Holiday Inn: Strategic Analysis, Decision-Making, and Risk Management

This report provides a comprehensive analysis of Holiday Inn's business and corporate strategies, focusing on strategic decision-making processes and risk assessment. It begins with an overview of Holiday Inn's history, vision, and mission, followed by an examination of its strategic planning process, including SWOT and PEST analyses. The report differentiates between strategic and non-strategic decisions, highlighting the roles of various managers in decision-making. Furthermore, it addresses risk management within the organization, emphasizing the importance of internal controls and committees. The conclusion summarizes key findings and underscores the significance of strategic planning and risk mitigation for Holiday Inn's continued success. References to relevant academic sources are also included to support the analysis.

INTRODUCTION
Holiday Inn first chain of hotel was founded in 1952. Changing
business conditions and demographics have resulted in lose of
market dominance by Holiday Inn. In order to be successfully
established this report has been conducted. This report has
identified the Objectives, Mission and Vision of the company.
It has identified the difference lying between business and
corporate strategy in context to the company. Furthermore, the
strategic decisions making process and factors affecting such
decisions are briefly outlined. Lastly the report has signified
the analysis of risk assessment and recommendations that shall
draw future strategies is depicted in the below report.

OVERVIEW OF HOLIDAY INN
Holiday Inn is a franchise of Intercontinental Hotel Group (IHG). IHG is
among the world's largest global hotel company and having the largest
room occupancy. It has begun its operation in Lahore in 1996. It is
among the only international brand working in Lahore.
Holiday Inn was originally a US motel chain and today is one of the
World's largest hotel chains with approx. 435,299 bedrooms in 3,463
hotels globally encountering over 100 million guest every night. It is a
multinational company having its base situated in 3 cities London, Rio
de Janeiro and Atlanta.

VISION AND MISSION
Holiday Inn Vision
“Aspires to become the primary source of hospitality in the communities
it seeks to serve by providing their customers with the best possible
experience they can gain and by becoming good neighbors.
Holiday Inn Mission statement
To bring a difference in lives of individual they encounter by working in
tune with them for delivering commitment, personalized and superior
hospitality services withholding a strong moral system and active
participation in community.

Strategic Planning Process
1. Mission and Objectives- Mission statements depicts company's business vision, including the
identifying the unchanged values and purposes to guide the pursuit of future opportunities.
2. Environment Scanning- this in particular indicate Holiday Inn to scan internal analysis and
external analysis. For internal analysis company can adopt the SWOT analysis and for the
external analysis company can adopt PEST analysis which will help in drawing industrial
analysis.
3. Strategy formulation- provided the information from environmental scanning both internally and
externally, business now needs to meet superior profitability by developing competitive
advantage over its competitor. This can be gained by formulating strategies. For this Holiday Inn
can consider Michael Porter Generic strategy from which firm can choose.
4. Strategy Implementation- the strategy so formulated above is implemented by means of programs,
procedures and budgets. The manner in which strategies are implemented have a due impact on
the organization. The implementation may not lead to success if strategy is misinterpreted or in
cases where lower level managers show resistance towards its implementation.
5. Evaluation and Control- the implementation of strategy is required to be monitored and adequate
adjustments are required to be made for keeping it updated and sustaining the competitive edge of
the company.

SWOT ANALYSIS
STRENGTHS:
1.Quality conscious: Good qualitative service standards is maintained by the hotel. High recreational facilities
2.The holiday Inn infrastructure is unique and appealing to man. They have a built in technical approach.
WEAKNESSES:
1.Their cost of production has increased due to structural and administrative changes.
2.The budgetary constraints have restrained the advertisement budgets of the company.
3.There are limited room facilities.
OPPORTUNITIES:
1.Holiday Inn has planned to launch low rated packages which help them attain a strong brand image.
2.World-over people are moving towards the quality which satisfy its needs rather than attaining the feeling of
turning into elite. Therefore, holiday Inn not only seeks to provide them satisfaction but also help them achieve
pride for themselves.
THREATS:
1.The major threat faced from the competitors like providing lowered rates of services.
2.Having branches globally it can face issue like political instability
3.Negative propaganda of competition

PEST analysis
POLITICAL- the changing requirements of government has resulted in Holiday Inn to
use Kinley instead of Acquafina. Usually there are agreements formed separately
between their government and hotels which has influenced people to stay in the hotel,
this shows that government has a major impact on hotel.
ECONOMICAL- the increasing rate of inflation in economy has led to income disparities
among the customers. People belonging to elite class usually prefer to stay at Holiday
Inn. Economic conditions also hamper or strengthen the growth of Holiday Inn.
SOCIAL- The people of elite class and who are brand conscious are impelled to chose a
multinational hotel for its stay.
TECHNOLOGICAL- the replacement of conventional TV to LCD has driven customer
demands, incurring extra costs on its customers.

NON-STRATEGIC DECISION
Non-strategic decision-making involves day-to-day operational activities
for running the organization business. These are short-term oriented
decision-making and are required to be fulfilled. These decisions are
taken spontaneously and in comparatively less time than the strategic
decisions.

Managers Possessing Following Qualities
 Rational decision-maker
 well-informed
 Flexible
 Smaller-scale.

Role of Manager
Human Resource manager of Holiday Inn might require to undertake non-strategic
decision-making
• Enhancing Employee Relations: Operation HR function are maintaining policies,
ensuring compliance and managing the disciplinary issues and complaints. They play
a role in aligning their strategic goals with the hiring strategies to attain business
goals.
• Recruitment- HR professionals seeking operational role participate actively in
conducting background check and company environment. They also play key role in
hiring of temporary staff to eventually meet the short-term goals.
• Performance- Operational performance management include administering the
reviews, compensation and benefits.

Cont.
A Finance manager might require non-strategic decision-making in the field of finance where
penny cash transaction are to be conducted. At times, Financial manager of Holiday Inn might
also seeks to make decisions in allocation of resources and undertaking operational actions at
various point of time. Where the transaction amounts minimal and doesn't require permission
from higher level managers for carrying out such transaction. Then such non-strategic
decision-making is conducted to meet the emergency needs.
A marketing manager might require non-strategic decision-making in order to conduct market
analysis and deriving customer demands. There are situation where the decisions are
undertaken on the basis of day-to-day operations and to analyze the growing needs of guests in
Holiday Inn for a spontaneous response. In such cases the marketeer is allowable to undertake
operation decisions and presume the guests demands. Such non-strategic decision can be
undertaken to grab clear opportunities. But such decisions are for only short-term and cannot
be dragged on for long-term.

RISK
This refer to the potential of losing something subsisting valuable for the
organization. The value may be in terms of monetary or non-monetary.
Risk is also perceived as a deliberate interaction with the uncertainties.
Uncertainty is an unpredictable, uncontrollable and unmeasurable risk
occurring as a consequence of action.
As a part of IHG group, Holiday Inn has believed in being a responsible
business with a robust place and effectiveness in risk management
along-with internal controls. IHG has held over its responsibility by
establishing board of Audit Committee, Executive committee and
other committee who have collectively assisted in management of risk
at the hotel.

CONCLUSION
It can be articulated that different strategy is a plan or course of action
which is undertaken to meet the objectives and goals set out. In order
to undertake adequate decision-making SWOT and PESTLE analysis
has been done. It has been shown that a non-strategical decision-
making involve operational activities carried on for day-to-day
activities. Moreover, it has been seen various committees are formed to
mitigate the risk persisting in Holiday Inn.

REFERENCES
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contemporary world. Oxford University Press.
Crook, T. R., Ketchen, D. J. and Snow, C. C., 2003. Competitive edge: A strategic
management model. Cornell Hotel and Restaurant Administration Quarterly. 44(3).
pp.44-53.
Pierson, J. and Heyman, R., 2011. Social media and cookies: challenges for online
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Thank You!!