Strategic Hospitality Management: Analysis of Wyndham Hotels and Resorts
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This report provides a detailed analysis of the mission, stakeholders, PESTLE analysis, and SWOT analysis of Wyndham Hotels and Resorts. It also includes recommendations to mitigate the impact of external forces.
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STRATEGIC HOSPITALITY MANAGEMENT
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Abstract: Strategic assessment includes a detailed analysis of overall aspect of the company before making investment. This report will cover a detailed analysis of mission of the company as well as well as a detailed analysis of the stakeholder that how they play important role and what would be their impact over the company.This report also consist of PESTLE analysis whereby external forces with reference to the hotel is being identified along with their impact.Lastly this report will cover the detailed SWOT analysis section that will identify the potential strength and weakness of the Wyndham.Also a recommendation session is being made at the end of the report suggesting the measures that I needed to be taken in order to mitigate the impact of PESTLE and SWOT analysis.
Table of Contents Abstract:.......................................................................................................................................2 INTRODUCTION...........................................................................................................................4 MAIN BODY..................................................................................................................................4 Mission of Wyndham Hotels and Resorts...................................................................................4 Stakeholders.................................................................................................................................4 Stakeholder matrix:......................................................................................................................7 PESTLE analysis of stakeholders................................................................................................8 SWOT analysis..........................................................................................................................10 CONCLUSION..............................................................................................................................12 REFERENCES................................................................................................................................1
INTRODUCTION Wyndham Hotels and Resorts is one the largest hotel company. It was founded in 1981 by Trammell Crow. It operates its servicesaround 95countries including big cities to small towns (WYNDHAM,2020). It works in the direction of making the travelling possible for all. It provides a range of services to its travellers atminimumprices. Its main aim is to serve its customers at every possible places where they think to go. Strategic assessment refers to an assessment in which every aspect of the company is being analysed before making the final investment. Thestrategic analysisincludes studying and analysing towards the company's main mission and objectives along with detailed study towards the shareholders of the company (Hammond-Errey and Ray, 2019).This report will study about the various factors including external as well as internal so that the investment decision can be made.Mission of the company, stakeholder analysis and strategic analysis are all thoseaspects that is being highlighted in this report. MAIN BODY Mission of Wyndham Hotels and Resorts The main mission of Wyndham is to (be present everywhere means to raise its global presence. As per its mission it wants to be present everywhere and welcome its guest wherever they go) (Mission & Values,2020.). The purpose of the mission: The main purpose of the mission of Wyndham is to serve its guest at every possible place where they want to go. In simple words the main purpose of the mission of Wyndham is to raise and expand its business so that it can cover every possible place across the globeand serve its guest. Objective: ď‚·Global appearance. ď‚·Raise the sales percentages.
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Stakeholders These are the group of people who have interest in the activities of the company or operation of the business of the company (WHAT ARE STAKEHOLDERS?,2021). It can either be an individual or a group.Wyndham stakeholder include owners, suppliers, customers, employees and various other. StakeholderImportanceNeeds and expectation OwnersThey are extremely important because they are the one who brings the business into reality. Theyownthebusinessof Wyndhamanditsbranches whichisbeingoperatingin different parts. Theyareresponsiblefor directing the business of the companytowardsaspecific direction of growth. Itisexpectedthattheywill bringgoodprofitforthe company which will ultimately leadstoraisetheshareof dividendsandprofit percentages for others. EmployeesTheyaretheassetofthe company. They are responsible for the actualoperationofthe business of the Wyndham. Withouttheirpresenceno operationoftheWyndham would be executed in physical form. They will lead the Wyndham to the next level of success. Makingofplansand determining mission will be of nouseuntiladequate employees will not be present andexecutetheplansinto reality.Thus, it is expected that theywillledtheWyndham towardsthedirectionofthe achievement of its mission. CustomersMost important stakeholder forThey are the one who make the
everycompanyincluding Wyndham. Withoutthesupportof customers Wyndham will not being able to accomplishits objective of raising sales. Actasamodethatwill determine the actual success of company. Wyndham to become a market leaderandwinthemarket competition. They are needed for the actual growth of business. SuppliersOperationofbusinessof Wyndhamwillneverbe initiated if there is no adequate flow of supply of raw material or finished products from the supplier's side. Business may incur heavy loss intermsofraisingcostof productionandoperationin caseofnon-availabilityof good suppliers. Adequateavailabilityof suppliers will leads to actual operation of business. HelpstheWyndhamto maximize its value of service. GovernmentHelps the Wyndham to meet itssocialresponsibilitiesin terms of payment of taxes to governmentandonreturn investment of collected taxes bygovernmenttowardsthe society. Helpsthehoteltomeetthe conceptofsustainability (Martin, 2019). Withoutgovernmentsupport no company or sector would beingabletosurviveinthe country. Guides the Wyndham to have a complianceoflawswhile operating regular business.
CreditorsExtremelyimportantelement ofWyndhambecausethey avail the finance and funds to it. Leadtotheexpansionand runningofthebusinessof Wyndham. Fortheimplementationof plans regarding the expansion ofbusinesscreditorsare needed. It is expected that funds will be availableatlowcreditand interest so that Wyndham can arrange fund but at low cost. Travel agentTheybringbusinessfor Wyndham through their wide contacts. Raise the sales and profit share of the Wyndham by bringing more clients and guests. Helps the Wyndham to meet itsmissionofservingmore customers. Bestsourceofgettingand attracting guest. Noneedtomakeany investment in other sources for attractingguestexcept paymentofcertainfixed amount to travel agent. Local societyWithout the support of local societynoexecutionof business will be possible. Actual pillar for the success of businessintermsoftheir support (Fisher, 2018). Helpsthecompanyin maintaining and building good image. Withoutsupportoflocal society setting of Wyndham in different location will not be possible. Helps the Wyndham to meet its corporatesocial responsibilities. Trade associationWithout the support of trade unionandassociationno companyandhotelcanrun theirbusinessandmove Nonsupportoftrade associationwillleadtonon survivalofbusinessofthe Wyndham.
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towards their goal. ManagementMost important element of the Wyndham because it manages as well as execute the entire plans and policies. In the absence of management, noco-ordinationandactual working of the hotel would be possible. Forimplementationand performanceofwork management is needed. Manage the entire working of the company. Stakeholder matrix:
PESTLE analysis of stakeholders As per PESTLE analysis there are six forces that have a major impact over the stakeholders. According to this analysis: Political: It refers to all those changes that is being concerned with political situation of the country including political changes in the form of changing rules and policies.It also includes changes that will be bring by political parties or political situation like Brexit in UK.It has a direct impact over every industry including Wyndham. Likewise, along with impact over the hotel it has direct impact over the concerned stakeholders too. Along with changes in political factors, creditors, government, travel agent and various other are being affected. This means that with the changing rules and regulations the mode of operation regarding these stakeholders would either got negative or in positive mode.Like due to Brexit lot of imposition are being implemented in trade so this will direct have impact over Wyndham because it would be difficult for it to get the
supply of raw material or products or to establish contact with suppliers due to restriction in trade. Economic forces: It includes all those changes that is related with current rate of tax, employment rate, interest rate and various other.In addition of this it also includes those changes that is brought up with the occurrence of different events like Covid which has raised the prices of everything and affected every sector. If changes regarding any of its elements occurs then it will bring direct impact over the stakeholders. This means that if the rate of interest will raise then the funds that is being availed by creditors will also bear high amount of interest. Similarly, any changes in the rate of employment including raise in rate will leads then employees will be easily availed by the Wyndham. Social changes: This is most volatile factor of PESTLE analysis. As per changing taste and preferences of the customers the share of customers will also being changes. A favourable change may brings more customers towards the hotel but if the changes are in adverse direction like non interest towards hotels then it may lead to severe loss to Wyndham in terms of loosing major share of customers. Likewise, it will also help the hotel to bring innovative services for its customers so that along with raising customer's share the sales of the hotel will also raise (Luomaranta and Martinsuo, 2019). Thus, it would not be wrong to say that customers not only affects the Wyndham but it also direct its towards its goal too. Technological: It is concerned with changing and up gradation of technology and technological forces. This factor also have a direct impact over the stakeholders of hotel.It is also be to be noted that technological changes also includes bringing of changes in the form of introduction of new technologylikemachinesthatwillmadethecashlesstransactionpossible.Asthrough implementation of new technology by Wyndham will lead to raising more efficiency in its business in the form of raising communication with customers or through suppliers. Legal: It is concerned with rules and laws of the concerned country.It also includes all those changes in laws that was being made or have chances of made like due to Covid every law or rules of the operation of the business by the company got changed.As Wyndham wants that it
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can serve its customers at every possible place so it is very essential to analyse this force. This is again having a direct impact over the working as well as stakeholders of hotel (Perera, 2017). Since due to different laws in different countries the maintenance of relationship with either customers as well as employees or government will have a direct impact over the business of the hotel in terms of making it operations either easy or difficult. If the rules and laws regarding the performance of trade is liberal then it will benefit the Wyndham in terms of appraising its business activity. Environmental: It includes all the elements that is concerned with environment. Along with raising awarenessamongthepeopleregardingeco-friendlyproductsorconcernstowardsthe environment will have a direct impact over the business of Wyndham and its stakeholders too. Similarly,one of the biggest change that is concerned with this factor includes Covid. As due to Covid many changes in the environment occurs. So it is very essential for every sector or Wyndham to monitor these changes.This could also be understood as if the hotel will be concerned with use of concept of sustainability then it will automatically attract more customers towards it that will ultimately raise its business growth. PESTLE analysis of Wyndham and its impact on stakeholders: PESTLEFactors affecting stakeholdersStakeholder Political forcesImposition of restriction make the availability of raw material difficult. Raiselawfulcomplianceof working of hotel. Suppliers. Employers. Government. Economic forceAvailability of credit at high rate of interest. Rise in employment rate. Creditors. Employers. Employees. Social factorsChanging taste and preferences of customers. Customers. Employers.
Favourable change bring more customers. Customers need will be meet. Employees. Technological factorCashlesstransactionmade possible with high technology. Made the communication easy. Make efficient functioning of hotel. Customers. Employers. Employees. Legal forcesRegulationsregardingCovid puts a negative impact over the Wyndham. Government. Employer. Employees. Environmental factorsMore attraction of customers due to following of concept of sustainability by Wyndham. IHGgreenengagesystem, recyclingpractices,reduction ofwastages,water conversation and various other practicesalsocountedas importantfactorsconcerning with customers. Customers. Employers. Government. SWOT analysis It refers to the analysis of strength and weakness of the company that could help it in grabbing the future opportunities and minimize the intensity of threats. Through the application of SWOT analysis company Wyndham will be able to make an internal analysation of its capabilities along with its weak points. This analysis also helps it to mitigate the intensity of threats that may arise in the future (GĂĽrel and Tat, 2017). Likewise, by using the capabilities, Wyndham can also grab any future opportunities that may arise or have chances to arise.
SWOT Analysis of Wyndham is as follows- Strengths Evaluation of Wyndham strengths to achieve itsmission is its: Strong market presence-This is one of the strength of Wyndham that it has widespread market presence.Wyndham has its presence across several countries in many types and this becomes strength ofWyndham. The hotel can use this strength in the form of better treating the guest along with raising the customer share. Effective portfolio of different brands- This is also one of the strength in which Wyndham has a portfolio of 20 different brands. This enablesittocaterdifferentcustomer requirements and also different brands serves as varied income stream (Vlados, 2019). The effective brand portfolio can be used by the Wyndham in terms of beating the market competition. Customisedcustomerexperience-Thisis also a strength of Wyndham that they are able to provide customised customer experience in which customers are provided with specific services that are developed for them. Sinceitdealsincustomizedservicesso through this practice it can better serve the customer and raise its goodwill. Strong distribution strategy- This is also a strength of Wyndham in which it has different Weaknesses Evaluation of Wyndham weaknesses to achieve itsmission is its: Limited brand awareness-This is one of the weaknessofWyndhamthatitsbrand awarenessislimitedcomparedtosome competitors of Wyndham.This is a weakness in which even thoughWyndham is capable of providing high value to customers, customers are not aware of its existence. However, it can be mitigated if the Wyndham would indulge or incorporate the use of social media or the digital media in order to make awareness among the customer regarding the brand. Franchise model- This is also a weakness for Wyndham in which it cannot exercise adequate control on its franchise hotel. This is because its hotels are individually owned and this is why control ofWyndham is not possible in that case. This weakness can be overcome if the hotel would adopt some other practice of expansion including licensing or acquisition. Highcostofoperations-Thisisalsoa weakness of Wyndham that it’s operating cost of very high. This affects overall profitability of the company.Along with this, increased operational cost also increased prices that are charged from guests atWyndham.
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places from where services of Wyndham can be booked.This enables customers to easily access and book services ofWyndham from different sources. Centralisedandintegratedinformation system- In this strength information system is centralised enabling easy access to required information.ItalsoenablesWyndhamto access control over information of the hotel. This can be overcome if the hotel would adopt practice of recycling or reusing or efficient using of resources so that the operation cost would be reduced without having an impact over the quality of services. Dependency on key personnel- Wyndham has internal information system and because of it company is significant dependency on its key personnel.This is weakness in which access to information can only be availed when these personnel are available. This weakness can only be reduced if the hotel wouldadoptthepracticeofbeing independencyandoperateitsoperation independently. Rentedproperty-Thisisaweaknessof Wyndham that significant portion of company is rented rather than purchased which increases overallcostofWyndham.Thisincreases overall cost ofWyndham and thisalso make hotels unstable and Wyndham might require to change location, because they are not owned properties. Astherentsystemincreasethecostof operation so this weakness can be reduced or overcome if the hotel would either adopt the practice of raising sale so that the cost will be minimized or the adoption of practice of self- owing of property. Opportunities EvaluationofWyndhamopportunitiesto Threats EvaluationofWyndhamthreatstoachieve
achieve itsmission is its: Promotional efforts-This is an opportunity forWyndhaminwhichbyincreasingits promotional efforts it can increase and develop itsbrandimageandbrandawareness. Increasingpromotionsleadtoincrease customersandincreasedprofitabilityand growth. This opportunity would enable the hotel to raise its brand presence along with raising its sales percentages. International expansion- This is one of the opportunityforWyndhaminwhich internationalexpansionisaverygood opportunity for Wyndham.This will increase awarenessofWyndhamandwillalso contribute to its growth and success, Collaboration with other brands- This is an opportunity in which collaboration with well- known brands will increase recognition and awareness of Wyndham. This opportunity would enable the hotel to make expansion of the business along with enabling good profit shares. Cross industry partnership- This is also a opportunity for Wyndham.In this organisation from more than one industry collaborate for mutual benefit and Wyndham can get benefit from this. This will raise the opportunity for the hotel in terms of raising its brand awareness in cross itsmission is: Increasingcompetitioninhospitality industry-Thisisoneimportantthreatfor Wyndham because competition in hospitality industry is increasing and getting intensified (Martinez,2017).This threat can be mitigated by the Wyndham in terms of better enabling the services among the guest so that it can win the competition with its quality services. Increasing compliances-This is also a threat inwhichincreasingcompliancesby government ultimately increases difficulty for operationsofWyndham.Increasingand changingcompliancerequiretochange functioning and operations withinWyndham. thisrequirecostandeffortsforthe organization.This threat can be converted into opportunity if the hotel will work as per the compliances of the laws. Recession and economic slow-down-This is also a threat for Wyndham. This is because it operates in hospitality industry and economic conditionplaysveryimportantroleinits success. This threat can be mitigated by better serving the guest along with reducing or minimising the cost of operations. Image of Franchise- This means that success of Wyndham significantly depends on image of the franchise and negative image of franchise can affect success of Wyndham.
countries. Creating value through data obtained from customers-Thisisanopportunityfor Wyndham in which it can be benefited by using customers data in right form and for promotion. This will enable an opportunity to hotel in terms of better serving the guest and raising their experience so that ultimately the hotel will achieve its goal of raising high profits. Low brand recognition is a major threat and challenge for Wyndham. This threat can be converted into opportunities byperformingbestintermsofservingor running its business operation. Thus, from the above SWOT analysis it is clear that Wyndham has a good deal of strength in the form of provider of customised services along with strong distribution network. Thus, Wyndham can by using these strengths can easily move towards the achievement of its mission of serving its guest at every possible place. Similarly, these strengths will also help it to grab the opportunities in the form of expansion of business or coving the entire globe through its efficient services. Along with the presence of capabilities it has certain weakness also which includes high dependency over key personnel or using of rented property for operating its business. It is very essential for Wyndham to minimise its weakness so that it can mitigate future threats of raising competition. Likewise, along with mitigating threats it can also move a step closer towards its mission of expansion of business if it will adopt appropriate steps of reducing its weakness. Recommendation: As per the analysis of its stakeholders it would be recommended that a close monitoring over the employees and human resource will lead the hotel towards the achievement of its objective. Since its objective is to raise sales along with achievement of growth at global level so a careful co-ordination and maintenance of relationship with stakeholders can help it to meet its objective. According to PESTLE analysis it would be recommended that a careful and continuous analysis of all the forces of PESTLE will help the Wyndham to meet the forces along with
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raising its performance level and efficiency. Since these forces have strong and uncontrollable impact over the business of the hotel but a continuous watch over these forces along with inculcation of required changes will help the hotel in the accomplishment of its objective. As per the analysis of SWOT it would be recommended that if Wyndham will work in the direction of reducing its weakness or minimising threats by utilizing its strength in the form of efficient human resource delivery of customised services it can in addition of meeting market competition it can win the competition and become the key player. Appropriate use of strength and availingopportunitiesin the form of using of promotion strategiesor formation of collaboration with other brands will lead the Wyndham towards the achievement of its mission too. CONCLUSION From the above report it is understood that company's mission and objectives plays an important role in determining the investment decision by investors. A study of stakeholders in the concept of PESTLE analysis also helps the company to determine what are the external forces in the concept of stakeholders and what will be the impact. In addition, of this it is also understood that how SWOT analysis will help in strategic decisions and analysation of capabilities and loopholes regarding Wyndham.
REFERENCES Books and journals Fisher, N.I., 2018. Stakeholder value as an organizing principle for strategic planning.Journal of Creating Value.4(1). pp.168-177. Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review.Journal of International Social Research.10(51). Hammond-Errey, M. and Ray, K., 2019. A new methodology for strategic assessment of transnational threats.Police Practice and Research, pp.1-17. Luomaranta, T. and Martinsuo, M., 2019. Stakeholders’ involvement in additive manufacturing innovations. European Operations Management Association Conference. Martinez, B., 2017.A SWOT analysis on Millennials in the workplace: Increasing manager successwithMillennialemployeesinthehotelindustry(Doctoraldissertation, California State Polytechnic University, Pomona). Perera, R., 2017.The PESTLE analysis. Nerdynaut. Vlados, C., 2019. On a correlative and evolutionary SWOT analysis.Journal of Strategy and Management. Online references Martin,M.,2019.Role&ActivitiesofStakeholders.[Online].Availablethrough <https://smallbusiness.chron.com/role-activities-stakeholders-31182.html> Mission&Values.,2020.[Online].Availablethrough <https://corporate.wyndhamhotels.com/about-us/mission-vision-values/> WHAT ARE STAKEHOLDERS?.,2021. [Online]. Available through <https://asq.org/quality- resources/stakeholders> . [Online]. Available through <https://corporate.wyndhamhotels.com/news-brands/wyndham- hotels-and-resorts/#:~:text=Wyndham%20Hotels%20%26%20Resorts%20(NYSE %3A,95%20countries%20on%20six%20continents. > 1