Strategic Planning for the Hospitality Industry

This report discusses the factors to implement a chosen strategy, creative business strategies for future strategy selection, and performance metrics in the hospitality industry. It focuses on Britannia International Hotel Canary Wharf and its efforts to increase sales and profitability.

Strategic Planning
for the Hospitality
Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Critically analyse the most appropriate factors to implement a chosen strategy. ...................1
2. Research about creative business strategies for your chosen organisation’s future strategy
selection to be competitive in the hospitality industry. ..............................................................3
3. Analyse and evaluate the different performance metrics (critical success factors, key
performance indicators and the balance scorecard......................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Strategy is defined as board statement regrading the direction and guidance of
organisation which can be uses by management in order to operate the business effectively. This
become important for all organisation to understand the position of organisation and formulate
different planning which supports to attain the business goals and increase organisational
profitability (Ali, 2018). The strategic planning is the continuous process of establishing and
documenting the small business which uses to operate and regulate the business efficaciously.
This report is based on Britannia International Hotel Canary Wharf that faced the problem of less
number of customers and having high competition in market. The management of such
organisation played an important role by formulating strategic planning became the new
technology and process which helped to operate business and increase organisational
profitability. This report mainly covers discussion of appropriate factors that implement by
organisation, creative business strategies for organisation's future strategy and different
performance metrics that used to increase the organisational profitability.
1. Critically analyse the most appropriate factors to implement a chosen strategy.
Strategic planning is defined as continuous process that requires considerable thought and
planning on the part of organisation's upper level management that can help to increase the
organisational performance and profitability. This is important for organisation to analyse the
condition and demand of customers then provide products accordingly which can help to attain
the high brand image and increase the sales. In context to Britannia International Hotel Canary
Wharf, number of factors are arises in market which are uses or implement in order to increase
the sales and profitability that are as defined:
Innovation – Strategic planning is defined as process of running business continuously
by introducing new products and services in market and increase the sales in challenging
environment. Al most all organisations are telling and understanding their staff to use new
technology and be more innovative that can support to incremental in organisational
productivity. If organisation is able to adopt the new innovation and technology in their products
as well services then it will be an opportunity to increase attain the competitive advantages and
increase the sales. For example, Britannia International Hotel Canary Wharf is a larger
organisation that understand what people wants and how they can be satisfied. The management
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bring the new technology in booking rooms as payment that make the easy working for
customers and also introduce new taste in food that make happy in changing environment by
implementing new planning. This can help to increase the sales and productivity by formulating
plans and implement them appropriately (Bagheri, 2016).
Communication – This is important for all organisation to maintain the good
communication and proper coordination between employees who are working at workplace that
can help to attain the challenges and improve the existing performance. In the formulation
process all member of organisation follows different strategies and planning for the purpose of
attaining the business goals. In context to Britannia International Hotel Canary Wharf, number
of employees are working in different department such as marketing, finance, HRM, operation,
administration, cleaning, room services, customer support services, production and sales where
all people are focusing on this factor and maintaining clear communication. This can help to
bring the innovation and implement new process which can help to increase the sales and
profitability (Chandra, 2019).
Engagement – The planning in relation to strategic is a process that should be consider
by management in order to providing products and services. This is also important factor that
needs to be consider while operation and administration. The meaning of engagement is
involvement of all employees in organisational activities and plans by generating additional units
that helps to build their commitment to the end plan. If employees are engaged in process and
activities then it will be easy to complete the task in certain time and solve the problems. In
context to Britannia International Hotel Canary Wharf, management is playing an important
role who analysis needs of all members and share with them so they get engage in work and
complete the task in fixed time period. This also helps to manage the task and increase all
performance in relation to hotel (BURKE, ROBINSON and Choi, 2020).
Project management – The another important factor is project management that should
be consider while operating the business and increase the performance. If projects are decided
by management in organisation then needs to give the priorities in all projects that can help to
bring the high involvement and commitment in completion which supports to manage the good
performance. In context to Britannia International Hotel Canary Wharf, management is
delivering better quality of products and services by deciding projects and ensures that all
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activities will be done in certain time that helps to maintain higher performance (Chandrasekera
and Hebert, 2019).
Culture – This is another factor which is require to implement by management in
strategic planning for the purpose of attaining competitive advantages by motivating staff. The
culture of organisation consider values, attitudes, behaviour and beliefs of employees who are
working that should be good and acceptable. If employees of organisation believes that change is
not easy and avoided, then implementation of changes is often haphazard. In Britannia
International Hotel Canary Wharf, management is responsible to introduce new changes by
understand culture of employees and provide them training which can help to accept the changes
effectively. This can help to grow the production and profitability in relation to business and
manage the higher performance (Cheluget and Koech, 2018).
Therefore, all the above factor which are discussed implemented by Britannia
International Hotel Canary Wharf in order to solve the problems, accepting challenges, bringing
changes and adopting equal culture by providing training, helps to increase the sales and number
of customers satisfaction. By delivering better quality of products and services in case of
implementing innovation, chosen organisation is attaining the competitive benefits and maintain
higher performance.
2. Research about creative business strategies for your chosen organisation’s future strategy
selection to be competitive in the hospitality industry.
The business strategy is determining as planning which formulates by management in
order to run business and develop the good future. If organisation is able to formulate different
type of strategies then it will be easy to analyse performance and implement plans in order to
make future in competitive industry. In UK there are many hospital industry which are selling
different type and quality of products as well as services. This shows a high level of competition
in challenging environment. The management of business organisation is required to understand
the needs and develop new products which are different from others that supports to attain the
competitive advantages and make good future. For this Value chain analysis has been stated as:
Value chain analysis: This is business strategy that consider set of activities in relation
to a business for operating the specific industry by delivering valuable and reasonable products.
This strategy is adopted by organisation by managing the quality of products and attaining the
business goals that are as explained:
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Primary activities:
Inbound Logistics: This can be understand as primary activity that refers as goods which
being obtained from company's suppliers and to be used for making the end products. The
management of Britannia International Hotel is following this step in changing the raw material
in to finished products.
Operation: In this, management of chosen hotel industry uses developing raw material
and plans in to final products and implementation that creates the value of business (Drexler and
Lapré, 2019).
Outbound Logistics: This stage is related to distribution that means once products have
been manufactured or developed in to final products then it get ready to distribute at various
place such as retailers, direct customers, whole seller etc. The management of Britannia
International Hotel uses this process for reaching the customers for distributing their products.
Marketing and sales: Marketing and sales process uses to introduce new products and
increase the sales. The management of Britannia International Hotel uses this stage for targetting
customers and attaining the competitive advantages by maintaining good communication and
marketing mix that attracts number of customers (Elbanna, 2016).
Services: This means after sales services should be provided by organisation if products
are sold to customers. The management of Britannia International Hotel focuses on this step and
give guarantee to customers that they will feel good and relax able in next meeting as they record
all details and choices of customers.
Support Activities
Firm Infrastructure – This means all companies is need to ensure that their legal
structure, finance, management structure and other activities are working efficiently that helps to
drive the organisation forward and increase the performance. Britannia International Hotel is
delivering better future by managing all activities as well as functions that supports to maintain
the higher productivity (Espellita and Maravilla Jr, 2019).
Human resource management – For organisation human resource management is
highly important as it maintain the good relation between employee and employer at a work
place and increase the production. The HR management of chosen hotel is responsible for
managing all activities by recruiting skilled staff, providing them training and getting the work
done in given time that deliver competitive advantages.
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Technology development – If organisation is able to introduce and use the new
technology in their performance then it become easy to attain the competitive advantages. By
using AI, VR and AR Britannia International Hotel is increasing number of customers by
reducing cost and provides the 24/7 hours services that attracts larger potential customers.
Procurement: This activities is uses to providing better quality of products and services
at best prices by analysing competition that can help to complete projects and attain future goals
(Titomir and Danylova, 2018).
Porter's five force model – This model is uses by organization to analysis the competition and
attain the advantages in changing environment. This helps to introduce the innovative products
and services which brings higher productivity and profitability. In relation to Britannia
International Hotel, management are using this model that are as explained:
Bargaining power of customers: For running a business customers are important as they
make the buying decision by selecting products. In relation to Britannia International Hotel,
bargaining power of customers is low as having big brand and providing better quality of
products and services customers are ready to pay extra that can help to operate the business
effectively.
Bargaining power of suppliers: This can be explained as important part of organization
who supply the products and services in changing environment. In relation to Britannia
International Hotel, bargaining power of suppliers is moderate as having number of suppliers can
be opportunity for chosen organization which provide opportunity to operate their business
effectively.
Threat of substitutes: This means having substitution of product which are providing by
organization. In relation to Britannia International Hotel, there is less substitution threat that can
be create the challenge for organization to operate it regularly.
Threat of new entrance: This means entrance of new organization in new market that
might be influence the sales and profitability of organization. In relation to Britannia
International Hotel, there is less threat of new entrance which might be create the opportunity for
selected organization to get the competitive advantages and attain the higher profitability.
Threat of Competitors: This means competitors who are existing in business
environment and creates the high level of competition in running a business. In relation to
Britannia International Hotel, there is high threat of competitors as many competitors are Hilton,
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Savoy, Ritz and others are running which might be affected the organizational performance and
profitability.
The another strategies uses by management for developing more services in future and
attaining higher profitability:
Improve customers services: Once customers have used the products and services in
Britannia International Hotel then management should take feedback from them and brings the
improvements accordingly. This increases the customer value and make the happy by offering
services as per their comfort.
Technological strategy: As environment is changing day by day, needs of customers
also changing rapidly. In this, Britannia International Hotel should implement more new
technology and process which can attracts the larger number of customers and increase sales in
upcoming period (Triatmanto, Wahyuni and Respati, 2019).
Pricing business strategy: This is important strategy as prices of products and services
matters a lot for customers. Therefore, management of chosen hotel adopted reasonable and
affordable pricing strategy for their products in comparative to others that helps to attain the
business profits.
Product differentiation: If organisation is able to provide good quality of products and
services that different from others then it become easy to attain the competitive benefits and
maintain higher brand image.
3. Analyse and evaluate the different performance metrics (critical success factors, key
performance indicators and the balance scorecard.
Performance metrics is defined as data representatives and figures in relation to
organisation that states abilities, actions and overall quality of products which can help to
increase the sales and organisational profitability. This is important for organisation to analysis
the performance and formulate planning accordingly which delivers good quality of products and
services. The different performance metrics are uses to manage the all activities and functions in
order to attain the competitive advantages. From the above discussion and analysis it can be
understand that factor in relation to planning formulation are important to consider while running
a hospital industry that can help to influence the number of customers and increase the
performance in challenging environment. Other than this, different types of business strategies
are uses to analyse present situation and develop the effective planning for increasing activities
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in upcoming period. This can help to increase the number of customers and performance in
changing environment effectively.
Key performance Indicator – The key performance indicator is defined as measurable
value that states how effectively an organisation gets success to achieve the business objectives.
For every organisation it is needed to know performance and activities of their business and how
it can be improved. KPI is a tool which mainly uses to measure the organisation's performance
and formulate plans which can help to solve the problem and increase values. Every organisation
uses KPI at different level to evaluate the success at reaching targets as high level of KPI states
overall performance, while low level KPI states process of specific department such as
marketing, sales, HR, production etc. This involves two types such as financial indicator and non
financial. In context to Britannia International Hotel, management are using financial and non –
financial KPI in order to evaluate their performance and make plans that can help to increase the
sales and profitability. By using financial indicator, management of Britannia International Hotel
analysis which activities will help to generate profits and beneficial for customers. On the other
side, by using non financial indicator it analysis how activities, promotion and other supportive
functions can be improved in changing environment that can help to increase profitability (Vij,
2019).
Balance scorecard – This tool is developed by DR. Robert Kaplan for the purpose of
measuring the organisational performance with the help of balanced set performer. In analysing
the task, it can be define as organisation used the short term performance in traditional period
that tells past history, events and adequate story of investment activities that supports to
formulate plans and maintain the activities. In Britannia International Hotel, management uses
Balance scorecard for measuring the performance and improving deficiencies. In this,
management mainly focuses on financial, customers, business process, learning and growth
perspectives which can help to measure employee's satisfaction level and increase the business
performance (Lopes, 2016). This is best tool, which should be uses by business industry to
measure the performance as well activities then formulate strategies for bringing improvements
effectively.
From the above, Balance scorecard is considered as effective theory and model which can
be uses by organization
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CONCLUSION
From the above report it can be concluded that strategic planning is the formulation of
planning, implementation and adoption of changes by analysing situation. For increasing the
business performance there is need to focus on factors which are related to strategies and
activities, important to consider for increasing competitive advantages. In strategy
implementation there is need to establish specific targets and goals by putting efforts that helps
to maintain the good relation and increase higher performance. Moreover, KPI and balance
scorecard tool uses to measure organisational performance and bring new innovation that can
help to increase sales effectively.
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REFERENCES
Books and journals
Ali, A. A., 2018. Strategic planning–organizational performance relationship: Perspectives of
previous studies and literature review. International Journal of Healthcare
Management. 11(1). pp.8-24.
Bagheri, J., 2016. Overlaps between human resources’ strategic planning and strategic
management tools in public organizations. Procedia-Social and Behavioral Sciences.
230. pp.430-438.
BURKE, K., ROBINSON, P. and Choi, M., 2020. Developing meta-strategies for hospitality
experiences. Managing Hospitality Experiences, p.141.
Burnett, M. and Johnston, T., 2020. Brexit anticipated economic shock on Ireland’s planning for
hospitality and tourism: resilience, volatility and exposure. Tourism Review.
Chandra, M., 2019. ANALYSING THE IMPACT OF MARKET PLANNING IN
HOSPITALITY INDUSTRY. NOLEGEIN-Journal of Leadership & Strategic
Management, pp.6-8.
Chandrasekera, T. and Hebert, P., 2019. Emergency preparedness in the hospitality industry in
Sri Lanka. International Journal of Disaster Resilience in the Built Environment.
Cheluget, M. and Koech, C. J., 2018. The Link between Analysis Dimension of Strategic
Orientation and Firm Performance in Small and Medium Enterprises in the Hospitality
Industry in Kenya: The Moderating Role of Top Manager’s Ownership Status.
International Journal of Advances in Agriculture Sciences.
Drexler, N. and Lapré, V. B., 2019. For better or for worse: Shaping the hospitality industry
through robotics and artificial intelligence. Research in Hospitality Management. 9(2).
pp.117-120.
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.
Espellita, S. and Maravilla Jr, V. S., 2019. Employable Skills for Hospitality Graduates as
Perceived Among Hotel Supervisors in Cebu City. Journal of Economics and Business.
2(2).
Lopes, M., 2016. The hospitality industry (Doctoral dissertation).
Titomir, L. and Danylova, O., 2018. Investigation of backgrounds for the innovative
development of the hospitality industry in various regions of Ukraine. Technology audit
and production reserves. 4(2 (42)). pp.16-23.
Triatmanto, B., Wahyuni, N. and Respati, H., 2019. Continual human resources empowerment
through human capital and commitment for the organizational performance in
hospitality industry. Quality Asses to Success. 20(173). pp.84-91.
Vij, M., 2019. The emerging importance of risk management and enterprise risk management
strategies in the Indian hospitality industry. Worldwide Hospitality and Tourism
Themes.
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