Strategic Management of Ritz Hotel: Mission, Stakeholders, PESTEL and SWOT Analysis

STRATEGIC MANAGEMENT
HOSPITALITY RITZ HOTEL

TABLE OF CONTENTS
ABSTRACT....................................................................................................................................3
INTRODUCTION...........................................................................................................................4
Mission........................................................................................................................................4
Stakeholders.................................................................................................................................5
Mendelow Matrix........................................................................................................................8
PESTEL Analysis........................................................................................................................8
SWOT Analysis.........................................................................................................................11
Recommendations......................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

ABSTRACT
This study depicts the hospitality giant Ritz’ strategic management. The study talks about the
mission of the hotel chain and its analysis. It describes the stakeholders of the hotel chain group,
their significance and the macro-economic factors affecting them in a form of PESTLE analysis.
As the hotel chain operates in different countries, affecting factors have been taken as having a
wholesome impact. It provides matrix for classifying them as per their power distribution. It
talks about the SWOT analysis reflecting on the internal factors like strengths, weaknesses,
opportunities present in front of them and threats to the organisation; the analysis has been done
critically and recommendations for the hotel chain in the end of the report of what measures can
be taken for the betterment of the organisation.

INTRODUCTION
The report is about strategic management in hospitality. The organisation being taken for case
study is Ritz hotel group. It is an American multi-national company which operates the luxury
hotel chain known as The Ritz-Carlton. It has 108 luxury hotels and resorts in 30 countries and
territories in addition to 46 hotels which are coming up new. The mission of the hotel chain has
been discussed in the report. Stakeholders of the organisation will be discussed in a power
matrix. PESTLE analysis is going to be provided reflecting their decisions. SWOT analysis of
the company will be done reflecting on the internal factors.
Mission
Ritz has the mission statement as ‘to provide the finest personal service and facilities for our
guests who will always enjoy a warm, relaxed, yet refined ambiance.’ (Lee and Kwag ,
2017)
Also, the mission statement includes the highlights:
a) Recognising the administration.
b) Improving the people group.
Philosophy of the company tells that is enthusiastic to serve its customers. Its responsible in its
operations and this has made the hotel chain pioneer because of extraordinary skill displayed
(Bover and et.al., 2020).
The hotel chain recognises that the need of customers is to take an off from their busy schedules
and rewind at a place which can provide them the best facility and service to make their trip
enjoyable. Hotel ambiance has been therefore carved in a way that from the very starting
customer can feel about his stay and providing world class service and facilities for making a
long customer relationship with them.

Stakeholders
Stakeholders Their significance Needs and
expectations
Owners They are people owning the chain of hotels
managed by Ritz hotel. This segment include
franchise, partners of the hotel chain and
referral group. They are the internal
stakeholders of the hotel chain.
They look for
increasing brand
value and get
increased return on
investments.
Management Management looks after the hotel operations,
employs people and monitors the work. They
also take decisions regarding hotel. They are
the internal stakeholders. Their significance is
in worthy decision-making for the hotel chain
group.
They would look for
policies to work and
bring in more of
capital investment.
This will help in
increasing their
returns on
dividends.
Employees Employees are the internal stakeholders who
work for the hotel. They are employed in
different sections like operations, marketing,
maintenance at Ritz hotel (Bover and et.al.,
2020).
They look for
growth of
company’s business
which can lead them
to incentives and
salary increments.
Customers The hotel receives guests and visitors from a
number of countries in form of tourists,
delegates and business men. They are
prominent for any business. They act as
There are customers
who expect class
facility from Ritz
hotel and make their

external stakeholders for the business. trip a success. Some
customers invest in
the hotel if they find
scope for growth in
it and thus become
external
stakeholders. They
expect return on
their investments.
Suppliers The raw materials needed by the hotel like
accessories in rooms, furniture, bathroom
fittings etc. are made available by them which
helps in functioning of hotel. They are the
internal stakeholders.
They would like to
have a fair deal
where they can get
more monetary
consideration and
would like hotel
grow bigger in
market.
Government Government is an external stakeholder ruling
the nation and making policies for the various
sectors of growth. The significance for
hospitality sector is the policies made towards
this sector and the budget allotted for
upgrading the sector by government.
Government would
assist in private
sector operations as
it would mean more
business, higher
GDP and bringing
more employment in
the country.
Local
community
They are the domestic people living in the city
where hotel is located, can be small
businessmen who have opened their shops
near the hotel for customer footfall for
Corporate social
responsibility
measures are
expected by them.