HOS801 Strategic Management of Hilton Sydney: A Comprehensive Report

This report provides a comprehensive strategic analysis of Hilton Sydney, examining its history, internal and external environments, and strategic development. It utilizes SWOT and PESTLE analyses to identify strengths, weaknesses, opportunities, and threats. The report delves into corporate, business, and functional level strategies, including new product development and employee retention. It also explores competitive advantages, sustainability, and the impacts of mergers and acquisitions. Furthermore, the report emphasizes the importance of leadership, entrepreneurship, organizational structure, and corporate governance in strategic implementation, concluding with recommendations for future development. This detailed analysis offers valuable insights into the strategic management of a leading hospitality organization.

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Strategic Management in Tourism and Hospitality
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11/15/2019
student name

Contents
Introduction......................................................................................................................................2
History of the organization..............................................................................................................3
Internal and external environments (use of SWOT and porters five force models)........................3
SWOT analysis............................................................................................................................3
PESTLE analysis.........................................................................................................................4
Development of strategy at a business, functional and corporate level...........................................5
Corporate level strategy...............................................................................................................5
Business level strategy.................................................................................................................5
Functional level strategy..............................................................................................................6
Competitive advantage and sustainability.......................................................................................7
Impacts of mergers and acquisitions, international strategy and alliances......................................7
Strategic implementation and the importance of leadership and entrepreneurship.........................8
Organizational structure, controls and corporate governance.........................................................9
Conclusion.....................................................................................................................................10
Recommendations..........................................................................................................................11
References......................................................................................................................................12

Introduction
Strategic management is one of the major aspect of a management field includes creation and
implementation of various objectives and goals and considers initiatives to be taken by the
company’s top management team that will be considering constant change in environment of
business and necessary changes while creating strategies in order to accomplish objectives and
goals. The objective is to understand the relevance of the strategic decision for the company as
the success factors. Decisions for an organization like mergers and acquisition will also be
consider
This report will focus towards strategic management of one of the organizational case considered
in tourism and hospitality industry. The report structure will include analyzing business
environment pertaining to the internal and external analysis tool, in order to understand the
strategies of the company and analyzing the strategic importance and relevant business and
corporate strategies will be recommended.

History of the organization
Hilton Sydney is situated in heart of the city close to entertainment, shopping, and featured
luxury accommodation. The Hilton hotel group is a global brand offering resort and hotel range
across the world. The group was initiated in December 31, 2018 that included around 586 Hilton
hotels in 85 nations. Hilton Sydney has reflected the flavors of Australia by offering large
number of services and luxurious experience for the guests (hilton, 2019).
The company has been awarded with glass brasserie, Sydney restaurant, by Luke Mangan. Hotel
Sydney has been found as largest convention spaces with the accommodation facilities of three
thousand guests, spa has also been the part which includes various therapies and relaxing
treatments. Moreover, zeta bar and marble bar are two stylish bars of this hotel which is found to
be attractive to the guests (Aksoy, 2018).
Internal and external environments (use of SWOT and porters five force
models)
Environmental analysis is one of the important aspects for any organization, which need to be
reviewed after a time span in order to look for changes required as it has been analyzed that the
environment is very dynamic and it may impact the company’s and eventually the strategies are
to be changes accordingly.
SWOT analysis
Strengths
 Central location
 Global brand recognition
 High customer satisfaction (Andersson, 2016)
Weakness
 Lack of flexibility
 Increasing competition
 Target only high income group

Opportunities
 New product development
 Acquisitions and mergers
 Focus of research and development
 Technological advancement
Threats
 Employee turnover
 Change in economic condition
 Threat of close competition (research-methodology, 2019)
PESTLE analysis
Political factors
Considering Australian political environment, it can be identified that Australia is politically
stable nation, which reflect the security for hotel to exist and conduct business
(theglobaleconomy, Australia/wb_political_stability, 2019).
Economic factors
One of the key constraint include GDP of the nation, which is increasing with time and can be
beneficial for Hilton Sydney as the purchasing power increases and the company is targeting
high income group, which reflect increase in opportunity for hotel (theglobaleconomy,
Australia/gdp_current_local_currency, 2019).
Social factors
Considering the lifestyle, the consumer behavior includes the spending in luxury, entertainment
with their family friends. Moreover Sydney is one of the tourist attraction places, which also
reflect opportunity for the hospitality organization to increase the number of customer to offer
(sydney, 2019).
Technological factors

The technological factors of the nation reflect updated tech, high tech infrastructure, and
advanced technology adopted. Thus this may be opportunity for Hilton Sydney to use technology
as key to offer the services.
Legal factors
In the hospitality industry, some of the laws that need to be abided by the company include food
and safety act, consumer protection act and labor act. Thus it can be said that this factor can be
threat for the company (Bergin, 2017).
Environmental factors
Hotel Hilton Sydney can be responsible for excessive use of environmental resources like water,
and energy. Thus the company has been working towards corporate social responsibility in order
to abide by the environmental laws.
Development of strategy at a business, functional and corporate level
Corporate level strategy
This is the top level strategy that has been considered to plan and implement by top management.
The strategy for Hilton Sydney would be aggressing growth strategy. The reason being the
company must look forwards towards the opportunity all the time in order to work towards
growth of the company. Through this strategy the company will be able to increase the market
share, as there are various close competitors of Hilton Sydney like Park Hyatt Sydney, and
Shangri la Sydney. Thus, the strategy for the company would be aggressive growth strategy
(Bruns, 2013).
Business level strategy
This strategy is developed and implemented by middle level manager and planed for conduct of
business and support corporate level business. The business level strategy for Hilton Sydney
would be new product development. The strategy will include offering more number of services
as opportunity for the company at this level is to offer innovative service that will differentiate
the brand with others. The reason being online ordering and luxurious amenities would not be
enough in the competitive industry. This may include introducing shopping complex within the

hotel with exclusive collection reflecting better experience for the guests at the hotel and would
be able to do shopping within hotel anytime that is 24hrs. Moreover, this will include services
pertaining to technological advancement like increase in connectivity within the hotel like voice
command in rooms so as to take actions with voice commend. This will help the hotel to enhance
the experience of the guest (Doole & Lowe, 2008).
Functional level strategy
This is the third level strategy that reflects implementation of the strategy in functional
departments of the organization. This will include research and development strategy. One of the
opportunities for the company is increase innovative services and product range, which could be
achieve through collaborative work with marketing and research and development department.
The research and development team will be responsible for understanding the customer needs
and expectation so as to generate ideas regarding new product development (Jaworski, 2018).
Another functional level strategy includes employee retentions strategies. In the service sector,
the major role is being played by the human resource of the organization that is the employees of
the company. However, one of the problems identified in hospitality industry is high employee
turnover, which is one of the major threats for the company that may hamper the growth strategy
of the company. Therefore, the retention strategies will be considered by the human resource
department of the company. This will include keeping the employees motivated through non-
financial and financial incentives like employee recognition program, monetary incentives (Feng
& Chari, 2018).

Competitive advantage and sustainability
Considering the competitive advantage and sustainability strategy for Hilton Sydney includes
digital experience strategy. Every organization in the industry is working for digital experience
of the customer with increase in use of internet. This strategy will include integration of every
possible activity for the company to be offered through use of technology and internet that is
everything digital. As presented in the diagram above, the digital experience strategies include
privacy related plan that is to keep the information shared by the customer secure and maintain
the integrity of the customer trust. Moreover, the plan will include to integrate digital experience
at time of booking and check in. this will include availability of the online booking for the hotel
from various other associated websites and the official website. This will include sites like trip
advisor as the customer can even compare the hotel service and prices from these platform. Most
importantly customer relationship will be offered through social media communication by the
company, thus able to provide customized and personalized experience prior to the physical
appearance of the customer by organizing the required services of the customers at hotel
(Karakas, Ayhan & Öz, Yaşar & Raşit, & Muhammet, 2017).
Impacts of mergers and acquisitions, international strategy and alliances
The impact of the strategies like mergers and acquisitions of international alliance may impact
majorly for Hilton Sydney. In case the company is looking for the mergers with the hotel groups

in Australia then the company would be able to integrate the Australian culture. The key reason
is that the company will able to decrease the competition in the industry and the resources of two
or more company will help the organization to deal more widely and ability to improve the
decision making for the company. Moreover the strategy to get the alliances with the traveling
agencies and organization like cox and kings can help the company to gain more number of
customers as these agents will approach tourist in Sydney. Thus it can be said that the alliances
in international market and mergers would be beneficial and positive in terms of result for Hilton
Sydney (Betton, 2017).
Strategic implementation and the importance of leadership and
entrepreneurship
Leadership is one of the most important aspects in management of any business. Moreover the
strategic development in implementation, especially in case of corporate level strategy depends
on leadership. The competition, as discuss in the report previously is being increasing to greater
extent, which reflect that it is important for the organization to work towards competitive
advantage and innovative idea generation in order to sustain in the market. The Hilton group has
been founded by Conrad which reflects visionary leadership traits that have make the group
being success across the globe. For instance the expansion strategy of Conrad has been
responsible for global recognition of brand. This reflects the relevance of entrepreneurship and
leadership in the organization (Menon & Edison, 2015).
The strategy developed in previous section reflect new product development strategy which
could only be implement through good leadership as this may include increase in business
activities and leaders will be responsible for providing direction to the employees and make the
strategy implement effectively at the managerial and functional level. For instance, the current
general manager at Hilton Sydney was Ronald Weezel. As per the news, he is responsible for the
team ability to perform at highest levels and reflect great leadership. Moreover his strategy is to
increase the consistency of the group and continue to lead the market in the vibrant city
(hotelmanagement, 2019).

Organizational structure, controls and corporate governance
The organizational structure is responsible for implementation of the strategy. The hierarchal
structure has been followed by the brand, which reflects that the coming could be restricted when
it comes to level of management. However this is important in case of Hilton group as the
company has been expanded to larger extent, the flat structure could decrease the collaboration
among the subsidiaries and departments (ir.hilton, 2019).
Moreover, the management of the work at all the levels of management reflects the success
factor of strategic implementation. The reason being it is important that the work at the base
level is effective, controlled and managed like customer relation, customer interaction with staff.
For instance in case of implementation of strategies developed in previous section would include
major risk in the market, moreover the strategy implementation would reflect major change in
the organization, which has to be managed and control through change management strategies
(hilton, corporate, 2019).

Conclusion
 The Hilton hotel group is a global brand offering resort and hotel range across the world.
 Hilton Sydney is situated in heart of the city close to entertainment, shopping, and
featured luxury accommodation
 One of the problems identified in hospitality industry is high employee turnover
 The Corporate level strategy for Hilton Sydney would be aggressing growth strategy
 The business level strategy for Hilton Sydney would be new product development.
 This may include introducing shopping complex within the hotel with exclusive
collection.
 Considering the competitive advantage and sustainability strategy for Hilton Sydney
includes digital experience strategy.
 The current general manager at Hilton Sydney was Ronald Weezel, new product
development strategy which could only be implement through good leadership
 The hierarchal structure has been followed by the brand, this is important in case of
Hilton group as the company has been expanded to larger extent.
 The research and development team will be responsible for understanding the customer
needs and expectation so as to generate ideas regarding new product development.

Recommendations
 Training and development – One of the recommendations for Hilton Sydney include
making training and development program avail to the employees. This will reflect that
the employees will be able to adapt to the changing environment, especially with the
employees who are in direct link with the customer as the customer satisfaction will
depend majorly on the behavior and services presented by the human resource. Moreover
the strategic implementation would include major change and training development will
help the employees will be able to increase their competencies and see opportunity for
them in near future (Betton, 2017).
 Investment in research and development – In such a competitive industry, it is important
for the company to look for opportunities inside out all the time, this reflect the relevance
of research development team as it is important to keep the technology and services
updated as per the market and changing environment (Doole & Lowe, 2008).

References
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Andersson, R. (2016). Communication professionals: Important Internal Agents for Realizing
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Policing, Intelligence and Counter Terrorism, 12(1), 74-77.
Betton, P. (2017). Competitive Strategy: Creating and Sustaining Superior Performance. Macat
Library.
Bruns, P. (2013). Corporate Entrepreneurship: Innovation and Strategy in large organisations
(3rd ed.). london: Palgrave MacMillan.
Doole, L., & Lowe, R. (2008). International marketing strategy: analysis, development and
implementation. Cengage Learning EMEA.
Feng, H., & Chari, S. (2018). Research in marketing strategy. Journal of the Academy of
Marketing Science, 1-26.
hilton. (2019). corporate. Retrieved from https://www.hilton.com/en/corporate/executive-bios/
hilton. (2019). hilton-sydney-SYDHITW. Retrieved from https://www3.hilton.com/en/hotels/new-
south-wales/hilton-sydney-SYDHITW/index.html
hotelmanagement. (2019). new-general-manager-hilton-sydney. Retrieved from
hotelmanagement: https://www.hotelmanagement.com.au/2015/01/14/new-general-
manager-hilton-sydney/
ir.hilton. (2019). management. Retrieved from
https://ir.hilton.com/corporate-governance/management
Jaworski, B. (2018). Commentary: advancing marketing strategy in the marketing discipline and
beyond. Journal of Marketing Management, 34(1), 63.
Karakas, Ayhan & Öz, Yaşar & Raşit, & Muhammet. (2017). THE EFFECT OF INNOVATION
ACTIVITIES ON ORGANIZATIONAL PERFORMANCE: A RESEARCH ON HOTEL
BUSINESSES. Journal of Recreation and Tourism Research, 4, 49-59.
Menon, A., & Edison, S. (2015). Effective Marketing Strategy-Making: Antecedents and
Consequences. In Proceedings of the 1997 Academy of Marketing Science (AMS) Annual
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