Strategic Planning for the Hospitality Industry

This document discusses strategic planning in the hospitality industry, focusing on the implementation factors for effective strategies. It also explores creative business strategies for future competitiveness and analyzes distinct performance metrics. The case study revolves around Novotel London Blackfriars Hotel.

Strategic Planning for
the Hospitality Industry
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Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Critical analyse of most appropriate factors for implementing a strategy...................................1
Researching about creative business strategies of organisational future strategy selection for
being competitive in hospitality industry ....................................................................................2
Analysis and evaluation of distinct performance metrics............................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Strategic planning can be referred to an effective process which helps an organisation in
developing unique business strategies, that may help them in hitting different range of desired
goals in much effective and efficient manner (Al-Ruithe, 2017). It has been found that, it is the
responsibility of every single organisation to develop an effective plan and then try their level
best to sustain within the market for a longer period of time. Present report is specifically
focusing on a particular organisation and i.e. Novotel London Blackfriars Hotel. Report will also
be considering various factors that may help firm in implementing effective strategies in rightful
manner. Also, this assignment will be focusing on creative business strategies of organisational
future strategy selection for being competitive in hospitality industry lastly, evaluation of distinct
performance metrics is also going to be done in this report.
MAIN BODY
Critical analyse of most appropriate factors for implementing a strategy
There are ample number of factors that are available in the market which can be used by
organisations to implement various strategies. In context with Novotel London Blackfriars which
is acquired by Accor Hotels, it is much needed by this hotel to improve guest rooms and this can
be done by considering an effective strategies. In present context, when Accor Hotels started
focusing on acquiring Novotel London Blackfriars there are ample number of factors that are
specifically being taken into consideration by managers. In case of Novotel London Blackfriars,
there are appropriated factors listed below which is useful in execution of the chosen strategy,
known as franchising strategy:
Commitment: It refers to terms and conditions from which there is an ability to perform
things or action with full dedication. This strategy is a key factor which requires some sort of
commitment from all the employees including employees, managers, and other staff members to
get involve in implementing this devises strategy (Fascia, 2016).For the execution of the
franchising strategy there are different kinds of agreements which needs to be taken into the
consideration. These are continuance commitment, normative commitment and affective
commitment. Continuance commitment states that there is a fear of loss. Normative commitment
states that there is a need to permanently with the organisation. Affective commitment states
affection for the job towards employees. In relation with Novotel London Blackfriars,
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commitments from employees and their stakeholders are very important. It is because market
expansion need constant suppliers, customers, employees and other staff members so that there
must be good expansion in the market which creates competition in the market.
Dedicated resources: In implementing the franchising strategy, there is a need for
dedicated resources to work more efficiently and successfully. It can be also said that dedicated
resources are some significant resources which needs to be taken into the consideration. These
resources are supportive and quiet assistance for the use of franchises. Some Key resources that
are required in implementing this franchising strategy are some different financial resources,
human resources as well as intellectual resources. To implement this franchising strategy, the
managers of Novotel London Blackfriars need dedicated resources because they are useful in
creating better options for the customers and it also helps in reducing the cost. It is vital that a
franchising strategy need high skills of resources that are trusted as well as empowered for
making and executing the key strategic decisions. This factor helps broadly in streamlining the
entire process of implementing a strategy (Espellita, 2019).
Clear market position: There is a basic need for every hotel or restaurant to have a best
market position. It is because it can easily help in expanding the business in the market and also
increase the demand of their customers. This factors helps business and organisations to aim
particular target one by one so that every area has to cover systematically. The factor helps
businesses and its audiences to aim for similar target market. To execute franchising strategy on
Novotel London Blackfriars, there is a necessary need of analysing the market position of their
brand image monthly to gain their stakeholders and shares in the market so that it will be the best
approach for their sustainable future for business. Having a clear market position there is need to
manage different perception of brand in such manner which helps in exceeding the set
expectations of the hotel. The factor help franchise brands in differentiating them from rivals and
strengthening emotional bond with potential and prospective customers. It is crucial for
executing this strategy, to have a clear market position of this hotel (Feng, 2017).
Researching about creative business strategies of organisational future strategy selection for
being competitive in hospitality industry
The discussion about the study related to business strategy has analysed that strategies &
tactics plays most important role for an organisation as it is formulated after managing business
activity and achieving business goals. If management team focuses on enhancing business
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productivity, then it becomes very easy to bring changes in the performance of business. The
business strategy for future which have been selected by business to accept changes and enhance
business performance.
Pricing strategy: The price of product is an important factor for customers as customers
are mostly price sensitive who focuses on selecting best quality product at affordable price. If
firm are developing strategies for offering goods at affordable cost, then this can turn into
opportunity as they can attract large number of customers thus encouraging them to buy the
goods offered by them. In order to gain competitive advantage for future firm should majorly
focus on the price of the product and quality. This strategy will be executed by Novotel London
Blackfriars to offer services at lower price than their competitors this would help them in
achieving competitive gains (Ferreira, 2017).
Product differentiation: The products and services which are offered by the
organisation should be very attractive & different in order to capture large market shares thus
enhancing competitive gains. In the ever changing business environment the taste and preference
of customers are also changing so it is vital to produce different type of products which can
easily enhance sales and profitability index of firm. This is another important future business
strategy in which management of Novotel London Blackfriars develops unique taste of food
products, beverages that are different from the rivalry firm and this will result in gaining
competitive gains.
Improvement in customer’s services: This is an important business strategy which is to
be used by organisations for enhancing their customer service & achieving competitive gains. At
time customers are facing various challenges & difficulties in selection and booking of goods so
that demanding customer’s services query can be solved. The management of the Novotel
London Blackfriars analysis the situation operating in the business environment so that changes
can be incurred in their servicing strategy as 24*7 hours will help in attracting customers and
enhance competition at work place.
Uses of digitalisation and new technology: The world is changing everyday thus work is
done with the help of digital tools rather than operating manually. The change has resulted as
challenge in front of business activity for adopting effective technology with the aim of
sustaining at the market place and achieve set target of firm. For achieving competitive position
in service industry Novotel London Blackfriars will majorly focus on adoption of new
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techniques such as robotic delivery of goods, digital guest entry, easily check in & check out etc.
this helps in capturing large customer area thus maintaining competitive advantage in the
upcoming time.
Promotional business strategy: When a firm is making plan to launch new services at
that time it is essential to execute promotion of goods at high scale which results in informing
people about new product so that they will be motivated to buy the product. For promotion of
goods it is essential to use different strategies which helps in capturing attention of customers. In
relation with Novotel London Blackfriars management can use newspaper articles, magazines,
websites, blogs, billboards for making people aware that best services are offered to them at
affordable prices (Ferreira, 2020).
Maintaining quality and hygiene: In the current scenario the biosphere is facing a
Epidemic where people are concerned about their health so they always go for proper hygiene &
well sanitized rooms that keeps them fit & less chances of prone to disease. The demand of
hygiene room can be seen as business opportunity as this will result in achieving competitive
gains. The management team of Novotel London Blackfriars can use this strategy by offering
them rooms according to the current demand so they feel safe & secure. This results in
increasing business performance in the ever changing business environment thus enhancing
business profitability.
Therefore, from the above research it has been analysed that adopting business strategies
by Novotel London Blackfriars will attract large number of customers who will buy their product
thus enhancing sales revenues & profitability. These strategies will also be useful for achieving
competitive gains at market place.
Analysis and evaluation of distinct performance metrics
Performance metrics can be considered as an essential process which stays enclosed with
different elements like collection of data, analysing along with reporting as well of information
in relation with performance level of a particular organisation. On the other hand, it is useful for
a company when it comes to measure performance, consider various activities and develop a
much more improvised culture or behaviour of an organisation. Including this, there is an
integral process which every single organisation looks forward to develop in order to achieve
desired goals in much effective and in efficient manner (Jung, 2018). Effective performance
metrics gives appropriate data along with effective results as well which gauges appropriately
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recognized amounts in range for allowing further enhancements. In terms of Novotel London
Blackfriars, departmental directors use execution measurements for assessing convenience of
hierarchical contributions. It is on the grounds that these are foundation of convenience just as
advise about key choices for future. It is examined that there are different sorts of execution
measurements which are received by venture for following business measure along with
evaluating their status. Certain presentation measurements which are utilized in Novotel London
Blackfriars are as assessed:
Key performance indicators (KPI): These are said to be the crucial set of numerical
measurements, which are specifically being taken into consideration by an organisation when it
comes to gauge the overall performance level in much effective and in efficient manner. These
helps organisations like Novotel London Blackfriars to gain knowledge in relation with different
strategic determinations and how they can attain desired goals. This helps in grabbing a good
position within the market for a longer period of time and it also aid in delivering high range of
competitive advantages to the firm. In context of Novotel London Blackfriars, it has been found
that most appropriate and essential financial KPIs are profitability over time, revenue growth,
revenue concentration, income sources and lastly working capital, which helps them in keeping
sustainability strong enough. Away with this, some of the other crucial non-financial metrics that
are impacting on organisation are organisational reputation, competitiveness, customer
influencing approaches, innovation and so on are adopted in the organisation in rightful manner.
Balance scorecard: This is known as matrix for measuring strategic performance by
which improvements can be made in various internal business functions altogether with the
external results. The main aim of using this balanced scorecard is to share valuable feedback at
workplace. In relation with Novotel London Blackfriars they use this matrix for measuring key
business factors such as business process, finance, customers, growth and learning. With the help
of this consultant can determine factors which are hindering business performances in compose
of strategic changes which can be tracked by using future scorecards. It is identified from the
research study of (Jung, 2018) that balance scorecard offers a very strong business framework in
order to conduct effective communication strategy. It improves communicating skill along with
the identification of the strategy & improves the overall workforce with the stakeholders
operating outside for delivering tactics effectively. The matrix’s helps in aliening matrix’s of
project and initiatives with different goal set so that important strategies can be delivered which
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results in organisational success. This approach is valuable for administrator for designing
strategies, enhancing business performance, alignment of business process and collection of data
in most effective & easy way. On the other side performance matrix can be misled in various
terminology such as they are not focusing towards their competitors or external environmental
factors, lacking risk analysis and complexities in sustaining strategic mapping.
Critical success indicator-: It is process which refers to those variables and conditions
which are necessary in order to achieved organisation goal & set objectives. A project teams play
vital role because trained members develops project in ways which helps them to successfully
accomplished work. In reference of (Jung, 2018) it is important concept because manager plan
strategies and accordingly putt so much efforts so this factors help lot in achieving targets. There
included various others factors which affect a critical aspect as senior manager identifies and
developing new strategies, customer satisfaction, environmental factors and industry factors. It
also includes a key success factor which help mangers to measures the profitability of company
and also take initiative to carefully monitor different aspects of business model. Developing key
success indicators in that way to easily measures external and internal factor.
Novotel London Blackfriars should be aware about these factors in order to easily
differentiate between a result area. The success factors work in all area for example finance,
operations, marketing and human resource management of company (Nazarian, 2019). The main
motive of the matrix lies within the aspects of formulating business objective as well as set
benchmark for organisation. It helps to determine such factors which matters lot in developing
new market plan and strategies to gaining competitive advantages at marketplace. It main
focused to generate profit and capture market share which result as developing goodwill in
market. Company's doing lots of projects in order to attain a goal so employees must be aware
about those goal and objectives and accordingly prepare systematic plan.
CONCLUSION
From the above business report, it has been concluded that strategies play a most
important role at workplace as they consist of plans by which firm can achieve competitive gains
at market place. In business environment there are different factors operating such as dedicated
business resource, commitment, market position, workforce while operations should be managed
in effective manner so that set target are achieved. All these factors are valuable as they result in
maintaining higher productivity thus earning high profitability ratios. However, business
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strategies like innovative technology, customer support services, quality management are used to
achieve competitive gains in relation to hospitality industry. Performance management can be
improved by using KPI, Balance scorecard method and critical success factors thus achieving set
objective.
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REFERENCES
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Ferreira, 2017. Enhancing knowledge and strategic planning of bank customer loyalty using
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pp.860-876.
Ferreira, 2020. Objective functions used as performance metrics for hydrological models: state-
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Nazarian, 2019. Outdoor thermal comfort autonomy: Performance metrics for climate-conscious
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Papke-Shields, 2017. Strategic planning characteristics applied to project
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Rohman, 2019. Performance metrics analysis of dynamic multi-objective optimization for energy
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Engineering Communications, pp.1-13.
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