Strategic Planning for the Hospitality Industry

This report discusses the factors affecting successful implementation of strategies in the hospitality industry, with a focus on the Milestone Hotel. It explores the role of leadership, organizational environment, and technological factors. It also examines the importance of structural design, information and control systems, and human resource management. Additionally, the report covers critical success factors, key performance indicators, and the balance scorecard. Finally, it discusses the key elements and leading types of strategic change in the Milestone Hotel.

Strategic Planning for the
Hospitality Industry

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO4..................................................................................................................................................1
Factor affecting successful implementation of strategies on business function..........................1
LO5..................................................................................................................................................4
Critical Success Factors (CSFs)...................................................................................................4
Key Performance Indicators........................................................................................................4
The Balance Scorecard................................................................................................................5
Key Elements and Leading types of Strategic Change................................................................6
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality industry is specialized in providing service to its customer that means the
focus of its to offer quality service to the customer and satisfy them in the best manner. It
includes food, lodging and drinking services and it is mostly present in tourism industry. In this
report Milestone Hotel has been taken and its five star hotel in Kensington, London. The hotel
differentiate it from other competitor in the hospitality industry by appropriate utilization of
discretionary income, free time and also by offering quality services to its customers. This report
describes the various factor affecting implementation of strategies on the functions of business.
This report also analyses and evaluate different performance metrics in milestones and the way
they affect the effectiveness of business strategies. At last this report critically evaluate key
elements in managing strategic change and leading type of strategic change.
LO4
Factor affecting successful implementation of strategies on business function
Business perform different activities or function in order to achieve predetermined
objectives. Thus, there are various factors that affect successful implementation of strategies on
business function. They are as follows in Milestone hotel:
Leadership: Leader possess the ability to influence and guide people thus help in coordination
of individual goals towards achievement of company goals (Tian,and et.al., 2016). Successful
implementation of Leadership strategies in hospitality industry is affected by economical,
political and technological factors, demographic and organizational environment.
Organizational environment, culture and its resource: It plays an important role in
implementation of leadership strategies as they represent value, culture, norms or work
environment of the company. Due to ever-changing and dynamic nature of organization
environment the leader has to change or adapt its strategies accordingly. Strategy of leader are
made as per the resource of the company that includes physical and human resource, its
technology and finance.
Demographic: It is the responsibilities of leader to understand the demographic structure and
culture, trend of the target customers in order to influence the employee to produce such product
design that satisfy the needs of the customers.
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Technological factor: This factor is ever-changing so the leader for successful implementation
of its strategies had to use update its technique or use innovative technique for smooth operation
of business.
Economical and Political factor: This factor includes policy, rules and regulation related to
operation of work in Hospitality industry that needs to be considered by the leader of Milestones
hotel in planning of its strategies.
Roles of Employees: Employees in an organization has various roles as per its task and
responsibilities and these are performed by building relationship with others. Thus, leader of
Milestone Hotel uses various strategies to guide and motivate employee to build relationship
with others and work effectively.
Thus, it can be stated that there are various factors in Milestone Hotel that affect the successful
implementation of strategies of leadership in achievement of business objectives.
Structural Design: Success and failure of the company depends upon its structure design and
wrong structure design may cause difficulty in survival of the company (Martinez-Martinez and
et.al., 2019). So, the company should build effective organization design to enable the company
compete with other competitor in the market. There are various factors in building appropriate
organization structural and some of them are organization size, environment, life cycle and
technology.
Environment: Structural design of company is determined by the environment condition that
means its stable or unstable. Stable environment help the company to operate effectively whereas
unstable environment it causes some difficulty in operation due to ever-changing nature. So the
structure design should be flexible and responsive to adapt to the changes. Milestones Hotel has
flexible structure design as it operates in unstable environment and there is better coordination of
various department that help the company in achievement of its objectives.
Organization size: The size of organization help in determination of structural design of the
company. Large organization has complex and formal structural design whereas small
organization has simple and informal structural design. Milestone has formal and complex
structural design as it has formal way of communication, specialized rules and task and have
different standard for appraisal of performance.
Life cycle of organization: It describes the stages of organization such as at early stage the
company has certain rule or regulation and use informal way of communication. The tasks are
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also not assigned or not specified and centralization of authority. But as the company grow it
delegates its responsibilities and authority, division of labour, specified the task and use formal
structural design as its focus to satisfy the needs of the customers effectively. Milestones hotel
has formal and complex structural design, delegate its authority and responsibilities as it has
been operating singe many years.
Information and Control Systems: This system provide protection to the data and asset of the
company that are stored in it (Raffoni and et.al., 2018). Thus, it helps in safety of data and in
formation of various policies, strategies, procedure to perform a task. Control system help in
analysis and evaluate of various information that are stored in it and thus help in decision-
making of strategies. Factors that impact the implementation of information and control system
are as follows:
Quality: By collecting information on the computer the quality of data increase as we can insert
diagram, charts and tables to our information thereby making it more attractive. One of the
benefit is the information in it can be edited as per requirement. It is also useful for executive as
in effective presentation of information to the members of the company in meeting, seminar.
Thus, increase quality of information help in planning successful implementation of business
strategies.
Revenue and Expenses: Computer provide easily and accurately record various data of the
company and data can be retrieved any time thus it had lead to save of cost as well as time.
Therefore, it can be stated that by using the previous data the company can effectively prepare
and implementation its strategies.
Human resource: Human resource are the most important resource of the company so the HRM
department of Milestones hotel use strategies to influence employees of the company (Nikolova,
2016). The factor that affect the successful implementation of strategies of HR are government
regulation, technological advancement, demographic structure of workforce and economical
condition.
Government regulation: There are various rule and regulation in order to protect the interest of
the employee. The HR should ensure effectively implementation of such rules while planning for
its employee such as at the time of training, recruitment. Compensation and promotion.
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Economical condition: It explains the economic condition of the country such as employment
rate, purchasing power of customer. Thus, the HR has to keep in mind economical condition
while implementation of its strategies.
Workforce demographic: HR by understanding the demographic structure can prepare
innovative and different type of compensation plan to attract younger generation. Thus, all these
function help in successful implementation of strategies.
LO5
Critical Success Factors (CSFs)
It refers to the critical point, activities or function that are crucial for attainment of
objectives of the company (Kaur and France, 2018). It helps in identification of certain factor
that are critically important in the success of the company. Critical success factor is important for
the company as it help in finding whether the company possess capabilities to meet its critical
factor or not. If the company does not possess such capabilities it needs to build it for the success
of the business. Critical Success Factor is different for different industry and business as it's a
special factor of that company that will help in differentiate it from others.
Help in Evaluation of performance: Critical success factor of Milestones Hotel analyses and
evaluate various data on the basis of it determine the performance of business. Thus, enable the
company to prepare its strategies as per analysis and evaluation of the information and gives
importance to its key element that would helpful in achievement of its objectives (Manning,
2018). Critical success factor is for high level goals of the company, help in formation of
strategies, beneficial to both company and department by increasing their effectiveness and thus
vital for the success of the organization.
Provide quality services: Milestones Hotel Critical success factor is that it had focus on
providing quality services to its customers or service oriented. Company has expanded its market
share by its existing customers and by increasing brand image and customer loyalty. So,
Milestones Hotel by the use of critical success factor is able to identify its key factor that help in
the success of the company and in building brand image, increasing loyalty of customers.
Key Performance Indicators
Key performance indicators (KPIs) are the measurement tools which uses by the
organizations for measure their current performance. These are helpful in deeply understand how
much effective company's business strategies, strategies are productive for the company or not,
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here is need to improve these strategies, etc. Big companies are generally uses high-level KPIs in
their particular business environments to know the overall performance of the company (Kibira
and Feng, 2017). For know different departments' performances called; marketing, sales, human
resource, production, etc. companies are uses low-level KPIs. There are these indicators highly
affect to the effectiveness of the Milestone hotel's business strategies which discusses below;
Provide improvement ideas: With the help of key performance indicators, the management of
the Milestone hotel able to understand their current performance in the hospitality UK's hotel
industry. Then if the management realize, the performance is not much good, it will try to
implement such ideas in their business strategies to improve the current performance of the hotel.
In other hand with the help of KPIs if the management realize the hotel's performance is good
and effective, then the management appreciate their employees in the hotel.
Increase productivity: Key performance indicators are also uses for analyse the performance
level of the employees. In this situation if the management realize the current performance of the
employees are not much productive and effective (Ryan, J. and et.al., 2017). Then it needs to
take some strategic actions for improve their productivity at workplace. For example; provide
various training sessions, motivational seminars, etc. to the employees. So, these indicators
mostly affect business strategies in positive term. These providing various ways to the
management to more improve the current business strategies work environment to increase
overall performance of the Milestone Hotel.
The Balance Scorecard
The balance scorecard (BSC) is one of the major performance metrics which businesses
are uses in their strategic management to improve the different functions and operations. This
metrics also provide feedback to the company. Robert kaplan and David Norton was introduced
the balance scorecard in 1992. The BSC include four major perspectives called; Financial,
Customers, Internal Business process, Learning and Growth. It is help to the companies to
properly identify these four perspectives for improve existing performance (Nagata and Andry,
2018). So, in the case of Milestone Hotel it also affects the effectiveness of their business
strategies, which discusses below;
Customer satisfaction: The Balance Scorecard is affect the business strategies in positive term,
because it is helping in identify the current score and growth level of the company. The
scorecard is some similar as report card which include various information about previous
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activities. With the help of this the management at hotel is able to know the customers point of
view on Milestone hotel. In this case if company realize the customers are not satisfied with
current services of the hotel. Then they able to employ new business strategies in their work
environment to give full satisfaction to their customers. The BSC also mainly focuses on the
customers value in the business. So, the management of the Milestone hotel motivate to develop
current business strategies.
Make business process more effective: With the help of Balance Scorecard the management of
the hotel is able to identify whole process in their work environment. Suppose the marketing
department of the company is become more productive than previous year (TARVER, 2019).
This all type of informations are always mentioned in this scorecard. Then the manager will
realize the current performance of the marketing department is good and no need to employ new
strategies to improve. In other hand suppose the finance process is become poor than previous
year. In this situation the manager will realize the performance level of the finance department is
decreased. Then it implements some new strategies in the finance department to make them more
effective to systematically maintain the business process of the Milestone Hotel.
Key Elements and Leading types of Strategic Change
There are included key elements and leading types of strategic change in the Milestone
Hotel. These elements and types are discusses step by step in below section;
Key elements in managing strategic change
Diagnosis: For manage the strategic change the hotel need to start diagnosis for identify the
current performance of their each body within business environment which related to the hotel.
Suppose with the diagnosis element the management knows their employees performance is
reducing day by day (Njagi, 2019). In this situation it needs to change their current people
management strategies to again improve their employees performance. Diagnosis makes able to
the manager of the Milestone hotel to clearly find the error within their work environment to run
all operations in productive way. Diagnosis provides accurate the aspects of the business process
which important to the manager to clear their main objectives.
Change Agents: In the change agents there are various internal and external factors are included
which influence the business process of the hotel. Suppose the external factor called technology
is very playing great role hotel industry nowadays. In that case the Milestone also need to use the
latest technology in their business environment. The management is also responsible to create
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business strategies on the basis these agents. There are these both external and internal factors
also impact the performance of employees in the hotel (Weiser, 2017). The hotel need to develop
their human resource strategies for these employees to perfectly maintain their performance in
the hotel's operations.
Managing Change Programmes: To effectively manage people/employees in the hotel, the
management need to use some strategic terms within programmes to make changes. These terms
will help to the hotel to improve the work performance of their hotel staff or employees.
 Unfreeze: In this term the manager need create a motivating environment for the
employees where they able to improve themselves from present situations. There are
huge responsibility of the top-level management of the Milestone hotel to make a
favourable work environment for their employees which motivate them learn new things
at their workplace, help in improve their workability, etc.
 Change behaviour or attitude: For improve the overall performance of the Milestone in
the UK's hotel industry. The management highly need to focus on maintain their
employees work efficiency. In this case it needs to diagnose the current behaviour or
attitude of the employees, because their personal behaviour also impact their workability.
In this situation the management need to change their employees behaviour according to
the hotel requirements (Suddaby and Foster, 2017). The step which help in make good
behaviour is, give extra value and support to the employees. It really helps in increase
their efficiency at work place.
 Refreeze: According to this term in change programmes, the upper-level management is
responsible to stable the change in the programmes for refreezing. Then it needs to
employ new work pattern in the hotel's operations by giving rewards, praises, etc. to the
employees. With this step the employees feel valued by the management, and then they
try to put many efforts at their workplace which help to the hotel to achieve their decided
goals in the market.
Lever for Change: In this stage the management need to use some levers of change in their
hotel to make change for the performance improvement purposes. Levers of changes are
generally some actions and decisions that managers take to engage employees. This included
some major levers of change below;
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1. Strategy: On the basis of this lever the hotel need to use some specific strategies in their
workplace to improve the performance of the employees. With the help of these strategies
the management can effectively manage people or employees performance in the hotel.
2. Human Resource (HR) practices: The human resource department of the hotel is
responsible to hire some highly qualified business strategy makers in their business
environment (Kakucha, Simba and Ahmed, 2018). In which they develop some modern
strategy for the Milestone hotel to perfectly manage workability of the employees.
3. Technology: This is also a big part of levers. With the help of technology the hotel is
able to properly identify their employees and staff work efficiency. Currently there are
various technical gadgets are available for the Milestone hotel which can help in analyse
present performance of an employee. Technological support also too important in overall
growth of the hotel.
Leading types of strategic change
Adaption: In this the management can implement and employ a series of steps towards improve
employees performance.
Reconstruction: In the reconstruction the management can implement many initiatives
simultaneously in their workplace for rapid change. It is necessary to put hotel on a progressive
path.
Revolution: It indicates transformational change which included fundamental changes within
Milestone hotel's business strategy and culture.
Evolution: In the evolution the management need to take some specific initiatives which totally
inter-relate with their hotel's performance aspect. In this stage the cultural change also highly
required for overall growth of the Milestone hotel.
CONCLUSION
It can be concluded that there are various internal and external factors are existing which
highly affecting the successful implementation of strategies in some major functions of the
Milestone hotel, called; leadership, structural design, information and control system, and human
resources. It also included various performance metrics like critical success factors (CSFs), key
performance indicators, and the balance scorecard. These all metrics are very helpful for the
hotel manager to identify the current performance of the hotel. There are also included some key
elements and leading types for the hotel to perfectly manage their strategic change aspect. The
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management always need to use and employ such modern business strategies in their business
environment to gain effective results from their hotel operations. Proper strategic management
also necessary for the Milestone hotel to gain high competitive advantage in the hotel industry of
the United Kingdom.
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REFERENCES
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