes the designing of the structure of a business
concern and the resources are aloes distributed. It develops an effective decision making process
and management of the human resources through optimum utilisation(.Varma, Ranjith and
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Ashwini, 2021). In context to the IHG Hotel and Resorts, it implement the strategies by making
aware the employees and the management about their duties or that they they have to perform to
get the vision of the business. The fifth and the last step is evaluation and control in which the
intern and the external factors are determined and the permanence of the organisation are also
measured in order find out the shortcomings. When any deviation is arise then the corrective
actions are taken to improve the performance. All the stages are interrelated where the
management interact with it in order top provides the better management of the business. In
relation with the IHG Hotel and Resorts, the organisation evaluate the performance after
implementing the process and find out the pace where the people lack and take correct measure
to improve their performance. This evaluation ensure the organisation that the goals of the
business are met according to the vision.
The implementation refers to the practices where the mangers are able to allocate the
resources dan provide the guidance to the the organisation to move towards the goals of the
business. He restructure the operations and provides motivation to the personnel in order to make
them more productive. Thus the process of implementation are describes in context to the IHG
Hotel and Resorts. The first step of the process of implementation is to define goals clearly by
the management so that they can be achieved in time and without obstacles. The goals should be
realistic and attainable by specifying the time frame and resource allocation. The goals should be
smart and ensure that they are aligned with the vision of the corporate(Cheluget and Koech,
2018.). In cortex to the IHG Hotel and Resorts, an organisation defines the framework of the
strategy by ensuring that everyone is able to understand the goals that they have to meet for
getting the success. The next step is determine roles so the manager communicate with the team
about their task which they have to perform. The manager assigns the responsibilities to the team
members and make them accountable for fulfilling that in time. A leader must determine the
capability of a person of completing the task and according to their skills the work is assigned so
that the goals of the organisation can be achieved effectively. With reference to IHG Hotel and
Resorts, the manager define each person their responsibilities to reach the goals without any
hindrance and also provide his support to the employees in determining their roles. The next step
is assign work to the employees where the manager is responsibly to assign task to the
subordinates by communicating the time line of the task. In relation to the IHG Hotel and
Resorts, the manager of a hotel assign the work to the all worker so that they might not confuse
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in performing their operations and enhance the satisfaction level of the customers by providing
their best services. The perform well because they are aware about the task that they have to
execute. The another step is execute and monitor where the task are performed by the personnel
and also monitor to check their efficiency whether they have executed well. All the team
member's have the resources which they need to complete the task and their progress are also
monitor in order to get the efficient outcomes(Rossidis, Belias and Vasiliadis, 2021). In context6
to IHG Hotel and Resorts, the performance of the employees are measure so that the corrective
action can be taken to get the effective outcome. The manger provides the feedback for the
performance of the personnel and provide motivation to improve their performance and make
them more productive. The another step in the process of implementation is adjust and revise
where the management the approach when any issue or challenge is faced by an organisation.
Thus, the strategies are updated and the plan is also revised so that the employees perform
effectively. This will help the organisation in getting the effectual outcome by using their
resource to the optimum level. In relation to IHG Hotel and Resorts, when the issues and
challenges occur during the operations of the businesses so the strategy is aloes get revised and
again the task are assigns to perform the work in a better way. The next step is complete the job
where the manager check whether the additional resources are required to perform the task and
also update the employees about the important details of the job or the drays in the progress. In
relation to IHG Hotel and Resorts, the manger provide the additional resources to the worker of
the hotel so that they can complete their job in time and efficiently. The last step is review and
reflect in which the manager reflect the process in order to find the shortcomings in the executed
work and provide direction to improve their performance. With reference to the IHG Hotel and
Resorts, the presentation of the employees are reviewed so that they can be improved where they
lack and also provide training to enhance their skills which provide motivations and make them
more productive. This helps the organisation to complete their task and achieve their objectives.
The management have to face various challenge and issues of implementing the strategic
management this may includes the poor goals setting when the goals of the business are not met
in a specified time period and are also not attainable. This leads to the ineffective performance
of the organisation as the goals of the business are not accomplished due to the poor set up of
objectives(Al-Zawaidah, Ravazzolo, and Friedrich, 2021). In relation to the IHG Hotel and
Resorts, it may face such kind of issue when the objectives are not well set so the execution of
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the work is not possible for the employees. The issues also include the ineffective
communication which occur when the strategy is not well communicated to the employees.
Thus, it leads to the lack of collaboration which result in poor teamwork. This create the
uncertainty for getting the goals in time or sometimes unable to reach it. With reference to IHG
Hotel and Resorts, it may face such issue which can increase the turnover of the employee and
they provide the poor customers services which make the customers unsatisfied with their
performance. It also make the employee low productive, reduce their morale and also increase
absenteeism(Farrukh and et.al.,2021). The next issue is ineffective alignment which can be occur
due to the bad strategy execution where alignment refers to the achieving the cooperation
between the different level of the strategy. When there is misalignment so the goals of the
business cannot be achieved and create barrier to accomplish the task. As regard with IHG Hotel
and Resorts, when the goals are not aligned with the vision of the company so it may hinder the
employees to execute their work. Due to the lack of collaboration, the conflict may arise in an
organisation and weaken the achievement of the goals. Thus the company should work on the
strategic objective in order to empower the people to get their goals. The next issue is ineffective
change management which may occur due to the resistance to change, lack of commitment, no
buy- in and so on. When their is poor change management so the company have to face the
delays in the projects and the productivity of the employees get reduced to the lower level(Khatri
and et.al., 2021). In relation to the IHG Hotel and Resorts, when the employee resist to change
so the opportunity get lost of growing the business. It may face the higher cost, greater down
time and low benefits to the organisation. The another issue is ineffective performance
management which occurs due to the lack of knowledge or unaware about the task to be done.
This result in wastage of time and money in execution of the work and the employees are also
get demotivated. With reference to IHG Hotel and Resorts, when the employee are not
motivated for their performance or not provide recognition so the performance of the employee
get ineffective. They morale get reduced and get delays in the execution of the work and bad
time management(Keding, 2021). Even the managers are also give up the resource due to which
the company get the unfair result.
CONCLUSION
From the above discussion, it has been concluded that strategic management plays a
significant role in an organisation because it assist the entity in becoming the proactive so that it
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can analyse the actions in order to gain the competitive advantage in the market. The strategic
management enable a business concern to provide the broader perspective to the employee so
that they can be best fitted to their jobs by provide them a sense of direction. This provide vision
to the organisation for the future and provide them values by setting the objectives and clarifies
the strength and the opportunities the company have. It helps in strengthen the structure of the
organisation by making collaboration in a team so the the goal can be achieved by the group in
an effective way. The strategic management make the company capable to increase the
operational efficiency of the business because the employees give their best performance as the
goals are clearly defined to them. Therefore, they do not get any hindrance while performing the
work and make the company able to make more profit by providing their best services to the
customers. The satisfaction level of the customers can be enhance when their needs are fulfilled
and make them feel more valuable. The report discussed about the process of the formulation of
the strategy and their importance to the organisation. Further, it explained the concept of the
strategic management in the hospitality industry for which it has discussed about the process of
formulation of the strategy and their implementation in order to effectively perform the work of
then organisation. Moreover, the report discussed about the challenges and the issues which have
a great impact on the business of the organist in.
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REFERENCES
Books and Journals
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the Special Issue. Strategic Organization, 16(1), pp.6-11.
Makadok, R., Burton, R. and Barney, J., 2018. A practical guide for making theory contributions
in strategic management. Strategic Management Journal, 39(6), pp.1530-1545.
Ansoff and et.al., , 2018. Implanting strategic management. Springer.
Konovalova and et.al., 2018. Forming approaches to strategic management and development of
tourism and hospitality industry in the regions. Journal of Environmental Management
& Tourism, 9(2 (26)), pp.241-247.
Koseoglu, M.A., Law, R. and Dogan, I.C., 2018. Exploring the social structure of strategic
management research with a hospitality industry focus. International Journal of
Contemporary Hospitality Management.
Okumus band et.al.,2019. Strategic management research in hospitality and tourism: a
perspective article. Tourism Review.
Stoyanova and et.al., 2019. Strategic Management of the personnel Development of industry
Companies. Academy of Strategic Management Journal, 18(3), pp.1-6.
Sabourin, V., 2021. Strategic Management for the Hospitality and Tourism Industry: Developing
a Competitive Advantage. Apple Academic Press.
Varma, A.J., Ranjith, P.V. and Ashwini, J., 2021. AN EMPIRICAL STUDY OF HOSPITALITY
INDUSTRY WITH RESPECT TO EFFECT OF CUSTOMER EXPERIENCE ON
CUSTOMER'S REVISIT INTENTION. Academy of Strategic Management
Journal, 20, pp.1-8.
Cheluget, M. and Koech, C.J., 2018. The Link between Analysis Dimension of Strategic
Orientation and Firm Performance in Small and Medium Enterprises in the Hospitality
Industry in Kenya: The Moderating Role of Top Manager’ s Ownership
Status. International Journal of Advances in Agriculture Sciences.
Rossidis, I., Belias, D. and Vasiliadis, L., 2021. Strategic Human Resource Management in the
International Hospitality Industry. An Extensive Literature Review. Culture and
Tourism in a Smart, Globalized, and Sustainable World, pp.337-346.
Al-Zawaidah, H., Ravazzolo, D. and Friedrich, H., 2021. Macroplastics in rivers: Present
knowledge, issues and challenges. Environmental Science: Processes & Impacts, 23(4),
pp.535-552.
Farrukh and et.al.,2021. Three decades of research in the technology analysis & strategic
management: a bibliometrics analysis. Technology Analysis & Strategic
Management, 33(9), pp.989-1005.
Khatri and et.al., 2021. Machine learning models and techniques for VANET based traffic
management: Implementation issues and challenges. Peer-to-Peer Networking and
Applications, 14(3), pp.1778-1805.
Keding, C., 2021. Understanding the interplay of artificial intelligence and strategic
management: four decades of research in review. Management Review Quarterly, 71(1),
pp.91-134.
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