Change Management in Hospitality Sector: A Case Study of Sheraton Hotels and Resorts

Running Head: STRATEGIC MANAGEMENT 1
Strategic Management
(Student Details)

STRATEGIC MANAGEMENT 2
Executive Summary
The given report is about the change management in hospitality sector in reference to Sheraton
Hotels and Resorts. It shows all the relevant changes required in the present hospitality
environment. Sheraton has faced many changes in its internal environment as well as external
environment. To manage the change becomes important in this sector. This report highlights
various strategies that Sheraton should adapt to remain stable in the market. Its competitors has
already studied the market and made innovative moves. In order to gain competitive advantage
over its competitors, Sheraton has to apply various models and theories to gain back its position
in the global world.
There is no doubt that Sheraton has made a huge impact on the hospitality sector by making
great expansions in the past years, but if it still wants to grow and expand; it has to make its
change management very effective.

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Contents
Task 1...............................................................................................................................................4
Introduction..................................................................................................................................4
External Environment Analysis- Sheraton Hotels and Resorts...................................................4
Industry Dynamics and Strategic Group Issues...........................................................................6
Corporate Strategy model to suggest strategy direction..............................................................7
The Cascade Strategic Planning Model....................................................................................7
Business Level Strategies.............................................................................................................9
Task 2.............................................................................................................................................11
Challenges faced by Sheraton Hotels and Resorts due to dynamic changes.............................11
Reviews of Strategic Options.....................................................................................................11
Organizational Flexibility..........................................................................................................12
Task 3.............................................................................................................................................13
Ways to manage the essential changes to execute strategies.....................................................13
Model for Strategy Execution....................................................................................................14
Hrebiniak’s Model for Strategy Execution............................................................................14
Strategies to achieve the set vision............................................................................................15
Task 4.............................................................................................................................................16
Blue Ocean Strategy...................................................................................................................16
Great by Choice.........................................................................................................................16
Comparison................................................................................................................................16
Conclusion.....................................................................................................................................18
References......................................................................................................................................19

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Task 1
Introduction
Sheraton Hotels and Resorts
Sheraton Hotels and Resorts is a global hotel chain; and Marriott International is its parent
company. It was established in Springfield, Massachusetts, USA in the year 1937. Sheraton
currently operates 441 (approx.) hotels with 155620 rooms, including locations in Asia Pacific,
North America, Central and South America, the Middle East, Europe and the Caribbean. Emest
Henderson and Robert Moore are the founders of Sheraton.
External Environment Analysis- Sheraton Hotels and Resorts
Sheraton’s external environment includes all the factors and forces that influence its business.
The micro analysis factors are discussed below:
1. Suppliers
Sheraton is a global chain; to maintain the global standard, it purchases materials and other
products from various parts of the world. The main aim is to maintain the quality of the product
to gain maximum guest satisfaction. The list of suppliers from whom the company makes
purchases is mentioned below:
 Guangdong Eliya Hotel Linen Company Ltd. (China)
It supplies hotel linen, sets, bedding, pillows and table cloth (Alibaba, 2019).
 Nantong Wedding Supplies (China)
It supplies bathrobe, towel, bath rug and bed linen to the Sheraton chain.
 Foshan Shangdian Hotel Furniture Co. Ltd. ( China)
Makes supply of hotel bedroom furniture, hotel dining furniture and villa furniture.

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2. Market Intermediaries
Sheraton has tie-ups with online market intermediaries to increase its sales. There are various
online platforms such as Trivago and Hotwires, who work as market intermediaries for the hotel.
3. Partners
Sheraton is a subsidiary of Marriott International.
4. Customers
The customer profile of Sheraton is much diversified. All types of customers prefer staying in the
hotel. It provides accommodation facilities to a diverse range of guests; such as, luxury travelers,
family, and business travelers. Presently, it is focusing on attracting more business travelers,
honeymooners and vacationers (Cheah, 2018).
5. Competitors
Hilton, Holiday Inn, Hyatt and Marriot are its major competitors.
6. Public
The macro analysis consists of much broader environment which affects the hotel as a whole
and do not cause any impact directly.
Macro factors are mentioned below:
Demographic environment
Sheraton is taking initiative to promote demographic marketing. It aims to attract millennial
travelers, as it believes that they are no different from people with higher age group (Tse,
2016).
Economic environment