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Strategic Management of Taj

   

Added on  2021-01-01

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INTRODUCTIONStrategic management is the process of constant planning, supervising, analysis andexamination of all that is necessary for an organization to meet its goals and objectives. Ancrucial concept for business owners and managers to obtain, strategic management allowsassessing business goals, objectives and plans. Taj is a chain of luxurious hotels and also thesubsidiary of the Indian Hotels Company Limited. The company came into existence by TataGroup in 1903 and this report is all about the strategies directions that the company followed inpast 5 years, a detailed analysis of the industry in which the company works and future possiblestrategies that organisation could follow.TASK 1The strategic direction that the Taj has followed in the past 5 years and the way it has developed.It has been observed that, under the aegis of its EARTH i.e. Environmental Awareness &Renewal at Taj Hotels, the company has been Benchmarking its vision Tata values.Certifying their properties by EarthCheck since 2009, as studied through research. Further,through the quantitative assessment of ecological and social working in opposition to aproperty’s peers in their industry, area and climate zone. Moreover, it has been observed thatin 2006, with an aim to give greater depth and develop bigger impact, that policy wasencouraged to be an internal campaign and commitment ‘EARTH’. This policy has beenconsidered as the fundamental of all strategic & operational inaugural towards making betterenvironment (Hubbard, Rice and Galvin, 2014). Over last five years the Taj’s 9 EarthCheck Gold certified hotels have:Preserved sufficient energy to power over 53, 940 households more than 1 year.Enough of water has been conserved to fill 338 Olympic sized swimming pools.CO2 emission has been decreased in order to take 6,675 cars off the road, andEnough of waste has been decreased to fill 186 shipping containers. They also contribute towards the social improvement of their local communities by:Training & attesting diminished youth and differently allowed young adults in majorhospitality features.Promoting of local art and craft forms. It has also been observed that, Taj has been famous in hospitality schools’ campuses forbeing a kind-hearted and accountable company and all their stakeholders consisting some vital3
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vendors have been related with their over decades on the basis of the belief, openness andconcern for bigger good. United Nations Global Compact Reporting, EarthCheck Certificationsand engagement in Carbon Disclosure Project over the last few years have made organisation’scommitment and efforts internationally applicable, visible & compatible with other goodexercises in the sector.TASK 2Review the external environment of the company.Pestle analysis is one the best tool that is used by the organisation in order to track theimpact of external environment on the business operations and their functions (Hill, Jones andSchilling, 2015). With the help of Pestle analysis tool, Taj Hotel used to track the environmentalfactors. There are six factors which are included in the PESTLE Analysis model P-political, E-Economic, S-Social, T-Technological, L- Legal and E-Environmental. Political Factor- This factors include all the laws, policies made by government ofcountry. India is democratic country and it is one the most powerful company in the world. Thepolitical situation and condition of India is stable which is a great opportunity for Taj Hotel togrow and develop their business (Mitchell and Leiponen, 2016). It is fact that for hospitalityindustry is the backbone of the government. India runs on the federal form of government and itis one of the largest democratic country in the world. The taxation system is also well developedin India.Economic Factors- This is one of the most important factor in external environment thathas great impact on the profitability of the business. The economy of India is stable and the GDPof India is the 7th largest economy in the world which is the great opportunity for Taj Hotel toexpand their business. Hospitality industry is giving larger contribution to the economy of thecountry. Taj is one of the hotel which has super contribution but it is true that all the factors ofeconomy such as inflation, taxation interest rates affect the operations as well as functions of TajHotel.Social Factor- This is the another factors which also affect the entire hospitality industryas well as to Taj Hotel (David and David, 2017). It included the trends, behaviour, attitude andbelief of customers that affects the operations and profitability of Taj Hotel. India's population isabout 1.2 billion and country has huge market for their operations. Thus, it is very difficult to4
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