This report discusses the factors affecting the implementation of strategies in the hospitality industry, evaluates performance measurement tools, and explores key elements of managing strategic change. It focuses on Park Plaza Hotel & Resort London as a case study. Find expert study material and assignments on strategic planning at Desklib.
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Strategic planning for the hospitality Industry
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Table of Contents INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 1. Critically evaluate the factors which affect the implementation of strategies in context of organizations................................................................................................................................3 2. Evaluate the performance measurement tool and how it will affect the effectiveness of business strategies........................................................................................................................5 3. Critically evaluate the key elements of managing strategic change and leading types of strategic change............................................................................................................................8 CONCLUSION................................................................................................................................9 REFERENCES.............................................................................................................................11
INTRODUCTION Strategic planning used by the organization in order to make plans, roadmap, guidelines for the hotels. It is beneficial for the hotel managers to implement their plans in well manner or achieve their goals & objectives through their satisfy their consumer's needs. In hospitality industry, strategic panning based on the company'svision, mission, goals, values that indicate the specific strategy or actions required to achieve these elements(Ajagunna and Crick, 2014). This report based on Park Plaza Hotel & Resort London. It is generally known as Park Plaza which is a chain of hotels and they also run the several hotel groups as franchises. Company established in 1986 and the owner of this hotel is Radisson Hotel Group. This project report cover various topics such as those factors which affect the implementation of strategies and evaluate the different performancemeasurement metrics. In addition,it includesthe key elements of managing change and leading types. MAIN BODY 1. Critically evaluate the factors which affect the implementation of strategies in context of organizations There are various factors in the organization which affect the business at the time of implementing strategies. Some of them discussed below: Leadership: It is the process of leading a group of people which helps the business to perform their operational activities. It includes the various aspects such as vision, mission, strategic objectives of the company. Every organization need to adopt effective leadership style in order to implement their strategies in well manner or able to achieve organizational gaols & objectives. Implement the strategies in Park plaza required team efforts which lead by the leaders of the company. Every individual involved in the change management and they has to be responsible for their activities. Basically leadership play very essential role in the organization at the timer of implementing strategies for the successful outcomes. At the time of implementing strategies, it is important to have employees involvement from each department which one is going to affected(Altinay, Paraskevas and Jang, 2015). Interest of staff members also affect the ParkPlazaoperationsatthetimeofimplementingstrategy.Regularmonitoringofthe implementation of stargates also affect the organization.
So basically above mention factors such as individual interest, participation,monitoring etc. are affect the Park Plaza hotel at the time of executing their strategies which help the company to maximise their efficiency as well as effectiveness in order to achieve their goals & objectives. Managers of Park plaza need to ensure that they follow effective leadership style for the final outcomes. Such as company follow the democratic leadership style in order to maximise individual interest, their participation which helps in maximising their involvement in the business activities. Structural Design: It is the important factors which affect the business at the time of implementing various strategies which further impact the productivity as well as profit margin of the company. In context of Park Plaza Hotel, managers need to build their structure as per the requirement of functions such as organizational structure should be top management to lower management and how they convey the information to the each department or every individual so they can perform their task accordingly. Park Plaza Hotel have mangers who handle their department and make sure that they perform each task according to the strategies which they formulated for the better results. Strategic design is the important factors which affect the operations of the hotel industry(Arasa, 2015). Manager of Park Plaza Hotel need to build their strategies through analysing organizational resources that they are able to perform their task accordingly or maximise internal efficiency as well as effectiveness. Information and Control System: Every organization use the management control system which is useful in collecting information in order to evaluate the performance of individual. This factor affect the business operations of Park Plaza Hotels at the time of implementing strategies. Under control system managers manage the resources like financial, human resource, physical resources etc. These elements need to evaluate at the time of formulating strategy because this factor affect the implementation. Information should be accurate otherwise it provide unable to company to get their desired results. In context of Park Plaza, manager should collect accurate information regarding consumer taste and preference which make them able to build their strategies accordingly and implement in well manner. Managers of the Hotels need to control internal operations activities for the period in order to analyse the performance. Human Resources: It is one of the important factors which affect the organization at the time of implementing their strategies(Buhalis and Leung, 2018). Because each and every task
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performed by the human resources so they need to manage their human resources as well as make them capable to perform every task. Human resources professionals are contributing in the success of the organization and they know that how to perform their task in well manner. In context of Park Plaza Hotel & Resort, hotel staff are the human resources for the company who manage various operational activities in order to get success. With the help of effective leadership, managers able to manage employees or ensure that they perform according to the strategies or provide success in their task. For this, Hotel need to high HR professionals which can promote the strategies or create value for them. Along with this, they provide required training & development in order toenhance the efficiency as well as effectiveness to an individual which required at the time of implementing strategies. Abovementionfactorssuchashumanresources,leadership,structuredesign, informationandcontrolsystemallareinfluencestheParkPlazaHotelatthetimeof implementing their strategies. Managers of the company need to evaluate these factors and make strategies accordingly and monitoring at the time of implementing which helps in getting huge successintermsofprofitability(Claveria,MonteandTorra,2015).Fortheeffective implementation of strategies they need to build vision, mission or strategic objectives and provide proper guidance for the completion of their work. Every member of the organization need to share common goals, so they able to perform accordingly or achieve desired goals & objectives. 2. Evaluate the performance measurement tool and how it will affect the effectiveness of business strategies Performancemeasurementtoolsusedtoevaluatetheindividualaswellasentire organizational performance in terms of productivity as well as profitability. With the help of it, managers able to evaluate the efficiency as well as effectiveness of the task. There are some measurement tools which is used to measure the result or outcomes. Some of them discussed below: Critical success factors: It is the tool that used in the organizations in order to ensure thatprojectwillachievetheirvision,missionorobjectiveswhichhelpsinmaximising productivity as well as profitability(Hassanien and Dale, 2019). There are total five key success factors which Park Plaza Hotel need to analyse. Some of them mentioned below:
ď‚·Strategic focus: Hotel managers of Park Plaza should follow effective leadership style, managementpracticesandformulatestrategiesfortheeffectiveimplementation. Management need to focus on these elements and try to maximise overall performance. It further affect the business strategies which successfully implement to achieve i6ts desired goals. In context of Park Plaza, hotel managers focus on management, leadership and planning. ď‚·People: Managers need to focus on people because they are the most important factor for the organization which provide the huge success or able to achieve desired goals. It include the individual employee and their training & development process which required top enhance their overall skills and competencies. Hotel managers of Park Plaza need to focus on their staff development which helps in maximising their efficiency or satisfy their guest with the help of appropriate services. ď‚·Operations: Here organization should focus on process which used by the hotels for the successful results. Along with this, work should be completed on time in order to meet the deadline which is very important for the hospitality sector(Hertzman, Moreo and Wiener, 2015). In context of Park Plaza hotel, they are deal in service sector so they have to satisfy their customers through providing quality services. ď‚·Marketing: Managers of Park Plaza need to focus on their marketing strategies which providethesuccesstomakethemabletoachievedesiredgoals&objectives. Organization need to build strong customer relations in order to maximise their sales and positive review from their guest. Basically, Park Plaza need to focus on marketing strategies in order to get success in their operational activities. ď‚·Finance: To get success in their operational actions, so they need to focus on their finances in order to manage their spendings. Managers of Park Plaza formulate budget and try to minimise the cost of each activities in order to raise profit margin. Above mention critical success factors required to focus because managers have to build their strategies through analysing all the elements which helps in maximising productivity as well as profitability. Key Performance Indicator (KPI): It is one of the effective measurement tool that used to evaluate that how organizations effectively manager their resources in order to achieve business objectives. In context of Park Plaza, managers have to measure their hotel performance
on the basis of accommodation where they evaluate the various elements such as average room rate, bedroom occupancy rate, food & beverages demand and their quality. Park Plaza hotels deals in services industry so they need to focus on customer satisfaction and make sure to meet their objectives(Harrington and et.al, 2014). In order to measure the effectiveness of business strategy, managers has to link KPI with the strategies after mapping the progress of these indicators.Thistoolusedtoempoweremployeesthroughprovidingvariousrelevant information. Managers of Park Plaza have to consider vision, mission or value of the hotel and measure the progress from previous performance. It also beneficial to measure the individual performance through collecting required data and analyse it. It is also beneficial for the stakeholders of the company to ensure that organizations are profit making or not. Balance Scorecard: It allow the hotel managers to measure the progress toward their strategic objectives. It include the financial or non financial aspect which helps in measuring overall performance of the operations. In the hospitality sector, feedback from clients are most important and they have to focus on those aspect on prior basis. There are some key scorecards categorises such as financial, customer, internal business process, learning & growth etc. In context of Park Plaza, hotel managers evaluate the financial aspects where revenue per guest and revenue of available room are same found in the hotel. If revenue of per room will be reduces in comparison to availability of room then it required various adjustments in order to maximise their revenue. Other financial measurements are earning per share, stock price, net income etc. In addition, they need to focus on customer and their sentiments and hotel managers have to target accordingly. This measurement include the survey results, complains of customers, customer retention, guest related data etc. Hotel industry have to more focus on customer satisfaction which is the major factor to measure organizational performance and its progress. If complaints are decreases then it means people are satisfy with their services(Kasemsap, 2016). Along with this, they need to maintain cost, accident or quality matrices in order to measure the internal business process. Hotel managers of Park Plaza should focus on these elements and make strategies accordingly. Above mention performance tools used by the managers of Park Plaza in order to measure overall performance of the company. Along with this, it include the various aspect whichrequiredtomeasuresuchasqualityoffood,accommodationfacility,customer
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sanctification etc. These elements affect the business strategies or make them capable to achieve desired goals & objectives. 3. Critically evaluate the key elements of managing strategic change and leading types of strategic change Strategic change management:In context of hospitality sector, they need to adopt changes after some times in order to retain their customers. In the service sector organization such as Park Plaza hotel, they need doe some changes in order to maximise their employees efficiency as well as performance of the entire organization in terms of productivity as well as profitability. There are some key elements which required to manage strategic change and leading types both are mentioned below: Key elements of managing strategic change: Change agents: In context of hospitality industry managers of hotels need to be responsible for every change in the operations. Manager perform as a change agent because whenever organization adopt or implement any changes they need to inform the information to the entire staff members (Phillips and Moutinho, 2014). Along with this, managers have to guide them and provide a clear path that how to perform their task after change in the operational activities. In context of Park Plaza, whenmanagers change in their strategy such as introduce new food item so they need to inform their staff members and provide them each and every details so they can make aware our guest to try once. Managing change programs: Hotel managers have to conduct a proper program where they inform regarding changes to the staff member and every person who linked with the organization. Information should be clear or authentic which make employees capable to perform with full of efficiency as well as effectiveness. Hotel managers of Park Plaza conduct a program whenever they implement any new strategy to maximise their revenue. They provide clear information regarding process of work and managers have to monitor or make control all over the activities which perform by the staff member after change in the strategies. Levers for change: It is the strategy which is used for the change in the society and which was the biggest challenge for the world. In order to implement the change in the organizations,managershavetoimplementsometools.Suchascommunicationplan, sponsorship roadmap, coaching plan, training plan and resistance management plan. These levers for change allow the organization to put their efforts in single direction which helps in increasing
final outcomes. Managers have to ensure that employees adopt these plans in well manner or try to achieve organizational goals & objectives. These are the key elements which required to implement for the strategic change in the organization(Rok and Mulej, 2014). It is not only beneficial for the organizations but also beneficialforthestaffmemberstounderstandtherequirementofchangeandperform accordingly which maximise the efficiency as well as effectiveness of the individual. Types of leading change: In context of organization, management has to adopt changes in the operations in order to maximise the individual performance as well as productivity. There are some types of changes which mentioned below: Adaption: In order to improve business process and operational activities organisation have to adopt changes and it can be related to the product or services which provide the long term success. In context of hospitality industry such as Park Plaza hotel, management modify their existing strategy because they face lot of compliance from the customers regarding hotel services. Reconstruction: As a manager of Park Plaza they have to implement necessary changes regarding accommodations, new programs, events etc. It helps in maximising the efficiency as well as effectiveness. In order to maximise their operational activities or revenue of the company they need to reconstruction the organization or make strategies regarding change in the business operations. Revolution: It is refer to the sudden change which required in the organization that's why company need to adopt changes in order to overcome those situations. In context of hospitality sector such as Park Plaza can face sudden changes such as modification in the food standards will lead to change the strategies of the company(Solnet, Kralj and Baum, 2015). These kind of conditions also encourage the change in the operations. Evaluation: It is the analysis of overall results as well as objectives of the company which further helps in making strategies in order to enhance the productivity as well as profitability of the company. Managers of Park Plaza follow the systematic process in order to enhance the individual as well as entire organizational performance.
CONCLUSION On the basis of above discussion it has been concluded that strategic planning is very essential for the organization. With the help of it, managers able to implement their plans in order to maximise operational efficiency as well as effectiveness. Furtherer it is used to achieve their strategic objectives which provide the huge growth in the market. In context of hospitality industry, there are various factors such as human resources, leadership etc. which affect the implementation of strategies which helps in maximising revenue of the hotels. In order to measure their performance as well as progress organization follow the various performance measurement tools such as key performance indicator, balance scorecard etc. After some times, management need to adopt changes in order to enhance operational efficiency which further increases the revenue of the business.
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REFERENCES Books & Journals Ajagunna, I. and Crick, A. P., 2014. Managing interactions in the tourism industry–a strategic tool for success: Perspectives on Jamaica tourism industry.Worldwide Hospitality and Tourism Themes.6(2). pp.179-190. Altinay, L., Paraskevas, A. and Jang, S. S., 2015.Planning research in hospitality and tourism. Routledge. Arasa, R. M., 2015. Participatory orientation to strategic planning process: Does it pay?. Buhalis, D. and Leung, R., 2018. Smart hospitality—Interconnectivity and interoperability towards an ecosystem.International Journal of Hospitality Management.71.pp.41-50. Claveria, O., Monte, E. and Torra, S., 2015. A new forecasting approach for the hospitality industry.InternationalJournalofContemporaryHospitalityManagement.27(7). pp.1520-1538. Hassanien, A. and Dale, C., 2019.Hospitality business development. Routledge. Hertzman, J. L., Moreo, A. P. and Wiener, P. J., 2015. Career planning strategies and skills of hospitalitymanagementstudents.JournalofHumanResourcesinHospitality& Tourism.14(4). pp.423-443. J. Harrington, R. and et.al, 2014. Strategic management research in hospitality and tourism: past, present and future.International Journal of Contemporary Hospitality Management. 26(5). pp.778-808. Kasemsap,K., 2016. Facilitatinghospitalityand tourismmanagementin globalbusiness. InGlobal dynamics in travel, tourism, and hospitality(pp. 283-305). IGI Global. Phillips, P. and Moutinho, L., 2014. Critical review of strategic planning research in hospitality and tourism.Annals of Tourism Research.48.pp.96-120. Rok,M.andMulej,M.,2014.CSR-basedmodelforHRMintourismand hospitality.Kybernetes.43(3/4). pp.346-362. Solnet, D., Kralj, A. and Baum, T., 2015. 360 degrees of pressure: The changing role of the HR professional in the hospitality industry.Journal of Hospitality & Tourism Research. 39(2). pp.271-292.