Strategic Planning for the Hospitality Industry

This presentation provides an overview of strategic planning in the hospitality industry, with a focus on Park Plaza. It covers topics such as strategic direction, Porter's five forces model, internal and external environmental factors, and strategic options. The presentation offers valuable insights for students working on assignments, essays, or dissertations related to the hospitality industry.

Strategic Planning for the
Hospitality Industry
(PART 1)

Table of Content
 Introduction
 Strategic direction
 Porters five forces model
 Internal & external environmental factors
 Strategic options
 Conclusion
 References

Table of Content
 Introduction
 Strategic direction
 Porters five forces model
 Internal & external environmental factors
 Conclusion
 References

Introduction
Strategy formulation is related to
making a careful analysis of the
dynamic external environment to
determine the future possible
changes that can affect the
organization in long run.

Strategic direction
Mission: Park plaza is catering to fulfil requirement
of both business and leisure.
Vision: The main vision of Park plaza is to give each
guest a real experience and against backdrop of
modern space with leading designs.

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Values: The overall value of park plaza is reflected in providing a
tailored experience to individual according to their needs.
Culture: The leadership culture of organization is focused on
innovation, inspiring, connecting and empowering environment that is
based on respect, trust, enthusiasm, teamwork, care and commitment
for the customers.

Porters five forces model
Porters five forces model
Industry can be regarded as group of organisations that are engaged in
producing different product and services for satisfying needs of society.
Business strategy is a integrated set of actions that are named at
achievement of sustainable competitive advantage over other competitive
brands. There are five major competitive forces that are part of this model
and are affecting the functioning of Park Plaza. There is discussion of
these five factors to analyse the competitive positioning of Park plaza
Webnister London:

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Porters five forces model
Industry can be regarded as group of organisations that are engaged in
producing different product and services for satisfying needs of society.
Business strategy is a integrated set of actions that are named at
achievement of sustainable competitive advantage over other competitive
brands. There are five major competitive forces that are part of this model
and are affecting the functioning of Park Plaza. There is discussion of
these five factors to analyse the competitive positioning of Park plaza
Webnister London:

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Threat of new entrants:
Threat of new entrants is determined by the number of barriers that are
part of a industry. It consist of several factors such as economies of scale
that is according to scope and size of operations to achieve a effective
Cost structure, switching cost, product differentiation and high amount of
customer loyalty that is created by reliability, quality and brand image of a
particular organisation.

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Threat of substitution: Threat of substitution is related to existing or potential
products. substitution is related to availability of similar quality products at
lower prices or better value or better performance perceived by customers.
Bargaining power of buyers: In case of Park plaza the bargaining power of
buyers is high as there are lot of other options that are offering concentrated
options to this segment of customers. enterprise.

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Bargaining power of suppliers: in case of hotel industry the supplier that
exercise power includes organisation that posses experienced trained
personnel that is in high demand.
Industrial rivalry: Park plaza is a established brand since 1997 and this
has lead to established brand name with the help of their sister brands such
as Park Inn and in year 2019 it is owned by Radisson hotel group that is
leading to achievement of a high competitive advantage

Internal & external environmental factors
 Internal & external environmental factors
SWOT analysis:
Strength: Park plaza is a hotel chain having several franchises across different
parts of world and it is a recognized brand as acquired by Olympus real estate in
1997 and Radisson hotel group.
There is reflection of contemporary architecture of Park plaza a big attraction
for their Present customer segment.

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Weakness:
The brand recall rate of park plaza is very limited because of other
competitors offering high quality services and experiences to their
customers.
Threats:
There is a situation of political turbulence that is hampering the
hospitality sector.

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Opportunities:
Park plaza has a opportunity to participate in more initiatives and
programs such as future food tech program where there were
debates, presentations, discussion of alternative proteins, intersection
of health, nutrition and exploring of topics to understand the future
of retail.

External analysis
PESTLE ANALYSIS:
For the purpose of making a detailed analysis of external factors affecting
hotel industry there is requirement to understand the different factors that
are creating a long run impact on the functioning of Park prime. Some of
such factors are mentioned below:

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Political Factors: Political factors includes government intervention in
economy of a country. There are certain political factors that are part
of areas such as labor law, trade restrictions, tax policy, tariffs.
Economic Factors: With the changing external environment the
economic conditions of a country are continuously getting affected.

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Social factors: The society culture and shared beliefs of population
play a part in how marketers are understand the customers of a
particular target market.
Legal Factors: Park plaza has taken initiatives for development of
many projects such as they have created a destination that is next
venue for international events.

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Technological Factors: Technology is disrupting lot of industries across
world. Park plaza has been able to successfully adopt latest
technology in their accommodation facilities
Environment Factors: Park plaza webnsiter London is contributing
positively towards external environment by launching and being part
of may campaigns such as they have contributed towards future food
tech London in the year 2019.

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Strategic options:
There are many different types of strategic options that are available with
organisation. It includes franchising, joint ventures, mergers,
acquisitions and management contracts, creative acquisition strategies
are offering both buyers & sellers additional opportunities to expand
their business by having a structure and development of a product and
services with using the existing brand image.

References
Future Food Tech London 2019, [online], Available
through<http://foodinnovationprogram.org/event/future-food-tech-
london-2019/>
Welcome to Park Plaza, 2020 [online], Available through<
https://www.radissonhotels.com/en-us/brand/park-plaza>
Ahlstrand, R. and Rydell, A., 2017. Corporate social responsibility in
connection with business closures and downsizing: A literature review.
Contemporary Management Research; 1, 13.

Thank You