Strategic Planning for the Hospitality Industry

This document discusses strategic planning in the hospitality industry, focusing on factors for implementing a chosen strategy, researching creative business strategies, and evaluating performance metrics. The case study is based on NYX Hotel London, Holborn.

Strategic Planning for
the Hospitality
Industry
1

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Critically analyse the most appropriate factors to implement a chosen strategy...................3
Research about creative business strategies for your chosen organisation’s future strategy
selection to be competitive in the hospitality industry...........................................................5
Analyse and evaluate the different performance metrics.......................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10
2

INTRODUCTION
Strategic planning is considered as procedure of documenting as well as establishing a
direction of a business unit by assessing where they are and where they are going. Moreover,
strategic planning provide a place to record mission, value and vision as well as in respect of
long term they considered attainment of goal and action plan successfully (Ojha, Patel and
Sridharan, 2020). The selected hotel for respective assignment is NYX Hotel London, Holborn
which offer 213 luxurious suits and bedrooms as well as it also offer several facilities like air
conditioning, Wi Fi, flat screen TV, facilities of making tea and coffee, en suite bathrooms and
many others. Topics covered in respective report are analysis of most appropriate factor to
implement strategy as well as it also include creative business strategies for company's future
strategy selection which help in be competitive in hospitality industry. Along with this, it also
include evaluation of different performance metrics such as critical success factors , balance
scorecard and key performance indicators.
MAIN BODY
Critically analyse the most appropriate factors to implement a chosen strategy.
There are several factors which can be adopted by NYX Hotel London in order to expand
their business at worldwide level through franchise. It is essentials to adopt those factors because
through that a company can manage their work effectively as well as it also leads to adopting
franchise successful (DiPietro, Moreo and Cain, 2020). By which NYX Hotel London able to
attain their desire goal and objective successfully as they able to expand their market base as well
as they also able to attract more and more customers in new market. Below some of the most
appropriate factors are given which are essential to adopted by NYX Hotel London for
conducting effective franchising in order to enhance business:-
 Have creative and unique business concept – It is one of the main factor that a
company must have unique and creative concept so that it can be easily replicate in
several locations. Creative as well as unique concept also help a company in attracting
more and more customers at potential market that also enhance sales. This will also
encourage other to take franchise from the company. In respect of NYX Hotel London it
is essential to for them to have unique and creative idea so that they can attract more and
more franchisee who ready to take their franchise.
3

 Select the right people to carry brand forward – According to this factor it is essential
for a company to conduct proper market analysis so that they can recruit best people in
order to represent their brand in specific marketplace. It is essential to employee best
franchisee because they will attract as well as retain customer at the different marketplace
(Moucheng and et.al., 2020). In respect of NYX Hotel London it is essential for them to
identify franchisee who have best interpersonal skills so that they can attract customers
by their communication skill. In addition to this, it is also essential for respective hotel to
select best person to carry out business because at different location they are carry out
business and interact with customers.
 Select the right location for business – For a company it is essential to conduct
evaluation of the market because through that they can determine the best location for
expanding business through the franchisee. In respect of this they also need to consider
different other factors related to selection of location for expanding business such as local
economy, transportation cost, infrastructure cost, demographics factors as well as
competitors. In respect of NYX Hotel London, it is essential for them to conduct analysis
of location before providing franchise their because it will help them in developing
budget as well as strategies accordingly.
 Have loyal customer base – Before expanding business through franchise it is essential
for a company to establish loyal customers base because by it they able to attract clients
in respective location (The six key success factors for franchises, 2020). This will also
essential for getting more and more investors for specific location which help in ensuring
that an organisation will attain the desire goal and objective successfully. In context of
NYX Hotel London, before adopting franchise for expanding business it is essential for
management to conduct evaluate the ratio of loyal customers because through that they
ensure their sales ratio successfully.
 Having proper and clear market position – It is essential that franchisee need to follow
structure of business which is set by the franchisor as that will help in conducting
business in effective manner. In addition to this it is essential for a company to determine
as well as evaluate their proper and clear market position as that aid in developing
effective strategies as well as plans (Lin and et.al., 2020). This will also help in
understand local customers at the specific position when company want to expand by
4

adopting franchise. In respect of NYX Hotel London, it is also essential for their
management to have proper and clear market position so that they can develop strategies
accordingly.
 Capabilities of workforce – It is also essential for a company to determine capabilities
of their workforce in order to determine whether their employees able to cope up with
new plan or strategies or not. It is essential to consider this factors because if employees
are not capable then they not able to execute plan of franchise in effective manner. In
respect of NYX Hotel London, it is essential for management to conduct evaluation for
capabilities of their staffs so that they can develop strategies accordingly for adopting
franchise successfully.
Research about creative business strategies for your chosen organisation’s future strategy
selection to be competitive in the hospitality industry
Business strategy is considered as plan or method which is adopted by a company in
order expand their business in the potential market place. It is essential for a company to develop
creative business strategy because through that they able to ensure that they will attract more and
more customer as well as it also leads to maximising business opportunities in successful manner
(Yeung, 2020). In respect of NYX Hotel London there are adopting franchise for expanding their
business at the local, national as well as international level. It is so because through that they can
attract more and more customers and encouraging them to connect with their business. There are
several creative business strategies which are adopted by NYX Hotel London in order to conduct
effective franchise for successful expanding of business in potential marketplace.
 Digital media marketing – It is one of the essential creative business strategy which is
adopted by a company in order to attract more and more customers around the world. In
current time almost every company is adopting digital marketing method because through
that they able to reach huge customers range in less time as well as cost successfully
(Mew, 2020). In context of NYX Hotel London they may also this critical strategy for
enhancing business through franchise as they can conduct marketing through different
digital marketing channel. In respect of this they adopt channels like content market, e
mail marketing, video marketing and many others.
 Build brand awareness – Hotel shall publish their advertisements in the newspapers and
TV, etc. to reach a wide section of the society. To increase the brand awareness among
5

maximum people, hotel should look out for events – both business and entertainment for
tie-ups, sponsorship, etc. Such events have a larger and wider reach and will help hotel
with promotions. Along with sponsorship, company shall invite guests at events to stay at
their hotel and provide them best of their services. This would increase their B2B as well
as B2C business and will earn them many more new customers for the future. This will
help hotel earn new contacts which might fetch new franchise leads and help company
expand further.
 Connect with community – To expand the customer base, hotel shall know about their
target customers and the social life of their targetted customers. Hotel shall prioritise to
promote themselves at those places where their targetted customers socialize (Kotkova
Striteska and Prokop, 2020). They shall participate into society events such as charity
events. Those hotels which give back to the society from where they earn resources and
get customers are highly valued in the market. This would improve their people
connectivity and would bring goodwill as well as new customers for their brand.
 Membership rewards – All hotels have some loyal guests i.e. those who like services of
a particular hotel and repeatedly prefer that hotel to stay and conduct business meetings.
NYX Hotel can offer reward programs for their loyal customers and to increase their
loyalty base among others. They could be offered extra amenities or discounts on their
prospective visits. Other than guests at hotel, hotel can also reward loyalty points to their
social media followers, who posts videos, positive reviews, testimonials and suggestions
about the hotel. People believe in these reviews and will help hotel promote their brand
through digital mouth publicity.
 Monitoring competition – Monitoring competitors and their marketing campaigns is one
of the most insightful options. It can turn out to be an out of box strategy if utilised
properly. It will provide helpful feedbacks that can help the NYX Hotel, London design
their marketing strategies in a personalised way. Hotel can subscribe to their email
subscriptions to know about their offers time to time. It will help in knowing about
competitors' brand positioning, services, price, strengths, weaknesses, etc. Hotel can also
keep their price accordingly to attract more customers.
6

These are the main critical strategies which can be adopted by NYX Hotel London in order to
adopt franchise in effective and successful manner for enhancing their customer's base as well as
profitability ratio.
Analyse and evaluate the different performance metrics
Performance metrics is considered as figure and data representative of a company's
actions, overall quality as well as abilities. This mainly predicated upon assumptions related to
why performance is being measured. By adopting difference performance matrix a company able
to measure their performance which leads to development of effective strategies and plans for the
succession of business by attaining predetermined goal (Petersen and Penner, 2020). There are
several performance metrics which can be adopted by NYX Hotel London while adopting
franchise for expanding business, from which some are mentioned below:-
Critical success factor – It is considered as management term for a component which is essential
for a company or project in order to attain its goal or mission successful. In respect of attaining
goal management of respective organisation need to aware of every successful factors as well as
they also need to determine difference among the keys and different role of main result areas.
Different critical success factor are industry factor, environment factor, strategic factor and
management factor.
 Industry factor includes the different elements or specific characteristics of the industry.
It is essential for respective company to analyse and monitor these factors in order to
successfully compete in the market area (Park and et.al., 2020). These are crucial factor
in order to maintain the competitive edge over other rival companies.
 Environmental factor consist of different elements such as climate, economy, competitor,
technological advancement and many more. It is essential factor in order to determine the
most effective strategies for growth and development of business. This consist of external
factor which will lead to have impact on business practices.
 Management critical success factors includes different business aspects that is effective
for managing and monitoring the whole performance of the business. It is crucial that
maintain position of business and successfully meeting the desired objective of business. Strategic factor includes all those elements that will assist in gaining competitive edge
over other rival companies. It consist of all those strategies that will help respective
7

company to perform better and significant then other companies in same market area.
This assist in development of better strategies and gain advantage over other companies.
Key performance indicators – It is considered as set of quantifiable measurement which is used
to measure an organisation overall performance on the long term basis. It mainly help in
determining a company strategic, operational achievement, financial planning and so on. It is
mainly done in order to compare those aspects to other businesses who are working in the same
sector. There are several benefits gain by NYX Hotel London while conducting measurement of
performance while adopting KPI such as they able to generate accountability, enhance focus
toward the goal (Chen and Cherkassky, 2020). In addition to this, by respective method
respective hotel also able to take better decision for adopting franchise as well as it also leads to
the faster growth of business. Moreover, it also leads to improved relevancy, minimize wastage,
enhance visibility as well as it leads to better performance of staffs for attainment of desire goal
or objective. Along with this, in order to conduct measurement of performance through KPI
management of NYX Hotel London need to evaluate different aspects or indicators such as
revenue growth, source of income, profitability calculation over a time, revenue concentration as
well as working capital. Management of NYX Hotel London need to conduct evaluation of
performance, optimization, goal, strategy, growth and other factors which are based on strategy
of franchising the business.
Balance scorecard – It is considered as a strategic tool which is used for the performance
management as well as it is also determined as a semi standard structured document or report
which are mainly adopted by a company manager in order to keep track of execution of practices
by staffs (Miyauchi and Sklar, 2020). These all are done by conducting proper control as well as
monitoring consequences that arise from actions. In respect of NYX Hotel London, it is essential
for the management to communicate with all members that what they are mainly trying to
execute. In addition to this, they also need to align all the day to day activities of all staffs in
order to determine what all employees are doing for franchise in effective manner in order to
expand business. In this management of NYX Hotel London also need to prioritise products,
project as well as services so that balanced scorecard can be develop effectively.
CONCLUSION
By conducting analysis of above mentioned topics it can be summarised that it is
essential for a company to conduct proper strategic planning as through that management able to
8

develop proper strategies which leads to attainment of desire goal and objectives. Through this
firm able to attain numbers of benefits such as help in determining purpose of organization more
clearly, enhance communication of goals and objectives with stakeholders as well as it also leads
to effective ownership, commitment and retention among the staffs and many others. In respect
of this it is essential to evaluate different performance metrics as that will help in determining
whether goal is attain in effective way or not. In respect of this a company management may
adopt different methods such as critical success factors, balance scorecards as well as key
performance indicators.
9

REFERENCES
Books and Journals
Chen, H. H. and Cherkassky, V., 2020. Performance metrics for online seizure
prediction. Neural Networks.
DiPietro, R. B., Moreo, A. and Cain, L., 2020. Well-being, affective commitment and job
satisfaction: influences on turnover intentions in casual dining employees. Journal of
Hospitality Marketing & Management. 29(2). pp.139-163.
Kotkova Striteska, M. and Prokop, V., 2020. Dynamic Innovation Strategy Model in Practice of
Innovation Leaders and Followers in CEE Countries—A Prerequisite for Building
Innovative Ecosystems. Sustainability. 12(9). p.3918.
Lin, C. Y. and et.al., 2020. Adoption of Green Supply Chain Management among SMEs in
Malaysia. Sustainability. 12(16). p.6454.
Mew, M. E., 2020. Small Business Social Media Marketing Strategies in the Retail Industry.
Miyauchi, G. and Sklar, E., 2020. A Study Assessing the Impact of Task Duration on
Performance Metrics for Multi-Robot Teams. In Proceedings of The 3rd UK-RAS
Conference.
Moucheng, L. I. U. and et.al., 2020. Theoretical Framework for Eco-Compensation to National
Parks in China. Global Ecology and Conservation, p.e01296.
Ojha, D., Patel, P. C. and Sridharan, S.V., 2020. Dynamic strategic planning and firm
competitive performance: A conceptualization and an empirical test. International
Journal of Production Economics. 222. p.107509.
Park, W. Y. and et.al., 2020. Lost in translation: Overcoming divergent seasonal performance
metrics to strengthen air conditioner energy-efficiency policies. Energy for Sustainable
Development. 55. pp.56-68.
Petersen, A. M. and Penner, O., 2020. Renormalizing individual performance metrics for cultural
heritage management of sports records. Chaos, Solitons & Fractals, 136, p.109821.
Yeung, H. W. C., 2020. 5 Managing Crisis in a Globalising Era: The Case of Chinese Business
Firms from Singapore. Chinese Business and the Asian Crisis.
Online
The six key success factors for franchises. 2020. [Online]. Available
through:<https://www.smartcompany.com.au/business-advice/franchising/the-six-key-
success-factors-for-franchises/>.
10