Strategic Planning for the Hospitality Industry

Strategic Planning for
the Hospitality
Industry

Table of Contents
INTRODUCTION...........................................................................................................................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
Different performance metrics:..............................................................................................7
CONCLUSION..............................................................................................................................12
References......................................................................................................................................13

INTRODUCTION
Business strategies are developed to work towards improvement of efficiency of business
operations. In present report there is discussion of different strategic options that are available
with hospitality organisations. In case of park plaza there is used of corporate strategies for
purpose of achievement of higher market share (Ahlstrand and Rydell, 2017). There is selection
of strategies based on overall mission and vision statements and values that are being highlighted
in a organisation.
Critically analyse the most appropriate factors to implement a chosen strategy.
Park Plaza can successfully use merger and acquisition in order to expand their business.
The organisation have been using this strategy from beginning. A number of times the hospitality
business have been acquired by huge chains like Raddisson, Park Plaza international and is now
currently running under Olympus hospitality group and Park hospitality. Merger and acquisition
refers to consolidation of companies and assets through various financial transactions namely
mergers, acquisitions, consolidations, tender offers, purchasing of assets and so on. This is
basically a process in which two companies are combining with one another.
With the help of merger and acquisition organisations can successfully attain competitive
position in market (Köseoglu and et. al., 2019). It also helps in generating a critical success
factor for organisation. There are a number of such factors which will help organisation to
successfully implement the strategy of merger and acquisition. These factors are divided into two
parts. First part contains of concerns that arise at the time when negotiations start between
companies commonly known as pre-transaction process. On the other hand, second part is when
the execution of transactions is implemented which is known as the post transaction process.
Below mentioned is a detailed discussion on all these factors:
Pre-transaction Factors
The right partner: It is necessary for Park Plaza to make sure that they are choosing right
partner to merge or acquire. If organisation fails in choosing right partner for them it might lead
to various difficulties for negotiation in future. It is often seen that most of information is also
lost in communication while carrying out negotiation from wrong partners. It has a major impact

on the organisations future growth and development. For instance in case of Marriott and star-
wood the legacy of a organisation can be used in future to move forward. This ,etghre is
benefical for bothe the brands becauise trher legacy can go forwards vy refininbg of theior
offerrings for both the brands.
Due diligence in evaluation: It is also important for organisations to make sure that they are
successfully carrying out valuation with quality. Due diligence is a deep analysis in mergers and
acquisitions which includes history, mission, values, culture as well as financial reports for a
business. All these are important to carry out valuation correctly. Such as other competitors of
Park plaza like Radisson hotel, lodging hotel and hotel hotels are having advantages of proper
due diligence. The due diligence is a factor that leads to enhancement in the present brand image
of Park plaza for their external stakeholders.
Trust in between parties: It is essential that there is mutual trust in between managements. It is
important as trust ensures negotiations to run smoothly which leads to high chances of
favourable deal between parties. When there is trust between all associated stakeholders then it
leads to effective functioning of a hospitality organisations like Park plaza. Such as customers
trust for Park plaza will lead to building up of loyal customer base.
Experiences from previous mergers and acquisitions: Park Plaza have been through a number
of different mergers and acquisitions throughout its existent life (Okumus and et. al., 2019). This
will successfully help business to deal with any further expansion strategy they adopt in future.
They can learn from their mistakes and also carry out tasks that have proved to be beneficial
earlier. Park plaza can deal with their weakness by using strategy of mergers and acquisitions.
For instance competitor brands of Park plaza Marietta and star wood have been merged in
November 2015 where Marriott international agreed to buy star-wood hotels. This has benefited
the organisation as Marriott has folded star woods respected loyalty programs and sources have
revealed that the real legacy is giving forward that ill be expanded in future.
Communication before the execution of merger and acquisition: The quality of management
team and consultants play huge role in communication before merger and acquisitions. They are
critically guiding the expansion process and also ensure that communication in organisation is
honest and open. For park plaza there can be public announcements before entering into any
future mergers that may lead to hike in the present brand values. For example NH hotels is aloes