Understanding Business Organization: A Case Study of the Imperial London Hotel

This case study examines the Imperial London Hotel, exploring its organizational structure, culture, and key management functions. We analyze the hotel's mission, vision, and objectives, highlighting the benefits and drawbacks of its hierarchical structure. We also delve into the interrelationship between finance, marketing, human resources, operations, sales, and production, demonstrating their impact on the organization's success. Furthermore, we conduct a SWOT and PESTLE analysis to identify the hotel's internal strengths and weaknesses, as well as external opportunities and threats, providing insights into its competitive position and future prospects.

Understanding Business Organization
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Table of Contents
Introduction......................................................................................................................................3
Business Organizational Purposes...................................................................................................3
Mission........................................................................................................................................3
Vision...........................................................................................................................................3
Essential Purpose.........................................................................................................................4
Major Objectives.........................................................................................................................4
Organizational Structure..................................................................................................................5
Benefits of a Tall Organizational Structure.................................................................................5
Drawbacks of a Tall Organizational Structure............................................................................5
Mitigating the Drawbacks........................................................................................................5
Organizational Functions.................................................................................................................6
Interrelationship and Impact on the Organization.......................................................................7
Organizational Culture.....................................................................................................................8
Types of company Culture:.........................................................................................................8
Culture and Organizational Success:...........................................................................................8
SWOT Analysis...............................................................................................................................9
PESTLE Analysis..........................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................13
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Introduction
We'll examine London's Imperial London Hotel in this case study. The study will examine the
company's past, present, and hospitality industry effect. We'll also examine the hotel's
administration, marketing, customer service, and positioning. Since 1898, the Imperial London
Hotel has been a famous hotel chain. The hotel has hosted dignitaries, celebrities, and tourists in
one of the world's most lively cities. The Imperial London Hotel has several services and
amenities to meet guests' demands. The hotel strives to give guests a wonderful stay with its
magnificent accommodations, delicious dining, state-of-the-art conference facilities, and
customized services. The hotel is close to tourist sites, commercial districts, and transit hubs.
Online travel agencies, shifting customer preferences, and worldwide events like the COVID-19
epidemic have changed the hospitality business. Thus, hotels must innovate to be competitive in
a fast-changing market. Imperial London Hotel has stayed ahead by adopting technology,
improving its internet presence, and providing excellent customer service. It has modernized its
facilities, implemented sustainable practices, and used data analytics to understand visitor
preferences and optimize operations. The Imperial London Hotel is known for its excellent
accommodations, services, and experiences. This case study will reveal the company's
operations, tactics, and success factors. We may evaluate the hotel's competitive position and
ability to adapt and grow in a changing market by evaluating its history, business operations, and
current setting.
Business Organizational Purposes
The organizational purposes of the Imperial London Hotel encompass its mission, vision, and
key objectives. These elements guide the hotel's strategic direction, shape its operations, and
reflect its commitment to delivering exceptional hospitality services.
Mission
The Imperial London Hotel strives to make guests feel comfortable, satisfied, and delighted. The
hotel provides exceptional service, luxurious accommodations, and a variety of services to
accommodate guests' different demands (Curzi et al, 2020). The Imperial London Hotel strives to
create memorable memories and become a top destination for London visitors.
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Vision
The Imperial London Hotel wants to be a world-class hospitality brand known for its excellence,
innovation, and sustainability (Lew et al, 2020). By providing excellent service, embracing
technology, and prioritizing environmental stewardship, the hotel hopes to stand apart in the
business. The hotel wants to lead the worldwide hospitality industry in elegance, comfort, and
sustainability.
Essential Purpose
Guest pleasure: The Imperial London Hotel prioritizes guest pleasure. The hotel strives to
exceed customer expectations with elegant accommodations, customized services, and many
amenities. The hotel's focus on customer care, detail, and guest experience improvement reflects
this objective.
Sustainable Practices: The hotel has sustainability goals as part of its environmental
stewardship. Energy reduction, waste reduction, eco-friendly alternatives, and community
support are examples. The Imperial London Hotel meets changing social demands and helps the
environment by pursuing sustainability goals.
Operational Excellence: The Imperial London Hotel seeks to achieve operational excellence
across its various departments and functions. This includes efficient management of resources,
implementation of best practices, and continuous process improvement. By optimizing its
operations, the hotel can enhance cost-effectiveness, streamline workflows, and maintain high
standards of quality and service.
Brand Reputation: Establishing and maintaining a strong brand reputation is a crucial purpose
for the Imperial London Hotel. The hotel strives to be recognized as a symbol of luxury,
elegance, and sophistication, synonymous with exceptional service and unparalleled guest
experiences. A positive brand reputation enables the hotel to attract a loyal customer base,
maintain a competitive edge, and drive business growth.
Major Objectives
Enhance Guest Experience: The Imperial London Hotel aims to continuously enhance the
guest experience by identifying and implementing improvements in its facilities, services, and
amenities. This objective involves regular guest feedback analysis, investment in innovative
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technologies, and training programs for staff to deliver personalized and attentive service
(Praharaj et al, 2023).
Market Expansion and Revenue Growth: Another key objective for the hotel is to expand its
market presence and drive revenue growth. This may involve strategic partnerships, exploring
new target markets, and leveraging digital marketing channels to reach a wider audience. By
setting objectives to increase occupancy rates, average room rates, and revenue per available
room, the hotel aims to achieve sustainable financial success.
Organizational Structure
The Imperial London Hotel employs a hierarchical organizational structure commonly known as
a tall structure.
Benefits of a Tall Organizational Structure
Clear Reporting Lines: The tall structure of the Imperial London Hotel provides clear reporting
lines and a well-defined chain of command. This allows for effective communication and
coordination within the organization. Employees know who to report to and understand their
roles and responsibilities, facilitating smooth workflow and accountability (Lu et al, 2019).
Specialization and Departmentalization: The hierarchical structure enables the hotel to group
employees based on their areas of expertise and functions.
Centralized Decision-Making: This centralized decision-making can be beneficial for the
Imperial London Hotel in terms of maintaining consistency, implementing strategic initiatives,
and ensuring adherence to brand standards. It allows for a unified approach and quick decision-
making, particularly in critical situations or when immediate action is required.
Drawbacks of a Tall Organizational Structure
Communication Bottlenecks: The tall structure can lead to communication bottlenecks and
delays in information flow.
Hierarchical Culture: The hierarchical nature of the tall structure may create a culture that is
more focused on authority and adherence to protocols rather than fostering collaboration and
empowerment. Employees at lower levels may feel constrained and have limited opportunities
for decision-making and innovation. This can stifle creativity and hinder employee engagement
and motivation.
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Lack of Flexibility: The tall structure may lack the flexibility needed to quickly adapt to
changing market dynamics or respond to customer needs. Decision-making processes can
become slow and bureaucratic, impeding the organization's ability to be agile and responsive in a
fast-paced industry.
Mitigating the Drawbacks
To mitigate the drawbacks of a tall organizational structure, the Imperial London Hotel can
consider adopting certain strategies:
Streamlining Communication: Implementing effective communication channels, such as
regular meetings, digital platforms, and open-door policies, can help facilitate communication
flow and overcome bottlenecks.
Empowering Employees: Providing employees with opportunities for decision-making,
autonomy, and professional development can help mitigate the hierarchical culture associated
with a tall structure (Guan et al, 2020).
Flexibility and Agility: The Imperial London Hotel can introduce agile practices and processes
to increase flexibility and adaptability.
In conclusion, the tall organizational structure of the Imperial London Hotel provides a clear
chain of command, specialization, and centralized decision-making. While it offers benefits such
as clarity in reporting lines and specialization, it also poses challenges such as communication
bottlenecks and a hierarchical culture. By implementing strategies to streamline communication,
empower employees, and foster flexibility, the hotel can mitigate the drawbacks and leverage the
advantages of its organizational structure to drive performance, innovation, and customer
satisfaction.
Organizational Functions
Management involves managing and supervising an organization's people and resources to
achieve its goals. It includes essential functions for the company's success. Like other hotels, the
Imperial London Hotel relies on finance, marketing, human resources, operations, sales, and
production.
Finance: The Imperial London Hotel manages its finances. Budgeting, financial planning,
financial analysis, and spending control. The finance staff monitors cash flow, guarantees
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financial stability, and optimizes revenue and profitability. It manages financial reporting and
regulatory compliance.
Marketing: The Imperial London Hotel relies on marketing to attract customers (Kumar, 2020).
Market research, segmentation, strategy, and promotions are the marketing function's
responsibilities. Brand recognition, advertising campaigns, digital marketing channels, and
partnerships are used by the marketing team to increase hotel visibility and bookings.
Human Resources: The HR function focuses on managing the organization's workforce and
ensuring a positive and productive work environment. In the Imperial London Hotel, HR is
responsible for recruitment, selection, training, and development of employees.
Operations: It involves managing the front desk, housekeeping, food and beverage,
maintenance, and other operational departments. Operations management ensures efficient
processes, optimal resource utilization, and a seamless guest experience. They focus on
maintaining service standards, managing logistics, and continuously improving operational
efficiency.
Sales: The sales function is responsible for driving revenue by generating bookings and
maximizing occupancy rates (Rangarajan et al, 2021). The sales team in the Imperial London
Hotel identifies sales opportunities, negotiates contracts with corporate clients and travel agents,
manages relationships with key accounts, and implements sales strategies to meet revenue
targets. They collaborate with marketing to create promotional packages and special offers, and
they play a crucial role in achieving sales growth.
Production: In the context of the hospitality industry, the production function in the Imperial
London Hotel refers to the preparation and delivery of guest services, including food and
beverage production. This function ensures that the hotel's culinary offerings meet high-quality
standards, from menu planning and sourcing ingredients to food preparation and presentation. It
also encompasses production logistics, inventory management, and coordination between the
kitchen and other departments to provide a seamless dining experience.
Interrelationship and Impact on the Organization
The interrelationship between these management functions in the Imperial London Hotel is vital
for its success. Finance provides the necessary resources to support marketing initiatives, HR
activities, and overall operations. Marketing drives demand and brings in guests, which directly
impacts sales and revenue generation (Rangarajan et al, 2021). HR ensures that the organization
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has a skilled and motivated workforce to deliver quality services, which influences guest
satisfaction and the hotel's reputation. Operations and production ensure the smooth delivery of
services, meeting guests' expectations, and maintaining operational efficiency.
Effective coordination and collaboration between these functions are essential to align goals and
objectives, optimize resource allocation, and enhance the overall guest experience. For example,
marketing and sales need to work closely with operations and production to create attractive
packages that align with the hotel's offerings and ensure that the services delivered meet guest
expectations. Finance needs to collaborate with all functions to ensure budget adherence,
financial planning, and resource allocation to support their activities.
In conclusion, the various management functions in the Imperial London Hotel, including
finance, marketing, HR, operations, sales, and production, are interconnected and have a
significant impact on the organization's success. Effective integration and coordination between
these functions are essential to achieve the hotel's goals and objectives, optimize resource
allocation, and deliver exceptional guest experiences.
Organizational Culture
Organizational culture is the common values, beliefs, attitudes, and behaviors that shape the
workplace and collective identity (Paais and Pattiruhu, 2020). It shapes how employees work,
interact, and decide. History, leadership, employee behavior, and the external environment shape
organizational culture.
Types of company Culture:
Clan Culture: Collaborative and welcoming workplace. It promotes teamwork, employee
development, and belonging. This culture fosters relationships and employee well-being like a
family.
Adhocracy Culture: Innovation, adaptability, and originality define adhocracy culture.
Adhocracy organizations value experimentation, risk-taking, and adaptation. They urge people to
think creatively, challenge the current quo, and innovate.
Market Culture: Competition, achievement, and outcomes. Market cultures prioritize goals,
customer satisfaction, and profitability. They appreciate performance, accountability, and
individual accomplishments.
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Hierarchy Culture: Formalized institutions, processes, and authority define hierarchy culture.
Hierarchical organizations value stability, predictability, and compliance. They value efficiency,
control, and order.
Culture and Organizational Success:
The Imperial London Hotel's organizational culture determines its success. Organizational
culture affects these:
Engagement and Productivity: A positive and supportive culture motivates and engages
employees. Valued, recognized, and aligned employees are more committed and productive.
Collaboration, open communication, and empowerment boost employee satisfaction and
performance, improving consumer experiences and corporate outcomes (Schmiedel et al, 2019).
Customer Satisfaction and Brand Reputation: Organizational culture affects customer
experience. A culture of customer satisfaction, quality, and customized service can impress
guests. Employees that share the company's values and are customer-focused are more likely to
exceed guest expectations. Satisfied guests generate goodwill, repeat business, and brand loyalty.
Organizational Resilience: Strong culture helps the Imperial London Hotel overcome obstacles.
Teamwork, openness, and open communication create collective responsibility and collaboration
through challenging circumstances. It helps employees support each other, adjust to unexpected
events, and collaborate to discover answers, enhancing the organization's ability to handle
uncertainty and recover from setbacks.
In conclusion, the Imperial London Hotel's organizational culture-clan, adhocracy, market, or
hierarchy has a major impact on its success. Positive and aligned cultures boost employee
engagement, customer happiness, innovation, resilience, and the hotel's reputation, financial
success, and competitive edge.
SWOT Analysis
Strengths:
Imperial London Hotel possesses several strengths that can help it combat emerging situations
such as Covid-19, current inflation, and political instability. Some strengths include:
Brand Reputation: The Imperial London Hotel has established a strong brand reputation over
the years, known for its quality services and customer satisfaction. This positive perception can
attract guests even during challenging times.
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Strategic Location: The hotel's prime location in London gives it an advantage in terms of
attracting both business and leisure travelers. It can capitalize on the city's popularity as a tourist
destination and its strong business presence.
Diverse Service Offerings: The hotel offers a wide range of services, including accommodation,
dining, conference facilities, and event hosting. This diversification can help mitigate risks
associated with fluctuations in demand for specific services (Benzaghta et al, 2021).
Weaknesses:
Imperial London Hotel also has weaknesses that make it vulnerable to certain challenges:
Dependence on Tourism: The hotel's heavy reliance on the tourism industry makes it
susceptible to fluctuations in tourist arrivals, as seen during the Covid-19 pandemic. A decline in
tourism can significantly impact its revenue and profitability.
Limited Financial Resources: The hotel's financial resources may be constrained, especially
during times of economic uncertainty or inflation. This limitation can restrict investment in
necessary upgrades or expansions.
Opportunities:
There are external factors that present opportunities for the Imperial London Hotel:
Growing Domestic Tourism: With travel restrictions and international uncertainties, there may
be a rise in domestic tourism. The hotel can tap into this market by offering attractive packages
and promotions targeting local travelers.
Business Travel Recovery: As business activities resume and stabilize, there will be
opportunities to attract corporate clients for meetings, conferences, and accommodations (Teoli
et al, 2019). The hotel can leverage its proximity to business districts and provide tailored
services to cater to business travelers' needs.
Threats:
There are external factors that pose threats to the Imperial London Hotel:
Competitive Landscape: The hotel industry in London is highly competitive, with numerous
competitors offering similar services. Intense competition can lead to price wars and reduced
profit margins.
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Economic Instability: Economic downturns or inflation can impact consumer spending, leading
to a decline in travel and tourism. Economic uncertainties can also affect corporate travel
budgets, impacting the hotel's revenue from business clientele.
PESTLE Analysis
PESTLE analysis examines the external factors that influence an organization. It stands for
Political, Economic, Social, Technological, Legal, and Environmental factors.
Political Factors: Favorable political factors for the Imperial London Hotel may include stable
government policies that promote tourism, investment, and infrastructure development.
Unfavorable political factors could include geopolitical tensions or changes in regulations that
impact the hotel industry, such as visa restrictions or tax policies (Thomas et al, 2021).
Economic Factors: Economic growth, low unemployment, and stable currency exchange rates
are positive elements. Recessions, inflation, and economic downturns affect travel and
accommodation spending.
Social Factors: Favorable social factors may include changing demographics, such as an
increase in the number of millennials or an aging population that demands different types of
services. Unfavorable social factors could include negative perceptions or cultural shifts that
impact travel patterns or preferences.
Technological Factors: Favorable technological factors may include advancements in digital
platforms, online booking systems, and mobile applications that enhance the hotel's customer
experience and operational efficiency. Unfavorable technological factors could include
cybersecurity threats or the need to invest in new technologies to remain competitive.
Legal Factors: Favorable legal factors may include supportive regulations for the hotel industry,
such as simplified licensing procedures or labor laws that facilitate employee management.
Unfavorable legal factors could include increased regulations or compliance requirements that
add administrative burdens or increase costs.
Environmental Factors: Favorable environmental factors may include the growing demand for
sustainable practices and eco-friendly initiatives, allowing the hotel to adopt environmentally
responsible measures that appeal to environmentally conscious guests (Achinas et al, 2019).
Unfavorable environmental factors could include natural disasters or climate change impacts that
disrupt operations or affect travel patterns.
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In conclusion, analyzing the SWOT and PESTLE factors for the Imperial London Hotel helps
identify its internal strengths and weaknesses, as well as external opportunities and threats.
Understanding these factors enables the organization to develop strategies to leverage strengths,
mitigate weaknesses, capitalize on opportunities, and mitigate threats, thereby enhancing its
competitive position and overall performance.
Conclusion
In conclusion, the SWOT and PESTLE analysis of the Imperial London Hotel highlights the
organization's internal strengths and weaknesses, as well as the external opportunities and threats
it faces. The hotel's strengths lie in its strong brand reputation, strategic location in London, and
diverse service offerings. These strengths enable it to attract guests, both business and leisure
travelers, even during challenging times. By targeting local travelers and leveraging its proximity
to business districts, the hotel can tap into these markets and increase its customer base.
Economic factors, such as economic growth and stable exchange rates, present opportunities, but
economic downturns or inflation can impact the hotel's revenue. Social factors highlight the need
to understand changing demographics and preferences of guests to stay relevant in the market.
Technological advancements offer advantages in terms of customer experience and operational
efficiency, but the hotel needs to address cybersecurity threats and keep up with technological
advancements to remain competitive. Legal factors can influence licensing procedures and
employee management, while compliance requirements may add administrative burdens. Lastly,
environmental factors underline the importance of sustainability and eco-friendly practices in
attracting environmentally conscious guests, while the hotel needs to be prepared for potential
disruptions from natural disasters or climate change impacts.
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