Strategic Planning for the Hospitality Industry Assignment
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Added on 2020-10-22
Strategic Planning for the Hospitality Industry Assignment
Added on 2020-10-22
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STRATEGIC PLANNING FOR THEHOSPITALITY INDUSTRY
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................11. Knowledge and understanding of most popular strategic options..........................................12. Analysis of factors affecting implementation of strategies.....................................................33. Analysis of different performance metrics for Hilton hotels and resorts................................5CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................8
INTRODUCTIONStrategic planning is basically a type of organisation based management activity which isused to develop priorities, lay emphasis on energy and resources, acknowledge operations,making sure that workers and other shareholders are involved in achieving common goals andadjusting industry directions so that they adapt to changing environment (Bryson, 2018).Effective strategic planning helps firm in increasing efficiency of employees and maintainorganisation productivity. Present study focuses on strategic planning of hotel Hilton. Ithighlights understanding of strategic options like joint ventures, management contracts, mergersand acquisitions. Report also lays emphasis on factors affecting implementation of strategies.Assessment discusses about different performance metrics of Hilton group of hotels. This groupof hotel welcomes over 140 million visitors to its more than 4600 properties. In year 2015hospitality organisation signed over 100,000 new rooms for development creating a globalpipeline for 275000 hotel rooms. In year 2016 hotel has created 20000 more new jobs andabundant employment opportunities. MAIN BODY1. Knowledge and understanding of most popular strategic optionsIn order to increase its business performance and operations, hotel Hilton can make useof various strategic options. It includes the following: Franchising- Hotel Hilton can make use of methods like franchising so that they canexpand their market share. In this element hospitality organisation can involved in providingprivilege to franchisor to run and operate their business over specific or particular region. Herecompany will be involved in giving franchisor the training, equipment and other managerialresources so that it will be easy for them to establish their business over there. Franchisor canenjoy the strength of operating company in there region (Abdallah and Langley 2014). Theyhave full control on operations and performance of hotel Hilton. Also, firm will be engaged inproviding initial trainings, site approvals, efficient resources and all the important support tofranchisee in order to run their business effectively. This system also have various advantages like For example in hotel Hilton while optingfor franchising system they can gain benefit of low political risk. Also, hospitality organisationcan involve in expand their business by reducing their investment expenses. This method helpsin simultaneous expansion in different part of world. But all the time franchising is not1
beneficial, here Hilton can involve in developing risk of losing control over working of companyas all the decisions are made by franchisee. Management contracts- Hotel Hilton can also involve in using management contract toincrease their market share. In this method operational control of an enterprise is given to otherfirm which performs some management functions in return for a fee. There is a large differencebetween management contract and franchising. In franchising franchisee becomes the owner ofcompany as they buy trade name but this is not involved in management contract. Basically inhotel management contract there exists a written agreement between owner and operator ofindustry. These people agree to perform additional responsibilities like housekeeping, roomservices, maintaining food and beverages and many more. Like for example Hotel Hilton can getbenefit from this method as it helps in reducing the work load of company. Also, the additionaltasks are being performed by the operators more effectively and efficiently. But somedisadvantages also lie while using this way, as it can raise the risk of conflict between ownersand operators. This can hamper the growth and working of industry (Bryson, 2018). It can layhuge impact on profit margins. Joint ventures: In this method hotel Hilton can make collaboration with any other firm toopen their business in particular region. Company can get benefits upon various elements byentering 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 thepolitical 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 forexample It will help hotel Hilton in increasing their organisational capacities. Also, this can layimpact on productivity and work efficiency of employees. It helps company in gainingcompetitive position in market. This method also has some disadvantages like there may occur clash of culture amonghotel Hilton and other industry which they are working with. Also, there can liemisunderstanding between the two firms. This can hamper the growth and performance ofindustry. 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 orderto expand their business. They can merge their operations and management with any other firm2
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