Strategic Management Analysis Report: Fragrance Hotel Riverside

This report provides a comprehensive management analysis of Fragrance Hotel Riverside in Singapore. It begins with an introduction to the hotel and its location, followed by a PESTEL analysis that examines the political, economic, socio-cultural, technological, environmental, and legal factors influencing the hotel's operations. The report then applies Porter's Five Forces framework to assess the competitive environment, including supplier power, buyer power, competitor rivalry, the threat of substitution, and the threat of new entry. Based on these analyses, the report offers five major strategic management recommendations, such as enhancing space, improving multilingual customer service, implementing big data, providing employee training, and improving promotional strategies. The report concludes by summarizing the key findings and emphasizing the importance of market analysis for success in the hospitality industry.

Running head: INTRODUCTION TO MANAGEMENT
Introduction to Management
Name of the Student
Name of the University
Author’s Note

1INTRODUCTION TO MANAGEMENT
Table of Contents
1. Introduction:................................................................................................................................2
2. PESTEL analysis:........................................................................................................................2
3. Porter’s five force analysis (competitive environment)...............................................................6
4. Five major recommendations in terms of strategic management:...............................................8
5. Conclusion:................................................................................................................................10
Reference List:...............................................................................................................................11

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1. Introduction: (211 words)
Before expanding the entire process of business in market, the organizational executives
need to make critical industry analysis and competitive analysis. Based on the external
environmental factors business experts have to make suitable strategies and policies for
maintaining business sustainability. This very specific study has provided to make detailed
overview about environmental analysis of Fragrance Hotel riverside in order to know its threats
and opportunities in the hospitality industry.
Fragrance Hotel riverside has established their business in 20 Hongkong St, Singapore
059663. Endowed with modern styling features with free Wi-Fi and flat screen TV Fragrance
Hotel riverside is 7 minutes away from metro station. As per location, this specific hotel is very
much convenient for guests. Service providers are very much professional and they are having
own dignity and manner while communicating with guests. Fitness rooms and business
conference hall is already existed within the campus (fragrancehotel.com 2018). As a result,
guests do not have to go outside for fulfilling their personal commitment. A rooftop pool and
informal bar has added the beauty of this hotel which attracts the attention of customers more
effectively. However, this very specific study has focused to make detailed overview on how the
organization should evaluate their external factors for gaining competitors’ market advantage.
2. PESTEL analysis: (668 words)
An effective PESTEL analysis identifies the political, economic, socio-cultural,
technological, environmental and legal factors of a specific location based on which the business
process is established (Hsieh 2012). In this very specific study, an effective PESTEL analysis is

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conducted based on the hospitality environment of Singapore. After evaluating the
environmental factors, Fragrance Hotel Riverside would analyze their scopes and opportunities
of business in the hospitality industry. In the below table an overview of the PESTEL factors is
identified:
Political  Stable political set up
 Transparent government rules and
regulations
 Being a democratic country people elect
representatives
Economic  Vibrant free market economy
 Economically developed
 Increasing rate of labor cost
Socio-cultural  Cultural diversity gets priority in Singapore
 People are cordial and flexible among
diverse cultures and attitudes
Technological  Praise worthy IT infrastructure
 People belonging to Singapore are
advanced in technology
Environmental  Lack of water resource
 Pollution is high
 Implementation of pollution Control and

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Drainage Act can measure the issue
Legal  Import export procedure is not complicated
 Stable taxation policy
Table 1: PESTEL analysis
(Source: Kang et al. 2012)
Analysis:
 Political:
As per the report Political and Economic Risk Consultancy Singapore is considered as
lowest politically risk country. Being a democratic country, Singapore government structure is
immensely dependent on the public vote (De Grosbois 2012). The government regulations and
acts established in this very specific country does not change very frequently. As a result,
Fragrance Hotel Riverside does not have to face any kind of difficulties in establishing their
business process in the market of Singapore.
 Economic:
Singapore is economically developed country. At the same time, it is undeniable that the
country due to labor shortage the labor cost of this country is high. As a result, Fragrance Hotel
Riverside has to pay high amount of money in order to pay the employees (Fraj, Matute and
Melero 2015). At the same time, it is undeniable that the business experts have targeted high cost
premium customers who are flexible enough in affording products and services of Fragrance
Hotel Riverside.
 Socio-cultural:

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As already stated Singapore is possessed with the people of different cultural
backgrounds, languages and customs (Molina-Azorín et al. 2015). As a result, the business
experts of Fragrance Hotel Riverside may have to deal with the customers from different
geographical backgrounds and attitudes. Therefore, the employees associated with the
organization should have multi-lingual flexibility for interacting with the customers.
 Technological:
Singapore is out an out developed in technology and the inhabitants belonging over here
tend to focus on using advanced technology while using services. As a result, Fragrance Hotel
Riverside has focused to implement data analytics tool within service process in order to make
the entire process of business more systematic and faster (Wang, Chen and Chen 2012).
Emergence of technology would also help the customers in gaining the attention of international
customers.
 Environmental:
The pollution rate of Singapore is high due to which the government has to implement
acts and regulations in order to control environmental factors. Due to high rate of pollution,
international visitors tend to show their reluctant attitude in visiting Singapore. This particular
factor leaves a negative impact in developing hospitality industry (Ali and Amin 2014).
However, in this kind of situation, the business experts of Fragrance Hotel Riverside tends to
follow environmental acts and regulations like pollution Control and Drainage Act for rendering
an effective control on environmental factors.
 Legal:

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It is undeniable that Singapore taxation policy and other acts and regulations are very
much suitable for running an entire process of business successfully. For an example, anti-
discrimination act, data protection act, health and safety acts are very much important for
business experts in maintaining a systematic work flow (Sohrabi et al. 2012). At the same time,
with the help of a transparent taxation policy the organization like Fragrance Hotel Riverside
does not have to face challenges in maintaining effective rapport with the government.
3. Porter’s five force analysis (competitive environment) (566 words)
Porter’s five forces is the industry analysis tool of making a close evaluation about
bargain power of the supplies in comparison with the power of buyers. In addition, the business
experts may have to face immense challenges from other competitors belonging to the substitute
industry (Hu 2012). As a same time, this very specific framework would critically highlight on
how Fragrance Hotel Riverside may have to face immense challenges in gaining their
reputation amidst some of the most established competitors.
 Suppliers’ power:
The Suppliers’ power in the soil of Singapore within hospitality industry is low as large
numbers of suppliers have already established their business wings. As the power of suppliers is
low Fragrance Hotel Riverside has enough scope and opportunity to bargain with the
distributors while purchasing products (Tajeddini and Trueman 2012). At the same time, the
business experts can save cost by choosing an average cost suppliers.
 Buyer’s power:

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Large numbers of hotels are there who have already established their business process in
the market of Singapore. The business experts of those hotels such as Darlene Hotel, Lai Ming
Hotel, Parkroyal on Pickering Hotel have already provided tempting offers to the customers
which would allure them in using the services (Theodosiou and Katsikea 2012). Therefore, in
order to draw the attention of customers Fragrance Hotel Riverside would have to focus in
implementing some innovating business offers which would be able to attract the attention of
customers from global market.
 Competitors’ rivalry:
As already stated the competitors’ rivalry is very high in the hospitality industry of
Singapore. Due to the high level of competition the organization has to focus on making
effective marketing strategies and policies so that the business experts can grab customers’
attention from numerous established business enterprises (Assaf, Josiassen and Cvelbar 2012).
Darlene Hotel is surrounded with specious rooms and balcony which can easily attract the
attention of customers. On the other hand, Parkroyal on Pickering Hotel has implemented those
employees within the service process who are very much professional possessed with well
manner and behavior. However, in order to survive in high competitive market Fragrance Hotel
Riverside would have to focus on both qualities of products as well as services.
 Threat of substitution:
Apart from hotel industry Singapore is surrounded with numerous renowned resorts and
guest houses which are very much affordable for average cost customers. Sofitel Singapore
Sentosa Resort, Shangri-La’s Rasa Sentosa Resort are very famous that can easily tempt the
customers by giving superior quality of services. The customer service providers are very much

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professional and available for twenty four hours. The websites and online sites of these resorts
are very well designed and colorful (Mensah and Blankson 2013). As a result, it can easily draw
the attention of customers. In addition, the customers can easily get an in-depth overview about
the brands and services from online websites. However, in order to give an effective competitors’
threat Fragrance Hotel Riverside would have to focus on effective promotional activities of
their brands in order to grab the attention of international customers.
 Threat of New Entry:
Fragrance Hotel Riverside though not a new entrant in the industry of hospitality the
business experts should take effective measures in order to gain competitors’ advantage. As a
result, Fragrance Hotel Riverside would have to receive any threat from its competitors.
4. Five major recommendations in terms of strategic management: (428 words)
After evaluating various environmental factors and numerous business scopes and
opportunity it has been identified that Fragrance Hotel Riverside should render a modification
on their strategic management. This strategic management would help the organization in
overcoming numerous threats from the market. Recommendations are as follows:
 Enhancing more space within campus:
It has been observed that Fragrance Hotel Riverside is surrounded with limited space. As
a result, people having high income status do not tend to show their interest in using the service
of Fragrance Hotel Riverside. As a result, employers are recommended that space can be major
threats from its competitors (Pan 2015). The business experts can focus on enhancing the space
of this hotel.

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 Rendering multi-lingual flexibility in customer service providers:
Customer service providers are not still well accustomed with the multi languages. In this
kind of situation, the business experts may have to face immense challenges in fulfilling the
needs and desires of the customers belonging to different language backgrounds (Martín-Peña et
al. 2014). It can be recommended however that the organization can focus on providing
communication training to the employees so that they can deal with the customers effectively.
 Emerging more advanced technology by implementing big data:
Fragrance Hotel Riverside is not following emergence of new technology within their
operation process. As a result, business managers have to put additional effort in evaluating the
profit and loss of the organization (Pan 2015). At the same time, the people would have to face
immense challenges in measuring performance level of the employees without using new
technology. Therefore, the organization is recommended to implement big data within their set
up so that the operation managers can keep control over their entire process of business
throughout the World by sitting at own place.
 Providing effective training and development session to the service providers:
Handling big data within business system is not easy until the employees are receiving
proper training on technological skill. As a result, they would be able to overcome any sudden
technological barrier as well. This very specific study has focused to make in-depth overview
about the importance of training program for enhancing technological skill.
 Implementing effective promotional strategy for gabbing the attention of customers:

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On the other hand, it has also been observed that Fragrance Hotel Riverside is not invest
sufficient amount of money for maintaining effective promotional method (Theodosiou and
Katsikea 2012). In order to render an improvement on business Fragrance Hotel Riverside should
enhance their budget for promotional purpose.
5. Conclusion: (199 words)
This very specific study has provided detailed analysis about the importance of making
an effective market analysis for running the entire process of business in hospitality industry. As
per geographic location, Fragrance Hotel Riverside is very much convenient for guests. Service
providers are very much professional and they are having own dignity and manner while
communicating with guests. Fitness rooms and business conference hall is already existed within
the campus. As a result, guests do not have to go outside for fulfilling their personal
commitment. In this very specific study, an effective PESTEL analysis is conducted based on the
hospitality environment of Singapore. After evaluating the environmental factors, Fragrance
Hotel Riverside would analyze their scopes and opportunities of business in the hospitality
industry. In addition, the business experts may have to face immense challenges from other
competitors belonging to the substitute industry. As a same time, this very specific framework
would critically highlight on how Fragrance Hotel Riverside may have to face immense
challenges in gaining their reputation amidst some of the most established competitors. At the
end of the study an effective recommendation is provided based the five business management
strategies of Fragrance Hotel Riverside.

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Reference List:
Ali, F. and Amin, M., 2014. The influence of physical environment on emotions, customer
satisfaction and behavioural intentions in Chinese resort hotel industry. Journal for Global
Business Advancement, 7(3), pp.249-266.
Assaf, A.G., Josiassen, A. and Cvelbar, L.K., 2012. Does triple bottom line reporting improve
hotel performance?. International Journal of Hospitality Management, 31(2), pp.596-600.
De Grosbois, D., 2012. Corporate social responsibility reporting by the global hotel industry:
Commitment, initiatives and performance. International Journal of Hospitality
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fragrancehotel.com 2018. [online] Available at: http://www.fragrancehotel.com/ [Accessed 12
May 2018].
Fraj, E., Matute, J. and Melero, I., 2015. Environmental strategies and organizational
competitiveness in the hotel industry: The role of learning and innovation as determinants of
environmental success. Tourism Management, 46, pp.30-42.
Hsieh, Y.C., 2012. Hotel companies' environmental policies and practices: a content analysis of
their web pages. International journal of contemporary hospitality management, 24(1), pp.97-
121.
Hu, H.H.S., 2012. The effectiveness of environmental advertising in the hotel industry. Cornell
Hospitality Quarterly, 53(2), pp.154-164.

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Kang, K.H., Stein, L., Heo, C.Y. and Lee, S., 2012. Consumers’ willingness to pay for green
initiatives of the hotel industry. International Journal of Hospitality Management, 31(2), pp.564-
572.
Martín-Peña, M.L., Díaz-Garrido, E. and Sánchez-López, J.M., 2014. Analysis of benefits and
difficulties associated with firms' Environmental Management Systems: the case of the Spanish
automotive industry. Journal of Cleaner Production, 70, pp.220-230.
Mensah, I. and Blankson, E.J., 2013. Determinants of hotels’ environmental performance:
Evidence from the hotel industry in Accra, Ghana. Journal of sustainable tourism, 21(8),
pp.1212-1231.
Molina-Azorín, J.F., Tarí, J.J., Pereira-Moliner, J., López-Gamero, M.D. and Pertusa-Ortega,
E.M., 2015. The effects of quality and environmental management on competitive advantage: A
mixed methods study in the hotel industry. Tourism Management, 50, pp.41-54.
Pan, F.C., 2015. Practical application of importance-performance analysis in determining critical
job satisfaction factors of a tourist hotel. Tourism Management, 46, pp.84-91.
Sohrabi, B., Vanani, I.R., Tahmasebipur, K. and Fazli, S., 2012. An exploratory analysis of hotel
selection factors: A comprehensive survey of Tehran hotels. International Journal of Hospitality
Management, 31(1), pp.96-106.
Tajeddini, K. and Trueman, M., 2012. Managing Swiss Hospitality: How cultural antecedents of
innovation and customer-oriented value systems can influence performance in the hotel
industry. International Journal of Hospitality Management, 31(4), pp.1119-1129.

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Theodosiou, M. and Katsikea, E., 2012. Antecedents and performance of electronic business
adoption in the hotel industry. European Journal of Marketing, 46(1/2), pp.258-283.
Wang, C.H., Chen, K.Y. and Chen, S.C., 2012. Total quality management, market orientation
and hotel performance: The moderating effects of external environmental factors. International
Journal of Hospitality Management, 31(1), pp.119-129.