Strategic Planning for the Hospitality Industry

This presentation provides an overview of strategic planning in the hospitality industry, focusing on the analysis of Hilton London and its strategies for increasing sales and profit margins. It covers topics such as the strategic management process, Porter's Five Forces Model, PESTLE and SWOT analysis, and strategic options. The presentation concludes with a discussion on the importance of strategic planning for business growth and profitability.

STRATEGIC PLANNING FOR THE HOSPITALITY
INDUSTRY'

TOC
INTRODUCTION
Strategic management process
Porter's Five Forces Model
PESTLE and SWOT analysis
Strategic Options
CONCLUSION
REFERENCES

Introduction
Strategic 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 hotel Hilton
London 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
Hilton hotel is the leading hotel in London and it also
faces many challenges to survive and maintain its
position.

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 Hotel Hilton 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 hotel Hilton 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 hotel Hilton 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 Hilton 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 hotel Hilton

SWOT analysis
Strengths  the hotel Hilton London provide a better
services and comfort to the customers
and also help to stimulate the home like
comfort who are far from home
 .
Weaknesses  Hilton 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 hotel Hilton also have the opportunity
to increase the technology equipment Int
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.

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 hotel Hilton 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  Hilton 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  Hotel Hilton 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 Hotel Hilton London can also use the franchising to increase its hotel chains to increase the
sales and profit margins.

Cont…
Mergers and Acquisitions- hotel Hilton 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 Hotel Hilton 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.