Strategic Planning for the Hospitality Industry

This article discusses strategic planning for the hospitality industry, with a focus on factors to implement a chosen strategy, creative business strategies for competitiveness, and various performance metrics to evaluate the working and result of the hotel. The article uses Dorsett City London as a case study to illustrate these concepts.

Strategic Planning for
the Hospitality
Industry

Table of Contents
INTRODUCTION...........................................................................................................................3
Critically analyse the most appropriate factors to implement a chosen strategy.............................3
Creative business strategies for a chosen administration's upcoming scheme choice to be
competitory in the hospitality industry. ..........................................................................................5
Evaluate various performance metrics.............................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
Books and journals...............................................................................................................11

INTRODUCTION
Strategic plan contains the process of describing the goals and creation of schemes to achieve
those aims. A plan of action is a kind of lengthy plan of action created to accomplish a specific
objective, as distinguished from methods or instant activities with resources at hand. Dorsett city
has been taken as a base firm which is a 4-star hotel situated in London and an accurate choice
for an administration and leisure travellers. Makie Chu is a general manager at this hospitality
firm who has created this famous 24 hours restaurant serving modern British cuisine with various
facilities. This file covers factors of the chosen strategy, creative business strategies which shows
the competitiveness in the market (Kazandzhieva and Santana, 2019). This will also cover
different presentation metrics included to measure the working and result of the hotel.
Critically analyse the most appropriate factors to implement a chosen strategy.
Strategical planning is a procedure in which leadership of an organisation find out their visual
sense for the upcoming days and also determine the aims and goals for the firm. The procedure
also involves setting up the series in which those objectives should fall so that the administration
is modified to reach its declared visual sense.
Promotional strategy is used by the selected hospitality firm as Promotion is a component of an
industries marketing mix that function to communicate, influence and inform the market of an
administration or its commodities (Law, Leung and Chan, 2019). There are various essentialist of
the promotion like sales of commodities in the imperfect market, facing concentrated
competence and many more. This strategy is very helpful as it is the most essential intention for
the Dorsett city that a promotion serves is that it sets an enterprise separated from its
competition. No enterprise will ever essential to run any promotional material if there was not
any competition. They have to continue in the lead of their challengers for consumers to keep
doing business with them.
Factors to implement a chosen strategy includes:
Type of commodity:
A type of a commodity plays an essential function in determining on promotional material mix.
Commodities can be classified in case of branded, non-branded and essential commodities,
luxuriousness and new products and many more (Hakeem and Khan, 2018). All these kinds of

commodities require various promotional instruments. In case of Dorsett city, it offers room
facilities, best rooftop bars, best dining facility, gym facilities etc.
Use of Commodity:
Commodity may be industrialized product, expendable and essential, or may be luxuriant
commodity that impacts choice of promotional instruments and media. In context to, Dorsett
city, advertisement and sales promotional method are widely utilised for user commodities while
individual marketing is utilized for industrialized goods.
Complexity of commodity:
Complexness in the commodity impact the selectivity of promotional instruments. Personal
marketing is more effectual for analysable, specialized, dangerous, and freshly formed
commodities as they require personalized detailing and observance. In relation to Dorsett city,
advertisement is more appropriate for simplex and easily-handled commodities.
Purchase Quantity and Frequency:
Organization should also see acquiring frequency and buy quantity while determining on
promotional mix. Generally in case of Dorsett city, for frequent buying of commodities,
advertisement is utilised, and for occasionally buying of a commodity, individual marketing and
sales advertisement are upgraded (Wang, Guchait and Paşamehmetoğlu, 2020). Personal
merchandising and promotion are utilized for massive people and light users respectively.
Fund available for market promotion:
Fiscal capability of organization is a critical component impacting a promotional mix.
Advertisement by TV, radio communication, newspaper publisher and publications is too
expensive to bear on a financial level miserable organization while individual marketing and
sales promotional material are relatively inexpensive instruments. In relation to the Dorsett city,
they may choose for promotion by drawing attention to a certain commercialism important cases.
Stage of Product life cycle:
Commodity crosses by four phases of its life cycle. Every phase contains various danger and
possibilities. Each stage require isolated selling schemes. In case of Dorsett city, each of the
promoting instrument has got various level of quality with phase of product life cycle. The
selected organisation may come under growing stage of product life cycle.
Pricing:

Price of the product impacts the promotion mix in two modes. First of all in case of the cost of
the rival brand and second in context of the boundary permitted to the middle. If the product of
the3 selected organisation is costly than the cost, personal marketing of a competitor is adopted.
In case of Dorsett city, If the brand is costing less than the challenger’s value, only less publicity
is required. If the intermediate are permitted high net profit boundary, the mediator are inspired
to stock and force the brand and very less promotion may be needed. If net income margin is
less, massive advertisement will be needed.
Vision of the Dorsett city:
They believe that a hotel group should be responsible to its guests. They concentrate on giving
the advance levels of regard, loyalty and equity in all prospect of their work (Peco-Torres, Polo-
Peña and Frías-Jamilena, 2021). They are not afraid to take accountability for all of their actions,
intrinsic and extrinsic; and they know that without the top-grade individuals, they can not give
the better experience of guest.
Mission of the Dorsett city:
They are attached to provide training, supply and create their subordinates to pleasure their
visitant and make attractive experiences that genuinely point their Asian motivated hospitality to
the worldwide.
Creative business strategies for a chosen administration's upcoming scheme
choice to be competitory in the hospitality industry.
Pestle analysis
Political factors: political factor consider how and to what degree a government authority
interfere in the economy of the country. Changes in government policy, political stability or
instability in overseas markets, foreign trade policy, tax policy and etc. From these change it is
clear that political factors can put impact on organization and how they do their business. That is
why it is important for the organization to respond to the current and predicted legislation, and
adjust their marketing policy accordingly. In context to Dorsett City London, they can decide to
move their operations to a different place after a new government is elected on a campaign to
implement policies that would adversely impact the hotel’s core operation.
Economic factors

Economic factors also put a significant impact on how an organization perform its task and how
profitable they are. Economic growth, interest rate, exchange rates, inflation and etc. are included
in the economic factors. Further we can divide these factors into macro and micro economical
factors. Macro economical factors deals with the management of demands in any given
economy. In context to Dorsett City London, hotel can decides to refinance its debt after
authority change the interest rates.
Social factors
Social factors can also be denoted as socio-cultural factors, this is area where the attitude and
belief of the population is being included. Population growth, age distribution, health
consciousness, career attitudes and etc. are included in the social factors (Joshi, 2018). Mainly,
these factors put a direct effect on how marketers understand customers and what drive them. In
context to Dorsett City London, the hotel must conduct the survey of their potential customers
and should try to implement the things through which they can cater more customers.
Technological factors
These days technology is changing very rapidly and it put the impact the way to market the
product. Technology factors affect marking ways to produce and distribute new goods and
services and to communicate it to the targeted customers. In context to Dorsett City London,
hotel must decide to digitalize all those functions which they can. It will help the hotel to get
more attention and will help to cater more customers.
Environmental factors
Environmental factors became important due to the scarcity of raw materials, pollution targets
and etc. most of the consumers are demanding those products which are sourced ethically, and if
possible only from the sustainable sources. In context to Dorsett City London, they must try to
serve food which is organic and do not effect on the health of their customers, as well as promote
ethical culture in their hotel.
Legal factors

Health and safety, equal opportunities, advertising standards, consumer rights and law are
included in the legal factors. The company must be aware to the fact that what legal and what is
not in order to run smoothly. Sometimes it becomes difficult for the company to manage rules
and regulation if they work globally. In context to Dorsett City London, they need to follow all
the rules and regulation else their hotel’s license might got cancelled if not adhered to the rules.
Porter's five forces
This is a framework which is utilised by companies to evaluate their competitive
environment in which they are operating their business. It facilitate companies in accessing
attractiveness of industrial sector and determining areas where they could adjust their strategies
in order to improve profitability (Duke, 2018). In context to Dorsett City London, the Porter's
Five Forces analysis has been provided below with explanation:
Threat of New entrants: This factor of respective framework helps in explaining how
entry of new business venture in the market could influence market position of existing
companies. In case of Dorsett City London, the power of new entrants is low as in order to enter
hotel industry it requires a lot of investment. The existing hotel brand has a strong position and
image among customers which is very difficult for new firm to break or more ahead of them. The
selected hotel also needs to implement innovative strategies to attract more customer so that they
can not be influenced by other hotels.
Bargaining Power of Buyers: This component is applied to determine how decisions or
preferences of consumers could impact business activities of companies. In case of selected
hotel, the bargaining power of customers are high as this industry totally depends on its potential
clients (Varelas and Georgopoulos, 2017). The hotel is required to provide exceptional services
to their customers so that they can not shift to other hotels. The preferences of customers highly
influence market activities of hotel which compelled them to offer innovative services.
Bargaining Power of Suppliers: This factor helps in determining how activities of
suppliers impact business operations of companies. In case of respective hotel, the bargaining
power of suppliers is relatively low. The hotel industry has various suppliers which decrease
their negotiation power that facilitate respective hotel to switch its business operations from one
to another. The intense competition among suppliers further decrease their power to bargain with
hotel owners.

Threat of Substitute products: This component of this framework helps in examining
how existence of secondary items could impact on performance of original products (Prais,
Jarvis and Wagner, 2019). In context to selected hotel firm, the power of substitute products is
very low as people do not want to spend their vacations at some cheaper accommodation service
provider. Even after COVID-19, people are now preferring to stay at those hotels which provides
them safe environment and follows all precautions against this pandemic. The respective hotel
also holds a reputed brand image in the market which further helps it in minimizing this threat of
substitute products.
Rivalry among existing Competitors: This element of Porter's Five Forces assist in
evaluating how presence of various competitors in the market could influence position of another
company (Hossain, Kannan and Raman Nair, 2021). In case of respective hotel organisation, the
rivalry for it is very high as there are many other hotels present in the market such as Lucknam
Park Hotel & Spa, The Newt in Somerset, Summer Lodge Country House Hotel and many more.
This presence of such branded hotels increase competition for selected hotel.
Evaluate various performance metrics.
Performance metrics is characterized as illustrations and also data typical of organisation's act,
choice and capabilities. Business usage various types of performance matrices like sales,
consumer feeling, tax return on investing and different another to revaluation organizational
performance. It is in use by Doresett city in measuring the attitude, presentation and activities of
organization.
Many performance metrics in relation of Dorsett city hotel are described below:
Client retention rates (CRR): Client reattachment is the component that assist an enterprise to
achieve a huge profit. It is the most crucial key presentation signal that measuring administration
effectively in present brand expectation. Dorsett city contain its customer or traveller by
delivering all dedication that are made by organization. Organization also measuring that account
due to that customer are surviving the hotel by administration exit examination.
Profit Margin (PM): Profit margin is the other key performance sign that is utilization by
administration to measure presentation and effectivity of enterprise by measurement of business
profits. Dorsett city controls its cost and recognize required financial profitability and which aid
business to make profits (Santos, Castanho, and Lousada, 2019). The chosen organisation hotel
cost adequate or suitable cost to consumers that assist business to make high profitability.

Customer review metrics: It is the essential that performance metrics that aid an enterprise to
measure consumers prospects or reply by web site, social media and sites. Dorsett city makes
sure that optimistic aspect and results on line on site on which expected consumers meet
(Alnawas and Hemsley-Brown, 2019). It assist a firm to add success in marketplace and measure
the effectivity of organisation services that fulfill consumers and hold them with administration
for long duration.
Return on investment (ROI): Return on investment is the efficient performance measurement
method that is utilized by the firm to measure whole skillfulness or profit on investing. Dorsett
city measures the amount of money of return on specific investment in relation to investment
price. It is measured by the firm by distributing the advantages of an investing by price of
finance. It assist a firm to see the practicality of investing so, enterprise can take effective
decisions to increase more returns of net profit.

CONCLUSION
It is concluded from the above report is that Strategical direction in hospitality firm
needs creation and implementation of the objectives which are concentrated on this specific firm
to increase the position of a firm. The schemes are made by the governance board on behalf of
the individual after taking into consideration of the acquirable sources in the administration.

REFERENCES
Books and journals
Kazandzhieva, V. and Santana, H., 2019. E-tourism: Definition, development and conceptual
framework. Tourism: An International Interdisciplinary Journal, 67(4), pp.332-350.
Law, R., Leung, D. and Chan, I.C.C., 2019. Progression and development of information and
communication technology research in hospitality and tourism: A state-of-the-art
review. International Journal of Contemporary Hospitality Management.
Hakeem, S.M.A. and Khan, M.Y., 2018. Urban tourism: the perspective on tourism impacts in
Cambridge, United Kingdom. Маркетинг і менеджмент інновацій, (3), pp.268-275.
Wang, X., Guchait, P. and Paşamehmetoğlu, A., 2020. Why should errors be tolerated?
Perceived organizational support, organization-based self-esteem and psychological
well-being. International Journal of Contemporary Hospitality Management.
Duke, D., 2018. Porter’s five forces and the coffee industry. Management Teaching Review, 3(3),
pp.241-251.
Hossain, M.S., Kannan, S.N. and Raman Nair, S.K.K., 2021. Factors influencing sustainable
competitive advantage in the hospitality industry. Journal of Quality Assurance in
Hospitality & Tourism, 22(6), pp.679-710.
Prais, S.J., Jarvis, V. and Wagner, K., 2019. Productivity and vocational skills in services in
Britain and Germany: Hotels. In International comparisons of vocational education and
training for intermediate skills (pp. 119-145). Routledge.
Varelas, S. and Georgopoulos, N., 2017. Competition as a critical factor of the strategic planning
of hotel businesses. J Hotel Bus Manag, 6(167), p.17.
Peco-Torres, F., Polo-Peña, A.I. and Frías-Jamilena, D.M., 2021. The effect of COVID-19 on
tourists’ intention to resume hotel consumption: The role of resilience. International
Journal of Hospitality Management, 99, p.103075.
Joshi, S., 2018. Social network analysis in smart tourism driven service distribution channels:
evidence from tourism supply chain of Uttarakhand, India. International Journal of
Digital Culture and Electronic Tourism, 2(4), pp.255-272.
Alnawas, I. and Hemsley-Brown, J., 2019. Market orientation and hotel performance:
investigating the role of high-order marketing capabilities. International Journal of
Contemporary Hospitality Management.

Santos, R., Castanho, R.A. and Lousada, S., 2019. Return migration and tourism sustainability in
portugal: Extracting opportunities for sustainable common planning in southern
europe. Sustainability, 11(22), p.6468.