Strategic Management in Taj Hotel

Strategic Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 The strategic direction that the Taj has followed in the past 5 years and the way it has
developed.....................................................................................................................................3
TASK 2............................................................................................................................................4
Review the external environment of the company......................................................................4
The hospitality industry facing the company within its existing market domains.........................6
TASK 3............................................................................................................................................6
Further analysis with regards to:..................................................................................................6
TASK 4............................................................................................................................................7
Possible strategies that can be followed by Taj hotel in order to defend its core business.........7
TASK 5............................................................................................................................................9
Analysing and evaluating resource implications of recommendations that is been addressed by
Taj................................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Strategic management is the process of constant planning, supervising, analysis and
examination of all that is necessary for an organization to meet its goals and objectives. An
crucial concept for business owners and managers to obtain, strategic management allows
assessing business goals, objectives and plans. Taj is a chain of luxurious hotels and also the
subsidiary of the Indian Hotels Company Limited. The company came into existence by Tata
Group in 1903 and this report is all about the strategies directions that the company followed in
past 5 years, a detailed analysis of the industry in which the company works and future possible
strategies that organisation could follow.
TASK 1
1.1 The 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’s vision and Tata values has been Benchmarking and
certifying their properties by EarthCheck since 2009. Further, through the quantitative
assessment of environmental and social performance in opposition to a property’s peers in
their industry, region and climate zone. Moreover, it has been observed that in 2006, with an
aim to give greater depth and develop bigger impact, that policy was encouraged to be an
internal campaign and commitment ‘EARTH’. This policy has been considered as the
cornerstone of all strategic and operational initiatives towards creating better environment
(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 over 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, and
 Enough of waste has been decreased to fill 186 shipping containers.
They also contribute towards the social improvement of their local communities by:
 Training & certifying diminished youth and differently allowed young adults in major
hospitality traits.
 Promoting of local art and craft forms.
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It has also been observed that, Taj has been famous in hospitality schools’ campuses for
being a kind-hearted and responsible company and all their stakeholders consisting some vital
vendors have been related with their over decades on the basis of the trust, openness and concern
for larger good. United Nations Global Compact Reporting, EarthCheck Certifications and
participation in Carbon Disclosure Project over the last few years have made organisation’s
commitment and efforts internationally applicable, visible & comparable with other good
practices in the industry.
TASK 2
Review the external environment of the company.
Pestle analysis is one the best tool that is used by the organisation in order to track the
impact of external environment on the business operations and their functions (Hill, Jones and
Schilling, 2015). With the help of Pestle analysis tool, Taj Hotel used to track the environmental
factors. 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 of
country. India is democratic country and it is one the most powerful company in the world. The
political situation and condition of India is stable which is a great opportunity for Taj Hotel to
grow and develop their business (Mitchell and Leiponen, 2016). It is fact that for hospitality
industry is the backbone of the government. India runs on the federal form of government and it
is one of the largest democratic country in the world. The taxation system is also well developed
in India.
Economic Factors- This is one of the most important factor in external environment that
has great impact on the profitability of the business. The economy of India is stable and the GDP
of India is the 7th largest economy in the world which is the great opportunity for Taj Hotel to
expand their business. Hospitality industry is giving larger contribution to the economy of the
country. Taj is one of the hotel which has super contribution but it is true that all the factors of
economy such as inflation, taxation interest rates affect the operations as well as functions of Taj
Hotel.
Social Factor- This is the another factors which also affect the entire hospitality industry
as well as to Taj Hotel (David and David, 2017). It included the trends, behaviour, attitude and
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