Strategic management of The Bondi Beach, Sydney

This report discusses the strategic management of Waves Hotel located in the Bondi Beach, Sydney. It includes SWOT analysis, PESTLE analysis, Porter’s Five Forces and a one year strategic plan. The report also highlights the importance of maintaining the environment and providing quality services to customers.

Running head: STRATEGIC HOTEL MANAGEMENT
Strategic management of The Bondi Beach, Sydney
Name of the student:
Name of the university:
Author note:

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Executive summary
Heritage sites are agents in terms of luring the customers towards the culture. Along with
this, it is also an opportunity for the tourism industries to increase their sales revenue and
profit margins. Micro and macro environment analysis of the tourist spots are crucial in terms
of assessing the prospect of business expansion in the neighbouring countries. One such site
is the Waves Hotel located in the Bondi Beach, a sports and entertainment hub for the
adjacent hotels like the Waves. The presence of dolphin and whales act as a promotion for the
diversified fauna. Sports events commercialize the beach. However, conscious approach
needs to be exposed towards protecting the beach in terms of averting the instances of
environmental pollution.

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Table of contents
Introduction................................................................................................................................3
Environmental analysis..............................................................................................................3
SWOT analysis...........................................................................................................................3
External environment.................................................................................................................5
PESTLE analysis........................................................................................................................5
Porter’s Five Forces...................................................................................................................6
One year strategic plan...............................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

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Introduction
Hotel waves caters to the entertainment needs of the customers. It provides quality
services to the customers, when they go for a change from their daily routine. Typical
examples of the services includes efficient transportation facilities and shopping centres
among others. As a matter of specification, Hotel Waves provides quality accommodation
facilities with modern amenities. One of the mentionable facts is the renovation programs,
which upgrades the standards and quality of the services (Evans, 2015). As per the demands,
the demand for weekend standard room was the highest (33%). However, due to the lack of
proper maintenance, the demand declined to 24%. This assignment attempts to establish a
report on strategic management of Waves Hotel located in the Bondi Beach.
Environmental analysis
Environmental analysis of a company or organization denotes its internal and external
environment. For the internal environment analysis, SWOT analysis of the Bondi Beach
would be conducted. In case of the external analysis, PESTLE analysis of the Beach would
be performed. Porter’s Five Forces prove effective in providing an understanding towards the
external influences affecting the business of the Waves hotel.
SWOT analysis
Strengths
125 standards roomsare well furnished, which lures all kinds of customers. 24 hours
customer care services put emphasis on the complaints of the customers regarding the
services. There is a lobby lounge and bar, which acts as a relaxation area for the visitors. The
staffs of this segment serve full time for satisfying the needs of the clients and the customers
(Padilla & Garrido, 2014).

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Weakness
Negligence towards maintaining the guest roomsdegrades the brand image of Hotel
Waves. Average condition of the front desk would act as repulsion for the tourists intend to
avail booking. Delay in planning the renovations has resulted in customer and employee
turnover. Insufficient parking facilities is one of the other weaknesses of the hotel. Under
such situation, it can be argued that the parking facilities for the expensive cars in the nearby
complex aggravate the complexities of the visitors in terms of their buying power (Pavlatos,
2015).
Opportunities
Efficient and effective transportation facilities would lure the clients and the
customers towards the hotel. Location wise, this would be an advantage. Tie ups with the
nearby shopping centres would enable the hotel staffs to introduce lucrative schemes,
discounts and offers for the customers.Increasing corporate events would act as an agent in
terms of luring the customers from different socio-cultural background. This would enhance
the parameter of cultural diversity. Tie ups with the local businesses and regional heads
would act as a sponsorship for the Hotel, stabilizing the financial parameter. However, there
would be a test after the training session that is able to guide the managers to make estimates
regarding the ability of the staffs towards making real life application to nourish the skills in
workplace (Pereira et al., 2016).
Threats
Inadequate facilities in rooms and services decline the number of tourists. As a matter
of fact, these continuous practices would degrade the reputation of the hotel, adding

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vulnerability in the market position. Incapability to handle harsh and strict tax tariffs would
result in degradation of the hard earned reputation (Abrate & Viglia, 2016).
External environment
PESTLE analysis
Political  Tax tariffson the import and export activities.
 Lack of flexible government policies
Economic  Intense fluctuation in the market
 High exchange rates
 Price hike in the raw materials.
Social  Change in the behaviour and demand of the customers.
Technological  Digital Applications for advance payments of bookings.
 Payment security.
Legal  Consumer Protection Act, Environment Protection Act
Environmental  Environmental directives
 Solid waste management
Table: PESTLE analysis of Bondi Beach
The punitive and harsh policies taken by the government can be identified as
detrimental factor for the growth of the hotels and their employees. In fact, due to these
regulations the hotels are bound to move as per the demands and requirements of the
customers. Furthermore, high inflation rate is an obstacle in the process of balancing the
financial condition (Padilla& Garrido, 2014). In fact, it can be advocated that the hike in the
exchange rate delivers a decline in the relationship between two countries and at the same

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time imposing difficulties in order to fulfil the demands of the customers. Herein mention can
be made of the loss, which the Hotel encountered due to the inadequate resources for
handling the infrastructural tax tariffs. In this situation, sponsorships would be an effective
solution for the restoring the lost balance in the financial parameter. This would restore the
lost stability in relationship with the shareholders and stakeholders (Molina et al., 2015).
Technological innovation aligns with the specific needs and preferences of the clients
and the customers. Here, mention can be made of the Wi-Fi, which assists the
businesspersons in carrying out the tasks in an efficient and effective manner. Along with
this, access to the Wi-Fi is important in terms of maintaining the customer
relationships.Exposure of conscious attitude towards securing the private information of the
customers assures the customers of availing the services (Pavlatos, 2015). This is applicable
in the time of booking, where the hotel staffs need to assure that the customers have the
access to these payment options. Herein lays the effectiveness of the IT legislations, which
possesses flexibility towards averting the instances of malfunctions, virus attacks and hacker
interventions. Complying to the standards and protocols of the Consumer Protection Act
would prove beneficial in terms of protecting the personal data of the clients and the
customers. Compliance with the terms and conditions of Data Protection Act (1998) is
assistance towards safeguarding the private information of the clients and the customers
(Turner et al., 2017).
The technique of solid waste management is fruitful in terms of maintaining the
hygiene around the hotel. This process involves segregation of the wastes, which helps in
detecting the wastes, which can be recycled. This helps in achieving the sustainable
development (Pereira et al., 2016).

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Porter’s Five Forces
It can be argued that the framework of the Porter’s five forces is an effective tool to
analyse the external influences related to the beach.
Bargaining power of the suppliers
Qualified labours are dedicated to enhance the skills and efficiency for an
organisation. Herein lays the effectiveness of the better management techniques like tracking
the employee performance and recording them for making estimates about the progress. If
they are entrusted with the responsibility of interacting with the suppliers, their capability can
be assessed. Incapability in this aspect would result in negative outcomes. Therefore, it can
be argued that the suppliers enjoy high power in case of the buying behaviour (Rahimi,
2017). This tends to improve the stability between the relationship between the hotel staffs
and the associate partners.
Bargaining power of the buyers
The provision of quality services to the customers respects their buying behaviour.
This generates interest in the minds of the buyers to avail the services of the brand. In this
regard, it can be stated that quality and neat and clean environment are very essential that the
hotel companies must implement in their operational framework. In fact, modern amenities
coupled with the service quality have a deep influence on the purchasing behaviour of the
tourists. Therefore, it is imperative for every hotel organisations to put more emphasis on the
feedbacks given by the tourists. As a result of that it is able to provide quality and standards
in the services. In addition to this, updated the service with the changing customer demand is
also an important aspect that is related to the technological awareness of the customers
(Stylos & Vassiliadis, 2015).
Threats of new entrants

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The role of the shifting preferences of the customers is deeply related to the business
activities of the hotel business sectors. Therefore, the hotel industries strictly follow the
practice of change their operations with the need of the customers. For an example, small and
medium private motels such as Central Private Hotels, Highfield Private Hotel and George
Street Hotel are tried to attract the customers on the basis of their substitute products. On the
contrary, the Waves Hotel is suffering with high rate of employee turnover due to the
inability to meet customer satisfaction. In fact, providing better customer service facility with
the quality accommodation services can be an effective strategic measure that helps the
private hotel companies to sustain in the high competitive market (Ryan, 2015). As a result of
that it facilitates a high competitive advantage to the private hotel companies to put an impact
on the competitive environment of the hotel market. Evaluation needs to be conducted for
assessing the effectiveness, appropriateness and feasibility of the services. Here, requirements
of the clients and the customers gained prime importance.
Barriers to entry
Government regulations like trade tariffs might act as an obstacle in the business of
the Waves Hotel. Along with this, high capital costs, lack of access to the distribution
channels, complexities in the acquiring the key raw materials can hamper the business
expansion of the hotel. Luxurious rooms at cheaper rates and lip smacking delicacies within
the budget would provide the opportunity to the small motels and hotel to firmly establish
their position in the market. This scenario would hamper the expansion process for Hotel
Waves (Ren et al., 2016). The barriers to entry in this case are high, as contemporary brands
possess enough resources for to develop a better facility and quality service to fulfil the
demands and requirements of the customers. Waves hotel has 125 rooms, however, the
maintenance is poor.

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Competitive rivalry
There are several determinants in hotel and hospitality industry that play a pivotal role
in facilitating an environment of intense competitiveness. Generally, the competition is
restricted between the hotels in one side and the restaurants, casinos and clubd on the other.
As far as the restaurants in Sydney are concerned, they enjoy a high status by providing
fusion and sea foods and as a result of that generate a negative reputation of the hotels.
Therefore, it is important for the hotels to implement some new measures for retaining the
business operations. For an instance, free passes to the sport events in the beaches with
quality accommodation and package facilities for the customers are identified as effective
measures (Ryan, 2015). In addition to this, implementation of market analysis is considered
to be an effective measure to get the insight of the latest trends. Consideration of the annual
reports would assist the hotel staffs in acquiring financial information.
Adhering to the terms and conditions of competitive policies is fruitful for the Waves
Hotel staffs in terms of maintaining transparency in the business. This transparency is vital in
terms of gaining trust, loyalty and dependence of the clients and customers. Herein lays the
appropriateness of Ethical Code of Conduct, which helps in preserving the workplace culture.
It can be argued that the abilities of the hotels and restaurants are strong enough to attract
maximum number of customers. The product quality and better service facilities are
important in this regard (Padilla & Garrido, 2014).
One year strategic plan
Objective
 To increase potential for corporate business in the second quarter
 To introduce tourism packages at the time of autumn break
 To recruit new members in the management team

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 To organize meetings for revising the current policies, programs and strategies
Key performance indicators
 Successive evaluation of the business operations
 Bulk of tourists come in autumns
 Teamwork by the management team
 Positive feedbacks from the clients regarding the services
Initiatives
 Partnerships
 Advertisements through social media
 External sources
Budget
Amount (Australian dollar)
Administration 30000
Contract 2000
Salary, wage and employee benefits 10000
Room service and maintenance 6000
Marketing 20000
Miscellaneous (events) 5000
Operation supplies 15000
Total 88000 AU$
Table: Budget expenses for Waves Hotel for the next one year
Conclusion
Bondi Beach is a popular heritage site in the threshold of Sydney, Australia. The
hotels situated near the beach suffice the entertainment needs of the tourists. The assignment

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deals with one such hotel, Waves, undergoing poor condition of the guest rooms and front
desks. Herein lays the effectiveness of the one year strategic plan, which possesses the
flexibility to upgrade the standards and quality of the services. Current strategic analysis
through SWOT, PESTLE and Porter’s Five Forces are the sources for preparing the strategic
plan.

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References
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management. Tourism Management, 55, 123-132.
Evans, N. (2015). Strategic management for tourism, hospitality and events. Routledge.
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
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Padilla-Meléndez, A., & Garrido-Moreno, A. (2014). Customer relationship management in
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Pavlatos, O. (2015). An empirical investigation of strategic management accounting in
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Azorín, J. F. (2016). Organizational design, quality management and competitive
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Rahimi, R., & Kozak, M. (2017). Impact of customer relationship management on customer
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Ren, L., Qiu, H., Wang, P., & Lin, P. M. (2016). Exploring customer experience with budget
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