Corporate Strategy Implementation in Strategic Hospitality

This report provides an overview of strategic management within the hospitality industry, focusing on corporate strategy, its processes, and implementation. It begins by defining strategic management and corporate strategy, highlighting their importance in the hospitality sector. The report discusses the steps involved in formulating and implementing corporate strategy, including setting organizational objectives, analyzing the environment, setting qualitative targets, developing divisional plans, analyzing performance, and choosing the right strategy. It also addresses the implementation phase, emphasizing the importance of clear goals, defined roles, delegation, monitoring performance, and taking corrective actions. The report further explores the strategic management process, including environmental scanning and strategy proposition. It concludes by summarizing the key challenges and factors influencing the effectiveness of corporate strategy in the hospitality industry, stressing the need for adaptability and continuous improvement to achieve a competitive advantage.

STRATEGIC HOSPITALITY
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................2
Presenting strategic management and corporate strategy............................................................2
Process of the corporate strategy.................................................................................................3
Implementation of corporate strategy..........................................................................................4
Implementation of strategic management process.......................................................................6
Issues and challenges in implementing corporate strategy..........................................................6
Effectiveness of corporate strategy..............................................................................................7
CONCLUSION................................................................................................................................8
REFERENCE................................................................................................................................10

INTRODUCTION
Hospitality industry deals with the areas of having a broad division regarding field of
service industry. It includes lodging, food and drink services, event planning and even activities
associated with tourism. As the name suggests, hospitality is the way of making one feel
welcomed by providing them with entertainment and comfort. A lot of types of businesses fall
under the category of hospitality industry. Hospitality industry is connected with the scope of
driving an enjoyable experience for the customers and participates. It provides an atmosphere
that is warm and welcoming with the amenities. The goal of hospitality industry is to provide its
customers and guests with and enjoyable form of experience wand taking their care as the major
priority.
Strategic management deals with the processes of planning and monitoring while
assessing the necessary needs and requirements of the organization. It helps the company in
meeting its goals and objectives while enabling changes within the business environment. Thus,
making the organization to constantly assess its business strategy to make it a success
(Velikorossov, and et.al., 2020). Strategic management is important in proving overall direction
to the company and develop plans that are based on the policies and procedures designed by the
company. It helps the company in attaining objectives by proper allocation of resources as well
as implementation of various business plans.
Strategic hospitality management is the process of putting all the managerial efforts
within the hospitality industry with the help of implementing the integrated plans in the
workplace environment. The main objective behind strategic leadership is about building the
best management practices. This allows the companies in the hospitality management to stay in
the leading when compared to its competitors. Strategic management deals with the
identification as well as description of various strategies and management at all levels to carry
out various ways to assist the company in attaining better performance and gaining competitive
advantage. Strategic hospitality management is to provide predictability within planning and
formulating appropriate business strategy (Makadok, Burton, and Barney, 2018). This will
provide the company to have competitive advantage. One of the major functions involved within
strategic management is to have various functional areas within the company and make them
work well together. It provides continuous look out for the goals and objectives of the
organization.
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This report deals with the understanding and learning the concepts of strategic
management within hospitality industry. The objective is to understand corporate strategy and
analytical tools related to it. There are various important steps involved within the process of
corporate strategy and its final implementation within the company as well as its strategic
management process.
MAIN BODY
Presenting strategic management and corporate strategy
Corporate strategy can be defining as ongoing plan and analysing the needs of organization
in order to accomplish the company goal in the limited frame of time. Moreover, it provides the
direction top the management and helps in building the plan and policies and allocation of
resources so to meet the aims of the company more effectively and efficiently. Along with this,
strategic management in hospitality involves the managerial efforts for establishing and
implementing the plans including the business environment (Hitt and Duane Ireland, 2017). The
aim of strategic management is to develop the best practice within the organization so that
company can improve the overall performance of the firm in the competitive market. For
instance, Premier Inn hotel has made used of the advance technology such as robotic staff and
smart rooms that has contributes in attracting more and more customer.
Along with this, company has use innovative card swipe rooms and entertainment on the
tap that has contributes in increasing the brand name of the company in the external business.
That has resulted in increasing the sales of the firm. Thus, advance technology strategic plan has
helped Premier Inn in growing their business in local as well as international market. However,
the corporate strategy in the strategic management means the formulated plans and framework
used for implementing the short and long terms goals decide by the manager of the company
on behalf of the stakeholders (Bindra, Parameswar and Dhir, 2019). Moreover, the hospitality
and tourism sector need this strategy because as it allows the company to segment the major
goals into smaller units that helps in achieving the objectives in effective and efficient manner.
For example: Hilton has used the vertical integration that means supply chain of products and
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services that are combined with more than one management. Moreover, this strategy has allowed
the organization in increasing their service demands in the competitive market.
Anosff Matrix Model:
Ansoff model is strategic tool that organization use for formulating the plans and strategy
for increasing the growth of the company. Moreover, it showcase four strategies that benefit
the company in identifying the risk and advantage associated with the strategy. This model has
been applied on Rose wood hotel that are explained in details below:
The four stages of Anoff model are market penetration, product development, market
development and diversification
Market Penetration: The company is using this strategy in order to enter into new market.
Rose wood hotel has decrease their service price in order to attract customer of every income
level (Zanjani and et.al, 2020). Along with this, the company has used digital marketing for
promoting their services online. Rose wood has segmented their customer on the basis of income
and age and trying to attract youth as well as middle age people.
Process of the corporate strategy
Corporate strategy is very important for every company because it helps company in achieving
their goals and target. Steps of the strategies are as follows:
set organisational objectives-
for making any strategy it is important that organisation should have made long term objective
for the company. Strategy helps the company in reaching their objectives. Objectives are
necessary to form so that strategies can be made which helps in achieving the objective. Strategy
is the important thing and resources are required if company wanted to achieve the objective.
Before making any objective for the company it is important to check the factor which is
affecting company (Petera, Wagner and Šoljaková, 2020). Strategic decisions are easy to take if
the objectives and factors which impact the objectives are determined.
Analysing organisational environment-
it is important to check the environment in which the organisation is operating. Competitive
position of the company should also get reviewed. Products of the company should have also
reviewed because it is also the part of company environment only. Review is important so that
management of the company can come to know their strengths and weaknesses and also their
competitive strengths and weaknesses. Once company have identified the strengths and
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weaknesses of their competition then they can check the strategies and moves of their
competitors.
Qualitative target setting-
at this point company should have set the Qualitative target which relates with company
objectives (Poddubnaya, 2019). This is essential so that company can find out their long term
customers. This way company can find out that which customer is contributing in increasing the
demand of which product. Example: Hilton also frames such objectives so that they can retain
their customers. This help company in gaining long term customers.
Divisional plans-
at this step every department contribution is noted and according to that strategic planning is
done. Corporate strategy is made for complete organisation and for every division or the
department so that is why it is important that all the departments are considered. Macro
economic trends has to be carefully analysed.
Performance analysis-
it means checking the difference between actual and the expected performance. It is important to
check the financial position of the company, past performance and the future goals of the
organisation. This will also helpful in finding out gap between the actual and the expected
aspirations of the company (Naisola Ruiter, 2021). On the basis of the current trends company
try to estimate its future.
Choosing strategy-
this is the important step in making corporate strategy. Now the best strategy is made by the
management of the company after reviewing goals, company strength, weaknesses, internal
opportunities and external opportunities.
Implementation of corporate strategy
setting goals-
at the time of implementation it is important to make clear goals and objectives so that
organisation can come to know that where they want to reach in the future. Goals should have
set by following some criteria (A MANAGER’S GUIDE TO SUCCESSFUL STRATEGY
IMPLEMENTATION., 2019). Objectives should be attainable and should be realistic. There are
many organisation which set objectives which is impossible to achieve for that company. So that
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is why before making any objective it should be properly get evaluated so that company can find
out that they have the ability to achieve the objective or not.
Determining roles and responsibilities-
after the identification of the goals it is important to determine the group of people who will help
company in attaining the goals. Company should have assigned roles and responsibilities to the
people so that goals an be achieved effectively (Adeyinka-Ojo, 2018). Company should have
also determine the available resources which include employees as well and also find out that
how the resources should be properly get utilised.
Delegation of work-
successful implementation will result only if their would be delegation of work. Managers of
company should have delegate responsibility to the employees so that work can be finished at
time. If manager will not delegate work and do all work by own than tasks will not complete at
fixed time and it can get delayed. Delegation is the process when managers give responsibilities
to the subordinates (Majid, Yasir, Yousaf and Qudratullah, 2019). It is important to delegate
because managers cannot do all the work on their own so that is why they should give power to
the subordinates also so that they can take small decisions on their own.
Executing plan and monitoring performance-
after the plan is formed it is important that plan gets executed properly and timely. It is the duty
of the manager of the company to provide [roper guidance to the employees. It is important that
manager should have monitor the progress and performance of their employees so that they can
check that employees are working as per expectation or not. Managers should have also provide
feedbacks to their employees to that can can improve wherever possible.
Take corrective action-
implementation is the most important thing and the process stop when the goal has got achieved.
It is important that at the time of execution managers of the company should be flexible and
always ready to adopt change. If any problem arise in the implementation of corporate strategy
then managers should have the ability and capacity to adopt changes (Köseoglu, Okumus,
Dogan and Law, 2019). It is important that necessary actions should be taken so that goals can
be accomplished timely.
Closure of the project-
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after the project has implemented successfully then it is important that it should have closed
properly. All the employees which is working with the project should have give information that
project has been closed because the tasks has accomplished.
Implementation of strategic management process
Strategy management is the process of defining the organizational structure and achieve the
better performance (Dvorský and et.al., 2020). The company has to follow a long process for
achieving and organising their goals.
Environmental Scanning: In this stage company collects the information related to the
new trends of the market. As well as it helps the organization in collecting external n and
internal factor that can negatively and positively affects the person.
Strategy proposition: The company makes the best plan and implement the strategy for
accomplishing the organization goals in the limited frame of time (Grant and Baden-Fuller,
2018). After scanning the environment firm set the strategic plans.
Strategy implementation: This is a third stage after making an appropriate plan. It mainly
consists of designing the structure of company, distributing the resources, managing the human
resources and developing the decision making.
Strategy Evaluation: This a final stage in which organization analysed the choose
strategy. Such as the company check the effect of external and internal factor has been reduce
if the strategy will be reducing or not (Wang and et.al., 2021). Along, with this, it measures the
performance and the corrective action for accomplishing the organizational goals.
Issues and challenges in implementing corporate strategy
Corporate strategy of the organisation deals with the various areas within the including
preparing for strategic planning and management. Strategic execution is associated with many
challenges that can be overcome and transforming the corporate strategy into being very
effective one for the business of company. Strategic goals and management are very critical for
the growth of company.
Poor goal setting: Strategic goals of the company deals with having complex objectives
that will require many resources and use of various departments within the company (Hitt, and
Duane Ireland, 2017). Establishing goals across various teams needs to be clear regarding the
priorities along with the responsibilities of the employees.
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Lack of alignment: there are cases where even with proper goal- setting, there are major
challenges due to the lack of alignment because of the prioritisation issues as well as
collaboration. Collaboration is important within the daily activities to attain strategic goals.
Strategic misalignment is due to the non- strategic work that working individuals do. Proper
routine will help in making the goals attained easily.
Inability to track the progress of corporate strategy: Organisations within hospitality
industry are using the traditional method of spreadsheets for the purpose of tracking the
objectives of the company. This work is performed between the manager and employee and does
not produce combines results and creates transparency. Use of spreadsheet will limit the
capability of managing in real- time for the purpose of attaining strategic goals and objectives.
Employees are not connected to the strategy: Following routine and perfect order for
operations are important to develop tactical focus on the efforts that in turn will produce
immediate results. People working on the project and not being properly connected with the
strategy will lead to a lot of mis- alignment between the professional goals of the company in
accordance with the personal goals of the employees.
Effectiveness of corporate strategy
Effectiveness and efficiency of the corporate strategy deals with the objectives while
planning in the process to attain these objectives. Effectiveness of strategy includes the use and
allocation of resources based on this plan and receiving the best and expected results.
Effectiveness of corporate strategy includes:
Develop measurable strategies: In order to determine the effectiveness of the strategy,
it is important to measure performance and determine if that is aligning with the objectives of
the company. In the case when the strategy is to develop in new markets and pursue some
specific goals and measuring the buying process of products in the new markets (Bindra,
Parameswar, and Dhir, 2019). Effectiveness of corporate strategy determines the factors
associated with the completion of strategy. In the case of improving the customer service,
effectiveness is based on targetting the issues faced by customers and using this information to
resolve customer satisfaction, thus, measuring success with the help of customer surveys.
Measuring variables during the time of implementation: To monitor the
effectiveness, it is essential to set a base for the values prior to the implementation of the
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strategy and tracking progress. Evaluating the corporate strategy on continuous basis is a part of
effectiveness and building relevant strategy that will produce results on timely fashion. When
implementing strategy to increase the sales, over a time period in months, here, the sakes values
are supposed to be relevant and can be measured rapidly.
Evaluating performance: Continuous evaluation of performance of working individuals
as it helps in tracking the results and check if the strategy is going in adequate amount. Lagging
performance will include adding resources and building business operations. Strategy is to be
adjusted based on the performance or else it might lead to consumer more resources.
CONCLUSION
From the above report it has been concluded that strategic management plays a crucial role
in the company as it helps the organization in implementing and developing the plans. That
contributes in achieving the organizational goals in the limited frame of time. Moreover, form
the above report study has described that strategic management helps the hospitality industry in
finding the insights of the market. That leads in manufacturing innovative products that helps
in attracting more and more customer.
Furthermore, the report has summarized about the corporate strategy that contributes in
achieving competitive advantage that helps hospitality industry in enhancing the brand
reputation. Along with this, it helps hospitality sector to improve the overall performance of the
business as well as to describe the market position of the firm in the external business
environment. In addition to this, it defines the ultimate short and long term goals of the
company.
Along with this, the study has also taken the example of various hotel in such as Premier
Inn, Hilton and Rosewood for better understanding the tragic management of the hospitality
industry. The report has also analysed the Handoff model that is strategic tool that help the
organization in increasing the growth of the firm. Moreover, it is consisting of parts such as
product, market and diversification that helps the company in developing the strategic plan and
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identify the risk related to them. furthermore, the study has described the market penetration of
Rose wood hotel and how it has enhanced the overall productivity of the firm in the competitive
market.
In addition to this, the report has depicted on the implementation of corporate strategy
such organization can evaluate the resources for the knowing the balance between the assets
and liabilities. Beside this, company should also implement the strategy with management in
order to make the appropriate plans. Lastly, the report has thrown light on the challenges
related to corporate strategy such as poor goal setting and lack of alignment.
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REFERENCE
Books and Journals
Adeyinka-Ojo, S., 2018. A strategic framework for analysing employability skills deficits in
rural hospitality and tourism destinations. Tourism Management Perspectives, 27,
pp.47-54.
Bindra, S., Parameswar, N. and Dhir, S., 2019. Strategic management: The evolution of the
field. Strategic Change, 28(6), pp.469-478.
Bindra, S., Parameswar, N. and Dhir, S., 2019. Strategic management: The evolution of the
field. Strategic Change. 28(6). pp.469-478.
Dvorský, J. and et.al., 2020. Selected Aspects of Strategic Management in the Service Sector:
Dvorský, J., Petráková, Z., Ajaz Khan, K., Formánek, I., & Mikoláš, Z.(2020). Selected
Aspects of Strategic Management in the Service Sector. Journal of Tourism and
Services, 20 (11), 109–123. Journal of Tourism and Services. 11(20). pp.109-123.
Grant, R. M. and Baden-Fuller, C., 2018. How to develop strategic management competency:
Reconsidering the learning goals and knowledge requirements of the core strategy
course. Academy of Management Learning & Education. 17(3). pp.322-338.
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship, pp.45-63.
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Köseoglu, M.A., Okumus, F., Dogan, I.C. and Law, R., 2019. Intellectual structure of strategic
management research in the hospitality management field: A co-citation
analysis. International Journal of Hospitality Management. 78, pp.234-250.
Majid, A., Yasir, M., Yousaf, Z. and Qudratullah, H., 2019. Role of network capability,
structural flexibility and management commitment in defining strategic performance in
hospitality industry. International Journal of Contemporary Hospitality Management.
Makadok, R., Burton, R. and Barney, J., 2018. A practical guide for making theory contributions
in strategic management.
Naisola Ruiter, V., 2021. HUMANIZING HOSPITALITY INDUSTRY HUMAN
RESOURCES MANAGEMENT TO IMPROVE RECRUITMENT AND
RETENTION OF RESILIENT HOSPITABLE TALENTS IN THE SECTOR.
Petera, P., Wagner, J. and Šoljaková, L., 2020. Strategic management accounting and strategic
management: The mediating effect of performance evaluation and
rewarding. International Journal of Industrial Engineering and Management. 11(2),
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Poddubnaya, N.V., 2019. Corporate culture as an effective instrument of strategic development
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туризма (pp. 133-135).
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Zanjani, S. and et.al, 2020. Designing a Corporate Growth Strategy Based on Ansoff Matrix
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Organizations. 3(2). pp.151-178.
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