Assignment on Tourism and Hospitality Business Strategy

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TOURISMANDHOSPITALITYBUSINESS STRATEGY1
TABLE OF CONTENTSTable of Contents.................................................................................................................................2INTRODUCTION................................................................................................................................4TASK 1.................................................................................................................................................51.1 Range of definitions of corporate strategy.............................................................................51.2 Apply definitions of corporate strategy to a chosen organization within the tourism andhospitality industry......................................................................................................................51.3 Critically evaluate chosen corporate strategy........................................................................6TASK 2.................................................................................................................................................72.1 Range of relevant analytical models......................................................................................72.2 & 2.3 Identified range of analytical and evaluating the models in theoretical content and itsapplication on organization..........................................................................................................82.4 Critically evaluate organizational strategies........................................................................112.5 Propose and justify recommendations for future strategic development.............................12TASK 3...............................................................................................................................................133.1 Management of diverse individuals, groups and teams.......................................................133.2 Identified ways in which Marriott organization culture can impact on strategy developmentand implementation....................................................................................................................133.3 The impact of organizational culture on strategic development and implementation withinchosen tourism and hospitality organizations............................................................................14TASK 4...............................................................................................................................................174.1 Advantages and disadvantages of various approaches that organizations can take towardsinternationalization....................................................................................................................174.2 Propose and justify the most appropriate growth strategy for a specific organization........19TASK 5...............................................................................................................................................205.1 The role of effective portfolio management and resource allocation in business growthstrategy.......................................................................................................................................205.2 Theory of portfolio management and the principle of resource allocation to the chosenorganisation................................................................................................................................215.3 Assess the relevance of portfolio management and resource allocation to the chosenorganisation................................................................................................................................22TASK 6...............................................................................................................................................226.1 Identification of key external environmental factors for Marriott Hotel.............................222
6.2 Key external environmental and establishing key external environmental factors facing theorganization...............................................................................................................................236.3 Appraising how external factors makes impacts on business..............................................24CONCLUSION..................................................................................................................................26References..........................................................................................................................................273
INTRODUCTIONThe Tourism and hospitality are the fastest growing sectors of the economy as comparedto other sectors like, health, automotive, financial services etc. . The contribution of travel andtourism to economy is highest with upto 10% of global GDP. The 1 in 11 of total job isgenerated by travel and tourism sector. Thereafter, more than 2.4 million direct jobs aregenerated by hospitality industry; 1 in 13 of gross jobs (Travel and Tourism impact.2015). Thegrowth in tourism have direct and positive impact on the business of hospitality industry.Thereafter, UK is on the list of world's 8thtourist destination, this has further lead to emergenceof new hospitality business like, hotels, restaurants, pubs, theme parks, fast food chains etc. Inaddition to this aspect, hospitality industry have direct contribution of upto £34 billion amount intax income of UK (Economic contribution of UK Hospitality industry.2015). This further statesthat tourism and hospitality are important part of UK. To ensure continuous growth and progressof nation, it is important for country to focus on these flourishing sectors.In the present report, various aspects of hospitality industry will be studied. Further, inthis report, business strategy for renowned hospitality and tourism organization, Marriott will beexplained. It is chain of luxury hotel providing valuable hospitality services in more than 80countries around the globe. It also generate employment for more than 200000 employees. It apublic company founded in 1993 by JW Marriott. In this report, new corporate strategy forcompany will be devised that will further help Marriott to enhance its growth and profitability.Thereafter, with the assistance of PEST and Micro analysis, impact of external and internalfactors on functioning of business will be studied. Further, with the help of range of analyticalmodels, assistance will be taken for formulating new business strategy. However, company isintending to expand in international market therefore, corporate strategy in global context will bedesigned. Thereafter, the implication of portfolio management and resource allocation inensuring growth of business will be explained. Further, significance of cultural diversity andchallenges in this respect will be detailed out.4
TASK 11.1 Range of definitions of corporate strategyThe corporate strategy refers to those plan of action that help organization in attaining theaim of prolonged success. In addition to this, it also involve those steps that help in gainingcompetitive benefit in dynamic market by making best use of core competencies available withcompany. The corporate strategy help Marriott in creating value for its services across variouscountries (Hall, 2008). Thereafter, it also help company in ensuring expansion, growth andcontinuous development. Therefore, corporate strategy refers to strategic decision oforganization that have direct impact on the overall functioning of company. Broadly there arethree kinds of business strategy that can be employed by Marriott, growth, stability anddiversification. With the help of growth strategy, company can expand in various markets byusing current or new products and services. Thereafter, with the help of stability strategy,company can maintain its current practices by serving existing customers with current productsand services (Jones, 2012). Thereafter, diversification strategy assist company in expanding intonew market where it is not functioning presently. Therefore, corporate level strategy helpbusiness enterprises in creating, maintaining value. However, these strategies can be affected byvarious external and internal factors. Therefore, it is important for Marriott to consider thesefactors while functioning in different markets. This can be further explained through PEST andmicro analysis.1.2 Apply definitions of corporate strategy to a chosen organization within the tourism andhospitality industryThe corporate strategy refers to those plan of action that help organization in attaining theaim of prolonged success. In addition to this, it also involve those steps that help in gainingcompetitive benefit in dynamic market by making best use of core competencies available withcompany. The corporate strategy help Marriott in creating value for its services across variouscountries.Another corporate strategy that is being used by Marriott International includedifferentiation strategy under which they constantly develop their product and services to meetthe distinct requirement of their customers. The foremost example of using differentiationstrategy is that Marriott has focused on introducing their new brand in the portfolio that mainly5
appeal to the customers by serving their unique requirement. For instance; Marriott Internationalhas declared their new brand that is Autograph collection so that they may appeal to increasingsegment of the customers furthermore, it may also strengthen the presence of MarriottInternational. According to Sirirak and Islam (2011) one of the major advantage of using thisstrategy is that Marriott may easily generate high income and profit as for the differentiatedservices they may charge unique or premium cost from their customers base as due to lack ofsubstitute services in the market.1.3 Critically evaluate chosen corporate strategyIn order to succeed in the competitive hospitality industry Marriott international establisheffective business strategies that is commonly designed to assist the mission and vision of thehospitality organization. Corporate level strategy mainly focuses on taking strategic decisionsthat overall affect the organization decisions and performance in the marketplace (Lockyer,2013). For instance; measuring the financial performance, managing workforce within theorganization, measuring portfolio of the company, allocation of adequate resources are mainlyconsidered as essential elements while formulating corporate level strategy. MarriottInternational is consider as global franchiser of providing leisure and luxurious services relatedwith the hotels and lodging facilities to diverse range of customers. The company has certaincompetitive advantage that distinguish them from their competitors that is uniqueness and cost,serving quality services to all customers mainly targeting premium class customers and travelers.Basically there are different range of corporate strategy that can be employ by MarriottInternational to sustain within the competitive marketplace (Nickson, 2013).According toGoss-Turner and Boella, (2013) value-creating strategy is consider as oneof the effective strategy that mainly support the Marriott international in seeking the competitiveedge from their rival organizations by gaining large market share. However, this strategy mainlyoutcome in reducing the costs and increasing the overall efficiency of the organization. As perthe view of Andrews (2007) Marriott has attained the position in maintaining innovation andquality in their services by serving or catering the services to moderately and premium classcustomers. Therefore, this serve as precious and worthy attribute of the Marriott Internationalthat attain valuable cost to the reputed firm.6
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