Alex Hotel: Corporate Strategies and Performance Evaluation

This report provides a comprehensive analysis of Alex Hotel's growth strategies, focusing on product development, diversification, mergers and acquisitions, international and cooperative strategies, and performance evaluation. It begins with an introduction to strategy and its application to Alex Hotel, a fast-food chain. The report examines the company's growth strategy, highlighting product development as a key approach to attract consumers. It then explores the concept of core competencies and how Alex Hotel can leverage them for growth. The report delves into corporate-level strategies, including diversification, discussing different types such as concentric and conglomerate diversification, and the reasons behind diversification. Furthermore, it examines mergers and acquisitions, cooperative strategies, and international strategies. The report also discusses the use of a balanced scorecard to evaluate the organization's performance. Finally, it includes a concept map and reflection, summarizing key ideas and challenges encountered during the analysis. The report concludes by considering the implications of business strategy choices on functional strategies, including marketing, human resources, operations, and finance management.

STRATEGY IN ACTION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
Growth strategy and leverage .....................................................................................................1
Correct level and type of diversification.....................................................................................2
Mergers and acquisitions, international strategy, and cooperative strategy................................3
Balanced scorecard to evaluate your organisation’s performance..............................................4
Concept Map and Reflection.......................................................................................................5
Implications of business strategy choices on functional strategies including marketing, human
resources, operations and finance management..........................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Strategy refers to long- term planning in context top develop tactical plan. Strategy in
action combines both provide structure and adapt behaviour in context to attain the continuous
improvements. Strategic action is a methods to assure vision of company is made concrete. This
present report is based on Alex hotel and it is largest fast food chain. Under this mention report
will be discuss about the growth strategy and the core competencies to attain the continuous
growth (Bowen, Baker and Powell, 2015). Cooperative strategy, mergers and acquisitions and
international, strategy will be mention in given report. There will be discussion about designing
balance scorecard to examine performance of firm.
TASK
Growth strategy and leverage
Growth strategy refers to strategy that aim is to winning the large market share in short
period of time. The firm has a plan to develop its business as well as enhance its sales and profit.
Under this, growth of this hotel is based on the value in which it provide its services to
consumers. The main growth strategy of Alex hotel is Product development. It refers to develop
the products or services with different ore new characteristics which provide the additional
advantages to consumers. It consists changes in existing products or develop new goods which
can satisfy needs and demand of consumers at market place. The main aim of this hotel is to
make different types of fast food item which can attract the consumers more. Its planning is to
prepare the fast foods on the tastes and preferences of consumers and they will be of high quality
or hygienic. It will help to Alex hotel to compete with its strong competitors at market place and
enhance its growth at competitive market (Daines, Clark and Lenton, 2014).
In an organisation, core competencies means strength, giving foundation from which
business will be develop, seize on the new opportunities and also provide the valuable products
to consumers. The core competencies by which Alex hotel can enhance its growth is to provide
the valuable services and fast food to customers so that their need can be satisfied in a better
manner and they can attract toward company. On the other hand, this hotel wants to provide its
fast food items under the one roof. These are effective core competencies and valuable to the
company.
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Correct level and type of diversification
Strategy is scope and direction of company in changing business environment by
configuration of its competencies and resources with view to meet with expectation of
stakeholders. Corporate level strategies refers to plan to hit particular target required to attain the
business objectives. It is executes by while organisational structure. In addition to corporate
strategy, it consists careful analysis of business selection so that firm can compete with rivals in
a successful manner. It impact on whole for and also regards top delicate in process of strategic
planning. In addition to this, corporate-level strategy is when business makes decision that
impacts on whole firm. It also impacts on management, finance and human resources of
company. Its main aim of Alex Hotel is to enhance profit level as well as maintain financial
success in future (Grant, 2016).
Under this, Diversification is a main Corporate level strategy. It uses to enter in to the
new market or sector under which business does not operate currently, while developing new
goods for the new market. Diversification is helpful in expand in new market as well as manage
risk. It looks at services and products of an organisation and then create strategies for successful
sales and marketing. This strategy adopts by Alex hotel in order to develop its business.
Generally, company apply this strategy when growth has reached at the peak point and there is
not any opportunities for the further development of business (Moatti and et. al., 2015).
Diversification is helpful in enhance growth of company thereby it lead towards the wealth
maximization.
There are different kinds of diversification mention below:
Concentric diversification- It is also known as related diversification. It consists
diversification of an organisation in to concerned industry. It is useful for Hotel Alex in the
leadership position as company attempts to secure the strategic fit in new sector. Under this,
entities introduce the new goods with a motive to utilize potential of prevailing the marketing
system as well as technologies.
Conglomerate Diversification Strategy- Under this kind of diversification, entity launch
the new services and products which have no relation with the existing products as well as
distribution channels. Alex hotel can be adopt this kind of strategy to appeal to new group of
consumers. Companies use this type of diversification for earn profit through acquiring other
company and selling or breaking its parts in piecemeal.
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Different reasons of Diversification are mention below:
 The main reason of diversification is to reduce the risk of loss in company through
splitting various categories of goods in the different markets.
 With the help of diversification, Hotel Alex can introduce the more option or variety of
fast- food items in order to capture new market.
 It will help in minimize the risk through allocating the investments between different
financial industries and instruments.
 Through diversification, Hotel Alex can gain the more technological capability because
the new technology will be helpful in bring new services and products at market place.
With the help of this, firm can gain the technological capabilities for business
(Kowalkowski and et. al., 2015).
Mergers and acquisitions, international strategy, and cooperative strategy
Corporate level strategy is set of the strategic alternatives that firm selects from as it
manages operations and company across many markets or industries. It is helpful for
management to balance the resources with the market opportunities in evert area of business. It is
a responsibility of top management to develop corporate level strategy.
Mergers and Acquisitions- It refers to consolidation of firms by different kinds of
financial transaction. Under this, relationship among two firms are differ Merger occur when the
two organisations join forces. It will happen among two businesses about same size and
determine benefits other offers in context to enhance capabilities, sales and efficiencies. On the
other hand, acquisition occurs when one firm purchases other and fold in to operations.
Basically, acquired firm is smaller than company that buy it.
The main reason behind merger & acquisition is that the two separate forms create the
more value together compared to being an individual stand. With an aim of wealth maximization,
firm can keep examining various opportunities by merger and acquisition (Nad, Gu and
Asmussen, 2015).
Cooperative strategy- It refers to planning strategy under which two or more than the two
companies work together in context to attain the common objectives. The main reason behind
using this strategy is to enhance its profit by cooperation's with the other firms which are not
competitors. It provide access to wider and new market to firms and possibility of the learning by
cooperation. It is helpful in provide the significant benefit for organisations which are lacking in
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specific resources, competencies and knowledge. This strategy enable them to secure these by
link with the other form possessing the complementary assets or skills. The cooperative strategy
provide the easier access to the new markets and also give the opportunities for learning and
synergy. These are proving to necessary in facilitate the international expansion of business.
International strategy- An international cooperative strategy means plan that guide the
commercial transactions which are taken plan among the entities in various countries. In addition
to this, international strategy provides subsidiaries independence to plan as well as implement
competitive moves (Orizaola, Dahl and Laurila, 2014).
Under this, Hotel Alex should use the cooperative strategy that helps in make
coordination among the two business firms and through this they can perform in a better manner.
The cooperative strategy will help company to diversify because if two firm will work together
then they can make innovation and also will focus towards developing new or unique products in
a better manner. The focus of both firms will be common and by sharing their capabilities as well
as resources they can develop the competitive advantages.
Balanced scorecard to evaluate your organisation’s performance
Balance score card refers to performance metric that used in the strategic management to
determine as well as improve different internal functions of business and also resulting the
external outcomes. Generally, this is used to examine as well as give the feedback to firms. It is
used to analyse effectiveness and efficiency of activities against strategic plan of firm. The Hotel
Alex use Balance Scorecard at the time of strategic planning to assure the efforts of firm is
aligned with the overall vision and strategy (Sonnenschein and Mundaca, 2016).
STRATEGIES
Objectives Measures Targets Initiatives
Financial Enhance Margins Enhance in
Pounds' Profit
25% Revenue Minimum Interest
rate and enhance
lending
Customers Reduction in
interest loan rates
Small percentage Reduce by 2% Reduce the
advertised Interest
Rate
Internal Business Enhance lending Quantity of £10,000 Reduce Interest
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Process Money being
loaned
Rates
Competitors Gain competitive
advantage.
Increase sales and
profit.
Enhance profit Increase
employees.
With the help of using the Balance score card, Hotel Alex can measure its performance
level. Most of the business firm struggle with the performance management because their
systems includes of more than form employers use to conduct the evaluations of employees on
annual basis. In addition to this, balance scorecard set the measures which gives valuable
information.
Concept Map and Reflection
Concept map is a kind of graphic organiser and it is used to help the people to organise as
well as represent the knowledge of subject. It is cluster diagram that examined how to abstract
the related ideas. These are developed to help people to organise thinking, determine new
methods to connect the concepts as well as share information. Concept map is helpful for me top
reach at the cognitive performance in a better and effective manner. Under this, it start with main
idea and then break the main ideas in to the particular concepts. In order to represent the idea, I
used the picture form. I used the concept map to communicate as well as organise the related
information in visual manner so that every one can understand about the specific subject area.
Maps are helpful in represent information in a personal and creative manner.
Through create the concept map, my skill of generating the new ideas is develop and it
am able to search the new concepts as well as proposition in a better manner. With the help of
concept map, I can gain the more knowledge related to any topic along with evaluation of
information or data. But at the time of creating the concept map I face some difficulties such as
more time taken because it is more lengthy and also complex to make. It was complex for me to
interpret the relationship on a map. It is in a concise form and I was not able to fill the complete
information. On the other hand, in creating concept map, my colleagues and other staff members
are included. I have less time to complete the concept map but from the help of all employees I
was able to finish this. In addition to this, I encouraged the learning with the visual aids but it
discourage the critical thinking. On the other hand, concept map is helpful in enhance the
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brainstorming because it is helpful for me to think about the new ideas as well as concept
concerned with the specific topic in a significant manner. In this, at the time of making this
concept map, I learned to integrate the new concepts with the old which help me in the better
understanding. Through this, I can able to communicate the new ideas, information and thoughts
with the other people in an organisation.
Implications of business strategy choices on functional strategies including marketing, human
resources, operations and finance management
Strategy in action is considered as the global strategy which are helpful organisation in
finding their own pattern in order to enhance profitability. In the present report growth strategy is
used that is helpful in cover larger market in less period of time. In growth strategy Hotel Alex
product development in which staff members are focusing formulating some new services in
hotel. This will be helpful in developing additional services within already listing packages
customers will get high level of satisfaction (Vickers and Lyon, 2014). This hotel conducted
special training session to staff which was helpful in gathering taking valuable feedback from
customers. Staff members of Hotel Alex have also gone through the external analysis in order to
identify actual opportunity of fast food in external market. This was also helpful in finding
feasible threats for fresh business proposal of fast food implementation at market place.
Cooperative strategy has been chosen for managing all operational activities of the company.
Along with this, low pricing strategy has been used which was helpful in grabbing attention of
customer. It has been planned to avail quality food products to its customer which is successful
in retaining them for longer duration of time. Top management team of the hotel have also
planned to opt some marketing strategies such as social media, low price with high quality, low
calorie food items for health conscious people, free sample of food, opening fast food chain of
Alex hotel etc.
In order to implement above mentioned strategies many functions strategies of Alex hotel
will be influenced. Main function which are influenced are human resource, operations,
marketing and finance management. And these are described below with their implication.
Marketing: In order to implement effective fast food chain of Alex hotel, it is important
to opt effective marketing strategy. These strategy will generate extra requirement of marketing
strategies so that it can be effectively executed at market place and grab attention of its targeted
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customer’s. Mainly the company should now focus on using sales promotion, free sample
product .
Human resources: It is one of the most important part of an organisation. The main duty
of this department is to help in managing and maintaining all business operations and functions
in proper manner. For promoting new products, company appoint skilled and talented human
resource person who are capable for create awareness among their commodity in the large
market place (Xue, Choi and Ma, 2016).
Operation: It is play an important role in managing and controlling procedure of
developing goods and services. This involves planning, organising, controlling, coordinating all
resources required to produce firm products and facilities. The company analysing customers
needs and want and on the basis of their requirement, operation department produced their
choices commodity for them.
Finance management: This division of an organisation assist in managing their money.
The main business function of finance department involves accounting, budgeting, maintaining
and managing company finances. Along with this, finance division usually develop and produces
the firm financial statements effectively. The company analyse whole market and examine
production cost of each product before execution as per this they are set company's budget.
CONCLUSION
It has been concluded that strategy helps for business in the long term planning and it is
helpful for company to achieve the target with in given period of time. Under mention report
studied about the diversification that is a corporate level strategy. To evaluate performance,
Hotel Alex use the balance scorecard has been discussed in this assignment.
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REFERENCES
Books & Journals
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phytoplankton growth strategies determine adaptive responses of the N: P ratio. Ecology
letters. 17(4). pp.414-425.
Grant, R. M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Kowalkowski, C. and et. al., 2015. What service transition? Rethinking established assumptions
about manufacturers' service-led growth strategies. Industrial Marketing Management.
45. pp.59-69.
Moatti, V., Ren, C. R., Anand, J. and Dussauge, P., 2015. Disentangling the performance effects
of efficiency and bargaining power in horizontal growth strategies: An empirical
investigation in the global retail industry. Strategic Management Journal. 36(5). pp.745-
757.
Nad, S., Gu, Y. and Asmussen, J., 2015. Growth strategies for large and high quality single
crystal diamond substrates. Diamond and related materials. 60. pp.26-34.
Orizaola, G., Dahl, E. and Laurila, A., 2014. Compensatory growth strategies are affected by the
strength of environmental time constraints in anuran larvae. Oecologia. 174(1). pp.131-
137.
Sonnenschein, J. and Mundaca, L., 2016. Decarbonization under green growth strategies? The
case of South Korea. Journal of Cleaner Production. 123. pp.180-193.
Swadesh, M., 2017. The origin and diversification of language. Routledge.
Vickers, I. and Lyon, F., 2014. Beyond green niches? Growth strategies of environmentally-
motivated social enterprises. International Small Business Journal. 32(4). pp.449-470.
Xue, W., Choi, T. M. and Ma, L., 2016. Diversification strategy with random yield suppliers for
a mean–variance risk-sensitive manufacturer. Transportation Research Part E:
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Online
Diversification. 2018. [Online]. Available through: <https://efinancemanagement.com/mergers-
and-acquisitions/diversification>.
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