Strategic Hotel Management: SWOT, PESTLE, Porter's Five Forces Analysis

This report analyzes the strategic management of Bondi Pavilion Hotel in Australia, including SWOT, PESTLE, and Porter's Five Forces analysis. It also includes recommendations for improving the hotel's performance. The report emphasizes the importance of implementing greener technologies, promoting good leadership, and maintaining corporate social responsibility. The core values of the hotel are also discussed.

Running head: STRATEGIC HOTEL MANAGEMENT
Strategic hotel management
Name of student
Name of University
Author note

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Executive summary
The concept of strategic management was prioritized by the business organizations,
especially within the hospitality industry to delivering the best quality services and ensured
customer satisfaction. From the report, it could be found that the external environment analysis
was done with the help of SWOT analysis, which has helped in understanding the strengths,
weaknesses, opportunities to expand globally and lastly to deal with threats of competitors new
market entry products and substitutes. It has also made the organization and its employees
capable of dealing with these kinds of problem, which had improved the business for Bondi
Pavilion Hotel and enhanced the delivery of good quality services to the customers. The other
tools used to analyze the internal and external environment were Porter’s five forces and Porter’s
value chain analysis framework.

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Table of Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................3
Environmental analysis....................................................................................................................3
SWOT analysis framework..........................................................................................................3
PESTLE.......................................................................................................................................4
Porter’s five forces.......................................................................................................................8
Strategy..........................................................................................................................................11
Vision and mission.....................................................................................................................11
Core values.................................................................................................................................11
Objectives...................................................................................................................................11
Corporate Social responsibilities...............................................................................................12
Strategies....................................................................................................................................12
Conclusion.....................................................................................................................................13
Recommendations..........................................................................................................................13
References......................................................................................................................................14

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Introduction
The main purpose of preparing the report is to present ideas related to the management of
strategies within the hotel industry considering the hotel named Bondi Pavilion Hotel in
Australia. The goals are set based on priority, which can assist in determining the feasibility of
the tools and frameworks, furthermore implement the right strategies to deliver the services on
time. Bondi Pavilion hotel possesses a strong diversified culture and good decor inside, which
will arouse the interests among guests and make them influenced to visit the hotel at least once.
The obtaining of data and information is done with the use of social media advertising and
promotions, which can also increase the global exposure and draw in more clients
(bannisters.com.au, 2018).
Environmental analysis
SWOT analysis framework
SWOT analysis
Strengths
 Hotel offers exemplary panoramic
scenic views and luxury services
nearby the sea (Hill, Jones & Schilling,
2014).
 Accessibility to gym, infinite pool,
rooftop bar and grill, Rick Stein
restaurant at Beachcomber Pavilion
Weaknesses
 Undocumented workforce due to the
lack of proper skills and knowledge
among certain staffs
 Lack of global exposure and
distribution channels
 Per unit cost is considerably higher too

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 Wide range of food items with
Mediterranean-Australian fusion to
enrich the taste buds (Abrate & Viglia,
2016)
 24 hours services
(Molina-Azorín et al., 2015).
 Not implementing the greener
technologies can affect the environment
Opportunities
 The assessment of internal and external
environment will identify the areas of
funding, and create scopes for
rebuilding and arranging events too
 Investing in green technologies to keep
the environment safe (Tsitsiloni,
Grigoroudis & Zopounidis¸2013).
 Social media involvement will enhance
the global outreach
Threats
 Competitors like Weston and other
luxury hotels pose serious threats to
Bondi Pavilion Hotel
 Recession leads to fluctuations in
interest rates, which affects the prices
of products and services.
 Lack of investments will prevent proper
training for the employees, which can
degrade the business performance (Ota
et al., 2013).
PESTLE
Political factors  The hotels act as major contributors to
the economic growth of the country
(Dobbs, 2014).

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 The political stability in Australia has
created a positive impact on the tourism
and generates higher income by
impacting the economy of the country
and benefited the Federal Government
too (Jurevicius, 2013). As per the goals
of the company, they will have to
protect their customers from any
outside attacks by enforcing more
security.
Economic  Some of the major economic challenges
in the growth of the Bannisters hotel
are the high inflation rates, interest
rates set by the Government, changes in
the taxation policy and many more. The
budget allocations should be made for
the staff training and other HR related
issues properly. This should help the
hotel to function smoothly.
 The hotel authority can plan to charge
extra money at times of several
festivals and such events as well

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(Jurevicius, 2013). As per the HOTS
design, the revenue management and
the distribution channel management of
the company should be designed to
enhance the organizational capabilities
of the hotel in the first year.
Social  The organization must make survey on
their customers to receive some
important feedbacks and deliver
services accordingly.
 The hotel managers should always
study the demographics of the
customers effectively. (De Grosbois,
2012). The corporate social
responsibility should be performed by
the hotel by maintaining the ethical
issues in line. They should involve in
reducing the food wastes in the
community and consume the natural
resources for the benefit of the
environment.
Technological  Online booking for accommodation and

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food services available at the hotel.
 The expenses are reduced and costs of
operations lowered with the availability
of online rental services for the guests
to place orders for accommodation at
the hotel (bannisters.com.au¸2018).
 The efforts of employees are lowered
and the accommodation places are
embedded with free Wi-Fi for the
guests to remain connected.
Legal  There are health and safety laws at
Bondi Pavilion, which can assist in
maintaining proper health and safety of
both guests and employees, so that the
business performance improves.
 The company is supported by
Government and regulatory bodies to
follow the environmental laws and
implement greener technologies to
reduce harmful environment impact
(Hill, Jones & Schilling, 2014).
Environmental  The funding done on greener

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technologies are responsible for
developing a healthy environment
where people can live safely and
maintain good health
 Due to the higher costs of electricity
and consumption, the initiatives are
undertaken to prevent harmful
greenhouse gases from generating and
also by reducing the burning of coals
(Abrate & Viglia, 2016).
 The hotel should also be ready to take
necessary measures and minimize the
troubles in case of emergencies caused
due to natural disasters such as flood,
earthquake or heavy rain.
Porter’s five forces
Porter’s Five Forces
Competitive Rivalry  The competitiveness in the hotel
industry is very high. considering the
components of product, price, place and
promotions (Wagner & Hollenbeck,

9STRATEGIC HOTEL MANAGEMENT
2014).
 As per the mission and vision of the
hotel, the hotel authorities should
always menu of the hotel should be
prepared after conducting the surveys
with the customers. The choices of the
customers should always be respected
and given the first priority.
Buyer power  It is very effective for the company to
sign the long term deals with the
customers.
 The division between the individual
and group customers should be made
properly.
Supplier power  Good economic background, which
ensures high supplier power in this
course as well (Dobbs, 2014).
 Best furniture used for hotel decoration
and this enables good bargaining with
the suppliers (Pereira-Moliner et al.,
2012).

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Threat of new entrants  It has to be said that the Bannisters
hotel is located in a very good site in
Australia at Mollymook (Jurevicius,
2013).
 The pay levels are quite competent and
ethical guidelines should be maintained
by ensuring that the prices of different
things should be mentioned to the
supplier and guests after their arrival at
the hotel (Dobbs, 2014).
Threat of substitutes  The competition rate is very high over
here (Jurevicius, 2013).
 The consumers are much budget
conscious these days and the
organization analyzes their preferences
regarding the price of rooms and other
issues too (Pereira-Moliner et al.,
2012).

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Strategy
Vision and mission
The mission is to serve the customers and give them an enjoyable experience at the hotel
by the sea and the vision is to become one of the best hotels in Bondi, Australia.
Core values
The core values of the hotel are managing hospitality services by providing the guests
with best quality accommodation and food services. Doing the right thing all the time helps in
maintaining integrity while the leadership aspects helped in managing team work and
coordination at work. The ownership is another core value of the organization that means
handling the management actions and making decisions properly to operate during the
emergency situations, furthermore maintain discipline (bannisters.com.au, 2018). The core
values also include implementing greener technologies for creating an environment that is safe
and healthy for both the employees and guests.
Objectives
 To evaluate various methods to implement the strategies and maintain steady functioning
of the hotel
 To use various marketing techniques for expanding global outreach and generate more
customers to increase sales for Bondi hotel in Australia
 To deliver the best quality services and taking ownership of actions through maintenance
of business values and ethics (De Grosbois, 2012)
 To promote good leadership aspects and create scopes for better communication,
teamwork to accomplish the tasks quickly and ensure customer satisfaction

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Corporate Social responsibilities
 The natural environment in which the hotel is located should be looked after properly as
well.
 The community should be given the utmost value in this situation.
 The various amenities could be introduced for the children by the hotel management
authorities.
 The diversified approach could be taken by the hotel authorities for the welfare of the
society and start donating for the funds in health and education facilities.
 They should take positive initiatives to invest in the Combines Heat and Power Plants.
 The important climate programs should be initiated in this context as well.
 They must also take the proper initiatives to eradicate the polluting materials in the
society and use the latest technology for the benefit of the people (E. Dobbs, 2012).
 The local charity programs should be supported by them as well.
Strategies
The strategies by which the hotel could become a successful brand are to:
 The guests should have a say in the shaping of the rooms and furniture.
 The easy communication should be there between the management and the employees to
make the workflow smooth.
 The managers of the hotel should let the employees have a say in shaping of the entire
things of the hotel because they, too, might have some important innovative ideas (Hill et
al., 2014).

13STRATEGIC HOTEL MANAGEMENT
 The use of technologies will be a very important thing for the organization since the new
updated things can only be installed once they have used the technology for good.
 The through connection between the employees and customers should always work for
the benefit of the organization.
Conclusion
The conclusion to this paper can be drawn by saying that Bannisters Hotel has been a
very successful hotel in the concerned country. It is very important for the organization to focus
on reshaping their marketing strategies and utilize the best options. The pricing methods of the
company will have to be looked after as well. The training and development programs for the
employees should be taken up. The performance will surely improve because of this. The hotel
authorities should try to mitigate the several political and economic issues to provide better
functions.
Recommendations
 The money investment programs should be used for the betterment of the organization in
the best ways indeed. The revenue management system of the company should be
developed.
 The training programs for the better performance should be arranged by the
organization’s higher authorities.
 The guest feedbacks will be very important to assess the various issues and the media
should be involved in bringing them to light of the common people.

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References
Abrate, G., & Viglia, G. (2016). Strategic and tactical price decisions in hotel revenue
management. Tourism Management, 55, 123-132.
bannisters.com.au. (2018). Retrieved from https://www.bannisters.com.au/
De Grosbois, D. (2012). Corporate social responsibility reporting by the global hotel industry:
Commitment, initiatives and performance. International Journal of Hospitality
Management, 31(3), 896-905.

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E. Dobbs, M. (2014). Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review, 24(1), 32-45.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an
integrated approach. Cengage Learning.
Ivanov, S. (2014). Hotel revenue management: From theory to practice. Zangador.
Jurevicius, O. (2013). Pest & pestel analysis. Strategic Management Insight, 13, 2013.
Molina-Azorín, J. F., Tarí, J. J., Pereira-Moliner, J., López-Gamero, M. D., & Pertusa-Ortega, E.
M. (2015). The effects of quality and environmental management on competitive
advantage: A mixed methods study in the hotel industry. Tourism Management, 50, 41-
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Ota, K., Kurita, Y., Akasaka, F., Kimita, K., & Shimomura, Y. (2013). Extraction of customers’
potential requirements using service scenario planning. In Product-Service Integration
for Sustainable Solutions (pp. 63-74). Springer, Berlin, Heidelberg.
Pereira-Moliner, J., Claver-Cortés, E., Molina-Azorín, J. F., & Tarí, J. J. (2012). Quality
management, environmental management and firm performance: direct and mediating
effects in the hotel industry. Journal of Cleaner Production, 37, 82-92.
Tsitsiloni, M., Grigoroudis, E., & Zopounidis, C. (2013). Service quality evaluation in the
tourism industry: A SWOT analysis approach. In Optimization theory, decision making,
and operations research applications (pp. 249-266). Springer, New York, NY.

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Wagner III, J. A., & Hollenbeck, J. R. (2014). Organizational behavior: Securing competitive
advantage. Routledge.