Strategic Planning for the Hospitality Industry

This document provides a comprehensive analysis of strategic planning in the hospitality industry. It includes a critical analysis of factors affecting successful implementation of strategies, an evaluation of different performance metrics, and a discussion on managing strategic change. The document focuses on the case of Hotel H10 London Waterloo and provides insights into leadership, structural design, information and control systems, and human resource management.

Strategic planning for the
hospitality industry

Table of Contents
INTRODUCTION...........................................................................................................................1
1) Critical analysis of factors affecting the successful implementation of strategies......................1
Leadership...................................................................................................................................2
Structural Design.........................................................................................................................3
Information and Control Systems...............................................................................................3
Human resource .........................................................................................................................4
2) Analysis and evaluation of different performance metrics .........................................................5
Critical Success Factors (CSFs) .................................................................................................5
Key Performance Indicators........................................................................................................6
The balance scorecard ................................................................................................................6
3) Critical evaluation of key elements in managing strategic change and leading types of strategic
change. ............................................................................................................................................7
Adaption......................................................................................................................................7
Reconstruction ...........................................................................................................................7
Revolution ..................................................................................................................................8
Evolution ....................................................................................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10
.......................................................................................................................................................11

INTRODUCTION
Strategic planning is basically an organisational management activity that aim at setting
priorities, focusing on available resources and energy, strengthening operations and finally
ensuring that efforts of all employees and stakeholders should be towards achievement of a
common goal and success of organisation (Phillips and Moutinho, 2019). Strategic planning is
considered as art and process which involves formulating business strategies, proper execution
and implementation of these strategies and evaluating and analysing there impacts on overall
performance and achievement of objectives of organisation. For this assignment the hospitality
organisation selected is Hotel H10 London Waterloo having its headquarter in London, UK. In
this report, Critical analysis of factors affecting successful implementation of strategies on four
functions business function is included. Along with this analysis and evaluation of different
performance metrics and there affect on effectiveness of business strategies are also included. At
last, critical evaluation of key elements in managing strategic change and leading types of
strategic change also form a part of this report.
1) Critical analysis of factors affecting the successful implementation of
strategies
Strategic planning is basically a process which involves determination of vision for future
as well as also include identifying goals and objective for betterment and successes of
organisation. Strategics planning is a complex process which include many tasks like
formulation of an effective strategy, analysis of its expected outcomes, implementation of
strategy, evaluation of that strategy and finally measurement and check of its performance
(Hassanien and Dale, 2019). The main of any organisation behind strategic planing is to
formulate better strategies using a logical and systematic approach for better performance and
achievement of task.
Hotel H10 London Waterloo is a 4 star hotel of London, UK located at an excellent
locations near hose of parliament, Big Ben and London eye (H10 London Waterloo, 2019). It is a
hotel providing unique architecture and featuring asymmetrical shapes and elegant interior
design. Beside this, comfortable and bright rooms with signature cuisine and cosmopolitan
cuisine are its speciality which attracts a large number of customers for Hotel H10 London
Waterloo. To have better future and bright scope Hotel H10 London Waterloo is planning to
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bring out some strategical changes in its functions to have better efficiency in operations so that
mush better services and facility can be provided to customers and clients. While implementation
of any strategic change or new strategy various factors of organisations affects its successful
implementation and execution. Some of these factors fosters the change and lead to effective
implementation of strategy while some also adversely affect the change process and reduce the
phase of successful implementation of any strategy. A critical evaluation and analysis of factors
that affect successful implementation of strategies on following four business function are
provided below with respect to Hotel H10 London Waterloo .
Leadership
Leadership is an art or action of leading and directing people towards the achievement of
organisational goal thus, main function of leadership includes influencing employees behaviour
towards better performance (Vij, 2019). The other function of a leaders includes setting of clear
vision, motivates and guide employees through providing better work process and builds morale
of employees. Presently in Hotel H10 London Waterloo use of autocratic leadership style is
made by leaders to have better control on decision making process and to have a centralise
decision making system. But this type of leadership styles has created a negative atmosphere in
organisations through reducing the scope for creativity and innovations. Thus to have, better and
more positive workplace atmosphere Hotel H10 London Waterloo is planning to bring a
strategical change in its leadership and going to adopt Democratic leadership style. Use and
implementation of democratic leadership style will create a much healthier and motivate
atmosphere in Hotel H10 London Waterloo through better participation and involvement of
employees in decision making process. Beside this it also improve the creativity and innovation
level of organisation as skills and talents of all employees are effectively used as they are
allowed to share their view points and perceptive.
The factor that have most significant affect on implementation of this strategy is
communication channels. For successfully implementing this change in leadership style by
Hotel H10 London Waterloo an effective communication is must to ensure proper flow of
information with in the organisation (Park, Krishnan, and Ha, 2019). Effective communication
is needed to transfer all the relevant information about the change to all levels of employees
informing about the pros and cons of new strategy. As the new change will provide better
participation and involvement to employees thus, adoption of new strategy will be positively
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supported by the employees as they get better chance to show their skills and this also lead to a
better communication and interaction between employees and leaders which will enhance their
moral. But, lack of congruency from top authority can be seen as it will dilute their decision
making powers and also makes decision making a lengthy and complex process. Thus, lack of
support form top management and authority is a factors that can adversely affect the change and
implementation of strategy going on in leadership function of Hotel H10 London Waterloo.
Structural Design
Structural design of an organisation is basically shows the way that how different
operations are conducted within an organisation and who is accountable to whom and also
denotes the sequence of work flow of an organisation (Kumar, and Passah, 2019). Hotel H10
London Waterloo is having a divisional structural design which has divided this organisation into
division or smaller groups on the basis of different types of services offered by them but this has
reduced the coordination and collaboration among various activities. Thus to have a better flow
of operations and to maintain better coordination, Hotel H10 London Waterloo is planning to
come up with a new strategy of having functional structural design. Beings a hospitality
organisation various functions are going on in Hotel H10 London Waterloo which includes
customers service department, marketing, sales, finance and many more functions. Thus,
adoption of new strategy of bringing functional structure design is effective for Hotel H10
London Waterloo as role and responsibility of each function and individual can be affixed in a
better way.
The factor that can effect the implementation of this strategy includes employees
engagement and planning of sequence. For execution of this strategy it is essential to properly
engage all level of staff throughout the organisation which facilitates additional input and build
greater level of commitment and loyalty in employees for proper implementation of strategy
(SKOBKIN, 2019) . Change in structural design is a complex and difficult process, thus planning
the sequence and prioritizing and determining timing and resources required are the factors that
can hinders the successful implementation of this strategy of bringing functional structure design
in Hotel H10 London Waterloo.
Information and Control Systems
Information and control systems are used for having a check on and different types of
controls which includes inventory, financial and other internal control to ensure better flow of
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activities and uninterrupted operations of an organisations. For an hospitality organisation it is
necessary to have proper IT systems and other controls to safeguard and secure the personal
details and sensitive information of customers and also a require to store a large amount of data
and records about its customers (Ribeiro, Vasconcelos, and Rocha, 2019). Therefore, Hotel H10
London Waterloo is planning to come up with a new strategy to improve digitalisation and IT
system in its organisation. Hotel H10 London Waterloo is making strategy and policy for having
better MIS and CRM system with in the organisation.
This new strategy of having better management information system (MIS) and customer
relationship management system (CRM) ensures better services and facility to customers and
also reduce the burden and increase the efficiency of employees and lead to better operation and
efficient use of technology or having better control. Thus, this strategy will likely to support by
the employees, but digitalisation and implementation of MIS and CRM is a costly process, thus,
the factor of Insufficient resources and lack of funds will affect the successful implementation
of this strategy within the Hotel H10 London Waterloo. Beside this lack of proper skills and
knowledge in employees to make use of these IT system can also create an issue in effective
execution of strategy.
Human resource
The main function of human resource is related with management and control of
manpower and workforce of organisation. It deal with effective recruitment, procurement,
development and retention of employees (Sedarati, Santos and Pintassilgo, 2019). Function of
HR also include efforts for improvement and enhancement of skills of employees. To sharpen
the skills and for better creativity and innovation in organisation for enhancing the productivity
and overall performance, Hotel H10 London Waterloo is planning to coming up with a new
strategy of giving better training and development programmes for employees. This strategy will
improve the competence and skills of employees but the attitude and behaviour of Resistance to
change and factor of lack of interest and enthusiasm in employees regarding the training and
new strategy is hindering the successful implementation of these training programmes and new
strategy of Hotel H10 London Waterloo.
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2) Analysis and evaluation of different performance metrics
Use of various performance metrics and techniques are made by an organisation to
analysis and evaluate the success and achievements of various strategies formed and
implemented with in the organisation. Use of following performance metrics and techniques are
made by Hotel H10 London Waterloo to evaluate and measure the performance and
effectiveness of its strategy.
Critical Success Factors (CSFs)
Critical success factors define the key areas of performance that are necessary for an
organisation to accomplish and achieve its mission. It allow the mangers and leaders to track the
success of mission through helping in implementation of new software and lead to completion of
a project or task on time. CSF aim at defining the factors that are the main cause and reason for
achieving the success like good leadership, engaged employees, string profits , etc. The concept
of CSFs (also known as Key Results Areas, or KRAs) was first developed by D. Ronald Daniel,
in his article "Management Information Crisis" (Harvard Business Review, September-October
1961). John F. Rockart, of MIT's Sloan School of Management, built on and popularized the idea
almost two decades later (Ahmad and Scott, 2019). CSF droll down into the objectives to get the
to the heart of what are the things needed to achieve and acquire the pre decided objectives.
Use of CSF is made by Hotel H10 London Waterloo for effective implementation and
reducing risk in implementation of its new IT system i.e. MIS and CRM. Implementation of a
new software application is a costly process thus, proper resource intransitive proposition is
needed. The strategy for implementation of a new system should be clearly defined with proper
use of a metrics to measure the success concisely documented and measured before and through
out the project. With the help of CSF performance metric it has been evaluated that the strategy
for adoption of MIS and CRM has been properly implemented and it is measured that efficiency
of employees has also been increased with adoption of this. It has been measured through CSF
that the main factor in success of this strategy is the timely training provided to the employees to
enhance their skills and also the resource and well managed to achieve the objectives of strategy
with minimum cost and well on time (Stylos and Zwiegelaar, 2019). Use of CSF has increased
the effectiveness of strategy formulated for adoption of better It system through managing the
issue of lack of resources through identifying critical factors of success and reducing and
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eliminating wasteful and unneeded factors and task to maintain the cost efficiency of strategy
and project.
Key Performance Indicators
KPI is a tool used by organisation to measure and demonstrate how effective are the
strategies and performance of all employees and resources in achieving the key business
objective. Use of KPI are made at multiple level to have a check and control on performance of
key areas of organisations. Use of KPI tool is made by Hotel H10 London Waterloo to evaluate
and analysis the performance of its strategies formulated for change in leadership and structural
design. KPI tool provide a clear picture and comparison between current level and previous level
thus, provided better evaluation of increment in performance (Rofiq and Pramono, 2019). The
main aim of strategy of change in leadership style is provisioning better workplace environment
to employees which is achieved by Hotel H10 London Waterloo as it is indicated through KPI
indicator that employees turnover and complaints of employees regarding unhealthy workplace
environment will get reduced by more than 10% in after the implementation of democratic
leadership style. Apart from this it has been also evaluated that change in structural design will
also provide better coordination among functions after adopting of functional structural design.
Further, use of KPI has provided better control and check on all leaders, mangers and employee
regarding whether they are performing their job and task efficiently or not. Thus, use of KPI
exerted a pressure and also create a motivation in employees to enhance and improve their
performance as their work is properly monitored and checked through KPI tool thus, improve the
efficiency of strategy and overfall performance of organisation.
The balance scorecard
Balance scorecard is basically a strategic planing and management system that is used by
an organisation to communicate and properly align day to day work through prioritizing project,
products and services for accomplished of objectives of an strategy on time (What is balance
scorecard, 2019). The main aim and use of Balance scorecard is to measure and monitor the
progress of an organisation towards strategic targets and connects various dots between
components of strategic planning and management to accomplish mission, vision and strategy of
an organisation (Sutrisno and Jazilah, 2019). Use of balance scorecard is made by Hotel H10
London Waterloo for measuring the performance of its HR strategy as it provide proper
performance metrics to identify and improve various internal business functions. With the use of
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balance scorecard, the factors which are hindering business performance and outline strategic
changes are tracked by Hotel H10 London Waterloo, thus, strategy of providing better training
to employees is implemented and adopted by Hotel H10 London Waterloo to have better
performance and creativity in organisation for achieving the objectives and better result.
3) Critical evaluation of key elements in managing strategic change and
leading types of strategic change.
A critical evaluation of key elements in managing strategic change and leading types of
strategic change in respect of Hotel H10 London Waterloo are provided below.
Leading types of strategic change used by Hotel H10 London Waterloo are as follows:
Adaption
It is a strategic change that is accommodated with the existing culture and can occur
incrementally. Adaption describes the process of implementation or adoption of any new
technique or system. Thus, the strategic change of Hotel H10 London Waterloo of implementing
new IT system i.e. CRM and MIS are a example of adaption strategic change. Use of change
agents are being made by Hotel H10 London Waterloo to effectively mange and implement
adaption strategic change in organisation (Dixit, and Mawroh, 2019). Change agents are the
persons or individuals from outside or inside the organisations that help a firm a executing a
change in more efficient way. Thus, to have effectiveness, improvement and development in its
organisation use of change agents are made by Hotel H10 London Waterloo for proper
implementation of adaption strategic change in information and control system.
Reconstruction
This type of change reflects the rapid range without fundamentally changing the culture
of the organisations. Reconstruction is basically a process of cresting or building something new
and also includes developing new feature or talents (Penela, Morais and Gregory, 2019). The HR
strategy implemented by Hotel H10 London Waterloo is a example of reconstruction strategic
change as its main aim is at developing and creation new skills and talents in employees. For
effective implementation of this strategy use of managing change programmes are made by
Hotel H10 London Waterloo. Adoption of managing change programmes ensures better control
and installation of better process and techniques to provide efficient training programmes to
improve the realization of business benefits.
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Revolution
This strategic change is basically related with fundamental changes in both strategy and
culture. Revolution includes a complete change over in an organisation thus, change in the
structural design of Hotel H10 London Waterloo from divisional to functional structural design
is an example of Revolution strategic change. Use of levers for change are made by Hotel H10
London Waterloo for effectively adopting this change in its organisation (Padron and Stone,
2019). Levers of change includes the prudently using mas exposure, hiring if expertise, listening
to resisters and shifting resistance and providing requisite tools and infrastructure for effective
implementation of revolution strategic change so that the objective of better coordination among
all function can be achieved in Hotel H10 London Waterloo.
Evolution
This is basically a culture change which is required for adopting better workplace culture
and get accomplished over time. Evolution is basically a gradual change in characteristic and
features of any individuals or system the results of which are shown over time. Thus, change in
the leadership style of Hotel H10 London Waterloo is a evolution strategic change which will
bring out better atmosphere and culture at workplace through providing more participation and
involvement to employees. Use of proper diagnosis is made by Hotel H10 London Waterloo
before bringing change in its leadership style (Phillips and Moutinho, 2019). The proper
diagnosis is made by Hotel H10 London Waterloo which reflects that autocratic leadership style
has facilitated a fast decision making system but created negativity and reduces the moral of
employees as they are not allowed to participate in decision making thus, Diagnosis is the key
element behind effective implementation and management of Evolution strategic change.
CONCLUSION
From the above assignment it can be concluded that use of strategic planning is made by
organisation to set and priorities its task and objective for better performance and success of
organisation. Various strategies are formed by function like change in leadership style to provide
better guidance and direction, implementation of better IT system to increase the efficiency of
operations and providing timely training for developing and shaping the skills of employees. Use
of various performance Metrics like CSF, KPI and balance scorecard is made by an organisation
for measuring and improving efficiency of its strategy. Finally, it can be summarised that there
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are 4 lading strategic change which includes adaption, reconstruction, revolution and evolution.
Beside this key elements of managing strategic change includes change agent, diagnosis, etc.
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REFERENCES
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SKOBKIN, S. S., 2019. The Integrative Strategic Development for Perspective Hotel
Enterprise. Journal of Environmental Management and Tourism (JEMT). 10(34).
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Ribeiro, M. L., Vasconcelos, M. L. and Rocha, F., 2019. Monitoring performance indicators in
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Sedarati, P., Santos, S. and Pintassilgo, P., 2019. System dynamics in tourism planning and
development. Tourism Planning & Development. 16(3). pp.256-280.
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resource costs in Langkawi, Malaysia. Tourism Review.
Stylos, N. and Zwiegelaar, J., 2019. Big Data as a Game Changer: How Does It Shape Business
Intelligence Within a Tourism and Hospitality Industry Context?. In Big Data and
Innovation in Tourism, Travel, and Hospitality (pp. 163-181). Springer, Singapore.
Rofiq, A. and Pramono, S., 2019. The Role of Strategic Planning and Flexibility in Shaping
SMEs Market Orientation in Turbulence Business Environment. European Research
Studies. 22(1). p.221.
Sutrisno, E. and Jazilah, I., 2019. The licensing policy for groundwater extraction and
management for hospitality industry in cities in developing countries. Water Policy.
Dixit, S. K. and Mawroh, H., 2019. Vocational Education and Training for Hospitality and
Tourism Industry in India. In Tourism Education and Asia (pp. 35-48). Springer,
Singapore.
Penela, D., Morais, A. I. and Gregory, A., 2019. An analytical inquiry on timeshare research: a
continuously growing segment in the hospitality industry. International Journal of
Hospitality Management. 76. pp.132-151.
Padron, T. C. and Stone, M. J., 2019. LEADERSHIP SKILLS IN EVENT MANAGEMENT
COURSES. Event Management.
Online
What is balance scorecard. 2019. [Online] Available
Through:<https://balancedscorecard.org/bsc-basics-overview/>.
H10 London Waterloo. 2019. [Online] Available
Through:<https://www.h10hotels.com/en/london-hotels/h10-london-waterloo?
tc_alt=32406&n_okw=hotel%20h10%20london
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%20waterloo_p_1t3_c_13652210425&gclid=EAIaIQobChMI_dv88fOx5gIVlRmPCh3
SMQK9EAAYAyAAEgKlg_D_BwE>.
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