Strategic Planning for the Hospitality Industry

This report discusses strategic planning in the hospitality industry, focusing on the case of Radisson Blu Hotel. It explores critical factors for implementing the chosen strategy and researches creative business strategies for future competitiveness. The report also evaluates performance metrics and the balanced scorecard of the strategy.

Strategic Planning for
the Hospitality
Industry

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 4............................................................................................................................................3
Critical factors that will implement the chosen strategy...........................................................3
TASK 5............................................................................................................................................5
Research about creative business strategies for your chosen organisation’s future strategy
selection to be competitive in the hospitality industry................................................................5
Evaluation of Performance Metrics............................................................................................7
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10
Books and Journals...................................................................................................................10

INTRODUCTION
Strategic planning is a process of creating an effective direction for the organisations
which will lead them towards the growth prospects. It involves the development of the strategy
for utilising the scarce resources of the company and making effective decisions for the
implementation of the strategy. Furthermore, strategic planning also develops the mission,
vision, aim and objectives of the company towards the achievement of long term stability in the
competitive industry. This report deals with the strategic planning of Radisson Blu Hotel and
evaluations of different strategies in respect of the chosen hotel. The selected hotel provides
world class experiences to their guests with the implementation of latest technology which will
provide them a personalised comfort (Amrollahi and Ghapnchi, 2016). This report covers the
strategies implemented by the selected hotel for managing their business in the industry and the
factors that affects their development of the strategy. Also, this report analyses the performance
metrics of the chosen strategy for the Radisson Blu Hotel and the balance scorecard of the
strategy.
MAIN BODY
TASK 4
Critical factors that will implement the chosen strategy.
The Radisson Blu Hotel adopts certain factors that helps in the implementation of the
franchisee strategy in order to expand their business at the global international market.
Franchisee strategy is used to to develop their five year plan which involves culture reflection,
concrete commitments, concrete plan, concrete investments and the continuous innovation that
will lead their way. There are many factors that implements the above mentioned strategy of
Radisson Blu Hotel which will ensure enhancement of the customer base and productivity. The
hotel will be able to attract more customers by providing innovative culinary services to them
which will provide them unforgettable experience (Penni, 2018). The factors which implements
the expansion strategy is as follows: Innovative Business Idea: The expansion strategic plan must include the development of
new product or restructuring the departments. These strategic plan must bes designed
after evaluating the factors related to the geographic location of the business. Creative

idea will help in attracting and maintaining a strong customer base which will sustain a
competitive edge for the company. In context of Radisson Blu Hotel it is essential for
them to develop a creative idea and also employ effective workforce to manage the
innovative plan for strategic development of the hotel. Management of Project: This is a crucial step as planning is not enough the management
must take effective measures to implement the plan effective. For this the company must
trust loyal people to enhance their brand recognition at global level. It is essential to start
contact with a strong franchisee which will take their brand forward and make strong
customer relationship (Arend, Zhao and Im, 2017). In relation with Radisson Blu, the
brand focuses on identification of a franchisee which has a deep understanding of the
customers preferences and have effective interpersonal skills which will help in the
creation of new opportunities for the hotel. Select the right location for the business: This step is also important to select the right
location for the performance of business operations. The Radisson Blu Hotel focuses on
evaluating the geographical, demographical factors of the place and matches it with the
preferences of their brands to select the feasible place for the business. In relation with
this, the hotel firstly develop the strategic plan for the expansion which involves the
infrastructure cost, transportation cost, economy factors and analysis of the competitors
strategy. For the Radisson Blu Hotel, it is essential to analyse the factors precisely to
ensure the enhance productivity and profitability. Build strong customer base: Before taking the decision of expansion the Radisson Blu
Hotel must evaluate their customer base which will help them planning and developing
the efficient strategies. This will help the Radisson Blu Hotel in getting the more number
of investors for their expansion plan (Correia, 2019). Also, for Radisson Blu Hotel it is
also important to evaluate the capabilities of their management which will help them in
expansion process. The loyal customer base will increase the strength and opportunities
for the brand and will try to minimise their operational cost by employing efficient
workforce. Developing proper market position: It is important for the brand to follow the business
structure developed by the franchisor which will help them in effective management of
the business in the competitive industry. The Radisson Blu Hotel is a global brand and to

expand their business the company must focus on getting a leading market position by
competing with their effective workforce towards the attainment of organisational goals.
This will provide the information to the brand about the current trends in the industry
with the preferences of the diversified customers (Denhardt, 2018). Radisson Blu Hotel
focuses on developing a competitive edge by evaluating their competitors strategy and by
using the competitors weakness for enhancing their brand's profitability.
 Capabilities of the workforce: The workforce play a major in the development and
implementation of effective strategies in the working environment of the industry.
Radisson Blu Hotel focuses on hiring competent workforce to ensure future growth and
profitability. The workforce will execute the franchisor plan effectively after
collaborating their operation in an effective team. The Radisson Blu Hotel conduct an
analysis of the capabilities of their workforce to segments the working accordingly which
will enhance their employability skills in the external environment.
Hence, these are the factors that ensure successful implementation of the strategic
planning across the working environment. The strategic plan encourages the workforce to keep
motivated for their operations which will enhance their level of efficiency and effectiveness.
TASK 5
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 a plan which will ensure attainment of goals of the
company. The Radisson Blu Hotel adopts the business strategy in order to support their
expansion strategy and attract potential customers toward their services. The Radisson Blu Hotel
are using the strategy of expansion across the national and international boundaries which will
enhance their business opportunities. This will enhance their strong customer base with
diversifications (Fallucca, 2017). This customer diversification will help them in getting
knowledge about different regions and will develop their services accordingly. I relation with
Radisson Blu Hotel, the brand mainly focuses on adoption of effective marketing strategies
which will promote their services in just one go across the globe. The creative business
strategies adopted by Radisson Blu Hotel can be explained as follows:

 Digital Marketing: This strategy has a wider scope and is economical in nature. The
digital marketing will promote the Radisson Blu brand across the globe and will connect
to their potential customers easily. The customers will get to know about the services and
current offers of the brand by visiting the website of the hotel. This strategy will enhance
their customer base as the brand is adopting the technology advancement with effective
measures. There are certain digital media platforms which includes the content
marketing, email marketing, video marketing and many more. The Radisson Blu Hotel
have developed an app for their members and non members which will creates a direct
link between the brand and their potential customers (Gumel, 2019). Brand Awareness: The brand recognition is important to ensure continuous success and
growth in the competitive market. To understand the customers expectation of the brand
the Radisson Blu Hotel has performed a survey which has enhanced their knowledge
about their potential customers (Schober, 2017). Also, to enhance their brand awareness
the brand can connect through TV and events in which they can acknowledge their
potential customers. This will also enhance their B2B and B2C business opportunities
and will enhance their network of chains. The franchise leads to build strong relationship
with their partners and the third parties which will enhance their connections in the
external environment. Connect with Community: To connect with their customer base the Radisson Blu Hotel
must target the social life of the potential customers. The Radisson Blu Hotel participates
in the social charity events that ensure the promotion of their brand. This will improve
their network with the people which will help them in building higher value for their
brand. The brand must prioritize those places where their target customers socialize to
ensure promotion at large level. The Radisson Blu Hotel focuses on completing their
corporate social responsibility which will enhance their rank I the industry. Membership Rewards: The hotels tries to provide special offers to their loyal customers.
For that they issue membership rewards which will enhance their potential customer base
and improve the satisfaction level of the current members of the brand. Other tha guests,
the Radisson Blu Hotel offers loyalty points to their social media followers who post,
likes and share their hotel photos videos (Ho, 2017). This will enhance their media

promotions and will improve their digital image. The potential customers before visiting
the hotel analyse the reviews and then make effective decision regarding their visit.
 Monitoring Competition: competitors plays has a top ranking as an obstacle in the
growth prospects of the hotel. The hospitality industry is a highly competitive industry as
it is difficult to achieve the satisfaction level of the customers in respect of their comfort
level. The Radisson Blu Hotel focuses on the strength, weaknesses and strategies of their
competitors and evaluate them to find loop holes which can be used in favour of their
brand. This strategy must be utilised effectively to transform the competitors customers
into their own one (Hoffman, 2017). The Radisson Blu Hotel takes this strategy as the out
of the box thinking which helps them in devising the strategies to target their competitors
in order to enhance their profitability.
Hence, these are the critical strategies that ensure the success and growth of the company.
These strategies act as building block for the enhancement of brand recognition of the hotel. In
relation with Radisson Blu Hotel franchisee strategy is very effective in order to enhance their
profitability ratio and improve their customer base.
Evaluation of Performance Metrics.
Performance metrics is considered as the process of collecting the data about the
performance of the company in order to evaluate them for the necessary improvements. This is
the predictors of the current and future performance of the brand (Schober, 2017). Through the
adoption of performance metrics, the company will be able to evaluate the performance and can
devise their strategies which will help in sustaining the continuous growth. This will help in
achieving the predetermined goals by devising effective strategy for the brand. There are several
performance metrics which are adopted by Radisson Blu Hotel which while implementing the
Franchisee strategy are explained below:
Critical success factors: These factors define the success of the brand which is essential for the
survival of the brand in the industry. The workforce must aware of the mission, vision and
strategies to ensure the effectiveness of the operations. The success factors plays an important
role as they evaluate the performance of the company in the external and internal environment.
Different critical factors can be described in the following ways:
 Industry factors can be defined as the factors which define the working and operations of
the respective industry (Kiba-Janiak, 2017). Hospitality industry is a competitive

industry and to sustain the productivity level the hotels must devise effective operational
and marketing strategies to attract large customer base. These factors also analyse the
competitors which will help them in sustaining competitive edge in the industry with
potential leading position.
 Environmental factors considers elements like weather, climate change, resources
availability, technology advancement and many more. The external factors affects the
company and this will slow down their operations.
 Management factors includes the workforce of the company. The Radisson Blu Hotel
employs effective workforce which inherit the employability skills to be used in the
operations of the hotel (Land, 2020). This also includes the monitoring the performance
of the workforce in a regular interval of time. Strategic factors are those that helps in gaining competitive advantage in the industry.
These factors evaluates the competitors in the industry which will help the hotel to get
more potential opportunities.
Key Performance Indicators: These are considered as a set of qualitative factors which is used
to measure the performance of the company in the long term. These indicators help in assessing
the company strategy, resources, operational achievement, financial planning and so on. These
aspects are compared with the company who is working in the same industry. The Radisson Blu
Hotel have many benefits of conducting the performance management process. This
measurement helps in comparing the performance of the hotel with the predetermined standards
to evaluate the deviations. The deviations can be removed by enhancing the accountability and
reliability of the workforce (Wadsworth, Felton and Linus, 2016). The KPA will enhance the
growth level of the selected hotel. Furthermore, it will lead to minimised wastage and improved
relevancy of the staff towards the attainment of the organisational goals. The Radisson Blu
Hotel conduct the performance management to evaluate their sources of income, profitability
ratios, revenue generations and the change in working capital in the competitive industry. The
Radisson Blu Hotel needs to evaluate their goals, objectives, growth and other factors which will
help in the implementation of the franchising strategy.
Balanced Scorecard: This is considered as a tool for keeping the track of the performance of the
workforce in the company in a regular interval of time. Managers keep the track to develop
strategies for enhancing the skills of the workforce to attain the goals of the organisation. It is a

financial measure that reflects the actions that have already taken by the company (Moses, 2017).
These are performed by effective monitoring and control of the activities of the company. In
respect of the Radisson Blu Hotel, the manager must ensure continuous communication with
their employees to ensure proper implementation of the franchisee strategy. Also, the hotel need
to coordinate the activities of the workforce which will determine their level of performance. In
the relation to this the Radisson Blu Hotel must prioritise the services and projects and
collaborate them with their long term goals to maintain a balance scorecard (Williams, 2017).
This will be beneficial for the workforce to improve their skills to become competent for the
external environment.
CONCLUSION
From the above mentioned report it can be concluded that strategic planning is not a
process which can be performed by and individual but it is group effort. Although , strategies are
developed by the top management but it is implemented b the middle and lower management.
Strategies must be devised after analysing the internal and external environment of the company.
The hotel industry is highly competitive and the hotels must devise their plans in accordance
with their customers preference which will help them in enhancing their chain of networks across
the globe. The efficiency of the brand can be evaluated through the effectiveness of their
workforce and the working environment prevailing in the organisation. The management must
adopt different methods to develop, implement and analyse the performance of their strategies.
The company must clearly define their objectives and goals to their workforce and encourage
them to implement their strategies towards the attainment of those objectives.

REFERENCES
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Denhardt, R. B., 2018. Development of Strategic Planning. Performance Based Budgeting.
Fallucca, A., 2017. Student affairs assessment, strategic planning, and accreditation. New
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Gumel, B. I., 2019. The Impact of Strategic Planning on Growth of Small Businesses in Nigeria.
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Williams, E. W., 2017. Strategic Planning for a Community Focused Non-Profit Organization.
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identification. European Planning Studies, 24(11), pp.2057-2075.