This document discusses the importance of strategic planning in the hospitality industry and its impact on human resource, leadership, structural design, and information and control systems. It examines the performance metrics of Hilton and explores key elements of managing and leading strategic change.
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Strategic planning for the hospitality industry
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Table of Contents INTRODUCTION...........................................................................................................................1 Main Body.......................................................................................................................................1 1) Critically examine the factors which are influencing successful execution of strategies on human resource, leadership, structural design and information and control systems................1 2) Examine and measure distinguish performance metrics of Hilton and how it influence effectiveness of the business strategies......................................................................................3 3)Explain key elements such as, managing change, diagnosis, levers for change and etc. in managing strategic change and leading of strategic change......................................................6 .........................................................................................................................................................6 CONCLUSION................................................................................................................................6 REFERENCES................................................................................................................................1
INTRODUCTION Business can grow and develop in the open market through strategic planning. It is very essential to plan tacticsby scanning the dynamic environment accordingly (Adeyinka-Ojo, 2018). Organization is able to compete with it's rivalry through strategic planning in the global market. Strategic planning of the business need to be modified as per the changing environment so that productive results can be attained easily in specific time duration. Hilton is selected for the project completion. It is a American hospitality company founded in the year 1919. Conrad Hilton was the founder of this leading hospitality business. This successful hospitality company is suited in Tysons Corner, Virginia. This assignment covers factors influencing execution of strategies of structural design, human resource, leadership and information and control system. Numerous performance metrics is identified and how they affect business effectiveness is studied. Critical evaluation of diagnosis, managing change, change agent and so on is done in handling strategic change and leading types. Main Body 1) Critically examine the factors which are influencing successful execution of strategies on human resource, leadership, structural design and information and control systems. Hilton is a leading American hospitality company serving it's best services to their customers worldwide. This particular hotel has 923, 110 rooms in 113 countries . It is dealing in hotels and resorts across the globe. Management of the hotel is keep eye on the dynamic environment fluctuation so that strategic planning can be mould accordingly in the global market. Hilton is top leading hospitality business and there are distinguish factors which are either directly or indirectly affecting implementation of strategies on human resource, leadership, structural design and information and control systems. In order to remain in the competitive world top level management need to cope up with those factors which are affecting business function to a large extent (Ali, 2018). In order to implement the strategies for the betterment of human resource, leadership, structural design and information and control systems various factors need to be overcomed. The critical evaluation of this factors are done in order to frame strong and best tactics so that tough benchmark can be created for rivalry. The Influence of this factor are illustrated briefly which are as follows: 1
Human resource:In the competitive market place there are various factors like, technological advancement, workforce demographics, economic conditions and government regulations which are influencing successful execution of strategies on human resource in Hilton working premises. Due to which skilled and capable employees can not be retained for longer time duration. All this factors gradually cut down the market value of the hotel due to which customers are switching to other hospitality business who can full-fill their demand. Hilton management need to frame policies in order to overcome this factors impact on day to day business operation. Human resource the most valuable assets of organization. It is the priority task of the organisation to work on the factors which are creating barriers in it. Negligence in this decreases goodwill which is a negative mark for the business in cut throat competitive world. Leadership:There are some factors which are affecting leadership of Hilton in the workingenvironment(BourantaandPantouvakis,2017).Technology,sociologicalfactor, organizational culture, training andsupport are certain factors which influencing successful execution of strategies on leadership. By this productive outcomes are not attained in the set time duration. As well as assigned task are not properly accomplished in the set deadline according to the requirement. Management of Hilton should conduct research and development work in order to resolve this factors impact on business working conditions. Organization will face many issue if this factors continuous to affect leadership at tremendous scale. Proper guidance can not given to the employees at the time of completion of work. Due to which best and appropriate services can not be given customers in the global market. Additionally, hospitality business is unable to cope up with rivalry prevailing in the open market place. Structural design:Organization's structural design is influenced by many factors such as, strategy, environment, size of the organization and technology. The influence of this factors varies from organization to organization. Influence of the factors on structural design varies according to the type of business functioning in the market. In the global market all this factor influence successful implementation of strategies on structural design to a large extent in negative manner. It raises capable staff members turn out ratio due to which overall workforce efficiency reduces immediately. However, chances of closing down of business raises more from the international market. Employees work in an organization if they provided smooth and calm working environment. It is essential to work on those factors which are decreasing their overall working capacity (Buhalis and Leung, 2018). 2
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Information and control systems.Nature of the operation and their divisibility, people perception, laws and regulations and responsibilities in a company are some of the factors that are directly or indirectly impactingsuccessful implementation of strategies on information and control systems. Hilton is providingadequate training to their employees so that business can overcome from this factors easily. Strategies are modified according to the dynamic environment so that information and control system work can be performed smoothly without facing any kind of difficulty. In order to survive and sustain in the global environment it is essential to work on the factors impacting information and control systems. 2) Examine and measure distinguish performance metrics of Hilton and how it influence effectiveness of the business strategies. Business metrics is said to be one of the crucial approach that helps in identifying number of quantifiable measures, which may aid business organisations in tracking the overall process and to take number of decisions as well. Including this, it has been analysed that business metrics stays enclosed with company, employees, consumers along with the investors as well that aid in managing the performance in much effective and in efficient manner as well. Including this, it is said that for every single area in which the company like Hilton is operating consists with number of performance related business metrics (Camilleri, 2018). On the other hand, it is also said that performance metrics is a crucial tool that lead a company towards success. Therefore, it is vital for every single business company needs to determine all the different factors, so that they could gain competitive advantage. Away with this, it has been found that it is particularly a reason that mainly identifies various factors that aid in analysing the performance. If it is talked about Hilton, then this is particularly carrying number of metrics that may become able to reach to success level and all these are presented underneath: CriticalSuccessFactors(CSF):Thisisbeingconsideredasoneofthecrucial management tool, which may aid Hilton to attain it's desirable goals and achieve mission as well. Here, if it is talked about Hilton the this hotel is specifically holding a number of success factors and all of these are presented underneath: Global Outlook: This is one of the crucial critical success factor for Hilton because, this would directly aid in competing at the international level where company has considered as effective approach because this is where Hilton tried to grab the attention of customers at the time of vacations. 3
Profitability: This is being another success factor that Hilton is holding at present where, company focuses on getting the best profit out of all the service they have offered to the consumers. This is where, Hilton mainly puts an aim to enhance the profit margins through improvising existing services that they are offering to consumers (Secchi and Verma,2018). Including this, it is also said that organisation also grabs the attention of public through developing a number of strategies, which may aid firm in meeting new targets. Evaluation of the success factors in terms of business strategies: Considering the above elements it can easily be said that Hilton mainly develops number of factors, which may aid all the business functions of Hilton in working in a much more appropriate way towards a particular goal. On the other hand, it has been found that most of the time all the critical success related factors offers right direction towards success. KeyPerformanceIndicators:Thisisspecificallybeingconsideredasacrucial indicator, which aid in measuring values that Hilton is holding within the international and national market. Away with this, it is also said that this is something, which facilitates Hilton in comparing performance with other business organisations in the same industry. Some of key performance indicators of Hilton are presented underneath: Employee Performance:It is said that cost of labour is not only related with the salary of the employees which they are being given but even it also includes several expenses which is based on the performance of employees (Dimitropoulos,2018). It is needed to understand that performance is analysed on the basis of obtained result where it mainly includes speed of services and many more. In simple words, it gives the idea to the employees of Hilton that how they are required to perform to manage their performance. Average Daily Rate: It is mainly used for the purpose of calculating the charges which is needed to be charged from the guest who visits the hotel. The average daily rate of the room is neededto be calculated on the basis of total revenue and number of room availableintheHiltonHotel.Itevengivestheopportunitytoevaluatethepast performance . Evaluation of KPI in terms of effectiveness of business strategies: In any of the business organisation, any of the strategies can be formed effectively on the basis of performance shown by the employees which directly helps to accomplish the goals of an organisation. Every 4
time rates of room are calculated on the basis of monitoring and according to that rates are decided by the management of Hilton Hotel. In simple words, it helps company in the formulation of effective plans and policies through which effective results can be obtained. The Balanced Scorecard:It can be defined as the business tool which simply explained that how internal performance of the organisation can be improved in limited time period with the help of effective communication process (Peters and Kallmuenzer,2018.). It discussed that where company is required to reach and how they can be done. In addition, feedbacks can be obtained by the business organisation which is help to uplift the performance. Some of the perspectives which are being followed by the business organisation like Hilton are explained below: Financial:It is one of the crucial components which will allow Hotel Hilton to determine that how they are performing within the market on the basis of financial performance. Some of the expenses which are needed to be included by the Hotel Hilton over here is salary being provided to staff, charges that occur at the time of purchasing the cooking products and equipments. By looking at all of the expenses they can form the policies. Customers: The main thing which is needed to be focused over here is that how management of Hilton can manage all of the work to satisfy the customers (Kariuki and Ochiri, 2017). Some of the services which they will focus to form any of the strategy is satisfaction of the guest, delivering the necessary services to the customers. At the time of formulating the strategy they will be able to decide where changes are required. Internal Processes: In this, the management of Hilton will look for information system, employees capabilities and many more. According to that they will form the plans and polices and even improvement can be done easily. Organisational Capacity: The area which is needed to be focused is human resources, infrastructure and many more. For the purpose of improving the performance, it is necessary that management of Hilton Hotel must adopt latest technologies for better result. Looking at all of the different performance metrics, it will be crucial for Hilton to adopt balance scorecard as it will try to identify each and every area before the formulation of any of the strategy (Sehitoglu and Köseoglu, 2017). 5
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3)Explain key elements such as, managing change, diagnosis, levers for change and etc. in managing strategic change and leading of strategic change. Strategic change is illustrated as procedure of handling and tackling change in an organization.Incompetitiveworldtherearevariouswaysthroughwhichbusinessor organization can easily manage and lead strategic change. However there are numerous leading changeprevailinginthemarketwhichare,reconstruction,evolution,adoptionand reconstruction. Hilton need to examine key elements like, change agents , diagnosis, managing change and so on in order to make necessary improvements in the loop holes (Metaxas and Koulouriotis, 2019). The points are showcased below: Diagnosis:It refers to as discovering problems faced by company and to understand the root cause of them so that solution can be designed accordingly. It is important for Hilton to diagnosis so that better results can be identified for the problems prevailing in the premiss. By this positive working environment can be provided to the employees. Which helps in meeting set objectives in set time duration. If diagnosis is not done then best outcomes are not attained as well as tough challenges are not created for rivalry. Hospitality business can survive and sustain in the market only if diagnosis is done appropriately and lead by adopting them. Change agent:In the global marketchange agent is described as anindividual who supports and promotes change in an organisation. They are the one who motivates and convince other to adopt change easily as soon as possible. Hilton is able to bring change in the working premises due to the change agent. They are capable enough in managing and handling changes taking place in the working premises. Change agent lead changes in the hospitality business by adopting them in the company and ensuring the benefits of change among staff members (Moutinho and Vargas-Sanchez, A. 2018). Managing change programmes:In an organisation it is illustrated as procedure of planning and executing change in the working premises in order to cut down the staff members resistance to a large extent. Hilton is evaluating this key element in order to successfully execute the change at workplace. By this chances of creating tough benchmark for rivalry is raised which is a positive mark for the business. Managing change programmes can be managed and lead by reconstruction and adoption of strategic change. With the changes in the dynamic environment managing change programmes also modified so that both employee and employer are benefited 6
in the intense competitive world. Hospitality business need to keep eye on the managing change programmes so that large customer can be attracted towards the services provided by the them. Levers for change:In this case, it is illustrated as strategy and condition which is adopted to enhance business overall performance and revenue (Titomir and Danylova, 2018). Organization nee to examine levers for change in order to raise profitability ratio as compare to rivalry prevailing in the international market. Levers for change can be managed and lead by revolution . CONCLUSION From the above discussion the conclusion drawn is that it is essential for organization to focus on strategic planning. It need to modified as per the requirements in the global market. Across the globe there are distinguish factors which are affecting business functions to alarge extent. Some of the business functions are human resource, leadership, information and control systems and structural design. Factors impacting successfully implementation of strategies is studied in order to identify best ways or methods to resolve them as soon as possible. This is done because factors decrease the overall productivity of the business and cut down market value. Evaluation of performance metrics is done to reduce the impact of effectiveness of business strategies. By this set objectives can be attained easily. Brief explanation of key elements like, managing change, levers of change, diagnosis in managing strategic change is done in order to make improvements in the loop areas. 7
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