Strategic Planning for the Hospitality Industry

This document discusses strategic planning in the hospitality industry, focusing on the factors affecting successful implementation of strategies in different business functions. It also evaluates performance metrics and their impact on business strategies, and explores key elements in managing strategic change. The case study used is British Airways.

Strategic planning for
the hospitality industry
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Critically analyse the factors affecting the successful implementation of strategies on the
following four business functions...............................................................................................3
Analyse and evaluate the different performance metrics of your chosen organisation and how
this may affect the effectiveness of the business strategies........................................................5
Critically evaluate key elements in managing strategic change and leading types of strategic
change.........................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERANCES..............................................................................................................................12
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INTRODUCTION
Hospitality industry includes different types of services as well as offering that is helpful
in enhancing experience of customers (Bagdan, 2013). It is very important for company to
develop a effective strategic plan that will help in improving the overall performance of
organisation. This is helpful in accomplishing desired goals and objective of organisation in
effective way. The company chosen for this report is British Airways. This is UK based
company that is offering its products or services in different part of the world. This is one of the
leading company that is dealing in airline sector and headquarter of British Airways in located in
Waterside, Harmondsworth, United Kingdom. This report includes analysing different factors
that is affecting successful implementation of organisation strategies. In this, various
performance metrics has been evaluated for identifying its effect on business strategies. Apart
from this, different elements has been evaluated in order to manage strategic changes as well as
leading types.
MAIN BODY
Critically analyse the factors affecting the successful implementation of strategies on the
following four business functions.
Strategic planing can be describe as process which includes proper documenting in order
to take better decisions. It is very important for respective company to conduct an effective
strategic planning with the motive of enhance business performance as well as accomplished set
goals. Strategic planning is beneficial for long term growth and development of company
(Wearne and Morrison, 2013). There are different factors that is affecting successful
implementation of strategies as well as managing it in effective manner. There are various
functions of organisation that is affecting performance of organisation. British Airways company
is offering its products and service to all around the globe so it is essential for this company to
develop better and effective strategies.
Leadership – This function refers to the way in which leader is motivating as well as
enhancing performance of employees. This is considered as an effective manner though which
British Airways can improve the overall productivity of company and achieve desired goals.
Leadership will help in influencing the way employees conduct task in better manner. Respective
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company is using autocratic leadership style for performance business function as well as
influencing employees. In autocratic style of leadership, leaders have right to take important
decisions and have full control or power on organisational task. Decision making power can be
consider as a factor that is affecting successful implementation of business strategies. Leaders of
British Airways company will be able to take better as well as quick decisions in order to
perform different task of organisation (Evans, 2015). This will be very supportive in
development of strong strategies for respective business as well as executing it in better manner.
Effective implementation of business strategies will help in enhancing the overall performance of
organisation as well as achieving desired goals. So it has been determined that respective
company will be able to attain desired objective of organisation by effective implementation of
leadership style.
Structural design – This can be describe as a method or the way in which company is
conducting its task and activities. There are different type of structural design and this will lead
to have huge impact on overall performance of organisation. It is very important that British
Airways company has appropriate design of structure. It has been identified that structural design
of respective company will help in better flow of communication with in organisation. Through
effective structural design of company, work can be conducted in better and appropriate manner
so that desired goals could be timely accomplished. British Airways company is using functional
structural design of growth and development. There are various factors that will affect the
structural design of respective company such as flow of communication, top authority and so on.
It has been determined that they factors of structural design will effect the implementation of
business strategies as well as accomplishment of desired goals. Top authority play a crucial role
in overall performance as well as growth of business. Top authority of British Airways company
is responsible for taking better decisions and evaluation of business strategies.
Information and control system – This function of organisation is very crucial as this
have affect on overall performance of company (Swanson and Edgell, 2013). Information and
control system is majorly related to method or techniques that is helpful in managing different
activities of business. It is essential for this company to use appropriate system that is supportive
in managing information as well as controlling different activities of organisation. British
Airways company is using new and innovative technology in information and control system. So
this is helpful in performing different task and activities of organisation in effective and efficient
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manner. It has been analysed that it is very costly for British Airways company to using advance
system or technology in its business process and this will lead to have direct impact on
performance of business as well as accomplishment of desired goals. High cost involved in
information and control system will lead to have direct influence over profitability of company.
Respective company will not be able to implement the strategies of business in better manner
due to high cost involved in control and information system of British Airways company.
Human resource – It is essential of British Airways company to manage its employees
as well as staff member in appropriate. This will lead to have direct impact on strategies
implementation as well as accomplishment of goals (Phillips and Moutinho, 2014). Human
resource refers to the employees that is conduction different function of organisation so that they
can attain desired goals. Human resource management is one of the crucial function of
organisation. British Airways company is using employee engagement strategies that will lead to
create better and strong relationship with employees and organisation. Employee engagement
can be describe as way in which company is trying to engagement employees with the task and
activities of company. Organisational policy is the major factor that is affecting the strategies of
British Airways company. It has been determined that rules and policies that is developed by
respective company will lead to have major impact on performance of employees and their
engagement. By developing better rules and strategies for employee engagement British Airways
company will be able to easily implement the business strategies. Due to more employee
ligament, staff member will be able to contribute more to decisions as well as execution it in
better manner.
Analyse and evaluate the different performance metrics of your chosen organisation and how this
may affect the effectiveness of the business strategies
The performance metrics refers to all the informations and figures of a business which
assist in determining the abilities, actions and quality of planning in British Airlines. Various
performance metrics like customer happiness, sales, personal reviews, consumers feedbacks,
overall quality and return on investment have utilised by different companies which reflects the
success rate of respective organisation (Gkliatis and Koufopoulos, 2013). Employee performance
metric are critically utilised in tracking the level of their performance, which not only benefit the
employee in getting rewards but also provide benefit to the company. These metrics are
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effectively used in evaluating the potential business strategies that eventually impact in making
the productivity of enterprise higher. Different performance metric and their effectiveness on
British Airlines strategies are discussed below.
Critical Success Factors (CSF) – CSF have been defined as a group of variables which
actually enables an enterprise to achieve predefined goals, which further guarantees the effective
performance of both recent as well as in upcoming operation. The critical success factors have
been integrally employed in navigating the functioning of the company for achieving major goals
which are associated in profit for respective company. Senior leaderships have been found to
influence and control the priorities of business as the aims of the company have been altered.
Such factor have critical role in allowing senior leadership for committing to a certain priority
which are certainly required to implement or formulate companies strategies as well as for
ensuring accountability for applying appropriate actions as per formed strategies. An
organisation have definite visions and missions which promote operation of company in more
directive way. Such factors have been observed to translate the missions into more relevant and
actionable strategies (Elbanna, 2016). The initiative which are taken in the form of defined
components are used in determining strategies which can be imposed on those task which are
being not under taken seriously by personnels. Thus, such direction tightens the connection
between operational performance and business strategies of British Airlines and increase the
productivity of such company exponentially.
Key Performance Indicators (KPI) – Such indicators are identified as measurable
values which also determines how well a company is being performing. An organisation
basically utilises KPI at different dimensions for evaluation rate of success by obtaining target at
given period of time. Major level of KPI may directs on an entire performance level of business
whereas the minor KPI evaluates the process in various divisions which involves human
resource, marketing or sale. In context of developing or evaluating strategies, the team members
should first formulate some objective as well as the modes through which such planning can be
efficaciously achieved (Arasa, 2015). Customer gratification and retention is a kind of KPI
which aids in evaluating whether the clients which are being using the services of British
Airlines are happy as well as satisfied from the facilities or not. Such practice helps in improving
the relationship among client and company and thus assist in retention. The business strategies
which are basically implemented in enhancing retaining capacity and uplifting customer
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satisfaction level, then such criteria can be used. Such performance metrics identifies what
amount of funding will be required by an organisation so as to improve the ideas and making
them more creative and innovative. The strategies which focus bringing more innovation in
functioning as well as in operation of services, such performance metrics commonly utilised by
developing research and development sector (Sotiriadis, 2015). High and efficient training must
be provided to employees for making the workers more competitive and efficacious. Various
exams associated in training ensures which task should be assigned to whom, such practice not
only guarantees to check the effectiveness of strategies but also access the performance level of
employees in British Airlines.
The Balance Scorecard (BSC)
The scorecard have been employed in management and strategic planning system for effectively
communicating the targets, aligning daily task, prioritising the products and services and also
involve in analysing the progress towards the planning and formulation of business strategies.
BSC focuses on strategic measures as well as financial covers for getting a clear and proper
balanced aspect of performance. The prime benefit of employing such framework actually assist
an organisation in connecting the missing dots which are often utilised in several elements of
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Illustration 1: Balanced Scorecard
Source 1: Balanced Business Scorecard (2020)

strategic planning and their certain evaluation. A proper connection thus will be clearly visible
among the strategic program and employees functioning via balanced scorecard and through
tracking the occurrence of KPI the measurements will be done of the missions, visions, strategic
objectives of given company (Chaudhry, Sohail and Riaz, 2013). BSC concisely suggest that a
business is examined on the basis of four various perspectives which aid in generating objectives
and making targets for evaluating the performance level and monitoring the critical business
strategies. Financial perspective looks into the company's financial resources and performance,
while customer views analyse the actions on the basis of view point of clients. Internal process
regards the effectiveness of organisation performance by associating it with the success of any
product or services. The financial perspective help in managing and renders chance to effectively
utilise the available resources so that business strategies can be managed in more planned and
organised way. The internal process enhances the quality as well as efficiency of accessing
performance level which further assist in managing the business strategies. The organisational
capacity are considered depending upon human capital, culture and their capabilities which are
assessed in evaluating performance of employees. The strategic objectives are some of the
actions which are being implemented into normal activities so as to improve the affectivity of
business strategies. Moreover, it has been seen that by maintaining the balanced scorecard
missions of company can be achieved more easily and further the performance can also be
evaluated. By utilising BSC at organisational level and by effectively sharing the perspectives
with certain team members as well as supervisor, they can access and align the kind of
performance shown by various employees.
Critically evaluate key elements in managing strategic change and leading types of strategic
change.
Strategic Changes can be describe restructuring of organisation process as well as
activities. It is very important for respective company to manage as well as evaluate strategic
changes in order to enhance business practices (Harrington and et.al., 2014). British Airways
company is providing high quality product and services to its customers in order to enhance their
experience. There are various changes in business environment that can have positive as well as
negative impact on performance of employees. So it is necessary for respective company to
change its business strategies in order to effective management of business activities. So strategic
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changes will be very supportive in successful implementation of organisational strategies as well
as attracting more and more customers towards organisation.
Key elements of managing strategic changes
There are different elements that will affect management of strategic changes as well as
performing task in better manner. Different elements of strategic changes management is
mention below. Diagnosis – This refers to the identification of change in organisation that is required for
enhancing performance. British Airways company needs to analysis internal as well as
external factors that will lead to have impact on overall performance of company. It is
necessary for respective company to diagnosis all factors in order to determine needs for
important productivity (Sandada, Pooe and Dhurup, 2014). It is significant for this
company to changes with the time as well as adopt new business strategies so that
respective company can growth its business. Change agents - This can be describe the element in which is helpful in implementation
of changes in organisation. Once respective company has analysed as well as evaluated
different factors, it is essential to determine change agents. This will be the base on which
required changes with in organisation will be conducted. Change agents will help in
transforming organisation in better and effective manner. Managing change programmes – It has been determined that this company needs to
conduct an effective management program. So that respective company manage its
changes in effective and efficient manner. Managing changes prop gramme will help in
identifying different ways though which British Airways can successful manage the
required changes with organisation. Levers for change – This refers to the way respective company is managing the changes
for longer term. It is very important to identify as well as evaluate the impact on changes
on business function and process (Hertzman, Moreo and Wiener, 2015). Lever for
changes refers to the praise as well as enhancement of changes with in organisation so
that desired goal could be timely accomplish. This will aid in gaining more positive
outcomes of the changes in order to improve business performance in organisation.
Leading types of strategic changes
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There are four basic leading type of changes such as adaption, reconstruction, revolution
as well as evolution. Leading strategic changes can be classified into extent of change as well as
speed of change. Different types of changes are described below in detail. Adaption – This refers to the strategic changes that is realignment in extent of changes as
well as incremental in speed of changes (Langvinienė and Daunoravičiūtė, 2015).
Adaption changes can be undertaken by the way organisation can realign the business
activities as well as operations. This type of strategic changes could be implement by
appropriate series of steps in order to manage changes effectively. Adaption changes can
be easily fit to the organisational culture of British Airways company. Reconstruction - The alteration which are occurring due to realignment of the modes in
which the company are being operated comes under the category of reconstruction. Such
practices are basically implemented in such a dynamic conditions where the competitive
quotient are high and very company are struggling to achieve more. Due to this a new
perspective comes and the team members functions to positively reconstruct the
operations and functioning of process for making it more competitive. Revolution – In refers to the changes in organisation the includes modifications in culture
of business as well as its strategies. Revolution strategic changes will support in
enchaining business strategies and improving the culture of company. This will help in
improving the overall performance of company and accomplish desired goals.
 Evolution - Evolution strategic changes can be describe as the changes or modifications
that is required with in the changes of organisation culture (Nketia, 2016). It is important
that British Airways company is using evolution strategies for changes in order to
improve the culture as well as alteration in culture of respective company.
CONCLUSION
From the above report it can be concluded that there are factors that is affecting the
successful implementation of business strategies. It has been analysed that strategies of
organisation play crucial role in overall growth and development of business activities. There are
various functions of organisation such as leadership, structural design, human resource and so on
that will lead to have direct affect on execution of business strategies. There are several
performance metrics that will affect the overall business strategies. It is necessary for
organisation to to adopt the better and appropriate metrics for measuring performance of
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employees. This will lead to enhance employees performance as well as productivity. Apart from
this. There are various elements that will help in managing strategic changes of company. It is
essential for company to evaluate different leading types of strategic changes in order to take
better decisions.
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REFERANCES
Books and Journals
Bagdan, P., 2013. Guest service in the hospitality industry. John Wiley & Sons, Inc.
Wearne, N. and Morrison, A., 2013. Hospitality marketing. Routledge.
Evans, N., 2015. Strategic management for tourism, hospitality and events. Routledge.
Swanson, J.R. and Edgell Sr, D.L., 2013. Tourism policy and planning: Yesterday, today, and
tomorrow. Routledge.
Phillips, P. and Moutinho, L., 2014. Critical review of strategic planning research in hospitality
and tourism. Annals of Tourism Research, 48, pp.96-120.
Gkliatis, I.P. and Koufopoulos, D.N., 2013. Strategic planning practices in the Greek hospitality
industry. European business review.
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.
Arasa, R.M., 2015. Participatory orientation to strategic planning process: Does it pay?.
Sotiriadis, M.D., 2015. Culinary tourism assets and events: suggesting a strategic planning
tool. International Journal of Contemporary Hospitality Management.
Chaudhry, M.S., Sohail, F. and Riaz, N., 2013. Impact of employee relation on employee
performance in hospitality industry of pakistan. Entrepreneurship and Innovation
Management Journal, 1(1), pp.60-72.
Harrington, R.J. and et.al., 2014. Strategic management research in hospitality and tourism: past,
present and future. International Journal of Contemporary Hospitality Management.
Sandada, M., Pooe, D. and Dhurup, M., 2014. Strategic planning and its relationship with
business performance among small and medium enterprises in South
Africa. International Business & Economics Research Journal (IBER), 13(3), pp.659-
670.
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.
Langvinienė, N. and Daunoravičiūtė, I., 2015. Factors influencing the success of business model
in the hospitality service industry. Procedia-Social and Behavioral Sciences, 213,
pp.902-910.
Nketia, B.A., 2016. The influence of open strategizing on organizational members’ commitment
to strategy. Procedia-Social and Behavioral Sciences, 235, pp.473-483.
Online
Balanced Business Scorecard. 2020. [Online]. Available through <http://www.free-management-
ebooks.com/news/balanced-business-scorecard/>.
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