Corporate Strategy Formulation and Strategic Management in the Hospitality Industry

This document discusses the application of strategic management in the hospitality industry, focusing on corporate strategy formulation. It explores the various models and analytical tools used in strategic management and the process of implementing corporate strategies. The document also addresses the challenges faced in implementing these strategies and the effectiveness of strategic management in the hotel industry.

STRATEGIC HOSPITALITY
MANAGEMENT NAME
EMANUEL A

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................2
Corporate strategy formulation and strategic management applied to the hospitality industry. .2
Models and analytical tools of strategic management.................................................................3
Process of corporate strategy formulation...................................................................................3
Treatment of implementation of corporate strategy and management processes........................4
Issues and challenges of implementation....................................................................................6
Discussion on effectiveness.........................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
The corporate level strategies that are framed in the organization belongs to the highest
level where the major decisions are undertaken that are associated with the strategic management
in the company. The strategies that are associated with the long term goals and objectives of the
business refers to the corporate level strategies. The various decisions like the horizontal, vertical
integration, global strategies regarding the product, price, place and promotion are the major
components of these strategic formulation. The strategic management is the process of
implementing these strategies in the business and taking initiatives such that the organizational
objectives of the business can be successfully fulfilled in the business. In the current project the
corporate level strategies shall be discussed in respect of the hospitality sector (Das and et.al.,
2019). It shall be reflecting the application of the strategic management practices in the
hospitality industry such that the growth and development of the company can be fostered with
the application of the various tools and techniques and creating the room for the initiatives in the
business. The report shall also be presenting the implementation process of the strategic
management in the hotel industry such that the company can prosper and develop in the market
to get the competitive advantage. It shall also be discussing the issues and challenges in the
implementation of such processes and what are the measures that are taken by the respective
organization in order to cope up with these barriers in the business.
Hilton Hotel and resorts is the well-known hospitality company which is an American
multinational hotel operating in the various global countries round the world. It has established
its global footprint over 94 countries and the six continents having various properties, resorts,
hotels etc. It was founded in 1919 by Conrad Hilton and has its headquarters in Virginia, USA.
The brand has the strong presence where its targeting both the businesses and leisure travellers
on the popular locations, destinations and famous business capitals. It has attracted the guests
through various amenities and facilities that it provides in the form of guest loyalty programs,
keyless entries, discounts, free network availability in the form of WIFI, mobile applications for
the check in check out and the bookings etc.
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MAIN BODY
Corporate strategy formulation and strategic management applied to the hospitality industry
With the rapidly increasing competition in the hospitality industry and the increasing
external pressures pertaining to the business environment of the organization, its high time for
the company to implement strategic management tools through developing an effective corporate
level strategy that can derive competitive edge in the market (Mazzei and Noble, 2017). The
corporate level strategy relates to restructuring of the business operations in a manner such that
competitive advantage can be obtained in the market. The management takes the drastic step that
can be associated to stability, expansion, retrenchment and the combination strategies that can be
applied to the business so that growth can be fostered for the entity. There are several divisions
in the hotel that are operating separately at different efficiency level and also generating the
different level of profits for the company which are to be analysed and then decided upon that
whether they should be continued at the current level of activities, expand the same or reduce the
operation significantly or it can also be the combination 0f the above strategies. The major
characteristics belonging to the implementation of such corporate level strategies are
diversification, liquidation, integration, divestment, turn around, penetration, concentration,
investigation or it can be no change in the existing operations of the business.
Hilton Hotel which is a multinational brand who has established a strong global network
of its properties through the efficient operations that it has undertaken over the years such that it
has been successful in providing exceptional experiences to its customers. It has managed to
maintain its market position with the help of efficiently formulating the corporate level strategies
at the organization and implementing strategic management practices resolving all the issues that
are currently faced by the organization (Wheelen and et.al., 2017). One of the major initiatives
that the organization has taken to derive competitive advantage is through digitalizing its
operations by the use of E-commerce platforms like the social media applications, customized
company website, search engine optimization and internet ads. This has been done by
modifications and up-gradations in the existing technology that has been used in the operation of
the business. Apart from that the closure of the sick divisions of the business, vertical and
horizontal integration to improve the organizational structure, new products development to
widen the business reach etc. are some of these results of the strategic management practices that
are applied by the business.
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Models and analytical tools of strategic management
In order to effectively implement the strategic management in the organization the
company has to apply the various models and analytical tools in the business so that the benefit
of these corporate level strategies can be efficiently assumed by the business. It can be analysed
that the most commonly applied tools like the SWO analysis, PESTLE analysis, balance
scorecard, strategy map, porter's five force analysis and VRIO are used to find the neds of the
business and accordingly develop the plans that can fulfil the same for the organization. These
tools and techniques help the company in analysing the internal and external environment of the
business and realize the strengths, weaknesses, opportunities and threats that are pertaining to the
business (Wanjiru, Muathe and Kinyua-Njuguna, 2019). These can be used in the business to
derive the competitive advantage such that the company can capitalize over the market share and
obtain higher profitability for the business.
These models are specifically designed for the companies to analyse their business over
the canvas by applying the models and then post that derive the strategic action plan that must be
implemented by the business in order to generate the competencies for the business. It describes
the complete scenario for the business and aligns all its activities under the single roof such that
they can be used for fulfilling the objectives and determined towards the common objectives.
Process of corporate strategy formulation
Corporate strategy formulation plays profound role within hospitality industry,
wherewith larger scale rise in competitive factors there is further connective scale analysed to
bring on keen productivity worked on. Hilton with its varied structural growth among hospitality
industry, has been vividly expanding towards corporate strategy formulation where best
advancement fundamental goals are worked on. Hilton hotel has been strategically growing to
head competitive focus on synchronising larger scale consistency within innovative strategy
formulation working goals, for providing best hospitality services within world. The steps related
to corporate strategy formulation are based on starting from reviewing, developing vision and
mission goals for effective functional innovation which brings on larger functional pace
innovatively.
Business and operational analysis factors are worked on, where internal and external
environment factors are worked on for bringing dynamic competent rise functionally within
longer time periods. Strategic models enable to generate wide range of competent factors , where
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functional scale rise actively evolves on for stringent connective benchmarks and to bring on
keen productive engagement worked on within longer time run. Developing ands electing
strategic options, execution of plans further brings on specific focus for hospitality industry pace
goals which enhances stronger working productivity domains. Hilton, further heads on focus
towards establishing strategic objective and key benchmarks of quality rise functionally, within
longer run for gaining best competitive development worked on (Redjeki, Narimawati and
Priadana, 2021).
Procedures of corporate strategy formulation further focuses on execution plan, where
Hilton aims to functionally evolve larger scale diverse expertise factors and expand new scale
resources planning effectively within longer time periods. Establishing resources allocation
aspects is the next stage on which Hilton engages wide focus, where competent scale rise
connectively opens up new platforms. Hospitality industry with varied new innovations goals,
heads on towards best usage of resources for technical strength oriented aspects, where execution
at supply chain management is also worked on. Resources analysis heads on profound rise for
serving consumers with best functional scale actively, and to leverage larger vision oriented
operatives where execution is done with best managerial focus. Hilton has been also operatively
heading on execution review parameters, where implementation is monitored by keeping check
among resources and outputs.
Monitoring outputs also enables functional scale rise for synchronising varied targets
actively, within revenue rise and goodwill paradigms among larger scale connective targets
within strategic run actively. Corporate strategy formulation heads on towards strengthened scale
rise for commercial growth benchmarks actively, where business at Hilton is determinately
growing with high evolution scope for larger connective revenue rise. Corporate strategy
formulation brings on wider pace networks, where Hilton excercises specific focus for serving
consumers with best expertise at hospitality services within industry paradigms, which also
further evolves on towards technical growth expertise profoundly within longer time periods (Li.
and Singal 2021).
Treatment of implementation of corporate strategy and management processes
Treatment of implementation within corporate strategy and management processes is
widely focused on within Hilton, in hospitality industry where further scale rise actively evolves
on for bringing on diverse expertise under business framework. The steps in implementation of
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corporate strategy and new functional management procedures, can be analysed that defining
strategy framework within first stage. Building plan within frameworks as per varied long term
hospitality industry targets are worked on within second stage, on which larger primitive
connective targets are analysed imperatively. Defining KPIs is the another stage, where further
benchmarks such as rise on revenue targets and customer target market analysis is worked on
within hotel expertise for long term business plans. Establishing KPI and new strategies
enhances scope for consistency within competitive hospitality industry, for bringing on larger
scale functional goals worked on for further scale expertise evocatively.
KPI implementation within strategy reporting, plays strong role for implementing vivid
engagement worked on for technical innovation goals functionally, which evolves on for
stronger productivity time periods. Implementing strategy reporting is further focused on at
Hilton, where hospitality industry paradigms are evolved on for stringent connective benchmarks
within longer time periods. Hospitality industry is also further widely evolving to bring on
strategic work advancement, where Hilton further aims to enhance expansion among customer
target market internationally within varied domains. Linking performance to strategies further is
also last stage within management procedures, where further technical innovation and analytical
competitive domains are worked on.
Treatment of strategic planning in corporate strategy formulation heads on towards
bringing imperative keen strengthened functional pace, where there is further connective
diversity to be worked on for technical innovation. Hilton has been also investing for
strengthened scope within varied functional paradigms to bring on varied connective diversity
goals, where resources are innovatively used on for larger scale rise actively (The 18 Best
Marketing Strategies for 2021 (From the Experts), 2021).
Treatment of implementation within corporate strategy further enhances scope within
management paradigms under Hilton, where hospitality management scale is widely expanding
among commercial benchmarks. This further also heads on towards pertaining wider scale rise
best competitive hospitality industry trends, where further keen productive benchmarks are
worked on for engaging consumer growth. Hospitality industry further also exercises larger
scope for stringent business frameworks, where further effective technical standards are worked
on within commercial channels in industry. It can be also analysed that strategy formulation
among competitive hospitality industry enhances scope for larger scale functional scale
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productive engagement, which also primitively evolves on for bringing technical strengthened
scope for wider scale time periods. Hospitality industry with varied new trends and specific work
aspects, evolves on for technical connective benchmarks where further innovation and idealistic
scope is worked on for higher revenue and corporate goodwill.
Expansion among customer market share, is also variedly essential factor where larger
technical functional parameters are present on which specific varied new investments should be
done (Fauzi, Santosa and Nurhayati, 2021). Hilton with rising keen connective standards among
hospitality industry, has further scope to extensively work on towards bringing paradigms
engagement targets worked on for larger technical goals. This further also heads on towards
stringent connective benchmarks, where larger productive engagement with stakeholders has to
be effectively worked on widely.
Issues and challenges of implementation
With growing complications in strategic management, there are varied issues and
working challenges within practical implementations within functional working operations
among competitive business development within hospitality industry paradigms. Hilton with
changing functional rise and new investments on demand for operative innovation heads on
towards functional growth goals actively within implementation of new plans. Lack of alignment
within project objectives, defining clear mission and forming proper lack of relevant training are
some of the practical challenges for company to ideally move towards strategic planning
functionally.
Challenges such as dynamic competitive uncertainty evolving within company, also is
one of the critical factor where varied scale functional productive pace has to be further analysed
actively. Issues and challenges such as changing dynamic business structure, varied technical
productive changes coming up within hospitality industry. Team dynamics and resources
implementation also comes as one of the crucial factor, where further synchronised scaled
abilities has to be further trained innovatively which is another key time taking procedure (Im.,
Kim and Miao, 2021).
Hospitality industry is widely growing, where varied aspects of uncertain working
conditions are there which further determines factors such as larger scale consistency to be
worked on evolving dynamically. Furthermore, there is challenge for strengthening competitive
business environment domains where implementation also needs strategic vision widely. It also
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further sub scales wider competent aspects. Hilton has been fundamentally evolving to keep up
varied specific new synergy advancement within business structured efficacy aspects, where
challenges of changing business dynamics plays specific role.
Furthermore, with varied determinants evolving towards untapped functional scope,
Hilton hotel aims to further extend up commercial benchmarks which bring on challenging
situation evolved. It can be also primitively understood that hospitality industry benchmarks are
widely crucial for synchronising larger scale connective targets, where challenges such as change
in customer’s preferences is also issue. Furthermore, recent Covid-19 situation rising within
global world brings on working challenges for hospitality companies, where varied workings
has to be further analysed strategically (Nábrádi and et.al, 2021).It can be understood that Covid-
19 raises scope for bringing on consistency within working scope, also to technically bring on
strengthened rise among new safety standards.
Hilton with changing business culture and international business hemispheres, varied
fundamental chan.ges have to be further analysed strategically. Hilton hotel faces challenges
with new investments and strategic vision on demand for customers, where varied changes are
widely uncertain for business environment to be further worked on. Challenges and issues, such
as rising cost is also another aspect where strategic innovation and technical scale rise has to be
worked on strategically where further, new investments are at uncertain risk. It can be also
primitively analysed that leaders should also further train employees within teams for scaled up
working scenarios and further technical innovation goals innovatively. Hilton has to further
technically bring on effectiveness at practical work implementation, for synchronising best
working targets and larger scale consistency paradigms within longer run.
Discussion on effectiveness
Hilton on discussion on effective working conditions and advanced scale rise among
larger scope has to be functionally evolve on keeping dynamic consistency paradigms, where
further larger scope and vision oriented growth is there. Hospitality industry is dynamically
evolving towards varied technical domains, with artificial intelligence implementation and
specific functional new resources investments on board. This further heads on profound focus for
pertaining towards determinants correlated with wider technical enhanced scope actively, which
sub scales strategic investments to be further interlinked. Hilton with varied complexity factors
and further technical innovation, management has to also extend commercial expertise among
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employees which further pertains extensive focus (Top Business Strategy Trends to Watch In
2021, 2020).
KPIs and establishment of quality standards benchmarks, are also some of the essential
factors were effectiveness further has to strategically expand for synchronising best working
standards. Discussion on effectiveness within strategic management planning, further heads on
stronger imperative focus for technical efficacy goals, and to enlarge vision oriented benchmarks
actively among working targets actively. Hospitality industry has dynamic working pace,
leveraging competitive business scenarios, where Hilton has been able to present customers with
best services widely based on specific customers preferences.
Also furthermore, new investments are variedly potent within culture at company, where
strategic innovation and scaled up working targets are on demand for larger scale targets. More
effective implementation within strategic plans can be done by keeping employees brainstorming
done widely, bringing larger scale connective strengthened scope by motivating them
(Chepkwei, 2021).This further call up for productive engagement goals, working strength
leveraging goals and to enhances key work domains widely within business run.
CONCLUSION
It can be summarized from the above project that strategic formulation and accordingly
the implementation of the corporate level strategy in the business is very important as it helps in
generating the competitive advantage in the marketplace. The various initiatives that are taken in
respect of these strategies shall be boosting the operational efficiency of the business such that
the organizational objectives of the business can be fulfilled and the growth and prosperity for
the company can be derived. The corporate level strategies are framed by the higher level
management in the company who knows exactly the goals of the business and where are the
activities to be directed so that the organizational success can be established.
The Hilton hotel has planned the strategic management practices for developing the brand
of the hotel such that its vision and mission statements can be fulfilled which are based on
providing exceptional customer experiences and guest satisfaction level such that the
organizational objectives related to profitability and wealth maximization of the shareholders can
be achieved (Durand, Grant and Madsen, 2017). The corporate level strategies has been
implemented by the business in respect of defining the proper organizational structure integrating
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and coordinating the overall efforts in the organization with the help of efficient lines of
communication. This helps in avoiding delays, mismanagement, wastage of resources and
fulfilment of all the demands of the customers. Also the corporate level strategies are
continuously reviewed so that all the necessary changes pertaining to the taste and preferences of
the guest round the world are successfully implemented.
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