Strategic Planning for Hospitality Industry

Strategic Planning for
Hospitality Industry
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Table of Contents
INTRODUCTION...........................................................................................................................3
Analyse the most suitable factors to implement chosen strategy................................................3
Analysation and evaluation of different performance metrics are need to be perform...............5
Research about the various creative business strategies for the future growth of organisations
and to become competitive in hospitality industry.....................................................................7
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Strategic planning is a process of formulation of new and unique business strategies and
this process is continuous in the nature (Phillips and Moutinho, 2014). The report is based on the
Rafayel Hotel & Spa which is dealing in hospitality industry and is one of the famous luxuries
five star hotel established in Paris. The topics covered in report are factors to implement the
appropriate business strategies, the formulation of strategies which provide competitive benefits
and the measures in order to improve the performance in the business.
Analyse the most suitable factors to implement chosen strategy.
The strategy that was selected in this assignment is franchising and Australia is the
country where the franchise of Rafayel Hotel & Spa is adopted.
Franchising: The basis of franchise is marketing concept that is followed by company as
a strategic tool for expansion of business. It is a joint venture between franchisee and franchisor.
The real owner of the business is franchisor (Sotiriadis, 2015). They sale the right to use its
brand name and idea to other by charging some amount for their name and fame. The franchisee
purchase the right to sell goods and services of franchiser under an existing trademark and
business model. It give support to the entrepreneur who are interested to introduce new business
in the market and requires professional service for business idea. For this franchisor charge
annual licensing fees and initial start up fee to franchisee. The main advantage to buy franchisee
is to establish business by using established brand name that avoid the chance of failure because
the popular brand already create the good image in the mind of customers so it attract large
number of new as well as existing customer. Finally for the operation sales franchisor take
ongoing royalties. In context of Rafayel Hotel & Spa they should focus on expanding their
business by opening its unities in different countries such as USA, Africa and many more.
Trademark is a symbol, design, logo and sign that differentiate goods and services from
other competitors product. By using different colours, designs, size trade mark is made as it help
public to recognise the symbol of particular brand.
Royalty: It is a form of payment that bind the enterprise, individual, company legally for
the ongoing use of their assets or brand name (Aldehayyat, 2011).
Various factor that need to be consider to implement franchise are describe in detail in
below mention points.
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Having royal customer base: Likelihood can be improve through their loyal customers
as it make the clients repeated buyers. Rafayel Hotel & Spa attract large number of clients
towards their brand and try to retain that customers for long term as it provide strong base to
continue earn revenues.
Have clear market position: It is necessary for each franchisee to adopt and follow
same business structure that is fix by their franchisor. The customer and business can aim for the
same target market with a defined market position. Rafayel Hotel & Spa have well established
position in Paris as it create good brand image in hotel industry but by expanding business in
Australia they need to provide some unique facilities and services. It has large exhibition space
as well as largest spa and beauty treatment with expert professionals and gym facility with
international trainers. Due to their excellent services it create great position in the market as it
attract large number of tourist and local audience (Elbanna, 2016).
Operators must be business expertise: With the guidance and leadership by expert
franchisor, franchisee take advantage to grow business model in future. As Rafayel Hotel & Spa
open their business in Australia so they must appoint expert and talented employees as operator
who have good experience in hotel industry. Due to their expertise knowledge there is reduction
in wastage. As expert business operators by eliminating unnecessary cost maintain the profit
margin of the industry (Cvelbar and Dwyer, 2013).
Ability to control stock on hand: By controlling stock on hand it become easy to meet
demand of customer and it reduce the cost of inventory and ensure appropriate stock turn. As
Rafayel Hotel & Spa control their stock because they charge low margin of profit so they
believe that to become successful there is need to minimise wastage. As it expand their business
in many different locations like Australia, there is need to control stock on hand so that goods
and services are available at every point of time. It satisfy the customers by providing facilities
as per their requirement (Bryson, Edwards and Van Slyke, 2018).
Establishment of brand name: Most of the franchises establish brand name and people
buy specific product and services with the help of franchise license. As it is beneficial for
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