Strategic Planning for the Hospitality Industry

This document discusses the importance of strategic planning in the hospitality industry and explores factors to implement a chosen strategy. It also provides insights into creative business strategies for future strategy selection and analyzes different performance metrics. The case study focuses on Sultan Saray restaurant and its digital presence & social media marketing strategy.

Strategic Planning for
the Hospitality Industry
17

Table of Contents
Introduction .....................................................................................................................................3
Critically analyse the most appropriate factors to implement a chosen strategy. ......................3
Research about creative business strategies for your chosen organisation’s future strategy
selection to be competitive in the hospitality industry. .............................................................5
Analyse and evaluate the different performance metrics (critical success factors, key
performance indicators and the balance scorecard......................................................................7
Conclusion: ....................................................................................................................................9
References .....................................................................................................................................10

Introduction
Hospitality industry is a broad category of fields that includes lodging, food service and
event planning. There is a need of strategic planning in a hospitality industry to make the best
possible decisions and develop right goals and targets. The discussion is based on chosen
strategy which is digital presence & social media marketing of Sultan Saray restaurant (Messing
and Westwood, 2014). The restaurant is a three star casual dining in London and it is famous for
Turkish cuisine. The report includes appropriate factors to implement digital presence & social
media marketing, creating future strategies to be competitive in the competition market. Along
with this different performance metrics are explained which helps in growth in the market.
Critically analyse the most appropriate factors to implement a chosen strategy.
Strategic planning of hospitality industry is a process of providing a sense of direction
and outlines to achieve measurable goals. It can be said that the hospitality industry needs to
have a strategic planning approach so that the industry can perform well and achieve success.
Having an effective strategic planning helps to keep a check on every element of the industry
such as increasing the customer value, achieving customer value and achieving operational
excellence for a good success in a hospitality industry. Sultan Saray restaurant is a three star
restaurant of London which is quiet famous for its Turkish cuisine and they are looking forward
to achieve success and high popularity to expand restaurant (Luo Zhang and Liu, 2015).
Digital presence & social media marketing is one of great strategy which is chosen by
Sultan Saray restaurant to expand their business. Nowadays digital presence & social media
marketing is necessarily required to achieve growth and success. It is because of social media is
a great platform to connect with each other and express views, information and innovations. The
appropriate factors to implement digital presence & social media marketing strategy in an
appropriate manner are listed below:
High quality website: It is an important factor for the chosen industry because it attracts
the customers and they get all desirable information including hotel bookings, catering services,
ambience view and many others in an ease manner. High quality website is one that provides
relevant, useful content and a good user experience, however, there are many individual factors
that need to be considered beyond that summarisation. Spending a lot of money on a site is no
guarantee of it being classed as a high quality one.

In context with Sultan Saray restaurant, there is a need to structurally reflect various
useful information including contact numbers, availability of seats, facilities such as free Wi-Fi,
air conditioner, ambience, food services, employees behaviour many others so that people will
not attain any problem and thus they attracted towards the restaurant. It will not only helps the
restaurant to increase its demand but also increases the competition in the market.
Advertising of restaurant: Advertising of restaurant shows a strong build of social
media marketing presence. It establish a brand loyalty with existing customers. This factor states
that restaurant must have their attractive pictures and videos of ambience and food which is
useful for advertisement of the restaurant. Social media and digital presence are a great source of
promoting any brand image or restaurant to attract customers of large area and even it shows a
great opportunity to sell products and services in large category (Milla, Mataruna and Ristic,
2018).
In relation to Sultan Saray restaurant, they make their official account on Facebook, Instagram or
twitter. They post their highly recommended food and ambience pictures on apps because
nowadays people are consistently using these popular apps to connect with others. Also, they can
easily check that where they are lying on the basis of competition in the market.
Key influencer: It is a fact that digital presence and promotions on social media
marketing are a great source of income. There are various influencers or popular food bloggers
including celebrities, YouTubers who work for the organisation or restaurants at bulk prices to
promote them. Such key influencers is a great way of reaching and connecting with customers. It
can be said that these influencers have better targeting and high engagement rates. In relation
with Sultan Saray restaurant, the manager and owner of the restaurant should hire popular key
influencer for the promotion of their restaurant (Choi, Thoeni and Kroff, 2018). It boost the
social creadibility of the restaurant and connect people by sharing pictures of food and ambience
with them.
Cost effective: In the social media marketing, cost effective way is very satisfying
because it benefit the customers in reduction of time and provide cash back facilities. It helps in
attain a greater return on investment and hold a bigger budget for other marketing campaign and
payments. In relation to Sultan Saray restaurant, cost effectiveness strategy helps the restaurant
to expand their work in less cost and with sufficient time. Less investment on money and time

helps the Sultan Saray restaurant in increasing the conversion rates, and get a return on
investment.
Marketplace awareness: It refers to increase the awareness of what customer wants and
how they get satisfied. This strategy is quiet easy and it has to be taken into the consideration
because it helps in providing such type of products and services from which customers get
maximum satisfaction. Market awareness refers the ability to access entire stock. By observing
various activities, the restaurant can increase their competition in the market. It helps to allow
poor market decision and optimize some good ones.In context with Sultan Saray restaurant,
social media can help in getting information and better understanding of the products and
services.
From the above discussion it has been concluded that Sultan Saray restaurant must use all
the factors which are listed above because digital & social media marketing strategy is a great
platform nowadays and it is useful in achieving goals and success.
Research about creative business strategies for your chosen organisation’s future strategy
selection to be competitive in the hospitality industry.
By considering different factors of digital presence and marketing strategy, it can be said
that building of strategies are very important to achieve goals and success. Thus, these effective
strategies are developed by the team of management in terms of maximise productivity and
increase performance. In addition to this, upcoming business strategies are opted by Sultan Saray
restaurant in terms of being luxurious and competitive in the market are mentioned below:
1. Pricing strategy: A pricing strategy is a model or method used to establish the best price
for a product or service. It helps to choose prices in maximizing profits and shareholder
value while considering consumer and market demand. In context to Sultan Saray
restaurant must have value based pricing strategy in terms of using sustainable and
healthy ingredients of food dishes (Khan and Islam, 2017). Hence to perform better
Sultan Surya restaurant need to focus on the price of product and strategies in such a way
so that it formed in terms of cost effectiveness. It increases the demand of product and
services and helps the restaurant to achieve goals. Moreover, if the pricing strategy will
gets implemented then they offer food items at reasonable and cheap rates which is useful
in accomplishing the competitive advantage.

2. Product differentiation: It is process of differentiating product and services from others
to make their customers more attracted towards their products in a competitive market. In
relation with Sultan Saray restaurant, they can use the product differentiation strategy by
analysing the market requirements and work for the restaurant accordingly. It helps in
increasing the profit and sales of the restaurant and achieve success. Suppose taking an
example if Sultan Saray restaurant offer effective taste of drinks and beverages then there
products are automatically demands and increase profit.
3. Improvement in the customer services: Customers services require timely, attentive
and up to date service to customers so that they receive maximum level of satisfaction.
Improvement in the customer services helps the customers to get satisfied by receiving
best products and services. Customer services can be improve by emphasise with the
customer, measure and analyse the feedback of the customers on routine basis and use
proper language to communicate with them. In context with Sultan Saray restaurant, they
can adopt this strategy by properly analyse about customers issues such as analysis of
their feedbacks, proper listening ability and many other which attain maximum
satisfaction for the restaurant. Therefore there are some changes that needs to be taken
into the consideration.
4. Use of new technology: New technologies helps the restaurant to grow rapidly and
develops a good standard of living. Use of new technology can improve the safety of
food and ensures quality and affordability. The new technologies drastically change the
whole scenario in which restaurants owner or staff employees communicate with
potential customers with the use of new technologies. Sultan Saray restaurant must use
this strategy so that the new technologies ease the workforce of restaurant for the staff
members and improve efficiency for the customers. It helps in reducing the price of
goods and services and provide benefits to the restaurant in a competitive market. In
order to have an online presence, restaurants turn into websites or social media blogs to
have a good communication with their customers.
5. Maintenance of quality and hygiene: Healthy and quality based food items gives a
major impact towards customers. It is because nowadays people are become more
concern towards their health. In relation with Sultan Saray restaurant, they must increase
the use of good quality raw materials and keep a routine check on maintaining hygiene

environment. If the customer receive good quality of food and services then it will
automatically rise their value of a restaurant in the market. It is also useful in increasing
the business performance for the dynamic environment and improves in the profitability.
The above discussion concludes that effective selection of the strategies are more
important to achieve growth and success in competitive market. Sultan Saray restaurant should
consider every strategy for the growth and become competitive in the market.
Analyse and evaluate the different performance metrics (critical success factors, key
performance indicators and the balance scorecard.
Performance metrics refers to the effective procedures of analysing the performance of
individual team members and business organisation. It is also useful in measuring the
performance of different activities that held in the organisation and is used by workforce in
terms of accomplishing targets and objectives. Different performance metrics offer prominent
information with the best outcome that helps in analysing effecting improvements which will be
benefited for the industry. In context with Sultan Surya restaurant, the manager and owner uses
performance metrics for their monthly evaluation of the industry and for improvements in
different departments of the restaurant including staffing, ambience, food quality and many
others. The performance metrics helps the restaurant to achieve goals and success (Dijkmans,
Kerkhof and Beukeboom, 2015). Prominent performance metrics is used by the Sultan Surya
restaurant is evaluated as below:
Key performance indicators: The key performance indicator is a type of performance
measurement which helps in evaluating or re-evaluating the success of organisation. Sultan
Saray restaurant should know the prominent activities and performance of their efforts towards
the business. The technique is useful in measuring the overall performance of the company and
helps in developing plans which is useful in solving critical problems by increasing the values.
Key performance indicators should use by every hotel and industries to reach the target and
visualise prominent level of indicators (Park and et. al., 2015).
In relation with Sultan Saray restaurant, they need financial and non-financial indicators
to analyse developing plans and performance to maximise profit and sales. With the help of key
performance indicators, the management of Sultan Saray restaurant tends to identify various
activities which is useful in generating activities. Key performance indicators helps to identify
prominent activities which helps in enhancing the change in environment and increase profit.

Balance scorecard: It helps in led the positive outcome by enhancing various internal
organisation functions. Balance scorecard is useful in measure feedbacks and reviews in the
organisation. Sultan Saray restaurant should use this method to analyse their finance procedure to
increase the growth of their products and services. In addition to this with the help of scorecard,
Sultan Saray restaurant can easily identify the factors which become barriers for their growth and
performance (Tetiwat, Esichaikul and Esichaikul, 2018).
Sultan Saray restaurant should identified that balanced score card provide effective
framework in terms of development and communication of the restaurant. For the
implementation of the effective strategy the restaurant also leads to enhance the communication
and increase workforce so that there stakeholders can get effective delivery and developing
tactics. The metrics line helps in focusing on significant strategic subject matter. By designing
effective indicators and improving the performance report, the restaurant can easily offer
significant process alignment. This methodology is useful for the manager and staff members of
the restaurant. In addition to this, it can be said that performance metrics mislead several times
and the balance score card usually do not focus on external factors including environmental,
economical. Political and many others. Also, the balance scorecard create complexities in
maintaining strategic mapping.
Critical success factors: It is an effective and a prominent success factor which
represent various opportunities and situations that are required to achieve effective practices of
the project. It is a management term which is necessary for an organisation to achieve its
mission. It leads to undertake suitable circumstances and variables which are essential to enable
positive outcome for the performance of the company. The critical success factors are of five
types including strategic focus, people, operations, marketing and finances.
These factors are useful in maintaining each employee to understand their individual
performance, good facilities and equipments to used by the restaurant, real profits can be
achieved and sufficient earnings can be done by balancing out the economic cucles. In terms of
Sultan Saray restaurant, the method is useful in making sure of the success factor. The success
factor of the restaurant includes a complete focus on finances and marketing. It is beneficial for
the Sultan Saray restaurant because it offer objectives and benchmarks for the company as it is
acquired in terms of profit generating and attain the objective (Olotewo, 2016).

Conclusion:
The above discussion concludes that it is essential to formulate effective plans and
strategies to survive in the competitive world. Discussion has been carried out by the appropriate
factors which are listed above and considered by Sultan Saray restaurant on the basis of their
chosen strategy, commonly known as digital presence & social media marketing. The above
report consists of different strategies which can be adopt by Sultan Saray restaurant to achieve
growth and competition in the market. Lastly prominent performance measuring Tools and
techniques are used that helps in bringing innovation in terms of increasing sales prominently.

References
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