Strategic Planning for the Hospitality Industry

This report discusses the strategic planning process for The Stafford London in the hospitality industry. It covers the most appropriate factors, research over creative business strategies, and analysis of different performance metrics. The report emphasizes the importance of considering internal and external factors while designing suitable business strategies. The Stafford London uses various performance metrics, including critical success factors and balance scorecard, to assess its performance in the market.

STRATEGIC PLANNING
FOR THE HOSPITALITY
INDUSTRY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Most appropriate factors..............................................................................................................3
Research over creative business strategies .................................................................................5
Analysis and evaluate different performance metrics..................................................................7
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic planning is a process of planning the strategic director of the business. This
report is based on the case study of The Stafford London in respect to its strategic direction. The
hotel is located in London and currently own the 107 rooms. The hotel was a private residence in
the 17th century that was converted into the hotel chain. This project will discuss about the
strategic decision making taken by the company and the process that is followed while adopting
the respective strategic decision. Henceforth, report will emphasis over the most appropriate
factors that may consider while implementing the strategic direction selected by the organisation.
Creative business strategies that the organisation is selected. Furthermore, analysis and
evaluation will be done over various performance metrics use by the company.
MAIN BODY
Most appropriate factors
Factors are the aspects that involved wit formation of the strategic choice in the
organisation. Factors are consider as elements that may include while taking any decision related
to formation of the strategies in business. The Stafford London is one of the prominent hotel
situated in London. Following are the factors which company may consider whole formatting the
suitable business strategies to achieve and maximise the growth and development of business.
PESTEL Analysis
PESTEL Analysis is an external business environment analysis that indicate and direct
the company about all different factors belong to the external business environment influence to
the business operations. This model comprises with the factors like political, economic, social,
technological, environment and legal factors affect and influence to the business decision making
practise.
Political factor: comprises with the political situation of United Kingdom. Management of The
Stafford London consider the political situation and condition of country while designing any
business strategy. This factor may allow the business to analysis the political stability of country
before taking any decision to provide the strategic direction to the organisation.
Economic factor: is another suitable element that The Stafford London consider before
formulating any business strategy. Economic situation of United Kingdom is very strong that
could favour the company to design the long term strategic choices to expand the business

growth (De las Heras-Pedrosa and et.al., 2020). Economic stability is a very favourable factor
that support the business growth and development possibilities of company.
Social factor: the strategies formulate by The Stafford London are all based on the social factors
of the country. Strategies are all based on the social aspects that involve choices, preferences,
behaviour, attitude and such related aspect of the potential customers. The Stafford London
formulate all its various strategies on the basis of the social elements of United Kingdom.
Technological factor: contain the massive role while formulating and designing the business
strategies. The technical advancement of the United Kingdom support The Stafford London to
design various strategies and approaches that can favour the competitive advantage to the
business unit.
Environment factor: is another crucial element or factor that support the business to approach
strategic formulation in the best way possible. Strategies design by The Stafford London are all
environment friendly and allow the business unit to support the eco-friendly services in against
to deliver the business operations.
Legal factor: is another comprehensive element or factor that support to the growth and
development of the business. The legal factor consider all laws that would associate with the
strategy that is design by the company (de Leaniz, Crespo and López, 2020). Legal factors are
mandatory in nature as organisation always need to consider these factors while implementing or
designing any relevant strategy for the business.
The above stated elements and factors are associated with formulation of the strategies by
the company. All these factors are the external factor related to the business environment which
hold the direct control over the business operations formation of the strategic choice of company.
SWOT Analysis
The SWOT Analysis is an internal analysis model that drive the organisation to identify
the individual potential ability and capability to design the best suitable strategies in the business.
Strength:
 Resource management ability of company.
 Liquidity hold by the organisation.
 Diversified product portfolio.
Weakness:
 Lack effective marketing practices.

 Limited use of technology.
Opportunities:
 Digital marketing is a massive opportunities.
 Product development research.
Threat:
 Competition in market.
 Covid pandemic.
The above stated are the internal factor that drive the company while taking any strategic
decision in the business. This is important that the organisation may consider all these factors
before taking or formulating any strategic choice in the business (Filimonau, 2021). This is
significant that The Stafford London involve both the aspects internal environment as well
external business environment before taking any decision related to the strategies formulated and
design by the company. All these factors play an equivalent role in formation of strategies as
well implementation of the same.
Formation of right strategic choice is based on all different internal and external factor of
business environment. Internal factor comprises with the individual capability of the organisation
as a whole and the external environment is comprises with all different external factors related to
the business environment. Management of The Stafford London assess all these various internal
and external factor to design the most suitable and effective business strategy that can support
the company to achieve business objectives (Hao, Xiao and Chon, 2020). Inclusion of all these
different internal and external factor of the business environment may allow the business to
cover all possible aspects and factor that might influence to the strategic formulation of the
organisation. Hospitality sector is highly competitive industry due to the huge demand of the
product and services in the international market. In such a situation all these various internal and
external factors of business environment support the company to consider all possible aspects ad
factor that may contribute towards the strategic success of the organisation.
Research over creative business strategies
The creative business strategies is defined as using creativity and innovative ideas to
formulate and design the suitable strategy which company may adopt in order to achieve the
respective business objectives. The organisation conduct research over the present and future
expected business growth and development opportunities. Research play a very comprehensive

role in the overall growth and development of these sector. With the use of research The
Stafford London get to know all possible current as well future trend that may contribute in the
overall success of the organisation. Creative research indicate about the creative aspect that may
use by the company in process to meet the competitive advantage against identifying all such
current and future expected demand in the hospitality sector (Huan and et.al., 2022). The
management of The Stafford London utilise the the five forces framework while incorporating
research to identify the future expected factors that may contribute towards the growth and
development of the organisation,.
Competitor concentration and balance: management of The Stafford London has taken a
various technological advancement related decisions that involve upgrading thee existing
information technology to shape the future of the organisation. This force allow the company to
analysis the strategies adopted by the competitor of the company in the same respective area.
This allow the company to analysis the individual capability by comparing it with the other
rivalry available in the industry.
Industry growth rate: allow the company to assess whether the decision that is adopted by the
company would be able to provide the relevant return over investment is made in the sector
(Martínez-Martínez and et.al., 2019). The growth rate comprehensive state the company a clear
picture in respect to the potential return company will witness in order to fulfil the business
objectives.
High fixed cost: The Stafford London also frame strategies to control the fixed cost to be
incurred to implement the respective project. This will allow the business to effectively control
the overall costly that will be incurred to implement the whole project. High fixed cost improve
the total cost that eventually reduce the profits.
High exit barriers: every time company adopt a certain strategic option or a choice it also
analysis the exist barrier associated with the respective business strategy. The digital expansion
decision taken by The Stafford London would involve identification of the all different exist
barrier associated with the organisation. All these barrier would restrict the company to take on
the competitive advantages against the strategy implemented by the organisation.
Low differentiation: is another suitable aspect that need to analysis by the company. Low
differentiation allow the organisation to take on the decision whether the selected or identified
strategy should be implemented or not.

The above stated factors need to consider by The Stafford London while designing the
suitable competitive strategy that can favour the competitive advantage in respect to the
organisation. All these aspects factor support the company to implement the respective strategic
choice in the best way possible. All these factors fundamentally support the company to identify
the potential aspects and factors need to consider before taking any decision to implement and
design the respective strategic choice (Nair, 2019). Competitiveness of the business is totally
based on the unique aspect of the organisation. All such factors that may allow The Stafford
London to create and establish a different brand value irrespective of the overall competition
available in the market are consider as the competitive strength of the company.
Hospitality sector is highly competitive in nature that allow the organisation to constantly
innovate and create a unique space for the company itself. Strategic formation allow the
organisation to design the best suitable practice that can allow the company to take on the
competitive advantage in the respective target market. Hospitality sector is highly competitive in
nature and adoption of all different strategies allow the company to undertake the competitive
advantage to maximise the business growth and development.
Analysis and evaluate different performance metrics
Performance matrices are the standards adopt by the company to identify the level of
performance achieve by the company. These performance metrics classify the success indicators
and factor achieve by the company. All different performance metrics organisation use can state
in the following points.
Critical success factors
Critical success factors involve the sales revenue of company. Sales achieve by the
company clearly demonstrate about the performance achieve by the organisation. All strategies
company formulate are designed in such a way that each individual strategy or practice perform
by the company that can contribute in increasing the revenue or sales of the business. The
management at The Stafford London further aim to target the sales revenue of company while
designing the whole strategy and formulate practice to support the growth in sales revenue of
company (Seyitoğlu and Ivanov, 2020). Profitability is another critical success factor related to
the strategies adopted by the business. On the basis of the level of profitability perform by the
organisation the success is classify by the management against adopting any particular strategy
in business. Further, the critical success factor include the sustainability of the customer in the

business. The organisation always aim to sustain the existing customers along with attracting
new potential customer in the business. The success of the business is one of the major success
indicator or factor that can contribute towards the overall success of the business. Management
of The Stafford London always consider the sales graph and profit graph to identify the level of
growth company could witness in sales and profitability of the business.
Liquidity in business is another critical success factor associated with the business.
Organisation always analysis its liquidity situation as funds are always required to implement
and perform any of the designed strategy or practice. Liquidity position of the organisation
favour the company to perform the respective business strategy and practice (Sun and et.al.,
2018). Lack of liquidity will not allow the company to perform any of the strategy in business.
Investment in business is another key criteria or indicator that demonstrate about the success of
the company in market. The above stated are the core and relevant success indicator related to
the business. IN order to implement and perform any strategy designed by the company the
management require to consider these critical success indicator before making any decision
towards implementation of these practices.

Balance score card is another key parameter that is used to assess the performance of the
venture. This entire score card comprises with various factors that involve financial, growth,
internal process and customers relationships. The Stafford London hold the return on investment
is approximately 5% that is nearby to the industry average (Ribeiro, Vasconcelos and Rocha,
2019). Cash flows are also sustained effectively in the organization that also demonstrate about
the performance of the organisation in respective business environment. Growth rate of company
is also healthy even in the situation of covid 19 pandemic which indicate that the organisation is
holding a strong performance in respective target market. Internal process of the company is also
well stricture and segregated efficiently that could further allow the business to achieve a smooth
control over operations.
Balance score card cover all aspects and areas that strategies determine the performance
of the organisation. Management of the The Stafford London has given a he emphasis to
establish the loyal customer base that can support the organisation to support the growth and
development of the business. The organisation has follow the practice of solving fast forward
Illustration 1: Marketing Theory- Balance Scorecard

grievances of its customer that could allow the organisation to positively address the customer
satisfaction in business (Elbanna and et.al., 2022). This entire matrix is a suitable aspects that
allow the organization all standards that can highlight about the performance of the organisation
in respective target market. Management of The Stafford London has given a massive focus to
cover all aspects of the balance score card model so that best level of performance can achieve in
the respective target market. The vision of the company is to support the best form of customer
satisfaction in against to deliver various business practices.
CONCLUSION
Hospitality sector is among the massive competitive market sector associated with the
business environment. While designing the business strategies there are various factors which
involve political, economic, social, technological, customer preferences and many more are
consider to design the most effective strategies to deliver business objectives. The future
competitive strategy are all based on the expectations of the customer in market, the demand of
the hospitality sector and other such factors and elements. The Stafford London try to constantly
upgrade its practices so that better customer satisfaction can achieve by the organisation in
against to deliver the business operations. The management of the company follow various
performance matrix that include growth rate of organisation, sales revenue of the company,
return on investment in the project and such aspects are covered to assess the performance of the
business. Balance scorecard is also used to analysis the performance of the organisation in
respective target market. This tool involves customer satisfaction, financial aspect, growth and
internal process adopted by the company.

REFERENCES
Books and Journal
De las Heras-Pedrosa, C. and et.al., 2020. Importance of social media in the image formation of
tourist destinations from the stakeholders’ perspective. Sustainability. 12(10). p.4092.
de Leaniz, P. M. G., Crespo, Á. H. and López, R. G., 2020. Customer responses to
environmentally certified hotels: The moderating effect of environmental consciousness
on the formation of behavioral intentions. Corporate Social Responsibility for
Sustainable Tourism. p.134.
Elbanna, S. and et.al., 2022. An investigation of the causality links in the balanced scorecard:
The case of the Gulf Cooperation Council hospitality industry. Tourism Management
Perspectives. 41. p.100934.
Filimonau, V., 2021. The prospects of waste management in the hospitality sector post COVID-
19. Resources, Conservation and Recycling. 168. p.105272.

Hao, F., Xiao, Q. and Chon, K., 2020. COVID-19 and China’s hotel industry: Impacts, a disaster
management framework, and post-pandemic agenda. International journal of hospitality
management. 90. p.102636.
Huang, W. and et.al., 2022. Dual CHA-mediated high-efficient formation of a tripedal DNA
walker for constructing a novel proteinase-free dual-mode biosensing
strategy. Biosensors and Bioelectronics. 197. p.113708.
Martínez-Martínez, A. and et.al., 2019. Environmental knowledge strategy: Driving success of
the hospitality industry. Management Research Review.
Nair, G. K., 2019. Dynamics of pricing and non-pricing strategies, revenue management
performance and competitive advantage in hotel industry. International journal of
hospitality management. 82. pp.287-297.
Ribeiro, M. L., Vasconcelos, M. L. and Rocha, F., 2019. Monitoring performance indicators in
the Portuguese hospitality sector. International Journal of Contemporary Hospitality
Management.
Seyitoğlu, F. and Ivanov, S., 2020. A conceptual framework of the service delivery system
design for hospitality firms in the (post-) viral world: The role of service
robots. International Journal of Hospitality Management. 91.p.102661.
Sun, Y. F. and et.al., 2018. Toward a rational photocatalyst design: a new formation strategy of
co-catalyst/semiconductor heterostructures via in situ exsolution. Chemical
Communications. 54(12). pp.1505-1508.
Online:
Marketing Theory- Balance Scorecard, 2022. [ONLINE]. Available Through:
<https://www.professionalacademy.com/blogs/marketing-theories-balanced-scorecard/>.