Strategies, Stakeholders, and Cross-Cultural Management at Hyatt Hotel

This report provides a comprehensive analysis of Hyatt Hotel's global business management, examining its strategies, stakeholders, and cross-cultural considerations. It delves into the company's international expansion, competitive landscape, and key economic data. The report utilizes frameworks such as SWOT and PESTLE analysis to evaluate Hyatt's strengths, weaknesses, opportunities, and threats. It also explores stakeholder relationships, cross-cultural management, international trade, marketing strategies, and operational aspects including technology and cybersecurity. The analysis covers strategic development, country competitiveness, and the application of Hofstede's cultural dimensions. The report concludes with recommendations for future growth and sustainability, providing insights into the challenges and opportunities facing Hyatt in the global market.

GLOBAL BUSINESS
MANAGEMENT

Abstract
The report is going to discuss the strategies, stakeholders, cross cultural management and
other factors which are associated with the company so that there is going to be effective
working. The competition in the market is high which needs to be analysed and worked upon so
that the company will be able to have stable economic factor and working of the company is
going to be higher which is a very important factor for the company to have. Tools like SWOT,
PESTLE, Marketing mix, etc. frameworks are used so that there can be effective working and
performance of the company is going to be present.

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
1. The content of International Business......................................................................................4
1.1 Global economy and country competitiveness......................................................................5
1.2 Key economic data and trends...............................................................................................5
2. STRATEGIES FOR GLOBAL BUSINESSES...........................................................................6
2.1 Strategic analysis...................................................................................................................6
2.2 Development of company's strategy......................................................................................7
3. STAKEHOLDERS IN INTERNATIONAL BUSINESS............................................................8
4. CROSS CULTURAL MANAGEMENT AND LEADERSHIP.................................................8
4.1 Country and regional cultural comparison.............................................................................8
4.2 Managing the cross cultural organization..............................................................................9
5. INTERNATIONAL TRADE AND INVESTMENT.................................................................10
5.1 International Trade ..............................................................................................................10
5.2. Foreign Direct Investment (FDI) .......................................................................................11
6. INTERNATIONAL MARKETING..........................................................................................11
6.1 Market intelligent and market analysis................................................................................11
6.2 Market segmentation............................................................................................................11
6.3 Managing the marketing mix...............................................................................................11
7. GLOBAL BUSINESS OPERATION........................................................................................12
7.1 The value chain....................................................................................................................12
7.2 The supply chain..................................................................................................................12
7.3 Managing quality.................................................................................................................12
8. TECHNOLOGY........................................................................................................................12
9. CUBER SECURITY..................................................................................................................12
10. SUMMARY.............................................................................................................................12
11. CONCLUSION........................................................................................................................12
12. RECOMMENDATION...........................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Global business management is defined as the way of managing business at a global level
and facilitating all opportunities which are available in the market by expanding and enhancing
the market structure of an organization.
Hotel Hyatt is a multinational UK Company which serves in the hospitality sector by
proving luxury rooms, services, food and other luxurious services to its customers. Hyatt Hotels
was founded on September 27, 1957. Hyatt has over 100,000 employees worldwide providing
services to the customers who have been guests for the hotel. The hotel provides various services
which concern quality of services that are provided to the customers and so the hotel concerns
the effectiveness and efficiency of hotel.
The report analyses essentials of hotel. This multinational hotel is favouring its services
to the customers with best of opportunities to serve. The report consist of business management
process of Hyatt hotel by defining its global economy and company competitiveness, trends
which hotel follows which are running in current market structure, the stakeholders of hotel in
the international business, cross – cultural management and leadership along with international
trade and Foreign Direct Investment (FDI) plan.
MAIN BODY
1. The content of International Business
Hyatt as said is a multinational UK company opened in 1954 by entrepreneurs Hyatt
Robert Von Dehn and Jack Dyer Crouch. In 1957, hotel was purchased by Jay Pritzker for $2.2
million and his younger brother decided that the use air travel for business will increase the
importance of building hotel which will evoke more customers who will land directly to the
airport. In 1967, company opened their Regency Hyatt house in Atlanta and Georgia
(Cherunilam, 2020). Further, John Portman designed many chains for the hotel as the business
was expanding on large scale. To manage the business of the company and to evolve and expand
the customer base by providing them facilitation and services hotel provides. In 1969, Hyatt
opened its first hotel outside United States. In 1972, Hyatt formed Elsinor Corporation, a
subsidiary to operate four queens hotel and casino and Hyatt Regency Lake Resort, Spa and

Casino. Hyatt became a private company in 1972. As Donald died in 1972 and Jay continued to
run the company.
In June 2004, all the hospitality assets owned were consolidated under a single entity called
Global Hyatt Corporation. On June 30, it changed its name to Hyatt Hotels Corporation.
1.1 Global economy and country competitiveness
For the business to get into international market they need to have creativity and
innovation with technological advancement so that company will be able to maintain their
standards and operations effectively. There are a lot of competitors which are present for Hyatt
Hotel in the market.
Hyatt hotel is having a net income of $332 million as of 2018 which is a great value for
the hotel to have for a competitive advantage which is present in market. The further report is
going to discuss the competitive advantage and competitors in market in comparison to Hyatt. Marriott- There are 176,000 employees which are working in Marriott and the company
is having $17 billion in market as well. Marriott has got a higher competitive advantage
then Hyatt in market since Hyatt is having a revenue generation of $5 billion (Hyatt,
2020). Hilton Hotels Corporation- Hilton is maintaining their performance in the market
effective which is making operations of the company higher. There are 169,000
employees working in Hilton so that they can make customer's satisfaction increase
which is a very essential factor.
 Omni Hotels & Resorts- there are just 20,000 employees working in this organization
which is making the efficiency lower than Hyatt hotel.
1.2 Key economic data and trends
There are 5 elements through which economic data and trends can be analysed which are
unemployment, GDP, population, technology infrastructure and Gini coefficient. There are a lot
of trends which are changing in Hyatt Hotel so that there are going to be higher functioning
which is going to be present. The following report is going to discuss economic and trends which
are coming in hotel so that there are going to be higher market share and base which organization
can have.

From the above figure the net operating profit after tax of Hyatt hotel in market is falling.
It is important for the organization to maintain this figure in order to be able to operate
effectively in the market. The GDP of US is improving and Hyatt is expanding themselves in
India as well which is why it is essential for company to make right investments in order to be
able to operate effectively (Rezaee, 2018). There are a lot of hotels which Hyatt has started
which are going to help the business be able to develop and expand themselves globally and that
is a great factor for organization to have for a long run.
2. STRATEGIES FOR GLOBAL BUSINESSES
There has to be effective understand of specific mix of value of businesses so that the
activities is going to be set according which is said by Michael porter. Strategies are going to
help businesses be able to operate effectively and efficiently in market as well for a long run and
brand reputation and recognition is also going to be present (Barac and et.al., 2016).
2.1 Strategic analysis
There are a lot of strategies which are present in the market so that businesses in the
market will be able to analyse their functioning and operations in market like, SWOT, PESTLE,
BCG matrix, Porter's 5 forces, etc. These tools are going to help the businesses be able to plan
Illustration 1: NOPAT of Hyatt Hotel
(Source: Welcome to Hyatt, A hospitality leader, To your portfolio, 2020)

and make decisions accordingly (Silvius, 2018). The further report is going to discuss SWOT
analysis of Hyatt hotel so that there is going to be higher understanding of hotel.
Table 1: SWOT Analysis
Strengths
 New technology is got in the hotel
chain and renewable material.
 Low cost. Clarity in working with aims and
objectives.
Weaknesses
 Transparency missing with the
stakeholders and customers of the
organization affecting functioning in
the market.
 Products quality not well maintained.
Opportunities
 Expansion of the business in emerging
countries. Use of green model business for higher
performance.
Threats
 Products of the company can be
imitated in market and innovation and
invention is not going to be of great
help for company to have stable
economic factor.
2.2 Development of company's strategy
Strategic development is going to get in more ideas and targets for the company to
achieve which is good for competitive advantage in market. Design and goals of the company in
the international market have to be achieved so that there is going to be effective working.
 Company needs to find cost friendly measures to provide the customers with good quality
products and services.
 For the business to expand Hyatt hotel is using effective strategies and good partnership
so that outcomes are going to be effective.
 Creativity and innovation is present in Hyatt hotel so that end products and services of
the organization is going to be higher (Marom and Lussier, 2018).
Strategies are applied by Hyatt hotel so that their objectives and goals can be achieved
from time to time and employees can also be well satisfied with a clear sense of direction which
would be present.

3. STAKEHOLDERS IN INTERNATIONAL BUSINESS
Stakeholders are group of people who have interest and share in organization. There is a
high influence of them in organization and stakeholders of company are going to be customers,
employees, shareholders, suppliers, trade association, private organization and government. It is
according to the customers and performance of product that the decisions are taken by
stakeholders of organization. To improve quality, technology and management strategies.
These decisions taken by stakeholders are going to make performance level of sales,
communication, etc. of company with customers be improved. In multinational companies like
Hyatt the organization needs to have good stakeholders in business so that there are going to be
effective decisions and planning which can be done in organization (Laudon and Laudon, 2018).
4. CROSS CULTURAL MANAGEMENT AND LEADERSHIP
Leaders and managers have and play a very important role in international market since
they make environment of internal environment smoother. The cultural distance due to ethnicity,
language, religion, etc. are going to be maintained by them. There has to be a lot of flexibility
which needs to be present so that working of internal factor is going to match the demands and
culture factor is going to be better (Edelson, Senk and Stock, 2018). Management of employees
effectively is very essential in the market so that there is going to be higher functioning which is
going to be present.
4.1 Country and regional cultural comparison
Hyatt hotel have its chain worldwide so that there is going to be higher functioning which
is going to be present. There are a lot of differences which are going to rise in the company and
would be discussed further with help of Hofstede six dimensional cultural models.

 Power distance
There is a good power which is present in leader in India for the organization to be able
to expand themselves in country which is going to be very helpful. Distribution of work is very
important so that there is going to be higher operations which is going to be present.
 Individualism
There has to be a balance which needs to be present so that growth of business and good
functioning is going to be present. Managers and leaders have good build up relationship with
the employees of Hyatt so that they are satisfied and functioning is going to be higher.
 Long term oriented
Hyatt has invested in technology and research and development department so that they
would be able to have a competitive advantage which is going to be present (Kumar, Lall and
Mane, 2017). Economic factor of company has to be stable so that the company will be able to
invest in further operations and that is going to be very helpful as well.
 Masculinity
There has to be hard work and no discrimination of the base of gender, culture or any
other aspect and all employees must be given opportunities accordingly which is going to be
Illustration 2: Hofstede's cultural dimensions
(Source: What is the Hofstede's cultural dimensions theory? 2020)

very helpful. This is going to help company be able to gain competitive advantage and higher
profit margins.
4.2 Managing the cross cultural organization
Hyatt hotel has started its chain in India but with a lot of changes so that the cultural
value is going to be present in company. There are governmental laws and regulations which
make it easier for company to be able to operate and issues of the market are resolved
effectively. The cultural changes which Hyatt hotel has got while expanding themselves in India
are as follows.
 The interior of the company will change accordingly to people which is going to be liked
by the employees (Kačerauskas, 2019).
 Human resource department will have to get in changes so that they can make the
employees more satisfied and make the objectives of company be achieved effectively
with employees satisfaction.
 Hotels will have to make sure that employees are going to be familiar to the Indian ways
and employees are educated well for hosting must crowd making the satisfaction level of
the clients increase.
5. INTERNATIONAL TRADE AND INVESTMENT
International trade and investment are vital and important drivers for growth in the
economy. Due to recent trends and changes in trade and investment process, it has become a
more effective way of contributing to business growth and development factor. The digital
economy has improved and enhanced way the business deals and operations are done in
consideration with the perspective of growing the market structure of the company gradually and
then all at once (Roberts, Choer Moraes and Ferguson, 2019). Different trade policies and
investment criteria have helped in the company to prosper more in the hospitality sector by
diversifying and applying the internal trade policies.

5.1 International Trade
Regulation and tariff are two theories dealing in international trades. Regulation is of two
types which are mercantilism and laissez. Mercantilism is defined as to improve the country's
wealth government should apply some roles so that the people are more engaged towards
increasing productivity and performance in different sectors of operations that are consisted in
trade. Country's wealth can only be improved by people of country when they work according to
the recent trade policies and follow it in business. Laissez faire is second category which
specifies that government does not apply any roles for anti– free trades (Baier, Kerr and Yotov,
2018).
International tariff is one obstacle for this global company. Tariff is very expensive in
UK so to overcome such obstacles company will change the trade policies which stops the
growth and gives major downfall to economy in business segment.
There are some policies which have emerged from China mentioned as agreement rates,
general rates, preferential rates, quota rates, provisional rates and most favoured nation rates.
Tariff rates are lower when compared to most favoured nation rates. Hyatt has established its
services in worldwide to provide its customers best of the quality rooms and works in which they
have been excelled. They have produced their own products for the customers so that leisure
perspective solved and best use of the products are generated to increase its demand more in
global business. Thus, Hyatt being a multinational company has expanded its trade on global
level.
5.2. Foreign Direct Investment (FDI)
Hyatt is a UK multinational company serving in hospitality sector so any investment
outside the host country is known as investment in overseas market. For eg, Hyatt has been
investing through FDI In China over many years. The company enters into political, economic,
social, technological, environment, legal factors which affect base and the structure of whole
company. Because when these factors affect the business whole system of the business is
changed or diversified. China made some adjustments in their laws and regulations to grab some
attention from foreign investment and economic growth which helps in rapid growth in the
economy (Williams, 2017).

Hyatt's properties have upscaled properties that they have acquired in different countries
and states. The global business has occupied large sector in hospitality segment.
In August 2009, it was reported that Hyatt Hotels Corporation filed plans to raise up-to $1.5
million in an initial share scale. In 2018, Hyatt saw expansion in its hotels which provided more
services to its customers. On December 6, Hyatt signed a contract with Kasturi Group to manage
MAK Albania Hotel. The hotel was then branded as Hyatt Residency.
Thus, hotel served its best to customers and created a business stage for the expansion in
the hospitality sector which effectively and efficiently manages current Financial Direct
Investment plan of organization. Due to plan hotel manages its financial status and the
statements which helps in knowing company status.
6. INTERNATIONAL MARKETING
Hyatt is present in international market as well which is a great factor for the company
which is going to make marketing strategies of company be changed from place to place. The
problems have to be solved and only then product will be able to operate effectively. Hofstede
cultural dimension framework is being used by Hyatt so that there is going to be higher
operations. Using the right framework is going to help organization be able to operate effectively
and make sure that there are right decisions and planning which is taking place. The company is
expanding in developing countries which is a great market for organization to have for a long run
in the market.
6.1 Market intelligent and market analysis
It is important to understand demands of customers in market so that there is going to be
solution and productivity which can be decided accordingly. Analysis of market is important by
using SWOT, TWOS and PESTLE which are effective frameworks. Feedbacks are being taken
by the customers so that there is going to be effective working so that there is going to be good
development and improvement which can be done (Goxe and Belhoste, 2019). E-shopping is
also a great idea for the organization to have which is going to make company have unique
features and Hyatt will be able to have competitive advantage in the market. Techniques of the
company have to change with time so that there is going to be higher efficiency and productivity
which is going to be present.