Strategic Management for Dorchester Hotel: Mission, Stakeholder Analysis, PESTEL and SWOT Analysis

This report provides a detailed analysis of the strategic management of Dorchester Hotel, including its mission and objectives, stakeholder analysis, PESTEL and SWOT analysis. The report also highlights the implications and future fulfilment of the mission. The report is relevant for students studying strategic management, hospitality management, and related courses.

Strategic Hospitality
Management

Table of Contents
Introduction ................................................................................................................................. 1
Mission and objectives........................................................................................................1
Stakeholder analysis ..........................................................................................................2
Stakeholder power matrix...................................................................................................4
PETEL analysis.................................................................................................................. 5
SWOT analysis................................................................................................................... 7
Recommendation ............................................................................................................... 9
Conclusion ............................................................................................................................... 10
References .............................................................................................................................. 11

Introduction
Strategic management is defined as the process of analysing, monitoring and
determining the organisation needs and wants in order to achieve desired goals and objectives.
It also involves setting proper goals and objectives to lead the business towards growth and
success and enables them to gain competitive advantage in the marketplace (Ali, 2018). For this
report The Dorchester hotel is taken as the base hotel. The strategic management also includes
the strategic analysis and evaluation, internal business analysis and implementing strategy
through the business effectively. The Dorchester is one of the well established luxury hotel in
London. It was started in 1931 considered to be most expensive and luxury hotel offering quality
services to their target customers. The hotel is owned by the Brunei Investment agency. This
report highlights the detailed analysis of the organisation's mission and objectives. Also the
major stakeholders of the hotel along with their significance for the business using power
interest matrix along with the PESTEL analysis is also highlighted in this report. In addition to
this, to determine the internal capabilities and external environment the strategic analysis is also
highlighted in this report. The implications and future fulfilment of the mission is also highlighted
in this report.
Mission and objectives
Mission of the business organisation plays an essential role in defining the purpose and
focus, it is also the defines the short term goals of the business. Whereas the objectives is
defined as the proper path or the direction for achieving the mission of the business (Allison,
2019). The mission leads to communicating the business organisational goals to the major
stakeholders.
Mission: The mission statement of the Dorchester is to provide the most effective sought after
experiences of healthy living, charm, quality services. The main purpose of this mission is to
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continue to satisfy the needs and wants of the customers and enhance their overall needs and
wants.
Objective: The main objective of the Dorchester hotel is to expansion in their prime locations
also creating a sense of purpose at work leading to make everyone feel driven, inspired and
enhance overall performance of the hotel leading them to achieve desired goals and objectives.
In addition to this, the purpose of the hotel is to offer quality foods and front office services to
their customers.
Stakeholder analysis
Stakeholder analysis is defined as one of the essential tool used by the business
organisation in order to analyse and determine the needs and expectations of the major
stakeholders of the company and accordingly satisfying their needs (Anderson and Sanga,
2019). Stakeholders are the individual or group of people with power to handle, negotiate with,
evaluate the strategic future of the business organisation. Each stakeholder have different
interest in the business organisation and so there needs to be satisfied effectively. In context to
Dorchester, the main stakeholders of the company are mentioned below:
Stakeholders Significance Needs and expectations
Owners/ Investors The Dorchester is one of the
leading luxury restaurant,
owing five restaurant. The
restaurant is managed by the
loyal group of managers,
investment by the investor for
its enhancement. The
shareholders owns the shares
in the restaurant and
The needs and expectation of
these stakeholders includes
the earn specific rate of return
on capital and discount on the
food
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expecting revenges (Cha,
2020).
Management The managers are considered
to another stakeholders of the
restaurant responsible for
managing and handling all the
operations and activity. Also
planning, budgeting,
organising and managing
financial.
The expectation of these kind
of stakeholders is to follow the
mission and objectives and
achieve them. The need
includes goof salary,
promotion and incentives.
Board of directors The board of directors are
responsible for checking the
reports of the hotels to analyse
the strategy, performance risk
and people as well as the all
the activities of Dorchester are
properly managed.
The needs and expectation of
these stakeholders includes
commission, position, esteem
needs and social status.
Customers The Dorchester offers quality
foods and services to their
customers leading to have
effective customer base. The
customers are the main
stakeholders of the hotel and
satisfying them is their main
It includes getting good
services and quality good.
Also great experience in the
value for money (Chernev,
2019).
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goal.
Employees The Dorchester has skilled
and qualified employees
leading business towards
growth and success. They
offers quality services to their
customers enhancing overall
performance.
The expectation and needs of
the employees includes
getting rewards and
recognition. Getting proper
and healthy working
environment.
Suppliers The suppliers of the
Dorchester hotel plays and
essential role in ensuring
delivery of essentials items
like food, towels, cleaning
item, linen, drinks and
equipment to the Hotel. Helps
in enhancing revenue (Chiang,
2020).
The suppliers expect to get
their payment on time. Get the
proper work.
Environmental groups There are the group which
ensures that the hotel is
working towards sustainability
of the environment. The
Dorchester is working towards
reducing waste, reducing
plastic pollution.
The environmental groups
expect the hotel to effectively
contribute towards
sustainability of environment.
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Social community It includes the social
community surrounded by the
hotel. Satisfying the social
needs of the society will help
them to enhance their overall
performance. Also there is
direct impact on the
employment opportunities,
incomes in the area.
The community expect the
chosen hotel to offer job
opportunities, growth and
development of the economy,
investment in the community
effectively.
Government The Dorchester hotel
effectively follows all the rules
and regulation imposed by the
government. These type of
stakeholders collect the tax
from the hotel. The overall
contribution of the hotel in the
enhancement of the economy
lead to benefiting the
government also.
The government expect the
chosen hotel to properly and
effectively follow the rules and
regulation (Dev, 2020).
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Employees unions The employee unions ensures
that each and every employee
is treated well and they
ensures that interest of the
employees is considered the
chosen hotel.
The employees unions expect
that the rights of the
employees are considered and
they are offered equal pay and
good working condition.
Stakeholder power matrix
The stakeholder power matrix is defined as a tool used by the business organisation to
effectively identifying, mapping and prioritising the stakeholder of the company. This grid helps
in analysing or determining the stakeholders with high or low power along with the analysing
who has high or low interest in the business activity (Gregory, 2020). The stakeholder power
matrix is arranged according to their high and low power and interest in the organisation. In
context to Dorchester, the stakeholders power matrix is mentioned below:
High power, low interest High power, high interest
 Customers
 Employee unions
 Owners/Investors
 Board of directors
Low power, low interest Low power, high interest
 Communities  Employees
 Suppliers
 Management
 Environmental groups
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High power, low interest: Under this the stakeholders has high power in the functioning
of the business but has low interest in the operations. In context to Dorchester, hotels customers
and employees comes under this category (Guillet, 2020).
High power, high interest: The stakeholder included under this matrix has high power
and high interest in the functioning of the hotel. Dorchester's owners/investors and members of
Board of director comes under this category.
Low power, low interest: These stakeholder has low power and low interest in the
functioning of the hotel. The Dorchester's community members covered in this category.
Low power, high interest: The stakeholder included in this category carriers low power
but will have high interest in the functioning of the hotel such as employees, suppliers,
management and the environmental group of the chosen company.
PETEL analysis
The PESTEL analysis is one of the most essential strategic framework used by the
business organisation in order to analyse various external factors present outside the business
but has direct impact on the profitability and performance of the business (Hertz, 2018). The
PESTEL analysis stand for political, economic, social, technology, environmental and legal. In
context to Dorchester hotel, to analyse the factors influencing the stakeholders, the PESTEL
analysis is mentioned below:
PESTEL Factors affecting Stakeholders
Political It includes the extent to which the government
intervene is the functioning of the hotel. The current
Brexit has lead to increasing the tax rate on the
goods imported by the Dorchester hotel. Also the
COVID 19 lead to shutting down of all the hotels and
putting ban on travelling. This has created huge
Government
Shareholders
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impact on the operations of the chosen hotel and
directly impacting their operations and profitability
(Ishaq and Di Maria, 2020).
Economic It includes the factors like interest rate, inflation rate,
GDP rate, employment rate and so on. The
Dorchester has to follow the required government
rules in all the countries which lead to increase in
the value added tax, general sales tax rate. Due to
the current covid 19 pandemic there was reduction
in their statutory revenue.
Investors
Government
shareholders
Customers
Social The social factors includes attitude and behaviour
customer's that leads to directly impacting the
performance of the employees. In case of
Dorchester largely contribute to satisfying the needs
and wants of the customers. Hotels offers large
number of employment opportunities.
Community
Customers
Technology The use of advance technology allows the business
organisation to gain competitive advantage in the
marketplace. In case of Dorchester, the hotel uses
advance technology in order to smoothly carry out
their work also uses online booking system to make
it easier for the customers to book their appointment
also offering online payment (Iyer and Jarvis, 2019).
Suppliers
Employees
Customers
Environmental Contributing towards the sustainability of the Community
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environment allows the business organisation to
gain competitive advantage. The Dorchester
effectively contribute towards the sustainability of
the environment through reducing waste and
adopting effective CSR strategies.
customers
staff
Legal It includes the legal laws and legislation which are
imposed and needed to be followed by the each
and every organisation for smooth working of their
operations. In case of chosen hotel, follows
effective policies to protect the rights of employees
and maintain high standard in the marketplace.
Government
Customers
Management
SWOT analysis
The SWOT analysis is essential strategic tool used by the business organisation in order
to analyse their strength and weakness in the marketplace and also various opportunities and
threat present (Kozak and Kozak, 2019). In context to Dorchester, the SWOT analysis is
mentioned below:
Strength Weaknesses
 One of the main strength of the
Dorchester hotel is that they have
strong brand image and business base
in the marketplace.
 The Dorchester hotel also has strong
and effective presence in the UK
market
 The main weakness of the hotel is that
they have limited global presence.
 Also another weaknesses of the hotel
is that there is limited awareness in the
forecasting demand (Liuand Yang,
2021).
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 Dorchester has skilled and qualified
staff offering quality services to target
customers
Opportunities Threat
 Expansion of business in the new
international market can be great
opportunity for the hotel.
 Effective or advance use of technology
can be another opportunity for the
chosen hotel.
 Increasing number of competitors will
create threat for the hotel.
 Changing political condition will also
create threat for the business.
The strength used to achieve hotel's mission
Strong brand image: The Dorchester is considered to be one of the well established
and famous five star hotel offering quality services, the hotel still retains it 1930s furnishing and
ambience which lead them to have strong brand image in the marketplace. There commitment
towards satisfying the needs and wants of the customers and towards sustainability of the
environment allows them to gain strong brand image in the marketplace.
Skilled and qualified employees: The chosen hotel has skilled and qualified team of
employees, offering quality services to their customers and satisfying their needs. Offering
proper training helps the employees to enhance their skills and perform better and achieve
desired goals and objectives of the Dorchester hotel. Having strong and skilled workforce helps
the hotel to gain competitive advantage in the marketplace and enhance their overall
performance (Liu, and Hu, 2021).
Weaknesses and how to overcome them to achieve its mission
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Limited global presence: The Dorchester has limited global presence which is
considered to be its weakness. Offering quality services or adding new or unique services allow
the hotel to expand their business into the international market and enhance their performance.
Creating global presence with their unique services will help them to enhanced their business
and overall performance.
Limited awareness in the forecasting demand: The hotel also has limited awareness
in the forecasting demand effectively, this has lead to creating weaknesses for the business.
Using various marketing tools like social media marketing and creating awareness regarding the
product and services will allow the business to build strong brand image and increase their
customer base.
Opportunities for the hotel to achieve its mission
Expansion in new international market: The Dorchester can expand their business
into the new global market through offering new or unique services. This will be great
opportunity for the hotel to increase their customers base and increase their overall
performance. This will also help the Dorchester to enhance their market size and gaining
competitive advantage in the marketplace effectively.
Advance use of technology: The Dorchester also has the opportunity to use advance
technology, the use of new and advance technology like AI or robotic technology will allow the
hotel to smoothly carry out their operational activity. In addition to this, the use of AI technology
and robotic will help the hotel to attract large number of customers and enhancing their
profitability and productivity. Allowing them to easily satisfy the needs and wants of the
customers through offering quality services (Pizam, 2020).
Threat faced by the hotel and how to overcome them to achieve its mission
Competitors: The increasing number of customers in the marketplace will create threat
for the chosen hotel. Competitors using new technology or changing their pricing policy will
create direct threat for the chosen hotel and will lead to creating direct impact on their
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profitability and productivity. In order to overcome this and achieve its mission in the
marketplace, the hotel needs to carefully analyse their competitors and pricing strategy used by
them. Accordingly, should offer quality services and set its pricing strategy, the hotel should also
use advance technology in order to achieve its desired goals and objectives and enhance their
overall performance (Shin and Perdue, 2019).
Changes in the political factors: Any kind of changes in the government policies or
any kind of political tension in the country direct impact the profitability and productivity of the
business, this lead to creating direct threat for the business. The chosen hotel needs to analyse
the political changes regularly and should accordingly set their strategy to achieve desired
goals.
Recommendation
The Dorchester is one of the leading five star hotel in London , offering quality services
to their target customers with the aim of satisfying their needs and wants. The hotel is
considered to be one of the most expensive and luxury hotel. The hotel is effectively contributing
in satisfying the needs and wants of the customers. The hotel offers quality good and
accommodation services to their target customers, which allows them to gain competitive
advantage in the marketplace and create strong position in the marketplace. In order to remain
in the leading market the hotel regularly analyse their external and internal market. Through the
power matrix, Pestle analysis and swot analysis it is analysed that the hotel will remain at the
leading position in the marketplace. Also in order to remain at the top most position it is
recommended that the Dorchester hotel should regularly analyse their external market as it will
help them to effectively deal with various challenges and achieve their goals. The chosen hotel
focus on offering value to their target shareholders along with critically analysing each and every
situation to take responsible decisions regarding the business, stakeholders and the
environment. The hotel's contribution towards the sustainability and customers satisfaction,
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additionally having strong financial stability and brand image in the marketplace, effective
strategy will allows the business organisation to enhance further success in the marketplace and
achieve desired goals and objectives. The hotel has good opportunities for the expansion into
the international market because of good reputation and customer base. In addition to this in
order to further grow into the market and maintain their competitive position, it is recommended
that Dorchester needs to focus the use of new and advance technology such as AI technology
or robotic technology. Use of these technology will help the business to gain success and
enhance their market shares. The use of new technology like AI technology and robotic will
allow the hotel to easily and effectively handle their operations and attract large number of
customers (Sigala, 2018).
Conclusion
From the above report it has been concluded that proper strategic management allows
the business to effectively analyse and determine organisational needs leading to achieve
desired goals and objectives. It is analysed that it helps enhancing the overall performance and
profitability of the business effectively. Properly forming the strategies of the business also helps
in leading business towards continuous growth and success. This report helps in analysing the
mission and objective of the chosen hotel. Also the importance of the major stakeholders in the
functioning of the business is also analysed using the power/interest matrix is also analysed in
this report. Supporting this and to analyse the external environment the PESTEL analysis is also
taken into consideration in this report. The strategic analysis of the business organisation's
internal capability and external environment using SWOT is also analysed along with the
implication and how to overcome them to achieve its mission. In addition to this in order to
further enhance the performance of the business various recommendation are also analysed in
this report.
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