Strategic Hotel Management: SHM 608

This report discusses the strategic management and HOTS framework in the context of the hospitality industry. It analyzes the business environment of the Soul Origin Hotel and provides recommendations for improvement.

Strategic Hotel Management: SHM 608
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SECTION 1: PERSONAL DETAILS
First Name Surname Student ID
Prakash Bhattarai 201716380
College Course
Blue Mountains International Hotel Management School Master’s in international Hotel
Management
SECTION 2: ASSIGNMENT INFORMATION
Subject Name Lecturer Name
Strategic Hotel Management Mr. Stephen Rodwell
Assignment Title Word Count
Strategic Briefing Individual Report 1530
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Student Signature Date
Prakash Bhattarai 05/13/2019
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Student ID: 201716380 Submission Date: 13/05/2019

Strategic Hotel Management: SHM 608
Contents
Introduction...........................................................................................................................................3
Environmental Analysis.........................................................................................................................3
Macro-environmental Analysis..........................................................................................................3
Porter’s five forces.........................................................................................................................3
SWOT Analysis.......................................................................................................................................5
Porter’s Generic Strategy......................................................................................................................6
Micro-environmental Analysis...............................................................................................................7
Mission and vision statement............................................................................................................7
Corporate Social Responsibility.........................................................................................................7
Objective and Goals...........................................................................................................................7
Strategic Direction.............................................................................................................................7
Conclusion.............................................................................................................................................8
References.............................................................................................................................................9
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Student ID: 201716380 Submission Date: 13/05/2019

Strategic Hotel Management: SHM 608
Introduction
An organisation develops the effective strategies to attain the success in the market.
The process of strategic management helps the organisation to adopt the effective strategies
by analysing the business environment. It is a process of analysing, controlling, and
managing the business environment (Wheelen, Hunger, Hoffman, & Bamford, 2017). In this
report, the discussion is made on the strategic management and HOTS framework. It defines
the framework in which training is provided to employees to provide the effective services. In
this report, the focus is given on the analysis of the business environment of hospitality
industry. The Soul Origin Hotel has been taken into consideration in order to analyse the
external and internal analysis. The area near the hotel is growing with the popularity for
vacations and short breaks. It is situated at the Bondi Beach in the centre of town which is
close to the other hotels as well.
At the beginning of the report, the business environment of the hotel will be analysed
with the help of strategic management tools such as Porter’s five forces, SWOT Analysis,
Porters’ generic strategies. After that, the mission, vision, objective, goals and corporate
social responsibility activities of the organisation will be discussed with the HOTS
Framework. As per the analysis, the recommendation is given to the company to improve the
social image.
Environmental Analysis
Macro-environmental Analysis
Porter’s five forces
The threat of new entrants
The threat of new entrants is high as hospitality industry requires the less amount of
capital to enter the market. There are numbers of small and big hotels who enter the industry
to attain the competitive advantage and success in the industry. That is why; the hotel has
high threat of new entrants (Evans, 2015).
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Student ID: 201716380 Submission Date: 13/05/2019

Strategic Hotel Management: SHM 608
Bargaining power of suppliers
Power of suppliers is low just because of large number of suppliers enter the market
with the motive to earn the profit. The suppliers of the hospitality industry provide the similar
services to hotels due to which it is easy for the hotel to switch with the other suppliers. It has
been seen that the switching cost of suppliers is less or free due to which the hotel can easily
switch with the other suppliers.
Bargaining power of buyers
The hotel has high bargaining power as it is established at the centre of town where
the other hotels are also established to offers the similar services to consumers. The
negotiation power of consumers is high as they have large number of options to get the
services (Lasserre, 2017).
The threat of substitute
It is observed that the services of the hotel can be easily replaceable as the
competitors provide the modern facilities to consumers. The hotel does adopt the advance
technology in order to provides the effective services to consumers. As compare the services
of its competitors, it can be said that the competitors can replace the services of the Soul
Origin Hotel.
The threat of competitors
Soul Origin Hotel also have the high level of threat in the industry. It is observed that
the threat of competitors is high as it established in the centre of town with the other hotels
that have high brand value in the industry. The high brand image of the competitors affects
the growth of the organisation and its revenue. The competitors are the main weakness and
threat for the hotel in the path of success (Phadermrod, Crowder, & Wills, 2019).
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Strategic Hotel Management: SHM 608
SWOT Analysis
Strength
Qualified and Trained staff as it implemented
the HOTS framework to provide the training
to employees (Ariza-Montes, Arjona-
Fuentes, Han, & Law, 2017).
Open desk for 24 hours
Multiple numbers of services such as hotel,
restaurant, bars, spa, etc.
Weaknesses
Competitors offers the modern facilities with
the well facilitated building
The hotel invests the high cost to provide the
premium services
Opportunities
Grab the online market share by entering the
online market.
The hotel has the opportunity to expand the
business in different location to grab the
market.
It has to organise the family parties for
employees so that they can stay with the
hotel for long time.
It has to adopt the digital facilities or
adopting advance technology to provide the
various services to consumers (Nieves, &
Segarra-Ciprés, 2015).
Threat
Marriott, Omni Hotels & Resorts, and Hilton
Hotels & Resorts, are the top competitors of
the hotel
There is high level of threat of competitors as
it is established near the competitors.
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Strategic Hotel Management: SHM 608
Porter’s Generic Strategy
Cost Leadership strategy
It is one of the porter’s generic strategies which state that the company has to offers
the services at low prices to attract the consumers. Soul Origin Hotel also adopts the cost
leadership strategy and offers the low prices as compare to its competitors. The hotel
provides the services as per the class such as middle class, upper class and lower class. The
services of the hotel are classified on these class bases. The cost leadership strategy of the
organisation increases the bargaining power of consumers which is not a beneficial factor for
the industry. From this strategy, the large number of consumers attracted towards its services
but due to low prices it cannot earn the high profits (Bell, Dyck, & Neubert, 2017).
Differentiation strategy
The differentiation strategy refers that the organisation has to develop the different
and unique product or services. It is observed that the hotel does not provide any unique and
different services to its consumers. It always provides the similar services to consumers as
compare to its competitors due to which it faces the issues of higher level of competition in
the market (Namada, 2018).
Focus strategy
The Focus strategy of porter’s generic strategy states that the company has to focuses
on its existing products and services to promote the product and services with the motive of
increasing the sales and revenue. It has been analysed that the organisation focuses on its
existing services instead of introducing the new services. The company promote the services
on the market by using the different promotion tools due to which the consumers can
unsatisfied with the services and attracted towards the services of the competitors (Salavou,
2015).
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Strategic Hotel Management: SHM 608
Micro-environmental Analysis
Mission and vision statement
The vision of the hotel is to contribute the large share in the hospitality industry. In
order to reach at this stage, the hotel sets the mission statement that is to provide the services
to large number of consumers.
Corporate Social Responsibility
The CSR activity of the hotel is to take care of the services of consumers to protect
them (Rangan, Chase, & Karim, 2015). It is observed that the organisation open 125 rooms to
expand the business and hire the large number of employees in order to reduce the
unemployment from country.
The hotel also has large number of gardens in their property to grow plants. It also
invests in the amount in planting the trees in different locations with the motive of spreading
greenery in large areas. It helps to build the strong relations with the consumers and
government by highlighting in social media (Aksak, Ferguson, & Duman, 2016).
Objective and Goals
The goal of XYZ hotel is to become the first choice of consumers in the industry. The
objective of the organisation is to give the memorable experience to consumer by providing
the excellent services. The other objective of the hotel is to provide the training to its
employees (Kasim, Ekinci, Altinay, & Hussain, 2018).
Strategic Direction
It is recommended that the Soul Origin Hotel has to more contribute in corporate
social responsibility activities. The CSR activities of the hotel are not at the higher level as
compare to its competitors. It must take care of the social and environmental areas of the
country. It is planting the trees but fir their growth, it wastes the huge quantity of water that is
why; it is suggested that the hotel has to implement the rainwater catchment system and
desalination plant, while giving the water to plants. The hotel also implements the low-flush
toilets as the supply fire hydrants and water plants.
As discussed above, the hotel provides the services to consumer on the basis of class
system which creates the conflicts and remarks the negative image in the market in social
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Strategic Hotel Management: SHM 608
perspective. It is recommended that the hotel has to maintain the balance between the earning
and social image due to which it has to provide the discounts on booking, rewards and also
offers the free food (Madera, Dawson, Guchait, & Belarmino, 2017). This practice helps the
hotel to remark the positive image in the market.
Conclusion
From the above analysis, it is concluded that the Soul Origin Hotel is in the lower slab
in terms of revenue and gaining the competitive advantage. In this report, the tools have been
used to analyse the external and internal environment. As per the analysis, it is recommended
that the company must build strategic decisions such as improving its CSR activities,
reducing high employee turnover rate, and able to keep customer loyal offering them unique
products and services to maintain the balance between social and financial image.
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Strategic Hotel Management: SHM 608
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.
Ariza-Montes, A., Arjona-Fuentes, J. M., Han, H., & Law, R. (2017). Employee
responsibility and basic human values in the hospitality sector. International Journal
of Hospitality Management, 62, 78-87.
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.
Kasim, A., Ekinci, Y., Altinay, L., & Hussain, K. (2018). Impact of market orientation,
organizational learning and market conditions on small and medium-size hospitality
enterprises. Journal of Hospitality Marketing & Management, 27(7), 855-875.
Lasserre, P. (2017). Global strategic management. Macmillan International Higher
Education.
Madera, J. M., Dawson, M., Guchait, P., & Belarmino, A. M. (2017). Strategic human
resources management research in hospitality and tourism: A review of current
literature and suggestions for the future. International Journal of Contemporary
Hospitality Management, 29(1), 48-67.
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.
Nieves, J., & Segarra-Ciprés, M. (2015). Management innovation in the hotel industry.
Tourism Management, 46, 51-58.
Rangan, K., Chase, L., & Karim, S. (2015). The truth about CSR. Harvard Business Review,
93(1/2), 40-49.
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.
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Student ID: 201716380 Submission Date: 13/05/2019