Strategic Planning for the Hospitality Industry

This presentation provides an overview of strategic planning in the hospitality industry. It discusses the process of making business strategies, analyzing internal and external factors, and formulating effective strategies to increase growth and profit margins. The presentation also covers Porter's Five Forces Model, PESTLE and SWOT analysis, and strategic options such as franchising and mergers/acquisitions. Find more study material on Desklib.

STRATEGIC PLANNING FOR THE HOSPITALITY
INDUSTRY'

Table of Content
INTRODUCTION
Strategic management Planning
Porter's Five Forces Model
PESTLE and SWOT analysis
Strategic Options
CONCLUSION
REFERENCES
Questions and Answers
Thank you

Introduction
Strategic management planning is the process of making business strategies and amending them
in the business organization. The planning of the business organization is the analysis of all the
internal and external environmental factors which help the business to grow and achieve the
objectives effectively.

Cont…
In this report there is a brief analysis of Point A
Hotel and what are the factors which affect the sales
of the hotels and how the hotel will formulate an
effective strategy to increase the growth and profit
margins.

Strategic management process
Situational Analysis
Point A Hotel is the leading hotel in London and it also faces many challenges
to survive and maintain its position.
Point A Hotels opened their doors within London Shoreditch and Glasgow in
early 2017, with five more London-based locations following soon after in
Paddington, King's Cross, Canary Wharf, Westminster and Liverpool Street.
Point A hotel is four star hotel.

Cont..
The managers of the hotel have to use this
method to analyses both external and internal
factors of the environment to make the better
planning for the process.

Strategic Direction
Strategic direction is the base is the hotel management
is provide the managers to make the innovative ideas
and apply them in making the strategies. This helps to
integrate all the management of the hotel and increase
the efficiency of the hotel. This includes.
Mission is the nature or the ambition of the hotel by
which all the management will be doing its operations.
This also help to increase the quality of the activities
and provide better satisfaction to the customers.

Porter's Five Forces Model
Threat of new entrants
as the hotel industry id increasing with the increase in the tourism globally.
There is lot of risk for Point A Hotel London as many new hotel will also
enter the market and which will decrease the sales and profit margins.
Suppliers
there is also a thereat that Point A Hotel can see that the amenities and the
good hotel procure from the suppliers can also changes the prices which
will increase the cost of the hotel and this will make the hotel less efficient
in operating.

Cont….
Buyers
Buyers are the main aspect of the Point A Hotel as the main criteria is to provide the satisfaction to the
customers and due to high competition there re also many options for customers to choose from.
Threat of Substitute
The services in the room which the Point A Hotel provide is almost same due to high competition. The
hotel have to differentiated in the types of services according tom the price range so that all the
customers from every social class can afford and choose Point A Hotel

SWOT analysis
Strengths  the hotel Point A Hotel provide a better
services and comfort to the customers
and also help to stimulate the home like
comfort who are far from home.
Weaknesses  Point A Hotel have a limited customer base
as it only focuses on the high social class
who can afford the rates of the services

Cont…Opportunity  The Point A Hotel also have the opportunity to
increase the technology equipment within
rooms for the customers to increase the
experience.
Threats  After the Brexit the hotel have faced decrease
in the sales and also many loyal customers
were lost.

PESTEL Analysis
Political factors  The hotel have to analyze that political stability of the
country and all the other countries as well.
Economic  The taxation policies and all the foreign exchange
rates. This will help the hotel to make the strategy
according to the GDP of the country.According to
British Hospitality Association,
 UK’s industry could benefit if government
 lowered tourism VAT rate to 5% after the Brexit.

Cont..
Social  The hotel have to evaluate that what are
the behavior of the customers for the
image of the hotel and what customer
think for the hotel.
Technology  The Point A Hotel also have to analyze the
market trends to innovate the services. The
use of the technology will help the to
increase the efficiency of the hotel and
attract the customers.

Cont..
Environmental  Point A Hotel London have analyzed the
importance of environment and have accepted
the social corporate responsibility by planting
trees and also proving awareness to the people
to save the environment and protect it.
Legal  Point A Hotel also have to analyze all the legal
information of the government like health and
safety law, data protection act, equality law, anti
discrimination allow which will help to make the
hotel efficient.

Strategic Options
Franchising- it is the marketing concept which will help the company to grow without investing
into it. The main advantage of franchising is the owner will earn profits from the rights which is
transferred to the franchisee owner.
The Point A Hotel London can also use the franchising to increase its hotel chains to increase the
sales and profit margins.

Cont..

Cont…
Mergers and Acquisitions- Point A Hotel can use this strategic option so that they can increase
the market share and increase the customer base in London.
The hotel can purchase any other hotel, or they can also merge with the effect hotel by analyzing
the location and the history of the hotel which is opted for merger.

CONCLUSION
In this report there was a detailed information about Point A Hotel London that how the hotel
analyzed the all the factors in the business environment to make the effective strategy so that they
could increase the sales and customer attraction.
The hotel also had used the mergers and acquisitions to increase the market shares and provide
the better sales.

REFERENCES
Bryson J.M., 2015. Strategic planning for public and nonprofit organizations. In International
Encyclopedia of the Social & Behavioral Sciences: Second Edition (pp. 515-521). Elsevier Inc..
David F.R. and David F.R., 2019. Strategic management: A competitive advantage approach,
concepts and cases. Pearson.
Kerzner H., 2019. Using the project management maturity model: strategic planning for project
management. Wiley.