Strategic Planning for the Hospitality Industry

This presentation provides an overview of strategic planning in the hospitality industry, with a focus on The Waldorf Hilton. It covers topics such as strategic direction, Porter's five forces analysis, assessment of internal and external factors, and evaluation of popular strategic options. The presentation offers insights into the mission, vision, values, and culture of The Waldorf Hilton, as well as the strengths, weaknesses, opportunities, and threats it faces. It also discusses the impact of political, economic, social, and technological factors on the industry. Finally, it explores strategic options such as franchising and joint ventures, highlighting the benefits and limitations of each. Overall, this presentation offers a comprehensive understanding of strategic planning in the hospitality industry.

Strategic Planning for the
Hospitality Industry
Assessment 1

Table of Content
 Introduction
 Critical analyse of strategic direction of hospitality organisation
 Conducting Porter's five forces models analysis
 Critical assessment of internal along with external environmental factors
 Evaluation of popular strategic options of the entity
 Conclusion and future action
 References

Introduction
Strategic planning can be termed to management
practice of business that is utilised for setting
priorities, strengthening operations, emphasising
energy and resources. For understanding strategic
planning, The Waldorf Hilton is considered. It is a
historic hotel situated in Aldwych, UK. It is
surrounded by beautiful chandelier as well as
columns.

Critical analyse of strategic direction of
hospitality organisation
The Waldorf Hilton is an iconic hotel
which was built in 1800s. It is part of
Hilton Hotels and Resorts chain. It
boosts elegant and spacious rooms,
fitness clubs as well as a chandelier
restaurant.

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Mission: The mission statement of The Waldorf Hilton is to
become most hospitality entity in world through devising heartfelt
experiences for customers, positive impacts on society and
meaningful opportunities for staff members.
Vision: The vision of The Waldorf Hilton is to fill the globe with
warmth addition to light of hospitality. It is passionate for
delivering exceeding experiences to its guests.

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Values: In context to The Waldorf Hilton, its values are honesty,
enthusiasm, hard work, confidence and perseverance.
Culture: Since the establishment of The Waldorf Hilton, it is steeped in
British culture. As time changes, the company have adopted task culture
in which all its staff members works in team for addressing problems or
completing allotted tasks on time.

Conducting Porter's five forces models
analysis
Porter's five force model is
working of Michael E. Porter. It
is effective framework to
examine organisational
competitive environment.

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The forces of the model in relevance to The Waldorf Hilton are as
follows:
Rivalry among current companies: In hospitality sector, there are
various companies which competes against others and have created
high rivalry in industry.
Threat of new entrant: Competitive threat to business is not only from
current players within industry but also from new entrants in sector.

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Threat of substitutes: Substitutes are the offerings of company
which are used in place of other.
Bargaining power of suppliers: Within hospitality industry, there
are end number of suppliers that makes required resources
available for companies on demand.
Bargaining power of buyers: In hospitality industry, buyers are
the travellers or tourists that influences prices within the sector.

Critical assessment of internal along
with external environmental factors
Internal environmental factors:
These are elements that occur inside the
workplace of corporate. In context to
The Waldorf Hilton, internal
environment factors are assessed
through SWOT analysis.

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SWOT analysis of The Waldorf Hilton is as follows:
Strengths Weaknesses
 The Waldorf Hilton is working as customer oriented,
in this context the company offers effective customer
retention schemes to its clients.
 The major strength of the company from financial
point of view is its strong property portfolio.
Moreover, it has best performance management along
with appraisal systems within the industry.
 The major weakness of The Waldorf Hilton is its
dependence on limited market, Which limits
penetration or official presence in oversees market.
 The prices of the amenities and services of the hotel
are very high. Due to this, middle class people cannot
afford this, it covers only higher class people.
Opportunities Threats
 The opportunity of the company is it has market
expansion as a global. It has wide range of properties
with this.
 The main focus of the company is on research and
development. Its strong brand image over the years
saw the development of its portfolio of hotel.
 The biggest threats of The Waldorf Hilton is its
competitors like, Hongkong and Shanghai hotels,
Marriot international. They also plays in global
market with luxury facilities.
 One of the threat is terrorism and political instability,
as it deals with not only in country but outside the
country.

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External environment factors:
The factors which resides or occurs outside
boundaries of organisational workplace are
external environmental factors. External factors
which affect an organisation are categorised
into types.

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The factors in context to The Waldorf Hilton are as follows:
Political factors: The factor plays key roll in success of any
business. It is also applicable in hotel industry as well. The
political approaches influences the number of visitors, tourists
and business travellers visit to the country.
Economic factors: Economic factors that most affect the business
through demand for consumer goods, employment, wages,
interest rates, and consumer confidence.

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Social factors: These factors includes elements that affect
someone's lifestyle or standard. These factors such as, wealth,
religion, education, buying habits, family size and population
density.
Technological factors: The factors describes about the ways new
addition to emerging technologies impacts on company. In UK
and other nations, technology is quickly disrupting hospitality
industry.

Evaluation of popular strategic options
of the entity
Strategic options refers to creative alternative actions that are adopted by
an entity to grow or expand in the market. One of the strategic option
is Franchising which is kind of business through which franchisor of
method or other offering obtains distribution by affiliated franchisees.
Another strategic option available to company is joint venture which
refers to a business arrangement where various parties makes decision
for pooling resources to achieve particular task. It is undertaken for
some time duration only.

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The management of The Waldorf Hilton
have adopted strategic option of
franchising for external development
purpose. Franchising refers to a business
strategy that is implemented for the
purpose of attracting together with
retaining customers.

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The Waldorf Hilton is franchisee of Hilton Hotels and Resorts. With this
strategic options, the company enjoys following benefits:
 Franchising option offers independence of ownership of entity that is
supported by large business network.
 With franchising strategy, managers of The Waldorf Hilton have
established a reputation as well as image in market through proven
management along with work practices.

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Other than benefits, there are certain limitations of franchising as
strategic choice. The disadvantages of the method to The
Waldorf Hilton are as follows:
 Franchising strategy requires agreements that dictate ways to
run the business that leads to little room for innovation and
creativity.
 Devising franchise network is a expensive approach as it
requires huge efforts, time and resources.

Conclusion
Strategic planning acts as road map of company for reaching towards
competitive benefits. Mission is concerned with the scope and boundaries
of organisation. It defines reason or purpose of existence of the company.
Porter's five force model is critical tool for understanding about forces
which shapes competition within the sector and helps businesses to make
adjustment in strategies for suiting competitive surrounding together with
modifying potential profits.

References
 Leung, R., 2019. Smart hospitality: Taiwan hotel stakeholder
perspectives. Tourism Review.
 Thompson, J., and Martin, F. 2015. ‘Strategic Management’,
Thomson Learning, Chapter 17, Leading Change, p801.
 Zobnina, M. and Rozhkov, A., 2018. Listening to the voice of
the customer in the hospitality industry: Kano model
application. Worldwide Hospitality and Tourism Themes.

Thank You