Strategic Planning for the Hospitality Industry

This presentation discusses the significance of strategic planning in the hospitality industry, with a focus on Mariot Hotel London. It covers topics such as the strategic management process, Porter's five forces model, PESTEL analysis, and evaluation of popular strategies. The presentation highlights the role of strategic planning in the development and success of the hospitality industry.

Strategic planning
for the hospitality
industry

Table of Contents
INTRODUCTION
MAIN BODY
1. Strategic management process
2. Porter's five forces model
3. PESTEL analysis of Mariot Hotel London
4. Evaluation of popular strategies
CONCLUSION
REFERENCES

INTRODUCTION
Strategic planning is a great process of creating a effective plan, roadmap or
guideline for the hospitality industry or any other sector.
This planning is totally based on its value, mission, vision, goals and major
objectives, that generate specific strategies or actions to achieve these
objectives or goals.
Strategic planning is very important for all level of hospitality industry because it
provides a effective guidelines of employees or workers for conducting
organisation's operations and functions.
Mariot Hotel London is a best budgeted hotel and located in centre of the city.

Mariot Hotel London

MAIN BODY
1. Strategic management process
Strategic management process define for business to achieve and utilize their
resources in a very effective manner. The strategic management process
includes analysis, goal setting, strategy implementation, strategy formation
and strategy monitoring.
Strategy analysis –
Analysis is a main stage because in this step all the important information will
be gathered.
Collection of information and data for accomplishing company's vision. Strategy
analysis totally depends on the understanding of business needs and its
strategic directions for the growth of business.

The strategic analysis and information gathering step is most important in the
strategic management process. It helps the success of a Mariot Hotel London.
All the process of strategic management are depend on the best or correct
information. The effective and useful information helps the organisation to
make successful strategic process. It also assist in the organisation's great
development and growth.

2. Porter's five forces model

CONTINUE..
 In the formulation of business strategy of Mariot Hotel London, Porter's
five forces model analysis is very useful.
 It defined the threat of new entrants in the hotel industry, threat of
substitutes, bargaining power of suppliers and buyers.
Threat of new entrants in the hotel industry-
 In the hotel industry, competition is very high. It is easier for the other
companies to enter in this sector.
 So that, new entrants will changes the market scenario by changing
market prices, shares, customer loyalty.
 All these elements helps the Mariot Hotel London in their business
strategy by proving vital information about new entrants and their market
behaviour.

CONTINUE..
Bargaining power of suppliers -
 Suppliers are the source of inputs that are requires in providing
products or services. The bargaining power of suppliers is relatively
low because hotel industry has major focus on trained staff, labour
etc.
 The suppliers has also many competitors in the hotel industry market
and it can reduced their bargaining power.
 Mariot Hotel London used these in their business strategy by
focusing on low cost suppliers and reduce their products or services
costs.

3. PESTEL analysis of Point A Hotel London- Shoreditch

PESTEL analysis is a best way to find various factors which can affect Mariot
Hotel London and its operations.
It includes Political, Economical, Social, Technological, Environmental and
Legal factors.
Political factors-
Political factors creates their direct impact on the hospitality industry. Changes
in the government regimes or terrorism diversely affect the operations and
activities of the Mariot Hotel London.
Political stability in the UK is a major advantage for hotel industry. For
example, if the country has fear of terrorism or political treat than it can
reduce the tourist and profitability of hotel industry.

SWOT analysis

CONTINUE..
Strengths-
 Mariot Hotel London is a famous hotel in the London. They significantly
contributes in the country's economy.
 It provides safe and comfortable environment to their guests. The hotel has a high
profit margin.
 All these strengths make them able to gain competitive advantages in the hospitality
industries.

4. Evaluation of popular strategies

CONTINUE..
Franchising-
It is used by the organisation in the strategy of expanding their business. It is great
operation to expand the business globally. In this process, the franchisor will give
their business model, rights and brand to the franchisee to sell their branded
products or services.

CONTINUE..
 From all the above strategic options, Franchising is a best option for
Mariot Hotel London because the other three options have high risk
factors. By Franchising, Mariot Hotel London can expand their business
globally.
 It has various benefits, it requires few employees, fast growth of business,
limited liability and risks, enhancing brand equity, effective promotion
and advertising, effective and motivated management in business.

CONCLUSION
From the above report, it is concluded that the effective strategic planning plays
a vital role in the development and growth of the hospitality industry.
Mariot Hotel London should have to create effective strategic planning for the
great expansion and success of their business.

REFERENCES
Ali, A.A., 2018. Strategic planning–organizational performance relationship:
Perspectives of previous studies and literature review. International
Journal of Healthcare Management,11(1), pp.8-24.
Altinay, L., Paraskevas, A. and Jang, S.S., 2015. Planning research in
hospitality and tourism. Routledge.
Dimitropoulos, P.E., 2018. Profitability determinants of the Greek hospitality
industry: The crisis effect. In Innovative Approaches to Tourism and
Leisure (pp. 405-416). Springer, Cham.
Elbanna, S., 2016. Managers' autonomy, strategic control, organizational
politics and strategic planning effectiveness: An empirical investigation
into missing links in the hotel sector.Tourism Management, 52, pp.210-
220.