Strategic Planning for the Hospitality Industry

This document discusses strategic planning in the hospitality industry, focusing on its implementation in The Savoy Hotel. It covers factors for strategy implementation, business strategies for a competitive edge, and analysis of performance metrics. The document provides insights into critical success factors, key performance indicators, and the balanced scorecard.

Strategic Planning for the
Hospitality Industry 9

Table of Contents
Introduction......................................................................................................................................1
1. Critical analysis of factors for implementation of strategy in The Savoy Hotel................1
2. Conduct research related with business strategies for having competitive edge within
hospitality industry.................................................................................................................3
3. Analysis and evaluation of distinct performance metrics...................................................5
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Introduction
Strategic planning is defined as procedure for documentation and establishment of
direction for a business unit by assessment of where they are at present and where want to be in
future. Furthermore, strategic planning renders a place for recording mission, their values along
with vision in context of long term as emphasis is laid on achieving goals by formulation of
action plans successfully (Chen and Cherkassky, 2020). In order to acknowledge concept of
hospitality, The Savoy Hotel is considered, that is a luxury hotel present in central London. This
was founded on August 6th, 1889 and is managed via Fairmont Hotels. The report comprises of
analysis of relevant factors for execution of strategies along with creative business actions for
future of organisation will be devised in order to aid hotel to have competitive edge.
Furthermore, this also involves assessment of performance metrics like balance scorecards, key
performance indicator and critical success factors.
1. Critical analysis of factors for implementation of strategy in The Savoy Hotel
Various factors are there which can be utilised via hospitality industry for expansion of
business at global level. For this, The Savoy Hotel can opt for making use of franchise. This is
crucial for firms to opt for these factors as this will enable them to manage work in an efficacious
manner. Through this, The Savoy Hotel will be able to acquire desired objectives along with
goals in successful manner as this allows them to expand themselves within a huge market base.
This leads to attract ample of customers towards services offered by them. Some essential factors
that can be opted by The Savoy Hotel are illustrated beneath that will enable them to carry out
franchising in an appropriate manner. Unique & creative business concept: This is major factor which illustrates that firm
needs to deliver innovative services so that they cannot be replicated by anyone else in
different locations. These concepts aids firm within attracting ample of customers within
the potential market through which overall sales of firm can be amplified (Lin and et.al.,
2020). With reference to The Savoy Hotel, it is crucial for them to have creative and
unique idea for attracting more franchisee who can have their franchise. Selection of right person to take brand forward: As per this factor, it is crucial for
organisation to carry out market analysis in relevant manner so that they can hire best
people who will be liable for representing brand within peculiar marketplace. It is
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mandatory for employee to have best franchisee as this will enable them to retain
customers within diverse market. In context of The Savoy Hotel, it is crucial for them to
determine franchisee who possess enhanced interpersonal skills through which it will
become easy to captivate customers via a communication skills. Along with this, this is
crucial for hotel to choose best person for conducting business across distinct locations
and communicate with consumers. Choose appropriate location for business: For an organisation, it becomes crucial for
carrying out evaluation as this enables them within identification of best location to
exemplify their business via franchisee. With respect to this, it is essential to take into
consideration distinct factors that are related with choosing location to expand business
includes transportation cost, demographics factors, local economy, competitors along
with local economy (Miyauchi and Sklar, 2020). In context of The Savoy Hotel, it is
crucial for organisation to carry out location analysis before rendering their franchise as
this will aid them within development of budget along with strategies respectively. Having clear and precise market positions: This is crucial that franchisee adhere to
business structure that is liable for setting up franchisor which will further aid within
carrying out business operations in effectual manner. Along with this, it is crucial for firm
to identify and evaluate market positioning in an adequate way as this will assist within
development of effectual strategies along with plans. This will enable management of
The Savoy Hotel to have clear and proper market positioning for development of
strategies respectively. Capabilities of employees: It is crucial for organisation to identify capabilities of
employees in order to recognise whether they will be able to cope up with new strategies
or plans. This factor is critical and mandatory to take into account as if in case employees
will not be able to deliver their services in an appropriate manner then overall goal of
execution of franchise will be hampered (Mew, 2020). With respect to The Savoy Hotel,
it is important for management to carry out assessment of capabilities of workforce. This
will aid them within formulation of strategies accordingly and opt for franchise
successfully.
 Possess loyal base of customer: Before expansion of business via franchise, it is primary
for firm to set up loyal consumer base as this allow to captivate clients in individual
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location. This is crucial to have more investors within particular location in order to make
sure that firm will be able to acquire relevant objectives and goals as per desired
standards. In context of The Savoy Hotel, before opting for franchise for expansion of
business, it is crucial for management to assess ratio of allegiant customers that will lead
them to make sure sales ratio in successful manner.
2. Conduct research related with business strategies for having competitive edge within
hospitality industry
Business strategy is regarded as a method or plan that is being opted via a firm for
expansion of business within probable market. It is crucial for organisation to have creative
business strategy that will enable them to make sure that they are able to captivate ample of
customers towards their offerings in successful way (Moucheng and et. al., 2020). This will
further aid them to amplify business opportunities in an effectual manner. In context of The
Savoy Hotel, firm have opted to go for expansion of business within local, international and
national level. The rationale behind this is that it will allow to captivate ample of people towards
their services as well as encourage to connect with their business functionalities. There exist
wide range of business strategies that are being opted via The Savoy Hotel for carrying out
franchising to have successful expansion of business within probable market. The strategies in
this context are mentioned beneath:
 Digital media marketing: This is crucial business strategy that is being opted by firm to
captivate ample of customers across world. At present scenario, almost each firm have
opted for digital marketing methods as this will be able to captivate ample of customers
in restricted time frame as well as with optimised cost in successful way. With respect to
The Savoy Hotel, they can opt for critical strategies for enhancement of business via
franchise as this will allow them to carry out marketing via distinct channels. This
includes e-mail marketing, video marketing, content market and various others.
 Connect with communities: For expanding customer base, it is necessary that hotel must
acknowledge target customer along with targetted customers. Hotel needs to prioritise
their operations by promoting themselves across places where target customers can
socialise (Ojha, Patel and Sridharan, 2020). They can participate within society events
like charity events. The hotels that acts as a backbone for society that leads them to earn
resources as well as have customers that are highly valued within the marketplace. It will
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lead to improvise connectivity of people that will further enable them to have high value
across the market. This will improvise connectivity along with this bring in goodwill and
new customers for brand.
 Membership rewards: All hotels have certain loyal guests and they are the one who are
satisfied with services offered via a hotel and this is the reason that they prefer the
peculiar venue for stay as well as carrying out business meetings. The Savoy Hotel
renders reward programs for loyal customers along with enhancement of loyalty among
others. Apart from guests, hotel gives reward loyalty points for social media followers,
those who post affirmative reviews, suggestions, testimonials and one those post videos
related with hotel. People often believe within reviews which will further enable them
within promoting brand via digital mouth publicity (Park and et. al., 2020).
 Monitoring competition: Monitoring competitors as well as marketing campaigns is one
of the critical insightful options. This might turn out of the box strategy in case if this is
being used in appropriate manner. It is liable for rendering helpful feedbacks which will
further aid The Savoy Hotel to formulate marketing strategy in personalised manner.
Hotel have an option to subscribe toe mail subscription through which offers can be
acknowledged from time to time. This will enable to know about brand positioning of
competitors, strengths, weaknesses, price, services, etc. With reference to this hotel can
formulate their pricing strategies through which ample of customers can be attracted to
services that are being offered by them.
 Develop brand awareness: Hotel have to publish advertisement within TV, newspaper,
etc. through which they can reach wider section of the society. For enhancement of brand
awareness in between people, hotel needs to check all the events for entertainment and
business for carrying out sponsorship, tie-ups, etc. These kind of events lead to have
wide reach as well as aid hotel within carrying out promotions. Apart from sponsorship,
organisation must elicit guests within events so that they can stay in hotels as well as
render enhanced services (Petersen and Penner, 2020). This will further lead
enhancement within b2c and b2b business which will further lead them to captivate new
customers in future perspectives. This will allow hotel to earn new contacts that will lead
them to fetch leads for new franchise and assist firm within further expansion.
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These are some critical strategies that must be opted via The Savoy Hotel for adopting
franchise in effectual as well as successful manner to enhance customer base and profitability
ratio.
3. Analysis and evaluation of distinct performance metrics.
Performance metrics is regarded like a figure as well as data representative for actions of
firm, their abilities and quality. This is estimated on presumptions associated with measurement
of performance. By opting for performance matrix, a firm can measure overall performance that
further leads to develop effectual plans and strategies for succession of business by attainment of
pre-identified goal (Yeung, 2020). There exist different performance metrics that can be opted
via The Savoy Hotel while opting franchise to expand business. The performance metrics are
illustrated beneath with reference to Hotel:
Critical success factor: This is regarded as management term that is critical for firm in
order to ensure that gaols and mission of project is attained. With reference to attainment of goal,
management of The Savoy Hotel must be aware about all the successful factors that are required
for identification of differences that prevails among keys as well as distinct roles of major
outcome areas. There are distinct critical success factors which comprises of environment,
industry, management and strategic factors. Environmental factor comprises of distinct elements like economy, climate,
technological, competitor advancement and many others. This is crucial factor for
determination of effectual strategies for development and growth of business. This
comprises of external factors that leads to creation of influence on business practices. Industry factor, involves specific elements or distinct characteristics of industry. It is
crucial for firm to conduct analysis as well as monitor factors for successful completion
within the market area. These acts as critical factors for maintaining competitive
advantage on other rivals present in the market. Management critical success factors, comprises of distinct business aspects that leads to
create effective influence on management and monitoring overall performance of
business. It becomes important for The Savoy Hotel for maintaining positioning of
business through which desired objectives of organisation can be successfully
accomplished (Chen and Cherkassky, 2020).
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 Strategic factor comprises of entities that will aid within attainment of competitive
advantage on rival firms. It comprises of all strategies that will aid individual firm to
perform in significant and better manner in comparison to other organisation within the
same market area. This aids within formulation of enhanced strategies for gaining
advantage above other firms.
Key performance indicators: It is regarded as quantifiable set of measurement that is
being utilised for measuring overall performance on longer frame of time. This aids within
determination of strategic , financial planning, operational attainments and many other factors.
This is carried out for making comparison between other businesses who renders their services
within identical sector. The Savoy Hotel can attain wide range of benefits while measuring
performance. This is being carried out by making use of KPI that includes generation of
accountability and enhancement of focus for attaining an identical goal. Along with this, the
respective hotel can make enhanced decisions to opt for franchise which will lead to have fast
business growth. Furthermore, this leads to improvised relevancy, enhancement of visibility,
minimisation of wastage through which performance of employees can be enhanced for attaining
desired objectives and goals (Lin and et. al., 2020). In addition to this, it becomes important to
measure performance via KPI management of The Savoy Hotel for evaluation of distinct
indicators or aspects like sources of income, revenue growth, revenue concentration, calculation
of profitability over certain frame of time and working capital. Management of hotel must carry
out performance evaluation, growth, strategy, optimisation, goal and other factors that are
dependent on strategy for franchising business.
Balanced scorecard: This is regarded as strategic tool that is being utilised for
performance management along with this, it is liable for determination of semi standard report or
document that are adopted via management of firm for keeping in track implementation of
practices carried out by employees. These all are carried out through relevant control along with
tracking consequences which leads to actions. With reference to The Savoy Hotel, it is crucial
for management to have interaction with members in context of what they are trying to
implement. Along with this, it becomes necessary that there is alignment among each day
activities for determination of what activities employees are carrying out to have franchise in
effectual manner for expanding their business functionalities (Miyauchi and Sklar, 2020). With
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reference to management of The Savoy Hotel, they need to prioritise their project, services and
products through which balanced scorecard will be effectively developed.
Conclusion
From above, it can be concluded that, it is essential for management to conduct relevant
strategic planning which will lead firm within attaining desired objectives and goals. This
enables organisation to have various benefits like they can identify rationale of organisation in
clear manner, enhancement of communication in context of objectives and goals with
stakeholders which involves effectual commitment, retention and commitment between
employees and many more. In respect of this it is essential to evaluate different performance
metrics as that will help in determining whether goal is attain in effective way or not. In respect
of this a company management may adopt different methods such as critical success factors,
balance scorecards as well as key performance indicators.
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References
Books & Journals
Chen, H. H. and Cherkassky, V., 2020. Performance metrics for online seizure
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Lin, C. Y. and et.al., 2020. Adoption of Green Supply Chain Management among SMEs in
Malaysia. Sustainability. 12(16). p.6454.
Mew, M. E., 2020. Small Business Social Media Marketing Strategies in the Retail Industry.
Miyauchi, G. and Sklar, E., 2020. A Study Assessing the Impact of Task Duration on
Performance Metrics for Multi-Robot Teams. In Proceedings of The 3rd UK-RAS
Conference.
Moucheng, L. I. U. and et.al., 2020. Theoretical Framework for Eco-Compensation to National
Parks in China. Global Ecology and Conservation, p.e01296.
Ojha, D., Patel, P. C. and Sridharan, S.V., 2020. Dynamic strategic planning and firm
competitive performance: A conceptualization and an empirical test. International
Journal of Production Economics. 222. p.107509.
Park, W. Y. and et.al., 2020. Lost in translation: Overcoming divergent seasonal performance
metrics to strengthen air conditioner energy-efficiency policies. Energy for Sustainable
Development. 55. pp.56-68.
Petersen, A. M. and Penner, O., 2020. Renormalizing individual performance metrics for cultural
heritage management of sports records. Chaos, Solitons & Fractals, 136, p.109821.
Yeung, H. W. C., 2020. 5 Managing Crisis in a Globalising Era: The Case of Chinese Business
Firms from Singapore. Chinese Business and the Asian Crisis.
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