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STRATEGIC MANAGEMENT
[Type the document subtitle]
7/30/2019
Student name

STRATEGIC MANAGEMENT 1
Contents
1. Summary/ Introduction............................................................................................................3
2. Analysing firm’s past performance and issues........................................................................4
Firm and industry performance...................................................................................................4
External analysis (PESTLE analysis ).........................................................................................4
Political factors........................................................................................................................4
Economic factors.....................................................................................................................5
Social factors...........................................................................................................................5
Technological factors...............................................................................................................6
Legal factors............................................................................................................................6
Environmental factors..............................................................................................................6
Internal analysis...........................................................................................................................6
TWOS framework...................................................................................................................6
A critical assessment of strategy..................................................................................................7
Key lessons learned from the past...............................................................................................9
3. Analysing firm’s current performance and issues...................................................................9
Analysing information(VRIO analysis )......................................................................................9
Defining the current issue(s) and problem statement................................................................10
Problem statement.................................................................................................................10
Porters five force model.........................................................................................................10
4. Implementation and Evaluation of Strategies........................................................................15
Investment in shopping complex within the hotel.................................................................15
Budget friendly rooms...........................................................................................................16
Service innovation.................................................................................................................16

STRATEGIC MANAGEMENT 2
Redesigning...........................................................................................................................16
Employee retention strategies................................................................................................16
Alignment of Recommended Strategies with Balanced-Scorecard (BSC) Dimensions...........17
Stage 1...................................................................................................................................17
Stage 2...................................................................................................................................20
Stage 3...................................................................................................................................20
5. Conclusion & Managerial Implication......................................................................................22
References......................................................................................................................................24

STRATEGIC MANAGEMENT 3
1. Summary/ Introduction
The hotel industry is one of the dynamic and challenging industries, which has faced various
transformations for years. Thus, it can be said that along with the efficient opportunity for the
hotel brands, there are various problems faced by the companies as well. The purpose of the
report is to critical assess the internal and external environment of a hotel organizational case so
as to understand the recent problem faced and recommended a strategy for the same to sustain
through that problem. The organizational case considered in the report is Four Seasons, which is
one of the popular hotel brand providing accommodation and dining services across the globe.
The report will focus on analysing the strategic management elements for “Four Seasons Hotel
Dubai International Financial Centre (Ahlin, 2014).”
Four seasons is one of the popular international luxury hotel company, operating in more than a
hundred hotels across the globe. The company has been following the glocalization strategy that
is adapting the base global strategy with innovation and alterations as per the local area in which
the company is operating. This reflects the study of the brand in particular Dubai region would
be somehow different from other nations in which the company is operating (fourseasons, 2019).
The company is one of the successful companies located in Dubai heart with a boutique style
sanctuary. Four season DIFC are providing accommodation that will provide the feel of home to
the guest visiting that is designed in the way for productivity and relaxing time with
extraordinary services provided by the company. DIFC is generally dedicated to professional and
financial services in the free zone of Dubai. The key benefit that the company enjoys through the
free zone that is Dubai International Financial Centre is 100 percent foreign ownership, zero
percent tax rate on profits and income, free capital convertibility (riaabarkergillette, 2019). The
major problem is increasing competition in the luxury hotel brands near DIFC, which will be
considered as the preliminary motive for the company to assess the internal competences and
resources of the company and factors of the external business environment that leads to such
challenging situation for four seasons DIFC (riaabarkergillette, 2019).

STRATEGIC MANAGEMENT 4
2. Analysing firm’s past performance and issues
Firm and industry performance
The hospitality industry performance, especially in case of luxury segment, can be reflected
through the facts that by DTCM that is a department of tourism and commerce marketing that
stated that at the end of 2017, the inventory of total hospitality industry was 107,431
(khaleejtimes, 2019). Moreover, the statistics from the send quarter of 2018 presented an
increase in 10 percent, which reflect the growth stage of the industry in Dubai. Moreover, Dubai
is considered to be one of the largest tourism industry across the globe, which also reflect the
increasing need for accommodation services in the nation (cavendishmaxwell, 2019).
To assess the performance of four seasons in DIFC, it can be assessed through the rating by the
customers through various official review sites like trip advisors, and in hotel.com. the brand as
per current rating got 9.0 rating out of ten, which reflect the customer satisfaction, and
company’s performance. Moreover, the company when entered into the Dubai hospitality
business, the company introduced the market with another hotel started constructing within two
years. The reason being, as the company was expected to have the highest revenue per room,
which is one of the reliable key performance indicators in the hotel industry (arabianindustry,
2019). The higher performance of the company reflects through the customer ratings, which
would eventually reflect the occupancy rate and sales of the company. Moreover, as per the news
on November 2016, the company eyes second considering the property in DIFC
(press.fourseasons, 2019).
External analysis (PESTLE analysis )
In order to assess the external factors of Dubai those will eventually affect and could turn out to
be either threat or opportunity for the company, which would be critically analysed through a
PESTLE analysis framework. The factors of the framework include
Political factors
The political environment of the UAE included the inclusion of 7 free emirates. Each emirate is
selected by Sheik of the nations, which has the highest position in the political system of the
company. However, it can be said that due to rigid rules and regulation framed and implemented
by sheiks depicts high control of corruption, which is better for the company dealing in the

STRATEGIC MANAGEMENT 5
nation. However, democracy is not true to the level, as in case of western countries, which could
be a threat for the company that will result into long legal requirements and frameworks to be
followed (Andersson, 2016).
Economic factors
Figure 1: GDP UAE (Source: (tradingeconomics, 2019)
The GDP of the country seems to be increasing, and as discuss that the tourism industry is one of
the major sources of income. This reflects that the economic environment of Dubai can be an
opportunity for Four seasons hotel in the nation. As already discussed, the free zone that is DIFC
also comes with economic benefits like zero percent tax, which also makes four seasons to
increase the revenue earning (tradingeconomics, 2019).
Social factors
Social factors are a major element as the country is very involved and consider culture to be very
important and restrictive. The religion that is majorly found in the nation is Islam, that reflects
that the maximum population is of Muslim, which needs to be considered while offering product
and service sin the nation. Thus influencing the business and marketing activities of the company
in this nation (Tarhini, Rouibah, & Yammahi, 2018).