Strategic Planning for the Hospitality Industry

This report discusses the factors affecting the successful implementation of strategies in the hospitality industry, including leadership, structural design, information and control systems, and human resources. It also explores different performance metrics and key elements in managing strategic change. The case study focuses on Maldron Hotel Newcastle in the United Kingdom.

Strategic planning for the hospitality industry
(Ra Ste)

Contents
INTRODUCTION...........................................................................................................................1
1) Factors affecting the successful implementation of strategies on the following four business
functions......................................................................................................................................1
2) Different performance metrics................................................................................................4
3) Key elements in managing strategic change and leading types of strategic change...............7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic planning is defined as process of organisation explaining strategy, direction and
also making the decisions which allocating resource to pursue strategy. This extend to control the
mechanisms for guiding execution of strategy. Strategic plan provides place to record vision,
mission, values and long term objectives. This present report is based on Maldron Hotel
Newcastle (Ahmad, 2016). This hotel is located in United Kingdom and provides the private
courtyard and free Wi-Fi. In present report going to discuss about factors affecting execution of
strategies successfully. Various performance metrics for company and effectiveness of business
strategies will be discuss.
1) Factors affecting the successful imsplementation of strategies on the following four business
functions
Maldron Hotel Newcastle is situated in Newcastle City Centre, features private court yard and
WiFi. It located in prime central location with Maldron Hotel all attractions of beautiful city right
on doorstep. At hotel, rooms come with desk, TV, coffee making facilities, suite bathroom with
the complimentary toiletries and some of the rooms are feature views of city (Ali, 2018).
Any organization within hospitality sector is necessary to increase the reach of its market
efficiency. In fact, there are many approaches that are needed to be developed to make it easier
for the organization to achieve its business goals. In relation to this, critical analysis of factors
which affecting the successful execution of strategies on different functions which given below:
Leadership
Leadership refers to acting of the leading group of people or company. It is an ability to lead the
other people, teams and whole organisation. It is process through which an executive can guide,
direct and also influence behaviour of others towards attaining particular aim in given situation.
The leadership is an ability of manager to be induced subordinates so that they can work with
confidence (Altinay, Paraskevas and Jang, 2015). In context to Maldron Hotel, “Strategic
Leadership” is an effective strategy to be followed. It would be executed in the following ways
which mentioned below:
Experienced Based Learning- Leaders would provide development opportunities for
subordinates to improve their learning by giving them with effective experience
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Distribution of Responsibility- The allocation of roles inside the hotel is one of the main but
most effective ways in which leadership would be implemented. Each department would have its
own leaders who would lead the team (Elbanna, 2016).
Communication- It is an effective way through which this strategy can be executed in
relation to creation of communication network at workplace so that each one can be connected
and the relationship among manager and employees can be strong.
Other than this, there are many other factors which will be impacting execution of success
strategy in context to leadership. Some factors are given below:
Objective- Besides customer satisfaction, the company's primary agenda is to be carbon
neutral and to enhance green tourism practices. This dimension would promote the introduction
of strategic leadership within organization as it would help the company to develop strategies in
line with this goal (Hassanien and Dale, 2019).
Performance- It is major factor influencing and impacting execution of the above
strategy. Strategic leadership needs highly competitive and knowledgeable team members.
Positively speaking, employee performance within the corporation is very strong which
demonstrates a successful execution of the organization's strategic leadership.
Structural Design
Structural design is method methodical investigation of strength, rigidity and stability of
the structures. Its main objective is to analysis as well as design to produce structure capable of
the registering all the applied loads without any failure at the time of intended life. It is necessary
to assure the inter-relationship as well as support that every department would receive from each
other, according to the company's objectives (Hertzman, Moreo and Wiener, 2015). The
company is currently working in functional structure in conjunction with Maldron Hotel, where
the departments are separated according to functions. Nonetheless, following a multi-divisional
approach would be a better strategy for the organization according to product areas such as
beverages, distribution, marketing, food etc. Some factors which could impact this strategy are
given below:
Size- It means the organization's workers. Maldron has over 100 staff members who are
expected to effectively manage suitable business functions. However, such size is not good for
the multi-division structure as there are some limited product areas which may divide structure
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unequally. In order to enhance effectiveness, structural strategy should consist the flexible areas
which concerned with goods and the increased communication.
Environment- The Company’s environment is very versatile, where the workers could be
easily equipped with interchangeable positions. For the organizational restructuring strategy, this
dimension is useful as such a versatile atmosphere could effectively promote the company's
structure (Konovalova and et. al., 2018).
Information and Control Systems
This function is linked to operations related to knowledge facilitation and control facilitation in
the management of the organization's overall resources. There are many technologies within
Maldron Hotel which are appropriately used to manage as well as facilitate information flow
within an organization. Databases are mainly used to keep track record in terms of monitoring.
Nevertheless, Maldron Hotel needs to adopt and incorporate strategy of Automation technology
and Artificial Intelligence to encourage knowledge within the organization and monitor
performance in order to improve the company's level of competence. It can be accomplished by
incorporating programs including such performance management systems that could monitor and
facilitate employee performance growth and analysis through AI support (Kotler and et. al.,
2017). Therefore, automation will help the company to develop the company's IT infrastructure,
which could be effective in creating a better communication channel for better information
sharing.
The factors which impact strategies are mention below:
Access- The property location is far from the central London, which could hamper the
company's technology-based access. Therefore, in order to rehearse same, the organization has to
develop a technical base through contractual communication with IT companies.
Investment- Through estate, the company has powerful funding options that have a positive
impact on the strategy's adoption (Lordkipanidze, 2018).
Human Resource
Human resource is mainly used to define both people and company for managing the
resources concern to Staff members. It is the department charged with searching, screening,
hiring and also provide training to job applicants for firms to identify to came competitive
benefits. HR plays a necessary role in helping the organization to deal with fast changing
environment and high demand for the quality staff members (Madera and et. al., 2017). The main
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role of Human Resource function is to increasing productivity of the organization and provide it
competitive benefit at market place. In the hospitality sector, human resource plays a most
essential role. In context to this, management of a hotel is an effective way by which the
objectives can be attained within a given period time. The company needs human resource that is
skilled and also competent to work effectively and guide the employees to work of better quality.
In order to increase the competence of human resource, company is needed to adopt stimulation
training strategy for staff member so that their performance can be enhanced and so that they can
do their job roles in an effective manner (Raghavendra and Nijaguna, 2015).
The factors those affecting this strategy are given below:
Motivation- Due to the current company's leadership, which is typically people-centered,
workers are also extremely motivated to learn improved and innovative success approaches that
would best contribute to the organization.
Culture- The hotel's culture is very successful in promoting the development and growth
of the workers of the company, that would have positive impact on their progress on the training
strategy.
2) Different performance metrics
Performance metrics are the tools, processes and procedures that a company requires to assess
the business strategies ' performance levels and their consequences for the organization's
objectives. They indicate the company's functioning and operations with respect to various
strategies that represent the degree to which the company manages and encourages its growth
(Shkurkin and et. al., 2016). In context to Maldron Hotel Newcastle, the metrics are examined
which given below:
Critical Success Factors (CSF):
It is a necessary component for a company to attain the mission. A company relies on
specific activities, areas for continued survival. Major success variables are special to each
company, representing current business as well as future goals. In context to hotel, some of the
necessary factors are given below:
Profitability- Critical factor for the organization's success is the achievement of effective
profitability on the marketplace (Solnet, Kralj and Baum, 2015). The company aims to improve
the improvisation of its services and improve its approach in order to generate higher profits.
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This offers a path, in terms of above approaches, in which the organization has to move forward
in order to achieve this aspect.
Carbon neutral- One of the organization's main performance factor is that it is carbon
neutral. It means the company is working for protection of the atmosphere and minimal carbon
footprint. This positively impacts the above leadership strategy, as managers and subordinates
will better build strategies and structures that could be used efficiently with strategic leadership
(Zaitseva, Goncharova and Androsenko, 2016).
Evaluation of CSF in context of effectiveness of the business strategies
Profitability and carbon neutral both are the success factors which contribute in an
effective in relation to increasing efficiency of business strategies. The explanation for same is
that above-mentioned strategies related with leadership, knowledge, control system, human
resource and structural design are somehow linked to productivity achievement, along with a
decline in the carbon footprint and critical success factors may lead to better execution of
strategies.
Key Performance Indicators
Key performance indicators are the quantifiable measure which used to examine success
of staff members, organisation etc. to meet the business aim for performance. Some firms use
key performance indicator at many levels in order to examine their success to reaching at targets.
The main focus of KPI is on overall performance level of business while the low KPI main focus
on the proper process in departments for instance marketing, sales and some others. For to
Maldron Hotel Newcastle, there are many key performance indicators which has given below:
Employee Satisfaction Rate- It is another business metric that represents the employee
satisfaction level within the company. It illustrates how to form approaches to provide workers
with high-end satisfaction. For an example, human resources policy of related to simulation
training would aim at the personal and professional training of workers within company, which
increases employee satisfaction. It is a positive strategy of an organisation and satisfy
requirements of staff effectively (Ali, 2018).
Sales- It is one of main organization's key performance metrics of its successful
accommodation, drink and food facilities. This would therefore have a positive effect on the
above tools, especially in control systems, leadership and information system. Due to Artificial
Intelligence could help better monitor and track efficiency, which will aids increasing sales. This
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can aids in marketing services of an organisation in effective manner that can develop positive
implication of indicator (Elbanna, 2016).
Evaluation of KPIs in terms of effectiveness of business strategies
Under this, effectiveness of strategies increase because of these types of indicators as they
motivate and positive strategies development that attain similar in an appropriate manner. For
example, the company's structuring could be changed primarily to increase the level of
performance and eventually improve sales. In addition to this, preparation and efficient sharing
of information are also developed in a manner where the employee satisfaction level is increased.
Key Performance Indicator contributors in increasing effectiveness of business strategies
(Hertzman, Moreo and Wiener, 2015).
The Balanced Scorecard
It is performance metric for strategic management that is used to define and optimize
different internal functions of business and their external results. Balanced scorecards are mainly
used to assess companies and provide input. The collection of data is important in order to
provide objective outcomes as managers and employees collect and measure information and
make the positive decisions of company. This is a suitable strategic management tool that is
applied within company to assess and improvise many internal business roles along with external
outcomes. In context to this, organization could also receive valuable input on its overall
performance by using this (Konovalova and et. al., 2018).
In context to Maldron Hotel Newcastle, there are some perspectives which required for
company to be follow are mention below along with estimation of the Balanced Scorecard in
regards to business strategies:
Internal Processes: Internal processes provide efficiency and quality, which is another
important organisation's necessity. It works on the turnaround productivity that is a popular hotel
technique. This would be accomplished by improving the quality of the service due to improved
connectivity and productivity due to properly linked product areas (Kotler and et. al., 2017).
Financial: It reflects aspects such as the company's financial performance. For example,
Maldron Hotel Newcastle sales, expenses and income would be considered. Therefore, strategic
leadership and focusing on leadership should emphasize the importance of implementing
economic strategies for lower spending, adding to its effectiveness (Madera and et. al., 2017).
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Organisational Capacity: This view covers human capital, technology and human capital.
The company is required to incorporate AI technology and Automation in almost every task
performed in hotel to ensure the better ranking within similar company. It would lead to an
increase in organizational capacity and a better achievement of objectives.
Customers- This viewpoint reflects the level of customer loyalty that is obtained by better
customer service, good quality continuity and positive communication. It leads to maximizing
the efficiency of the simulation training technique as it would be related to increasing the level of
customer satisfaction (Raghavendra and Nijaguna, 2015).
From the above mention strategies, balance scorecard is more effective in Maldron Hotel
Newcastle that covers some components which contribute in positive manner towards enhancing
as well as improving strategic effectiveness of an organisation.
3) Key elements in managing strategic change and leading types of strategic change
Strategic change is restructuring marketing plan or business that performed to attain set business
objectives. For the management, planning as well as executing strategic change is necessary
aspect. The strategic change is related to having strategy or manages any change. It is key factor
that inevitable and necessary where an organisation is concerned with highlighting improvement
scope in context to sustainability and gain competitive benefits (Shkurkin and et. al., 2016).
Under this, company should be examining key management of the change in context to
managing strategic change within organisational functions. Maldron Hotel Newcastle examined
some factors or impacts which arisen from implementation of new changes like reconstruction,
adaption etc. mention below:
Change Agents- It is related to factors which facilitate modification within organisation.
In context to hotel, there are prominent factor that is effective change agent for company. High
competition is a main factor of change agents. To enhance competence, there is a need to
company to maximise employees competence level within organisation. For this, effective
training methods need to be adopted and also shift to stimulation of the training strategy. This
cannot manage change within company because in dynamic environment company will face
some change agents and night not be effective (Zaitseva, Goncharova and Androsenko, 2016). In
order to improvise aspect, Maldron Hotel Newcastle should adopt the market research
approaches that permit as well as facilitate monitoring change needed through hotel on the basis
of surrounded environment.
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Levers for Change- Under this, actions which associated through leaders to facilitate
change within an organisation. There are two different levers which leaders can be adopt for
managing change at workplace such as Recognition and Rewards. Both help in increasing the
motivation along with performance level of staff members. On the other hand, executing shift
resisters that identify as well as control resistance level at workplace. It can help in increase
effectiveness of components for managing the change and also leading type (Solnet, Kralj and
Baum, 2015).
Diagnosis- Under this, analysis of reasons for which changes is necessary in an
organisation. The diagnosis is necessary to examine whether current position of an organisation
is not good to gaining the strategic or competitive benefits. In regards to hotel, organisational
design is based on layout that assists an organisation to increasing sustainability. So, it needs an
organisation to be reconstructing structure and gain better efficiency at marketplace. In context to
examination, diagnosis is effective to manage changes as it assists in examining each process as
well as resources to identifying changes.
CONCLUSION
It has been concluded from above mention report strategic planning is necessary for the
business to gain competitive benefit at market place in significant manner. Critical analysis of
factors affecting the successful implementation of business function strategies is necessary to
identify aspects that may help to promote the strategies chosen. In context to this, the review and
assessment of the company's various performance indicators evaluates the importance of
multiple factors within the business strategies ' effectiveness. At last, the critical examination of
key components for managing the strategic change as well as leading kinds of similar allows in
identifying how the changes can be implemented, facilitated and embedded within company.
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REFERENCES
Books & Journals
Ahmad, U., 2016. Application of multiple criteria decision making techniques in tourism and
hospitality industry: A systematic review. Transformations in Business &
Economics. 15(1). p.37.
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.
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.
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
hospitality management students. Journal of Human Resources in Hospitality &
Tourism. 14(4). pp.423-443.
Konovalova, E. E. and et. Al., 2018. Forming approaches to strategic management and
development of tourism and hospitality industry in the regions. Journal of
Environmental Management & Tourism. 9(2 (26)). pp.241-247.
Kotler, P. and et. al., 2017. Marketing for hospitality and tourism.
Lordkipanidze, R., 2018. The Strongest Key to Global Hospitality.
Madera, J. M. and et. al., 2017. Strategic human resources management research in hospitality
and tourism: A review of current literature and suggestions for the future. International
Journal of Contemporary Hospitality Management. 29(1). pp.48-67.
Raghavendra, A. N. and Nijaguna, G., 2015. Supply chain management in hospitality industry:
impact on service quality in Mcdonald's restaurants, Bangalore. Global Journal Of
Commerce And Management Perspective. GJCMP. 4(2). pp.22-29.
Shkurkin, D. V. and et. al., 2016. Modernization of the sphere of tourist and hospitality industry
of the south of Russia as a growth factor of socio-economic stability of the
region. International Journal of Economics and Financial Issues. 6(1S). pp.101-106.
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.
Zaitseva, N. A., Goncharova, I. V. and Androsenko, M. E., 2016. Necessity of changes in the
system of hospitality industry and tourism training in terms of import
substitution. International Journal of Economics and Financial Issues. 6(1). pp.288-
293.
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