Strategic Management of Starwood
Added on 2019-12-03
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Strategic management
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1BACKGROUND OF THE ORGANISATION...............................................................................1STRATEGIC DECISIONS.............................................................................................................2NON- STRATEGIC DECISIONS..................................................................................................6RISK................................................................................................................................................8CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONToday’s, cut throat competition in hospitality industry is present and leadingorganizations including Starwood Hotels and Resorts worldwide Inc. are emphasizing ondeveloping and executing appropriate strategies to attain their aim and objectives in anappropriate manner. Selected company is international firm because it engages in activitiesoutside the borders of its home country. The cited firm presence at global level and it operates itshotel business in terms of franchises and manages hotels, resorts, spas and residences under ownbrand. Business strategy of enterprise is concentrating on the management and franchise businessfor the purpose of maximizing earnings and cash flow. Strengthening brand identity,expand thepresence ofbrand at global level and gain additional cash flow are the major characteristics ofbusiness strategy of Starwood brand(Environmental Mission Statements: Starwood ShowsCommitment, 2010).The main corporate strategies of enterprise are implementation andexpansion strategy for hotel chains and minimize the risk inherent in an investment decision. Corporate governance: In order to assure that Starwood is governed in a consistent manner,Corporate Governance and Nominating Committee within enterprise is developed. Consideringand reporting periodically report, identifying, screening and recommending to board and assiststhe Board in fulfilling its oversight responsibilities are the major corporate governance standardsfollow in Starwood. Besides that, code of business conduct and ethics and meet the independencerequirements of the New York Stock Exchange and other exchanges are the majorcharacteristicsof international hotel giant (Ochi, 2012). In order to better understand the conceptof strategic management, case study of Starwoods has been taken. In addition, strategic and non-strategic decisions taken by management in different situations have been explored for thepurpose of grasping business and market opportunities in a significant mannerBACKGROUND OF THE ORGANIZATIONOverview of case study: As per the given case concerned, Starwood enterprise has been takenwhich offers quality of services to their customers within stipulated time. In addition, hospitalityfirm is active across numerous social networks to magnetize new customers and retain existingone. The main aim of the company is to minimize the risk inherent in an investment decision andstrengthening brand identity. Talented and skillful staffs were created issues in successfuldeployment of IDM system within enterprise. Changes come in demographic population andcultural and professional differences are creating problem for company.1
Enterprise was executed merger operation with Hyatt Hotels, it can be considered asstrategic decision. However, maintaining reliability, employee conflict, lack of integrationbetween departments and availability of ongoing operations were created hurdle in successfulimplementation of new HRM system within Hospitality Company. By taking strategic decision,management was able to improve cost transparency and improved HR processes effectively.Furthermore, by increasing transparency in HR policies, management of hotel can be able tosolve security and HRM management related issues in a stipulated manner. By consideringmerger and acquisition techniques, firm was able to carry out different business activities such astraining to its employees, overcome security problem and expanding its business in cross nationeffectively. Strategic decision taken by Starwood firm regarding to replace existing system withnew emerging technologies like Cloud-Computing, Starwoods would be able to reduce ITinfrastructure related cost and quick delivery of service in a proficient manner. The UK based enterprise has global portfolio of luxury hotels and resorts in 80 countries. Itshows that it has worldwide presence. The objective of this resort is to create awareness ofetiquette in travelers (Sustainability Programs & Initiatives, 2015). The company under thepowerful leadership of Starwood is embarking continuous growth phase (Starwood Hotels andResorts, 2015). These are their long term goals which are set in commencing their life longjourney. The major challenges for them were to grasp advantage from merger and acquisitionactivity with Hyatt and human resource management related challenge. All these efforts areinfused by them in order to improve their indoor environmental quality (Debrah, 2013). With thisstrategic objective, this organization has been successful in taking an initiative of partnership.They took partnership with Conservation International (CI) in 2009. They worked together tocreate a platform that enable them to achieve their performance targets. STRATEGIC DECISIONSStrategic managementWells (2000) explored the concept of strategic management in his paper which was described by(Haines, 1995). As per the view of investigator, this term builds on the definition of strategicplanning and it is a systematic approach used to identify and measure change and its impact onenterprise performance (Wells, 2000).2
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