Hilton Group of Hotels Strategic Planning

The assignment provides an analysis of the strategic planning of Hilton Group of Hotels, highlighting their use of various tactics like joint ventures, management contracts, franchising, and mergers to expand their business share. Effective leadership is also emphasized as a key factor in increasing revenue. The document also discusses the implementation of a balance scorecard to align daily tasks and improve operational efficiency.

STRATEGIC PLANNING FOR THE
HOSPITALITY INDUSTRY

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Knowledge and understanding of most popular strategic options..........................................1
2. Analysis of factors affecting implementation of strategies.....................................................3
3. Analysis of different performance metrics for Hilton hotels and resorts................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Strategic planning is basically a type of organisation based management activity which is
used to develop priorities, lay emphasis on energy and resources, acknowledge operations,
making sure that workers and other shareholders are involved in achieving common goals and
adjusting industry directions so that they adapt to changing environment (Bryson, 2018).
Effective strategic planning helps firm in increasing efficiency of employees and maintain
organisation productivity. Present study focuses on strategic planning of hotel Hilton. It
highlights understanding of strategic options like joint ventures, management contracts, mergers
and acquisitions. Report also lays emphasis on factors affecting implementation of strategies.
Assessment discusses about different performance metrics of Hilton group of hotels. This group
of hotel welcomes over 140 million visitors to its more than 4600 properties. In year 2015
hospitality organisation signed over 100,000 new rooms for development creating a global
pipeline for 275000 hotel rooms. In year 2016 hotel has created 20000 more new jobs and
abundant employment opportunities.
MAIN BODY
1. Knowledge and understanding of most popular strategic options
In order to increase its business performance and operations, hotel Hilton can make use
of various strategic options. It includes the following:
Franchising- Hotel Hilton can make use of methods like franchising so that they can
expand their market share. In this element hospitality organisation can involved in providing
privilege to franchisor to run and operate their business over specific or particular region. Here
company will be involved in giving franchisor the training, equipment and other managerial
resources so that it will be easy for them to establish their business over there. Franchisor can
enjoy the strength of operating company in there region (Abdallah and Langley 2014). They
have full control on operations and performance of hotel Hilton. Also, firm will be engaged in
providing initial trainings, site approvals, efficient resources and all the important support to
franchisee in order to run their business effectively.
This system also have various advantages like For example in hotel Hilton while opting
for franchising system they can gain benefit of low political risk. Also, hospitality organisation
can involve in expand their business by reducing their investment expenses. This method helps
in simultaneous expansion in different part of world. But all the time franchising is not
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beneficial, here Hilton can involve in developing risk of losing control over working of company
as all the decisions are made by franchisee.
Management contracts- Hotel Hilton can also involve in using management contract to
increase their market share. In this method operational control of an enterprise is given to other
firm which performs some management functions in return for a fee. There is a large difference
between management contract and franchising. In franchising franchisee becomes the owner of
company as they buy trade name but this is not involved in management contract. Basically in
hotel management contract there exists a written agreement between owner and operator of
industry. These people agree to perform additional responsibilities like housekeeping, room
services, maintaining food and beverages and many more. Like for example Hotel Hilton can get
benefit from this method as it helps in reducing the work load of company. Also, the additional
tasks are being performed by the operators more effectively and efficiently. But some
disadvantages also lie while using this way, as it can raise the risk of conflict between owners
and operators. This can hamper the growth and working of industry (Bryson, 2018). It can lay
huge impact on profit margins.
Joint ventures: In this method hotel Hilton can make collaboration with any other firm to
open their business in particular region. Company can get benefits upon various elements by
entering into market through this mode. They can share technology, risk and sharing of reward,
developing of the new product together and adhering to government rules and regulations
(Cassidy, 2016). These ventures can help firm in gaining competitive advantage as it reduces the
political risks and also industry will be able to gain benefits related to channel of distribution.
They can learn from various new methods and techniques used by the other firm. Like for
example It will help hotel Hilton in increasing their organisational capacities. Also, this can lay
impact on productivity and work efficiency of employees. It helps company in gaining
competitive position in market.
This method also has some disadvantages like there may occur clash of culture among
hotel Hilton and other industry which they are working with. Also, there can lie
misunderstanding between the two firms. This can hamper the growth and performance of
industry. Also, there might occur chances that there lies lack of parent firm support.
Mergers and acquisitions: Hotel Hilton can also take mergers and acquisitions in order
to expand their business. They can merge their operations and management with any other firm
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which has been existed over there. This will reduce their risk of establishing their operation and
other place. Also, they can get benefits of advancing technology used by other firms. It increases
managerial efficiency of the firm. This method helps in reducing political risk and provides
stability to the company. Hotel Hilton by the way can also gain benefits of tax margins. They
also do not need to analyse the environmental factors as it has been reviewed by the other firm.
This can help them in gaining competitive advantage and overcoming the barriers that are in
their way. Merger and acquisitions will assist company in developing greater value to the
customers. It will help them in attracting more new customers and create brand loyalty for their
organisations. It also supports in increasing the economies of scale which support hospitality
industry in gaining competitive advantage.
2. Analysis of factors affecting implementation of strategies
Strategies adopted by hotel Hilton can get affected by various factors. These elements
may include:
Strategic Leadership- Strategic leadership basically means implementing a strategic
vision for the hospitality organisation. It motivates employees to achieve their organisational
goal. When implementing various strategies' hotel Hilton must be engaged in providing effective
leadership to their employees. This can support workers in effectively achieving their objectives.
It aligns worker’s goals with targets of organisation which enhances efficiency of workers. Also,
leaders must be involved in effective communication with employees, so that they get motivated
when industry is going through several changes. Like for example if firm is going for joint
venture or mergers and acquisition than leaders must get involve in encouraging employee to
adopt changes. This will support organisation effectively implement strategies while going
through modifications.
Also, it will help Hilton in acquiring and retaining workers. Leaders must be involved in
sharing new structure of company to their employees as if this not done by them, it might hamper
the working of employees as well as organisation (Cassidy, 2016). Also, while implementing
leaders should get engaged in developing shared culture. It will help employees in learning about
various new things from each other. Knowledge and understanding about each other. It helps in
building relationship which increases the efficiency and productivity of hospitality organisation.
Structural Design- The structural design set up by hotel Hilton can also affect
implementation of various strategies. It contains board of managers and supervisors who
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manages all the activities in an organisation. Also share holders are engaged in decision making
process. For example, if company is adopting strategic options like mergers and acquisitions than
the structure of organisation might get changed. Structural design can affect these strategies as it
can lay impact on performance and workflow influence productivity. Efficient organisational
structure at the time of changes is very necessary for firm as it is one of the major factor that
impacts the growth of company (Madison and Amos, 2017).
Also, leaders or board of management should be involved in designing such a structure
which puts right person at the right place. So that at the time of implementation of strategies they
can adopt and retain employees. It helps in increasing the profitability and productivity of
organisation. Also, appropriate structural design can manage the flow of effective
communication. If the company do not have effective channel of interactions than important
organisation information can't reach to employees which can definitely hamper the working or
operations of hotel Hilton. Flaws in structural design can hinder the growth of company and can
also make implementation of strategies inefficient.
Information and control system: It is one of the most important factor that can lay
impact on working of hotel Hilton while implementing strategies. Information and control
system should be designed effectively by leaders (Channon and Jalland, 2016). As, this system
support organisation in managing and controlling data related to the employees. Like for
example if company is going for franchising system than all the information related to franchisee
and investors must be managed properly. If not done than it might hinder the growth of
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Illustration 1: Organisation structure of hotel Hilton
Source: (Key performance indicators, 2018)

hospitality organisation. Hotel Hilton makes use of property management system which is a
software that helps in coordinating operational functions of front office, sales and planning.
They also make use of ONQ software that supports organisation in planning, designing and
restructuring function. Opera is the micros' property management system that is been used by
hotel Hilton, it assists organisation in managing and coordinating various functions.
The efficient information and control system can assist company in communicating
important things to workers at the time of changes. It encourages and motivate employees to
work more enthusiastically for completion and achieving of goals. This also helps organisation in
managing, controlling and analysing data across different regions. Efficient information and
control system builds a positive culture in the organisation. At the time of implementation of
strategies this supports company in acquiring and retaining employee. Hilton group of hotel can
increase their profit by installing effective system. It reduces operational cost, enhances
partnership, boost revenue. All these factors can support hospitality organisation in gaining
competitive advantage.
Strategic Human resource management: It is the practice of attracting, retaining and
motivating employees. Hotel Hilton for acquiring workers can make use of various strategies like
rewards, incentives and bonus. Hilton group of hotels and resorts while implementing strategies
must take into consideration their human resource. It can lay a great effect on the working of
organisation (Channon and Jalland, 2016). Like for example if hospitality organisation is going
for joint venture or management contracts than human resource of the company must be involved
in effectively communicating changes to the work force, individuals and groups. Organisational
goals and objectives must be effectively communicated to the team so that after implementing
changes they are able to easily adapt to the changes. It helps in increasing the efficiency of
organisation and also it supports in boosting the revenue.
Also, leaders must be involved in maintaining work atmosphere during the time of
implementation of strategies. It is very important aspect as it will help in engaging human
resource of industry for doing more work. It will help in enhancing work culture. To retain and
acquire human resource at the time of establishing changes effective training must be provided to
employees. It will motivate them to perform better and also enhance their self-esteem plus self-
confidence.
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3. Analysis of different performance metrics for Hilton hotels and resorts
Performance metrics is mainly used by Hilton group of hotels to measure behaviour,
activities and performance. It helps them in identifying how much an employee is working
towards the achievement of their goals. This metrics is used to access the safety, time, cost,
resources which has been utilised in organisation.
Critical success factors: Critical success factor is a component which is most important
component for Hilton group of hotels to achieve its mission and objective. The factors which can
lead to success for the hospitality industry are effective communication, human resource
planning, effective structural design, efficient leadership, focus on people, marketing and
finance. Company through laying emphasis on these factors can improve their performance
metrics. It helps them in analysing and identifying the barriers which are coming in their path of
success. For improving the efficiency related to these components' industry can make use of
advancing technology.
Hotel Hilton can determine these by expanding their market share through acquiring and
retaining consumers (Wolf and Floyd, 2017.). This can help organisation in building their brand
image in the market. It will also help in attracting new customers. Industry must also be oriented
when imparting the services to consumers. It will help firm in building relationship with
individuals and groups. This ultimately links to increase in profit. Also, revenue will be boost
after that. For tasting success Hilton group of hotel must also be involved in asking for feedbacks
and ideas from employees. This will help organisation in acknowledging the most creative and
innovative ideas. Also, it may build healthy relationship between employees and board of
management which enhances the productivity of organisation.
Location: It is one of the key factors of success that has been selected by hotel Hilton.
They have constructed their organisation over a place that is easily accessible by people and also
near airports and other areas.
Brand name: Hotel Hilton has maintained their brand name by delivering high quality
products and offering services according to needs and demands of people.
Quality management and flexibility: Hotel Hilton is engaged in keenly working on this
aspect. They offer quality products and wide range of choices to people.
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Key performance indicators:
This a quantitative measure for evaluating the success of an organisation by evaluating
the performance of employees while achieving the objectives. Hotel Hilton to enhance their
growth and expand markets share must make use of key performance indicator software.
Online rating system: Hotel Hilton for measuring performance of employees is making
use of online rating system software that measures their outcome on basis of their performance.
This will help organisation in converting data into more personalised form which will be easier
for the employees to understand and arrange the information.
Average daily rate: It measures the average rental income per paid occupied room in a
given time period. Software will assist Hilton group of hotels in collecting and managing data
related to employees or customers. After using key performance indicator organisation will be
able to track the data easily. The software assist company in entering data at one single place
which is been specifically designed.
Return on investment: This measures the performance and tells how much each
employee have given to company. It helps in making data more accurate and specific (Key
performance indicators, 2018). Hilton group of hotels and resorts can get advantage from this
software as it will make there work more easy and will also take less time for completion of any
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Illustration 2: Key performance
indicator
Source: (Key performance
indicators, 2018)

task. This can assist them in saving cost and reducing time to perform any activity. Also, by KPI
employees performance can be measured easily. Company will enhance their growth and will be
able to expand their market share by using this advancing technique.
The balance score card: Hilton group of hotels and resorts can also make use of balance
score card to expand their business (Dibrell, Craig and Neubaum, 2014).
Financial: Hotel Hilton can also measure the performance of employees related to
financial performance. It is a kind of strategic planning and system of management that
hospitality organisation can utilise in communicating to employees, investors, stakeholders in
what are the companies goals and objectives.
The Best human resource practices: Performance can also be measured on the basis of
measuring performance on the basis of ethical practices done in the organisation. This also help
in building relationship with workers which makes their work more effective and efficient. It
supports in creating a different image in front of competitors. Also, competitive advantage is also
been gained through this.
Associate and management turnover: Performance can also be measured on the basis of
management skills. The balance scored card also help in interlinking the daily routine task of
employees. It helps in developing a chain of command, so that the objectives can be achieved
easily. It will support Hilton group of hotels in prioritising projects, product and services. This
help employee on laying emphasis on that procedures which are more important in nature. It will
enhance the operation and productivity of hospitality organisation.
Also the revenue will be boost by it. Balance score card take into account about the
vision, mission, strategy, actions and objectives. More emphasis is being given on these factors.
In this method, they try to divert the employees' attention towards what is of most importance. It
also increases the operational efficiency of workers. This also help company in satisfying
employees and reduces the attrition rate in the organisation. Hilton group of hotel can be most
benefited by this.
CONCLUSION
From the above report, it has been summarised that Hilton group of hotel and resorts has
made use of various strategic options like joint venture, management contract, franchising,
mergers and acquisitions. These tactics have helped hospitality organisation in entering new
market and expanding their business share. Also, these strategies have been affected by various
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criteria like human resource, leadership. Effective leadership has assisted company in increasing
and boosting their revenue. Industry has also made use balance scored card which has helped
industry in aligning the day to day task performed by employees. This has increased their
operational efficiency and productivity.
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REFERENCES
Books and Journals
Bryson, J.M., 2018. Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement. John Wiley & Sons.
Cassidy, A., 2016. A practical guide to information systems strategic planning. Auerbach
Publications.
Wolf, C. and Floyd, S.W., 2017. Strategic planning research: Toward a theory-driven
agenda. Journal of Management. 43(6). pp.1754-1788.
Dibrell, C., Craig, J.B. and Neubaum, D.O., 2014. Linking the formal strategic planning process,
planning flexibility, and innovativeness to firm performance. Journal of Business
Research.67(9). pp.2000-2007.
Channon, D.F. and Jalland, M., 2016. Multinational strategic planning. Springer.
Madison, A. and Amos, J., 2017. CONSTRAINTS IN STRATEGIC PLANNING: AN
IMPETUS FOR NOVELTY IN ORGANISATIONAL DECISION MAKING. BRITISH
JOURNAL OF INTERDISCIPLINARY RESEARCH. 8(1).
Abdallah, C. and Langley, A., 2014. The double edge of ambiguity in strategic planning. Journal
of Management Studies.51(2). pp.235-264.
Online
Key performance indicators. 2018. [Online]. Available through
<https://www.klipfolio.com/resources/kpi-examples>
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