Strategic Planning for the Hospitality Industry

This document discusses the strategic planning in the hospitality industry, focusing on the factors affecting successful implementation of strategies, metrics of performance, and types of strategic change. It explores the leadership, structural design, information and control system, and human resources as factors influencing strategy implementation. It also discusses critical success factors, key performance indicators, and the balanced scorecard as metrics of performance. Additionally, it covers the important factors in managing strategic change and the types of strategic change. The document provides insights into the strategic planning process in the hospitality industry.

Strategic Planning for the
Hospitality Industry

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
1. Different factors which affects the successful implementation of the strategies on the
business functions........................................................................................................................4
2. Different metrics of performance which affects the success of business strategies in Hilton. 6
3. Important factors which in managing the strategic change and types of strategic change......8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic planning is the effective practices and process of the company which helps to
determine their direction, strategy and the company make the decision to identify the resources
to use the strategy. This kind of planning will provides the record of the mission, vision, values
and long term objectives of the organisation. It is important to achieve the goals and objectives
of the organisation in the different conditions of the market. This file evaluate the strategic
planning of the Hilton hotel which is the multinational brand provides the best services to their
customer. The headquarter of the Hilton is at the Virginia, U.S. There are various factors which
affects the successful implementation of the strategies in the operation of the business. By using
the key performance indicators, balance scorecard and CSF organisation analysis their various
level of performance which influences the effectiveness of the strategies of business.
MAIN BODY
1. Different factors which affects the successful implementation of the strategies on the business
functions.
Leadership:
The process of leadership states that the senior will direct, guide and affects the
behaviour of the other people in the company which helps to reach the goals. It refers to the
ability and capability of the leader so that the members of the team will works with the full
confidence. In the Hilton hotel when their business strategies are successfully implemented then
the leader will effectively inspire and encourage the people to make the business profitable. The
leader of the Hilton uses the transformational leadership style in all the department of the hotel.
The leader motives their employees towards the success and growth of the hotel by changing the
ways in the business operations. Transformational leadership involves the four types which is
possible only when the strategies are effectively used by the company. This model of
transformational leadership will mka the positive changes in the employees and these leader will
also helps the people of the Hilton (Smith, 2017). This will increase the strength and capability
of the sub ordinates by the leader. In the business of Hilton leader inspire the employees to
identify new ways to do the things and grab the new opportunities to make the business more
creativity.
Structural design:

The design of the hotel includes the drafting, development and design of the hotel which
could attracts the large number of customer towards the hotel. Hilton hotel design their hotel
which have the best view and the customer do not face any kind of difficulty while staying in the
hotel. The expansion of the Hilton hotel is also depends upon the attractive and impressive
design of the internal and external hotel structures. People will enjoy the beach scene and
impressive balcony in which the hotel provides all the services for their comfort and enjoyment.
The success and growth of the organisation is possible only when the design and development of
the hotel by the employees are very effective (Bryson, 2018). The design of the rooms, balcony,
lobby, garden area, swimming pool are all the elements of the structural design which must be
effective to achieve the targets of the business.
Information and control system:
This is the computer system from which the manager of the hotel will effectively
organise, evaluate and efficiently manage the different departments of the company. The
successful implementation of the information system in the organisation will leads to the success
and growth in the future and present condition of the market (Kuo, Chen and Tseng, 2017).
Hilton hotel uses the different transaction processing system because this system will process the
information and data more effectively. The data and information is collected from the transaction
which is made in the hotel. By using this system in the business of the hotel industry will
increases the efficiency of the labour because it will collects the accurate data on time. The
system of point of sale is also applied in the business of the Hilton hotel so that they will keep
tracking the merchandise sales which is happened in the bar, restaurant and coffee etc. different
department of the hotel are uses this system so that it helps to maintain the systematic records of
the business. The department of accounts will get the help by this system in the business. For
managing the staff of the hotel there is need of the management information system in the Hilton
hotel which gives the better sands effective results in the future (Rothaermel, 2017). The Hilton
will fulfils the needs of their employees by motivating and inspiring them towards the goals and
objectives of the business.
Human resources:
The department of human resources is the best process which leads to the success and
growth in the competitive markets. In the business of the Hilton hotel they appoint the skilled
and talent candidates in their workplace which will achieve the advantages of the business

strategies which is implemented. By giving proper training to the existing and new employees
will improve their knowledge and understanding so that they will done the work appropriately.
The manager of the HR will manges the all the activities of the workforce in the organisation
which helps to maintain the co-ordination and cooperation in the working atmosphere of the
company. By the success and growth of the different strategies of the business so that the HR
plan to increase the sales and productivity of the business. They make the strategies to promote
the services of the hotel so it will increases the base of the customer by maintaining the strong
image of the brand in front of the customer (Cassidy, 2016). Human resource management
focuses on the planning and organising the people working in the Hilton hotel which will proves
the best services to their customer. The success of the strategies will make the best policies and
plaining of the human resources. By providing the various types of benefits to the employees in
the Hilton hotel they will motivated and get the target done on time. The compensation, bonus
and incentive is given to the worker which inspire them to work accurately and gain the success
and growth of the company.
2. Different metrics of performance which affects the success of business strategies in Hilton.
Growth of the practices and planning of the business there are various methods which
helps to determine the performance of the company and their employees. There are different
types of tools which helps the Hilton to measure the performance of the hotel and their
employees for the accomplishment of the business.
Critical Success Factors (CSFs):
This method is very essential for the hotel companies because it is the process and
practices of the management that will helps to reach the goals and objectives of the business. To
meet the goals of the organisation their is need to aware about the key success factor and key
result area. So this is the important factors of the business to get the work done effectively for
faster results of the company. This will helps to determine that the company have to be focused
to become an successful hotel company. Hilton is the best hotel which provides the best services
to their customer so that they are leading (Wolf and Floyd, 2017). To compete with the other
hotel there is need of the continuous monitoring the business activities of the employees. They
make the strategies as per the critical success factors which includes the environment,
competition, management, industry and temporary factors. In the Hilton hotel they provides the
services which fulfilled the needs and wants of the customer and make the company popular so

that it will increase the reputation of the company in the minds of the people. There is need to
determine the external and internal factors of the business which will the manager always have to
give focus on the food and room services provided to the customer at the same time in the hotel.
Key Performance Indicators:
In the business of the Hilton hotel there are five essential indicators of the performance
which satisfy the needs and wants of the people. Prices of the per room in the hotel,
accommodations, beverages and food are some of the factors through which the company
measure their performance level to achieve the success and growth of the business. Some of the
tools are discussed below which is used by the Hilton hotel in the business operations.
Average daily rates: This performance indicators will determine and explains the
average earning of the hotel of their per room on the daily basis. For the calculations of the
average daily rates there is need to calculate the total revenue of the rooms of per month and
then it will be divide to the total number of rooms in the hotels (McLean, 2019). It will helps to
identify the exact position of the business in the future and present situation of the market.
Average occupancy rates: This rate will find in which month that the company will
increases their and that is the most popular season for the business. So by using this rate of
average occupancy will helps the hotel to identify those seasons in which they are not
performing well.
Averages length to stay: It is the most essential indicator of the performance and to
increases the length of stay of the people in the hotel they have to invest less amount on the
labour. This process is done by diving the used rooms of the hotel to the rooms which is not
booked.
Online ratings: Before booking the rooms in the hotel each most of the customer will
see the review of the hotel on the personal websites of the hotel (Karam, 2018). For the
successful growth of the hotel in the competitive market the manager have to pay attention on the
review of the customer and if there is any negative review try to improve the services. Feedback
will improve the working of the hotel so that they will increases the customer base.
The Balance Scorecard:
With the help of the balance scorecard the leaders will take the business towards the
success in the most effective manner. This scorecard will measure the performance of the
company with the financial and non financial tools. The Hilton hotel uses this scorecard so that

the management will get the feedback of the performance and try to make the performance
better. Some of the example of the balance scorecard are discussed below:
Financial: Hilton hotel will identify the total revenue which is generated by the effective
and efficient utilisation of the space (Kotler and et.al., 2017). It is the revenue of the each and
every guest and revenue of the room which is available in the hotel is the common method that is
Hilton uses by the balance scorecard.
Customer: There is the research on the retention rates of the customer, information
which is related to the guest, complaints of the guest are involves in this process and practices of
the balanced scorecard of the Hilton hotel. To achieve the benefits of the competition Hilton
have to satisfy their customer by providing the best services in their hotel rooms and restaurants.
Internal process of business: There is the cost of maintenance, quality and accidents
cost are involves in this category of balanced scorecard. So this will directly affects the total
profits and share of earning in the hotel (Bertozzi, Ali and Gul, 2017). To make the hotel popular
in the market there is need to maintain the market share.
Learning and growth: Hilton provides the training to their staff that will improve their
skills and knowledge so that they will handle the guest of the hotel will the most effective
manner. Development of the employees is essential part of every organisation to make the
business more valuable in front of the customer and brings the best customer experience.
Workers are the key which leads to the success and growth of the hotel by delivering the good
services to the guest.
3. Important factors which in managing the strategic change and types of strategic change.
Change management is the process and policy of the company which make changes in
the business operation to achieve the target of the organisation. There is the management of the
employees in such a manner so that the hotel will reach t the target goals and objectives. In the
Hilton hotel some of the factors which helps to make the change possible in the workplace are
explained below:
Diagnosis: It includes there is the research of the company from which they can identify
the strength and weakness of the business to apply the new changes (Moutinho and Vargas-
Sanchez, 2018). Hilton collects the perfect information and data so that they will improve the
room services by innovative ideas and creativity which fulfils the demands of the customer from
the hotel.

Change agents: The mangers, employees, housekeeping manager, receptionist, chef and
cleaners are the agents of change because they are the only one which makes changes possible in
the organisation. New innovative ideas and suggestion is taken from the staff of the hotel so that
they operates the changes effectively and increases the image of the brand in the market.
Managing change programmes: Hilton will organise the training and development
programmes which gives the specific training to their employees so that they will treat the
customer in the best way to gain the trust and loyalty (Hassanien and Dale, 2019). Programmes
of research and survey which initiates the changes in the organisation by identifying the demands
of the people from the hotel and provides all the facility in the hotel rooms and restaurants.
Levers for change: Marketing, technology, human resources, finance are some of the
examples from which the changes are taken place in the company. Hilton will provides the best
services to their guest by investing in the new and advanced technology in the rooms,
restaurants, bar etc. this will gain the attention of the people. The manager of HR will appoint the
skilled and talented employees in their business which manage the customer with the full
attention and respect. In the Hilton hotel the changes are taken place by the help of marketing
department because they gives the clear picture about the taste and preferences of the customer
so that they make the services which satisfy the customer. New technology will done the
working of the business accurately and at the faster rate.
Adaption: In the business operation of the Hilton hotel changes is applied in such way.
The company adopts the changes which suits in the culture of the company. The company
changes their plans and policy to make the business effective and efficient which attracts the
guest towards the hotel (Dimitropoulos, 2018). In the existing culture of Hilton hotel this change
will adopted and gradually happens.
Reconstruction: In the Hilton this changes is requires where there is need of the fast
changes in the hotel to which makes the company more profitable in the present and current
situation. The organisational culture is not changed when this kind of change is applied in the
hotel. To make the strategies of the different department of hotel there is need to reconstruct
them which gives the advantage and makes the business famous in front of the customer
Revolution: Business will make the changes in the style of leadership and when the crisis
is happen. The Hilton hotel uses this change so that the leader changes their style of motivating
directing and guiding the team members at the workplace which will improves the efficiency and

achieve the targets of the hotel in the competitive market situations (Bartlett, Johnson and
Schneider, 2016). Different strategies of the company required the changes then it is said that the
revolution changes in the business operations.
Evolution: The focus of this change is done by convening the more than one agents of
change. When the agents of change will evaluates the opportunities to improve the company then
they convince the people in the business so that they could apply the changes effectively. As per
the current situation of the business (Sin and Sin, 2019). The implementation of this change is
possible by the inter-related activities of the organisation. When there is the need of the cultural
changes in the hotel there is change sis used by the Hilton hotel.
CONCLUSION
From the above study it can be concluded that to accomplish the objectives of the
business there is need to manage the people in the organisation effectively. Different strategies of
the business is successfully implemented when the leader properly guides, motivate and directs
their team member so that they will contributed with their full efforts to get the work done
effectively and efficiently. The plans and policies of the HR helps to manage the people working
in the organisation by maintaining the effective relation in the working environment. There are
lots of tools of performance measurement which helps to determine and evaluate the level of
performance for both the employees and company. This tools will gain the trust of the customer
and they wanted to visit hotel on the regular basis or whenever they travel. By giving the
effective services to the people like the facility of food, accommodations, swimming pools with
the best view of the city will attract the large number of the customer and increases the sales and
profits of the business.

REFERENCES
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