Strategic Planning for the Hospitality Industry

This report provides an analysis of strategic planning in the hospitality industry, focusing on the case study of Hilton London. It explores the factors affecting hotel sales and how effective strategies can be formulated to increase growth and profit margins. Topics covered include the strategic management process, Porter's Five Forces Model, PESTLE and SWOT analysis, and strategic options such as franchising and mergers/acquisitions.

STRATEGIC
PLANNING FOR
THE HOSPITALITY
INDUSTRY'

Table of Contents
INTRODUCTION...........................................................................................................................3
Strategic management process....................................................................................................3
Porter's Five Forces Model..........................................................................................................4
PESTLE and SWOT analysis......................................................................................................5
Strategic Options.........................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

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. 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
Strategic management is the effective process as it helps the hotel to plan and control all the
effective strategies and also increase the efficiency of the Hotel. There are various factor present
in the business environment which the hotel have to analyze in order to asses the better strategy
and implement it successfully.
Situational Analysis
Hilton hotel id the leading hotel in London and it also faces many challenges to survive and
maintain its position. 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. This will help
to understand all the current market trends like technology, new marketing strategies to attract
the new customers in the hotel. In this method the marketing plan is developed with the help of
all the factors to increase the sales of the hotel which includes the budget of the hotel, objectives,
which will make the employees of the hotel more efficient in achieving it. This also help the
hotel to compete in the market as there is high competition in hospitality industry.
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.
1. 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.
2. Vision is the ideology which the hotel have for its future and strategies are made
according to the vision to achieve the vision statement in the future.

3. Culture is the beliefs, attitude, behaviors of the employees in the hotel which increases
the efficiency of achieving the mission and vision of the hotel.
Porter's Five Forces Model
This model help the managers to analyze tall the factors which can decrease the competitive
advantage of the Hotel and also lower the profit margins. Hotel Hilton London have adopted this
analysis to understand the market and formulate the strategies which will increase the core
competency.
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. The hotels which are new in the market will; also have the better
knowledge about all the services and which will also help the hotel to attract many customers.
Hilton hotel have the advantage of the location which can attract many customers and the hotel is
also have the brand name.
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. The hotel have to increase the market research and
always find the alternative products which are cost-efficient.
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. This will decrease the price of the services and products to attract the customers. Hotel
Hilton will have to innovate and also increase the services which will make loyal customers and
also help to satisfy the customers.
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.

Rivalry
The market customer are limited and the number to competitors in the same market is increasing
which is making it very difficult for the hotel Hilton to innovate and increase the customer
satisfaction. There is a high risk of the competition of the business of the market and the hotel
also have to make the efficient strategies to increase the sales of the hotel.
PESTLE and SWOT analysis
SWOT Analysis Hotel Hilton London
1. -..
2.
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
 Hotel also have a very good record in contributing ion the economy
of UK as the revenues is huge and provides a boost in the growth of
the GDP of the country
 The company also have the effective strategy to increase the profit
margins which help the hotel to maintain its position in the market.
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
 The hotel London also have to pay different types of Taxes to be
legal and fair which discourages to efficiency of the hotel.
Opportunity  The hotel Hilton also have the opportunity to increase the
technology equipment Int rooms for the customers to increase the
experience.
 The hotel also have the opportunity to attract all the tourist which
are coming from abroad to the city for the visit.
Threats  After the Brexit the hotel have faced decrease in the sales and also
many loyal customers were lost.

 The economy of UK can also be the threat as the government
policies can be changed for the tourism industry which can impact
the business of the Hilton London.
PESTEL Analysis
Political factors  The hotel have to analyze that political stability of the country and
all the other countries as well.
 Hilton hotel will also have to analyze all the government policies
which can impact the strategies of the hotel.
 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.
 The net disposable income of the population should also be
determined which will also help to decide the pricing policies of the
hotel.
 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.
 The hotel also have to analyze the behavior, culture, beliefs of the
customers which will hep to increase the satisfaction in the services
they provide.
 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.
 This will also help to increase the efficiency of the services to
provide the satisfaction to the customers. The technological factors
must be determined in the market trends it changes very frequently
and also decrease the efficiency.

 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.
 The hotel also have to train their employees about steps which will
be taken in case of any climate disaster and how to handle the
customers to protect them.
 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.
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
Books and Journals
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.
Morden T., 2016. Principles of strategic management. Routledge.
Nickols F., 2016. Strategy, strategic management, strategic planning and strategic
thinking. Management Journal. 1(1). pp.4-7.
Noe R.A and et.al., 2017. Human resource management: Gaining a competitive advantage. New
York, NY: McGraw-Hill Education.
Rothaermel F.T., 2017. Strategic management. New York, NY: McGraw-Hill Education.
Wolf C. and Floyd S.W., 2017. Strategic planning research: Toward a theory-driven
agenda. Journal of Management. 43(6). pp.1754-1788.
Ziegler, F and et.aol., 2018. Assessing broad life cycle impacts of daily onboard decision-
making, annual strategic planning, and fisheries management in a northeast Atlantic
trawl fishery. The International Journal of Life Cycle Assessment. 23(7). pp.1357-1367.