Case Study: HID Hotel's Strategic Planning and Business Expansion

This case study examines HID, a hotel business, and its strategic planning for expansion. The analysis focuses on HID's current mission, potential changes, and the development of strategic goals and plans for the next decade. It explores the varying opinions among HID's management team regarding the company's direction, including market strategies, pricing, and international expansion. The study highlights the importance of goal-setting behavior and the impact of managerial disagreements on strategic decisions. It concludes with recommendations for HID to achieve a competitive advantage by adapting its business strategies, targeting new markets, and fostering innovation. The case study references various academic sources to support its findings and recommendations.

CASE STUDY

Table of Contents
INTRODUCTION...........................................................................................................................1
HID present mission and how it can be changed........................................................................1
HID mission, strategic goals and strategic plan at the end of the planning session....................1
Goal- setting behaviour used among HID managers to reach an agreement and do managers
disagree the direction of organisation.........................................................................................2
Conclusion.......................................................................................................................................3
References........................................................................................................................................3

INTRODUCTION
In the present case study it is stated that HID, CEO Dave Collins want to expand his
business and make strategies for the next 10 years. For this he has called his management team
and want them to express there thoughts. They have hired a consultant for the discussion and to
reach an agreement mutually. Here, the present mission will be considered and the ideas through
which it can be changed. Discussion about strategic goals and plans, change in mission will be
adhered. Managers views for the organisations directions and what measures should be taken to
increase organisations efficiency. Do they believe that they can succeed in international market,
if so then what strategies should be taken and planning for the same.
HID present mission and how it can be changed
HID present mission is to develop its business and target customers for their hotel
business. According to the given study they are currently focusing on the HID mission plan in
the next ten years which include:
50 hotels in next 10 years and about 26 – 27 hotels in 5 years in Australia.
It can be changed if there is a mutual agreement between the managers of the company and if
they start focusing to develop business in different countries. If they change their market strategy
and target different operations areas. Earlier they have been targeting smaller towns for their
business as they don't have competition there. It can be changed if the target market is changed
and bring change in pricing strategy and go for lager hotels in urban areas and in different areas
of the country. The managers feel it can be changed by providing medium sized hotels in
Australia as there is a little competition and this enables them to succeed in the market. This can
be a reason for the organisation's existence in the market and excel in the business.
HID mission, strategic goals and strategic plan at the end of the planning session
HID mission and goals and plans is hard to find out as there is a different opinion of all
the managers. From the study it is cleared that they could not reach to a collective agreement and
the outcome of the meeting was also not determined. The conclusion of the meeting to the belief
is ; The managers are taking consideration to change the mission of the organisation by the
Organisations current operations. The new mission can include to target new market and develop
business in larger cities and smaller towns as well and in different countries as suggested by the
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CEO. By implementing new mission for the organisation there will be new strategic goals and
strategic plans that will have to be taken into consideration.
This can be implemented with the use of management model, Management By
Objectives (MBO) where the organisations objectives are clearly defined to the management and
the employees to improve the performance(Madan and Matta, 2017). This is also cleared by
stating SMART theory, it defines the characteristics and goals of the organisation such as:
S- Specific
M- measurable
A- Achievable
R- Realistic
T- Time Bound
This can help for the new mission of HID in progressing and will rather help in targeting new
market and stating their pricing strategies to become more competitive and gain profit for the
organisation. At the end of the planning session the managers will be able to the managers will
set new goals for the organisation, develop action plans, review progress, and if any requirement
to take any action for corrective measures and at the last appraise the performance overall.
Goal- setting behaviour used among HID managers to reach an agreement and do managers
disagree the direction of organisation
From the present case study, it is stated that goal-setting is a strategy made for a healthy
behaviour in the company and under certain conditions. It is clear from HID managers arguments
that there is very less goal-setting behaviour among them and are not able to reach a mutual
conclusion for the company's future perspectives. There should be a specific mission, strategic
goals and plans of the organisation, which the managers are not able to develop due to there
disagreements. Goal setting theory predicts that setting difficult goals always leads to higher
performance. In the present study it is also suggested that although there is a disagreement
between managers opinion, it can lead to productive goal setting behaviour in the meeting(Patti
and et.al., 2017).
It is also seen that manager do typically disagree with the strategic mission and
components of the company. In the case of HID they have different set of opinions for the
company's future aspects. It is believed in the context that if all the members will accept the
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current position of the organisation, they will not be able to give more ideas for innovation.
Building new opportunities and acquiring new market target is the best possible outcome for
company. Disagreement is the best possible aspect for future of the company as it allows creating
new ideas. It helps in reaching a common agreement and giving best results by implementing
actions according to the mission, goals and strategic plans of the company and goal-setting
behaviour of the members. It is analysed from the study, that managers understand the need to
change the target market and develop the business across urban areas and go for larger hotel to
change their pricing strategy and gain organisational profit(Shaikh and et.al., 2016).
Conclusion
From the above study, it is concluded that HID need to change their business strategy
plans and goals to achieve competitive advantage. There is a requirement to develop the mission
and objectives of the company. The managers will have to come to a conclusion and implement
their new plans, strategies for the organisation. Everyone had their different opinions for the
company structure, so they should implement the new strategy and target new market. Develop
business outside Australia also, so to achieve competitive advantage in the market. It is
concluded that they should create new innovations and generate new ideas for their success in
the business.
References
Books and Journals
Madan, R. and Matta, M. G., 2017. A Study of Relationship Marketing Strategies in Public and
Private Banks with special reference to NCR. Asian Journal of Management. 8(3). pp.384-388.
Patti, C. H. and et.al., 2017. Improving integrated marketing communications practices: a
comparison of objectives and results. Journal of Marketing communications. 23(4). pp.351-370.
Shaikh, P. H. and et.al., 2016. Intelligent multi-objective control and management for smart
energy efficient buildings. International Journal of Electrical Power & Energy Systems. 74.
pp.403-409.
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Alford, A. W. and Rakhlin, D. A., 2017. Implementing a Smart Beta Index: The Implications of
a Dual Performance Objective and Limited Liquidity. The Journal of Portfolio Management.
43(5) pp.135-146.
Samson, D. and Daft, R., (2015) Management, 5 th Asia-Pasific edition, pp. 305-306
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