Strategic Planning for the Hospitality Industry

This report discusses the importance of strategic planning in the hospitality industry, identifying factors to consider for successful strategy implementation, presenting creative business strategies for Savoy, and analyzing performance metrics to evaluate success. It also highlights critical success factors and key performance indicators for the industry.

Strategic Planning for the
Hospitality Industry

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Identifying the most appropriate factors for any strategy...........................................................3
Presenting the creative business strategies for SAVOY............................................................5
Analysing and evaluating various performance metrics.............................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION.
Strategic planning helps firms in determining the vision that is made for the future along
with certain goals. Further, the present report is based on one business strategy that will be
adopted by The SAVOY hotel that is headquartered in London and is one of the most luxurious
brand. Moreover, the report will identify certain factors through use of SWOT and PESTLE
analysis that need to be considered before implementing any kind of strategy within the
workplace. Moreover, the study will also analyse importance of competitive business strategy
through using porter five forces so that competitive advantage could be gained in timely manner.
Furthermore, various performance metrics will also be discussed under this report so that
employees' performance could be measured on regular basis according to the set strategy of
business. Lastly, the study will also analyse certain success factors and performance indicators
so that efficiency of business could be analysed .
MAIN BODY.
Identifying the most appropriate factors for any strategy.
For any business strategy to be successfully implemented it is essential that certain
factors are taken into consideration so that there are no problems in the future. Also, for the
hospitality sector it is essential that right strategy is implemented so that proper delegation of
work could be done at all levels of the firm. In context of The SAVOY hotel that is located in
London offers more luxurious customer experience. Further, the quoted firm is focused on
business strategy of continuously innovating and developing creative ideas at the hotels
through use of technology so that more revenues could be generated in specific time frame.
Hence, below is list of factors that need to be considered by the firm while maintaining this type
of strategy at its workplace
Proper engagement of employees: For any strategy to be success it is very important
that all its employees and stakeholders are included in this change process so that bests of ideas
could be generated by the firm for successful innovation. Also, such type of inclusion allows the
employees to feel valued and also build job satisfaction for longer time period. Further, there are
various means by which employees could be engaged such as through meeting, conferences,
suggestion box etc.(Eckerd and et.al., 2021). Moreover, it needs to be considered as important
factor as building innovative techniques is not individual decision-making rather group efforts.

Identify change management issues: When any strategy is developed for the
organization it is essential that certain issues that might occur within employees is analysed
before only so that better change management techniques could be implemented at the time of
strategy. Moreover, it will help the firm in overcoming resistance for others through inspiring
business vision clearly.
Securing resources: This is another factor that need to be considered while any change
need to be brought up by the firm so that maximum revenues could be generated out of set plan.
Also, for securing the resources the firm need to developing strong business plan so that wastage
and duplication of the resources could be avoided and work could be delegated among different
members in right and proper manner (Thomas, 2021). Moreover, if this factor is ignored than set
strategy would not be able to give desired results in specific time.
Define values: It is very essential that company vision and mission statement is clearly
defined while implementing any kind of strategy at the workplace. This factor allows others to
put systematic efforts in achieving the goals that is desired by the firm. Moreover, this helps in
giving proper direction to all the employees so that productivity is not impacted and proper
efficiency levels are maintained (Bryson, Edwards and Van Slyke, 2018). Thus, it is very
important that while implementing any kind of strategy the firm is able tor redefines its vision
and goals so that chances of conflicts are less.
Creating the best business environment: This factor helps the firm in conducting
smooth operations of the business because if work environment is not proper and more stressful
than employees would not be able to give the best results in limited time frame. Also, the best
business working is one where employees are able to share certain ideas openly and freely
without hesitation. Moreover, firm could create the best environment through conducting SWOT
analysis that will identify the strength, weakness, opportunities and threats. Hence, in the firm
like Savoy major strength is that products offer are quite unique as per the needs of the customer
along with reasonable prices criteria that is being offered to its customers (The 5 factors you need
to successfully implement your strategy, 2022). However, the firm has the major threat from the
competitors that are also performing well in terms of customer services. In the future, savoy has
the opportunity to expand the business in new market or regions so that maximum revenues
could be generated.

Aligning strategy with organization structure: Moreover, it is also very essential factor
that organization considers while operating the business on large scale. Also, the firm need to
closely analyse type of organization structure on which the business currently made before
implementing any kind of strategy so that resources could be identified and allocated in bests
manner. Moreover, all department functions and operations need to be closely identified so that
there are no problems in implementing the new strategy.
Furthermore, the firm could align business activities through conducting PESTLE
analysis that will analysis all types of external factors such as political, social, technological,
legal and environmental so that better business policies and structure could be set for future
changes. In context of savoy it can be said that quoted firm need to keep in mind all types of
health policy and safety laws relating to customers and employees so that no future problems
have to be faced in the future (Harris and et.al., 2020). Furthermore, any type of cultural and
religious practices that are followed by any country might also impact certain practices of the
hotel business. Also, using technology that makes the hotel operations faster might also create
positive impact on the success of the business. Moreover, using environmental friendly products
such as reusable cups, organic made blankets etc. would also help in creating positive impact on
the overall sales of the hotel in long run.
Thus, above are few factors that are essential for hotel like SAVOY so that best of
innovative technologies could be implemented in the easiest manner. Also, implementing any
new technology in the firm is important step as risk factor is very high whether it will be
successful or not. Thus, proper realignment of resources and division of task need to be done so
that greater success could be ensured.
Presenting the creative business strategies for SAVOY.
Creative business strategy helps the firm in gaining competitive advantage through
closely analysing the changing environment. Moreover, better strategic decisions give direction
to the overall firm and build up certain competencies essential for the business. Also, for the best
business decisions strategic planning need be to be undertaken so that operational, business and
corporate strategy could be well-defined (Hemmonsbey and Tichaawa, 2019). In context of
quoted firm that wish to provide innovative services while incorporating various technologies out
of which some existing being use of electric lights, lavishly furnished rooms with high tech
technologies, attraction of royalty etc. to grab attention of most of the customers. Moreover, to

remain competitive with such type of strategy the firm could apply Porter five forces model that
will allow Savoy to identify certain factors before implementing any kind of strategy within the
firm (HOTEL INDUSTRY & Porter's 5 Forces, 2022). This model consists of various factors that
are as follows :
Competition in industry : This factor helps in identifying the existing competition that
is existing in the market so that business could implement the strategy accordingly. Also, if lot
of hotels are operating in same region with little differentiation in prices and other attributes than
better policies need to be developed.
Potential of new entrants: Hospitality sector is mostly categorized on basis of high
capital investment. Hence, chances of entrances of new competitors is very less and also due to
the pandemic and limited availability of the best locations, it seems to be difficult for small
hotels to start up business in existing markets (Al-Dhaafri and Alosani, 2020.). Thus, it would
prove to be an additional advantage for quoted firm to implement the new business strategy.
Power of suppliers: This factor is very low for hotel industry as most power in hotel is
among the labour, trained staff and personnel through which huge demand in the market could be
created. Thus, bargaining power of suppliers is very low and thus there is indirect pressure on
the competitiveness of hotels. Further, the firm need to maintain cost advantage so that it can
differentiate easily among the rest of the competitors.
Power of buyers : It has high impact as certain buyers helps the firms in increasing the
revenues of the firm when hotel rooms are booked in bulk. Hence, if the firm is not delivering
the services according to the customers expectations than buyers might switch to other options
that are available in the market.
Threat of substitute: This factor is very low especially for the hotel industry however
there might be cases where people that are looking for the cheaper options might opt for going to
hostels, motels or any other medium. Thus, this situation is going to happen especially expanding
into new regions where price sensitive customers are present.
Thus, from the above factors it can be clearly said to remain competitive for longer time
it is essential that proper analysis is undertaken by Savoy so that better customer segment could
be targeted, competitors pricing could be identified, markets could be understood easily.
Moreover, through conducting the best competitive analysis savoy would be able to acquire new
customers for its innovative services so that better positioning in the market could be done.

Analysing and evaluating various performance metrics.
Performance metrics is defined as set of data and figures that help the organization in
identifying and measuring the goals of the business in long run. Moreover, such type of metrics
helps in comparing and tracking the data for its performance and also generates report that is
valuable for all internal and external stakeholders (Gornostaeva and Sorokina, 2020).. Further,
for quoted firm there are various types of performance metrics that could be used in the best
manner. Some of them are as follows:
Graphic rating scale: It is type of rating scale that helps firm in measuring the
performance standards through scale that ranges form 1 to 5 based on individual employee
performance. Also, this technique of firm would be helpful for supervisors that are managing
large departments. Further, this type of metrics cannot be opted on regular basis.
Management by objectives: This is technique where supervisors identify the employee
goals and based on that employees and mangers list the important resources that is required to
achieve those gaols in systematic manner.
360 degree feedback : This is also type of performance metrics that allows the firm to
review all the employee work through collecting data form all levels of workers so that both
positive and negative similarities in individual could be find out easily (Lange, 2021).. Also, this
type of technique is helpful for the firm in providing additional training and support to those
employees that lack certain skills or knowledge.
Balance scorecard: This analysis helps in improving the business performance through
analysing various internal functions and outcomes. Also, through such technique the firm would
be able to know about four main aspects such as learning and growth, business processes,
customer and finance etc. Hence, with the use of this metrics the firm is able to train all the
employees with full support and guidance (Canbek, Taskaya Temizel and Sagiroglu, 2021).
Furthermore, such scorecards allow the companies to recognize all type of inefficiencies so that
corrective actions could be taken.
Checklists: It is technique that could also be used in most appropriate manner by hotel
like savoy where all the employees are asked certain questions in yes no format so that lack of
inefficient areas of the employees could be analysed on the basis of answers provided. Also, such
techniques would allow the firm to implement certain changes in the firm in most efficient
manner.

Self evaluation: It is technique that helps to evaluate performance of employees in form
of answering multiple type questions so that easy comparison could be made in against of other
employees. Furthermore, this type of analysis can lead to generate beneficial conversations
regrading the change that is implement at the workplace.
Moreover, there are various key performance indicators that need to be developed by
the quoted firm so that overall long term performance of the firm could be maintained.
Furthermore, these indicators are developed on the basis of goals the firm wish to achieve in
specific time period so that systematic direction could be given to all its employees. Moreover,
KPI for Savoy would be based on financial performance, supply chain and operational
performance and much more. Thus, KPI help the firm in focusing on one common goal to ensure
it is aligned with business (Gotin and et.al., 2018). Furthermore, certain critical success factors
also need to be developed by the Savoy so that areas of business vital for success is identified.
For the quoted firm certain success factor based on the current innovation strategy would be
quality service, increased customer feedback, improved marketing strategies and customer
satisfaction and much more. Thus, based on these factors the firm would be able to achieve
greater success, would be very helpful in eliminating all types of unrelated performance and
helps in prioritize all types resources allocations so that work could be carried out smoothly.
Moreover, all critical success factors for the firm is developed through clearly examining the
vision and goals, assemble all the team members at the similar workplace and ask for all types of
relevant feedback.
CONCLUSION
From the above report it can be concluded strategic planning helps the firm in achieving
the goals in systematic manner. Further, that there are various factors such as engagement of
employees, aligning strategy with organization structure, define company values and much more
that had be considered by hotel Savoy so that better organization success could be gained within
systematic time frame. Moreover, among all the business strategies the best business strategy
that is porter five forces had also been explained in detail under this report so that efficiency of
the employees would not be impacted while implementing the desired strategy. Furthermore, the
study has also analysed various performance metrics such as 360 feedback, checklist, balance
scorecard, self evaluation etc. that could be used by the firm to measure the success of the

strategy among all its workers. Lastly, various critical success factors and performance indicators
relating to the savoy has also been discussed in detail.

REFERENCES
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Canbek, G., Taskaya Temizel, T. and Sagiroglu, S., 2021. BenchMetrics: a systematic
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Eckerd, A. and et.al., 2021. Strategic planning and performance measurement: Engaging the
community to develop performance metrics. Critical Policy Studies. 15(1). pp.1-20.
Gornostaeva, Z. V. and Sorokina, Y. V., 2020. Foresight as a Modern Technology of Strategic
Planning and Forecasting. In Growth Poles of the Global Economy: Emergence,
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Lange, J. P., 2021. Performance metrics for sustainable catalysis in industry. Nature Catalysis.
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Online:
HOTEL INDUSTRY & Porter's 5 Forces. 2022. [Online]. Available
through:<https://www.linkedin.com/pulse/hotel-industry-porters-5-forces-harish-gupta>.
The 5 factors you need to successfully implement your strategy. 2022. [Online]. Available
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