Strategic and Tactical Management of Hyatt Hotel - HOS802 Report

This report offers a comprehensive strategic analysis of the Hyatt Hotel, examining its internal strengths and weaknesses through a SWOT analysis and its external factors via a PESTLE analysis. The report delves into various aspects of the hospitality sector, considering political, economic, social, technological, environmental, and legal factors affecting the hotel's operations. It evaluates the Hyatt's market position, identifies opportunities for expansion, and addresses potential threats, including competition and external events like the COVID-19 pandemic. The analysis highlights the hotel's strategic management decisions, financial data, and economic considerations. The report concludes with recommendations to improve the Hyatt's market share and overall performance, emphasizing the importance of adapting to changing consumer behaviors, technological advancements, and environmental concerns. The report also underscores the importance of adhering to legal requirements and maintaining employee satisfaction to ensure long-term success and sustainability within the competitive hotel industry.

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HOS802 Hospitality Management
Simulations

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Executive summary

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Table of Contents
Executive summary....................................................................................................................2
Introduction................................................................................................................................4
SWOT analysis...........................................................................................................................4
Pestle analysis............................................................................................................................5
Conclusion and recommendations.............................................................................................7
Reference....................................................................................................................................8

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Introduction
In the hospitality sector, there are various aspects that need to be taken into consideration. In
that, there will be a proper evaluation that will be performed and that will help in ascertaining
the current position of the business. In the given report all of these aspects will be discussed
in relation to the Hyatt hotel which is having a wide chain of hotels all over the world. There
will be involvement of the SWOT analysis in which the internal position will be analyzed and
with that pestle analysis will also be used to determine the external forces which have an
impact on the hotel.
SWOT analysis
Hyatt hotel is a well-known hotel group and due to this, there are various such elements that
shall be taken into account to identify the current position of the business (Gürel & Tat,
2017). In the swot analysis, all the internal factors will be involved and the discussion for that
is provided below:
Strengths:
 The group involves various new innovations and by that new products are launched
which help in building a strong track record.
 There is a strong brand portfolio that is developed by the group and by that expansion can
be made in an easy manner.
 The group enjoys a strong distribution network and also the customer satisfaction rate is
very high. This helps in gaining sustainable benefits and diversification is involved to
attain the required growth.
Weaknesses:
 There is a high need for the investment due to geographical expansion and the new
technology is required. This level of investment is not in lieu of the vision adopted by the
company (Jean Paolo G Lacap RMP, 2014).
 There is a limited market share as the entries in the market are not tackled in an adequate
manner.
 The culture which is adopted by the company makes it difficult to move to other products.

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Opportunities:
 Consumer behavior is changing rapidly and with that new scopes for expansion will be
made available. This will help in bringing new products and also the revenue will be
increased.
 There are various new technology standards which are set by the government and that
provides the Hyatt with an opportunity to emerge in the new markets and increase its
share.
 There are various online means which have opened and by that the increase in customers
is made possible. The investment has been made in online sources and by that overall
growth in revenue is achieved.
Threats
 There is a high rate at which competition is involved in the market and due to that threat
is made for the group (Madsen, 2016). With this, the threat of currency fluctuation is also
involved as the group is trading in various nations.
 The bush fire and COVID-19 have also proved to be a threat as because of this the
shutdown is there and the number of tourists who visit is declining. There are fewer
visitors and by that revenue is affected in a negative manner.
 There are several liability laws that prevail in different countries and due to that, the Hyatt
group will be required to bear all of them.
The analysis is performed and with that, the internal situation has been evaluated. In addition
to this the external factors will also be required to be considered and for that pestle analysis
for Hyatt is presented below.
Pestle analysis
Political factors:
Political support is highly important for Hyatt as it is carrying the operations in various
nations that have different political requirements and regulations. The laws which are
prescribed by the government are to be followed (Ho, 2014). With the COVID-19 there are
various regulations that have been implemented for the safety of all and they are considered
by the group.

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Economic factors:
There are several economic factors that are involved in relation to any country and by that the
hotel is also affected. The foreign exchange rate is an important factor as Hyatt operates in
various countries so it is highly affected by the changes which take place in rates. The
inflation rate is also the main factor as with that the number of visitors is affected. There are
various jobs which are offered by the group and due to that, they maintain a strong economic
position.
Social factors:
Every country has a different type of society and for that, it is required that the group
considers the values and requirements of all. The belief, culture and attitude of all the
societies vary and by that, the type of services also differs (Mak & Chang, 2019). There will
be need to understand the requirements of people so that services can be provided in that
manner. It is identified that Hyatt considers all the people equally and provides them with the
services as per their preferences.
Technological factors:
In the competitive market, it is highly required that new technologies are used and Hyatt is
successful in that. It is using various new aspects by which the visitors are provided with
better services in comparison to the competitors. This helps the hotel in attracting more
people which is beneficial in the long-term. This requires continuous developments as other
organizations are also updating their systems. There are new products and services which are
offered and that help it in retaining the customers for a longer duration.
Environmental factors:
Protection of the environment is the responsibility of all and for that, there are various laws
that are prescribed and need to be followed. The consumers now are also aware of the
environmental laws and their protection and choose the hotel which follows them. Hyatt is
managing this in an effective manner as there is the use of all the means by which the
environment is protected and no harm is made to it. There are several such circumstances that
arise and are in control of none. Bush fire is an important example of the same in which harm
was made to the environment and also the covid-19 is the latest example. This is the disease

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that is spreading widely and the hotel is taking all the required actions to deal with it in the
most appropriate manner (Hyatt, 2020). All the safety is carried and also the cancellation
charges are waived for those who have advance bookings and now want to cancel due to the
circumstances.
Legal factors:
In the hotel, there are various workers and it is required that rights of all are protected. There
are various rules which are made by the hotel itself and will be applicable to all. Sometimes
these are not sufficient to deal with all the circumstances and the interest of all is protected
with the help of them. Due to this various laws are prescribed by the government and they are
required to be followed by all. With this, the employees will be given the stated rights and no
wrong will be done to them (Kumar & Sharma, 2014). Hyatt is following all the laws and
legal requirements in an effective manner and this helps them in retaining the employees for a
longer duration. They will be satisfied and so will not be thinking of leaving the group. They
are experienced and this will be beneficial for the group as they are able to perform in the
best possible manner by fulfilling all the requirements. They are able to understand the
requirements of customers in a better manner and this will be helping the hotel to maintain
the long-term success and sustainability is ensured.
Conclusion and recommendations
The analysis has been carried in an effective manner and in that, all of the important aspects
have been considered. There is the consideration of the internal strengths and weaknesses
which shows that Hyatt is managing all the activities in an appropriate manner. There are
various opportunities that have been identified and it is required that Hyatt uses them in a
proper manner so that the additional benefit can be gained. There is the consideration of
various threats that are involved and in that the threat due to covid-19 and bush fire has also
been involved. They are some of the situations which are not in control of the hotel and for
that preventive steps have been taken by it. The pestle analysis has been performed and in
that, all the external factors which need to be considered have been identified. The manner in
which political influence is necessary has been accounted for and with that several economic
factors have also been taken into account.
There are several such cases in which the laws are required to be complied and Hyatt is
making it complete by undertaking the required actions to meet the legal requirements. The

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manner in which the environment is to be saved has been identified and Hyatt will be
required to frame the required policies in this respect to ensure the complete success.
Reference
Hyatt. (2020). COVID-19 Update: March 13, 2020. Retrieved from:
https://www.hyatt.com/en-US/info/coronavirus-statement?
icamp=psr_cvstatement_jan2020_alertbanner_en
Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. Journal of International
Social Research, 10(51).
Jean Paolo G Lacap RMP, A. F. B. E. (2014). Competitiveness and sustainability of the hotel
industry: the case of hotels in Pampanga. Business Management and Strategy, 5(1),
115.
Madsen, D. Ø. (2016). SWOT analysis: a management fashion perspective. International
Journal of Business Research, 16(1), 39-56.
Mak, A. H., & Chang, R. C. (2019). The driving and restraining forces for environmental
strategy adoption in the Hotel Industry: A force field analysis approach. Tourism
Management, 73, 48-60.
Kumar, R., & Sharma, S. (2014). Corporate Social Responsibility-A study in the hotel
industry. Asian Journal of Multidisciplinary Studies, 2(4), 25-32.
Ho, J. K. K. (2014). Formulation of systemic PEST analysis for strategic analysis. European
academic research, 2(5), 6478-6492.