Strategic Hotel Management: Analysis and Recommendations for ABC Hotel

This report provides an analysis of the strategic management and planning in the hospitality industry, focusing on ABC Hotel. It includes an environmental analysis, SWOT analysis, Porter's five forces, and Porter's generic strategy. The report also discusses the mission and vision, objectives and goals, and corporate social responsibility of ABC Hotel. Recommendations for strategic direction are provided.

STRATEGIC HOTEL MANAGEMENT

ABC hotel 1
Contents
Introduction...........................................................................................................................................3
Environmental Analysis........................................................................................................................3
Macro-environmental Analysis..........................................................................................................3
SWOT Analysis.............................................................................................................................3
Porter’s five forces.........................................................................................................................4
Porter’s Generic Strategy...............................................................................................................6
Micro-environmental Analysis..........................................................................................................7
Mission and vision.................................................................................................................................7
Objective and Goals..............................................................................................................................7
Corporate Social Responsibility............................................................................................................7
Strategic Direction.................................................................................................................................8
Conclusion.............................................................................................................................................8
References.............................................................................................................................................9

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Introduction
Strategic planning is a plan which is developed by the organisation to attain its
objectives. It is required for the organisation to analyse the environment by using the strategic
tools during developing strategic plan in brief (Ansoff, Kipley, Lewis, Helm-Stevens, &
Ansoff, 2018). The objective of this report is to understand the concept of strategic
management and planning. The report is based on the hospitality industry that is why, ABC
has been taken into consideration in order to analyse the report. HOTS is stands for hotel
stimulation which defines the training program that is organised by the organisation to
provide training its employees.
ABC is a hospitality company that provides the variety of services of hotel and
resorts. It provides the multiple numbers of services such as guest room, front desk,
restaurant, and bar. It is established in Bondi beach at the centre of town with the different
hotels.
In the starting of the report, the discussion is made on the internal and external analysis of
ABC hotel. After that, the mission and vision, CSR activities of the hotel will be discussed.
At the end, the recommendations will be given to hotel with the purpose of attaining the
success.
Environmental Analysis
Macro-environmental Analysis
SWOT Analysis
Strength
High value of Goodwill
Weaknesses
Competitors affect the growth such as Ritz

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Strong presence at online platform
It is opened for 24 hours
Training sessions for employees (Noe,
Hollenbeck, Gerhart, & Wright, 2017).
Specialise services for families
Carlto, Mandarin Oriental, Hyatt, and
Marriott.
Workplace diversity is the main weakness of
the hotel
Opportunities
High opportunity to utilise its strength to
grasp the high market share
Differentiate products and services
Expansion the business
It can also enter the online market to make
the strong presence
Threat
Marriott, Hyatt, IHG and many others are the
competitors of the organisation. These
competitors affect the growth of the company
by influencing consumers.
Porter’s five forces
The threat of new entrants
It is observed that ABC hotel have high degree of threat of new entrants just because
of less amount of capital is required to establish the business in hospitality industry.
Nowadays, the demand of hospitality industry is increases due to which the large numbers of
hotels are interacted towards the industry and prefers to enter the new market (Wheelen,
Hunger, Hoffman, & Bamford, 2017). It is also observed that the government of every

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country also contributed in this industry in order to develop the economy as this industry is
directly affects the economy of the country. Number of hotels enters the market to build the
relations with government. That’s why; it can be said that the hotel have high degree of threat
of new entrants.
Bargaining power of suppliers
The negotiation power of suppliers is less as there are large numbers of suppliers
entered in the industry to providing the similar nature of services. It has been evaluated that
the demand of consumers is high towards hospitality industry due to which large number of
suppliers. The suppliers entered the market by attracting towards the high demand of
consumers. ABC hotel has many choices to switch with the new suppliers without any
switching cost.
Bargaining power of consumers
It has been analysed that the consumers of ABC hotel have high degree of power of
negotiation. The large number of hotels provides the similar nature of services as compare to
the hotel. It is observed that the power of consumer is high due to large number of options.
The competitor of the organisation offers the low prices to consumer in order to attract them
towards the service that is why; the degree of negotiation of consumer is high.
The threat of substitute
It is observed that the hotel have high level of threat of substitute product is low as the
services and offers provided by the ABC hotel is less replaceable. The payment system and
packaging system of the hotel is somewhat different from the other hotel services. That is
why; it can be said that the threat is low in substitute services.
The threat of competitors

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Marriott, Hyatt, Mandarin Oriental, and Ritz Carlton are the main competitors of the
organisation as they provide the similar services with the different facilities to consumers.
The competitors of ABC hotel also have high brand image in the market as they also provide
the excellent services to consumers (Owler, 2019).
Porter’s Generic Strategy
Cost Leadership strategy
The organisation offers the services at premium prices slabs by targeting the upper
and middle class people towards the services (Bell, Dyck, & Neubert, 2017). The company
provides the excellent services as per the customer review by investing the large amount of
cost. This strategy helps it to attract those customers who can afford its services (Lasserre,
2017).
Differentiation strategy
It is observed that the ABC Hotel provides the various services to consumers such as
securities of room, gifts and many others. It also provides the offers to consumers such as
discover the best of Waldorf, online booking savings, different payment system, membership,
AAA/CAA family fun, etc. are the service that makes it different and unique as compare to
others. The implementation of HOTS framework also a differentiate strategy of the
organisation (Namada, 2018).

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Micro-environmental Analysis
Mission and vision
ABC hotel wants to become the leader in the hospitality industry. The vision of the
hotel is to fill the earth with warmth and light of hospitality. To achieve this vision, the hotel
set its mission and that is to be the first choice of people of the earth in hospitality industry.
As per the above analysis, it is observed that the organisation achieved the success in its
vision and mission at the moderate level. The differentiation strategy and its expansion
business across the world help to aware the consumers towards its services.
Objective and Goals
The main goal of ABC hotel is to become the first preference of consumers. The
objective of the organisation is to train the employees with the purpose of delivering the
effective services to consumers. Implementing HOTS framework is an appropriate objective
of the company.
Corporate Social Responsibility
The responsibility of the company is to provide the effective services to consumers
and also take care of the environment (Aksak, Ferguson, & Duman, 2016). The company
focuses on the economic opportunities and resiliency in the communities. It operates and
grows sustainability that helps the hotels in improvement to manage energy, water, and
waste. The hotel also uses less number of natural resources in order to preserve them and also
contributed in the low carbon future for better world. As per the analysis of its CSR activities
and external environment, it is observed that the social image of ABC is built with these
activities. Its CSR activities help to aware and maintain the relationship with government and
stakeholders of the organisation (Rangan, Chase, & Karim, 2015).

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Strategic Direction
As per the above discussion, it has been seen that the ABC hotel faces the challenges
in the industry due to high competition in the market. It has been recommended that the hotel
has to adopt the product development strategy to provide the excellent experience to
consumers in the different fields such as resorts, spa, bars, and beach parties. These services
of the organisation will highly attractive for consumers that help to attain the competitive
advantage in the market (Salavou, 2015).
As per the analysis, it has been seen that the ABC hotel does not use the natural
resources with the motive of preserve them. Uses of natural resources are beneficial for the
society but it affects the growth of the organisation as it is essential part of a hospitality
industry. The hotel has to use the renewable indigenous materials that have been cleverly
integrated into the hotel design (Panwar, Nybakk, Hansen, & Pinkse, 2016). The material
attracts the consumers as per the interiors specially youngster for pictures and it also
beneficial for the environment.
Conclusion
At the end, it is concluded that the ABC hotel is a famous brand in hospitality
industry that helps to attain the success in the future. In this report, the porter’s five forces
SWOT Analysis, and porters generic are the tools which is used to analyse the internal and
external factors that affects the growth of the hotel. As per the analysis of mission, vision,
goals and objective of ABC hotel, it is observed that the organisation follows their mission in
order to reach at the vision. The product development strategy and uses of renewable
indigenous materials are recommended to the hotel for attaining the success.

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References
Aksak, E. O., Ferguson, M. A., & Duman, S. A. (2016). Corporate social responsibility
and CSR fit as predictors of corporate reputation: A global perspective. Public
Relations Review, 42(1), 79-81.
Ansoff, H. I., Kipley, D., Lewis, A. O., Helm-Stevens, R., & Ansoff, R. (2018).
Implanting strategic management. Springer.
Bell, G. G., Dyck, B., & Neubert, M. J. (2017). Ethical Leadership, Virtue Theory, And
Generic Strategies. Radical Thoughts on Ethical Leadership, 113.
Evans, N. (2015). Strategic management for tourism, hospitality and events. Routledge.
Lasserre, P. (2017). Global strategic management. Macmillan International Higher
Education.
Namada, J. M. (2018). Organizational learning and competitive advantage. In Handbook
of Research on Knowledge Management for Contemporary Business Environments
(pp. 86-104). IGI Global.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill
Education.
Owler. (2019). Hilton's Competitors, Revenue, Number of Employees, Funding and
Acquisitions. Retrieved from: https://www.owler.com/company/hiltonworldwide
Panwar, R., Nybakk, E., Hansen, E., & Pinkse, J. (2016). The effect of small firms'
competitive strategies on their community and environmental engagement. Journal of
Cleaner Production, 129, 578-585.
Rangan, K., Chase, L., & Karim, S. (2015). The truth about CSR. Harvard Business
Review, 93(1/2), 40-49.

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Salavou, H. E. (2015). Competitive strategies and their shift to the future. European
Business Review, 27(1), 80-99.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic
management and business policy (p. 55). Boston: pearson.