Strategic Planning for the Hospitality Industry

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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