Global Business Management Report: Hyatt Hotel Strategic Analysis

This report provides a comprehensive analysis of Hyatt Hotels' global business management strategies. It begins with an introduction to global business management and the specifics of Hyatt Hotels, a multinational UK company. The main body of the report delves into the content of international business, including global economy, country competitiveness, and key economic data. It further explores strategies for global businesses, focusing on strategic analysis, including SWOT analysis, and the development of company strategy. The report then examines stakeholders in international business, cross-cultural management, leadership, and cultural comparisons using Hofstede's six-dimensional cultural model. Finally, it discusses international trade and Foreign Direct Investment (FDI) plans. The report emphasizes the importance of adapting to cultural differences, strategic planning, and stakeholder management for success in the global market, using Hyatt Hotels as a case study.

GLOBAL BUSINESS
MANAGEMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. The content of International Business......................................................................................3
1.1 Global economy and country competitiveness......................................................................4
1.2 Key economic data and trends...............................................................................................4
2. STRATEGIES FOR GLOBAL BUSINESSES...........................................................................5
2.1 Strategic analysis...................................................................................................................5
2.2 Development of company's strategy......................................................................................6
3. STAKEHOLDERS IN INTERNATIONAL BUSINESS............................................................7
4. CROSS CULTURAL MANAGEMENT AND LEADERSHIP.................................................7
4.1 Country and regional cultural comparison.............................................................................7
4.2 Managing the cross cultural organization..............................................................................8
5. International Trade and Investment.........................................................................................9
5.1 International Trade ................................................................................................................9
5.2. Foreign Direct Investment (FDI) .......................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Global business management is defined as the way of managing business at a
global level and facilitating all the 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 the guests for the hotel. The hotel provides various
services which concern the quality of services that are provided to the customers and so the hotel
concerns the effectiveness and efficiency of the hotel.
The report analyses the essentials of the hotel. This multinational hotel is favouring its
services to the customers with the best of the opportunities to serve. The report consist of the
business management process of Hyatt hotel by defining its global economy and company
competitiveness, the trends which the hotel follows which are running in the current market
structure, the stakeholders of the hotel in the international business, cross – cultural management
and leadership along with the 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, the 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 the hotel which will evoke more customers who will land directly to the
airport. In 1967, the 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 the hotel provides. In 1969, Hyatt
opened its first hotel outside the United States. In 1972, Hyatt formed Elsinor Corporation, a
subsidiary to operate the four queens hotel and casino and the 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 the 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 the market. The further report is
going to discuss the competitive advantage and competitors in the market in comparison to
Hyatt. Marriott- There are 176,000 employees which are working in Marriott and the company
is having $17 billion in the market as well. Marriott has got a higher competitive
advantage then Hyatt in the 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 the operations of the company higher. There are 169,000
employees working in Hilton so that they can make the 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 the economic and trends

which are coming in the hotel so that there are going to be higher market share and base which
the organization can have.
From the above figure the net operating profit after tax of Hyatt hotel in the 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 the company to make the 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 the 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 the market as well for a long run
and the 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 the businesses in the
market will be able to analyse their functioning and operations in the market like, SWOT,
PESTLE, BCG matrix, Porter's 5 forces, etc. These tools are going to help the businesses be able
Illustration 1: NOPAT of Hyatt Hotel
(Source: Welcome to Hyatt, A hospitality leader, To your portfolio, 2020)

to plan and make decisions accordingly (Silvius, 2018). The further report is going to discuss the
SWOT analysis of Hyatt hotel so that there is going to be higher understanding of the 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 the 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 the market and innovation
and invention is not going to be of great
help for the 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 the competitive advantage in the 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 the outcomes are going to be effective.
 Creativity and innovation is present in Hyatt hotel so that the 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 the 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 the organization. There
is a high influence of them in the organization and the stakeholders of the company are going to
be customers, employees, shareholders, suppliers, trade association, private organization and
government. It is according to the customers and the performance of the product that the
decisions are taken by the stakeholders of the organization. To improve the quality, technology
and management strategies.
These decisions taken by stakeholders are going to make the performance level of the
sales, communication, etc. of the company with the 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 the 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 the environment of the 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 the working of the 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 the help of Hofstede six dimensional cultural models.
 Power distance
There is a good power which is present in the leader in India for the organization to be
able to expand themselves in the 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 the growth of the 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 the 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 the 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 the employees must be given opportunities accordingly which is going to be
very helpful. This is going to help the 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 the company. There are governmental laws and regulations which
make it easier for the 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 the 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 the company be achieved
effectively with employees satisfaction.
 Hotels will have to make sure that the 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 the growth in the
economy. Due to recent trends and changes in the trade and investment process, it has become a
more effective way of contributing to the business growth and development factor. The digital
economy has improved and enhanced the 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 the productivity and performance in different sectors of operations that are consisted
in trade. Country's wealth can only be improved by the people of the country when they work
according to the recent trade policies and follow it in the business. Laissez faire is the 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 the company will change the trade policies which stops the
growth and gives major downfall to the economy in the 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 the worldwide to provide its customers the best of the quality rooms and works in
which they have been excelled. They have produced their own products for the customers so that
the leisure perspective solved and the best use of the products are generated to increase its
demand more in the 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 the 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 the political,
economic, social, technological, environment, legal factors which affect the 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 the rapid
growth in the economy (Williams, 2017).
Hyatt's properties have upscaled the properties that they have acquired in different
countries and states. The global business has occupied the large sector in the 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 the 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, the hotel served its best to the customers and created a business stage for the
expansion in the hospitality sector which effectively and efficiently manages the current
Financial Direct Investment plan of the organization. Due to plan the hotel manages its financial
status and the statements which helps in knowing the company status.

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complex global business environment.
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students to use mobile banking: Evidence from India. Global Business Review. 18(1).
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Silvius, G., 2018. Integrating sustainability into project risk management. In Global Business
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Online
Hyatt, 2020. [Online]. Available through: <https://about.hyatt.com/en/hyatthistory.html>.
Welcome to Hyatt, A hospitality leader, To your portfolio, 2020. [Online]. Available through:
<https://www.forbes.com/sites/greatspeculations/2020/06/05/welcome-hyatt-a-
hospitality-leader-to-your-portfolio/?sh=5fd3a7253c1b>.
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