LT6018GN Strategic Planning for Hospitality Industry: Hilton Analysis

This report provides a comprehensive analysis of strategic planning within the hospitality industry, using Hilton Hotel as a case study. It begins by identifying and evaluating the factors that influence the successful implementation of strategies, considering leadership styles, organizational resources, employee roles, structural design, and the impact of the external environment. The report then delves into the different performance metrics used by organizations, such as critical success factors (CSFs), key performance indicators (KPIs), and the balance scorecard, and how these metrics affect the effectiveness of business strategies. Finally, it critically evaluates key elements of strategic change management within the context of Hilton Hotel, including information and control systems, human resources, and the ability to adapt to changes in the business environment.

STRATEGIC PLANNING FOR THE
HOSPITALITY INDUSTRY'( IC D)

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
1)Factors affecting the successful implementation of the strategies...........................................2
2) Difference performance metrics of the organization and affect effectiveness of business
strategies......................................................................................................................................4
3. Critical evaluation of key elements..........................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Strategic planning is procedure for developing the guideline, plan, guideline or the road-
map for hotel, that is based on values, mission, vision and stated objective & goals which
indicates the particular strategic & tactics or the practices that can be taken so that goals can be
achevied. In this report Hilton hotel is taken (Alotaibi, 2016). Hilton hotel is an American MNC
hospitality firm. This report highlights the factors affecting successful implementation of the
strategies and different performance of metric & affect effectiveness of enterprises strategies.
Also, it reveals the key element to manage strategies leading and change type. In this regard
present report has been prepared.
MAIN BODY
1)Factors affecting the successful implementation of the strategies
Leadership
Various external factors that affect the leadership that are-
Organizational environment- Company has got its own specific environment for work
with its own values, that is heritage of leaders from the past, also the present leadership. A type
of environment that a leader is in have a strong on its rate of success. If the organizational
environment of the company is good and suitable it can help a leaders in implementing an
effective leadership strategies which can increase their chance of success (Janošević and
Dženopoljac, 2015).
Organizational Resources- As leaders of the organisation mainly dependent on
resources of company, such as technology, employees, physical and financial resources for
achieving the goal. The success of the leader highly depend on how effectively resources is being
used as well as acquired. If the proper resources are not their than it affect the leadership style as
it is difficult for the leader to function and affect the activity of leadership style, which directly
reduce the performance of the organization, as without proper guidance and lack in resource,
finally it is lose for the firm.
Employee Roles- When the employees are assigned different role in the firm, employees
positions are defined by responsibility and tasks and performance relations with others. Types of
job roles which are assigned to employee also affect the lea success (Chambers and Taylor,
2019).
Structural design
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There are various factors that affect the structural design of the Hilton organization that are.
Strategy- As the structure follow the strategy because the firm structure are mainly built
to achieve the objective through implementing strategies. If the strategy changes, it also results
change in structure. At the business level various strategies can be formulated that can be based
on firm strategies and mission goals. Hence, changes in the strategy have directly impact on the
organizational design.
Environment- As the environment has got a strong impact on the decision-making– it
can be difficult for the organisation to develop a proper structure in uncertain environment.
Similarly, stability and the certainty of the business environment that have direct impact on
performance of firm and help in developing a proper organizational structure. In unstable
business environment which changes fast and are less predictable can negatively affect the
organisational structure of the company (Dortaj and et.al., 2018). It affects the organizational
design for better design, firm has to adopt the change and need to responsive and flexible.
Organization size- Number of workforce working in Hilton organization which indicates
the size of the firm. It observed that big company differ structurally as compare to small ones in
terms of labor, regulation and rules, budgeting process and performance appraisal. Such size of
the organization affect the structural design of the firm.
Organization age- With age- Firm has to incorporate the standardization of system,
process and regulation. Like people, firm evolve through stage of life cycle that is birth, middle,
youth and maturity. In birth the firm makes by entrepreneur informal, with no regulation and
rules.
Youth stage- It is the stage where company is growing, it expands and hire lot of employees. It
incorporates the division the labor & formal policies and rules (Drivas, Damaskinou and Sakas,
2017). Still decision make by the owner.
Middle stage- here the firm became little large. Now it set the norms and system to guide the
workforce. Noe the control system are used.
Information and control system-
Various factors that affect the control system that are.
Information and control system forms an important part for any organisation so, it is vital for
Hilton hotel to collect appropriate information in order to remain competitive. The factor like the
business environment, customer preference, change in trends, organisational structure etc have a
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can effect the success of information and control system of company. The interaction between
these factors can help the hotel to gather proper and exact information and increases the cahnce
of developing it (Kaluthanthri and Osmadi, 2016). Some information that are gathered under the
management control system that emerge from informational maintained in Hilton organization.
Some information are gathered by the external way such as information about competitors
product. Earlier various kinds of information that are required by the person working at different
level in organization. Such factors affect the management control system.
Human Resource
Various factors that have an affect the human resources.
Government regulation- Regulation from the government can affect the every procedure of the
HR department, that may include training, hiring and compensation, termination, etc. However,
the government regulation has to be adopted by Hilton organization and if the regulation is bad
enough than the company may go lose.
Economic condition- It is also a huge external factor that shape the current economy. It not only
does affect the employee performance, but also affect the ability to hiring someone ( Kavoura,
Sakas and Tomaras, 2017). It also affects the HR as it has to do various changes which full affect
its functions. To overcome the economic condition company keep on knowing what is happening
around the worlds, so that by knowing condition some precautions are to be taken to reduce the
effect on organization.
Technological advancement- When any new technology are introduced than it affect the Hr
department, which start to look for the source to save money. Technology can affect the hr as it
is essential to adopt the new technology for smooth of the function activities and have to manage
lot of changes with change in the technology (Mousiolis and Bourletidis, 2015). As technology is
the developing and also the way of business develops as well.
Employee demographics- As older employees retires and young employees enter where the HR
department look for the source to attract the new set of the candidates. Hr hire on different source
and offer various kinds of the compensation packages for the younger generation. Such new
generation population also affect the HR department as they have to face various challenges.
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2) Difference performance metrics of the organization and affect effectiveness of business
strategies.
Critical Success Factors (CSFs)- It is a management term that are necessary gor the Hilton
organization to achieve the goal.
Location- As Hilton hotel has been traditionally focusing on the importance of critical
success factors. Location of the hotel is really important for its success as it has to be in reach for
customers. If hotel is located near less busy highway are not likely to run very well, even if it
provides the superior service than also it can not run that much (Nyagemi, Njeru and Kinyua,
2017). Although location is very important as compare to all other factors. Where the travelers
are mostly taken it as granted that service are good and depending on the location, So location
plays a vital role in the success of the hotel.
Quality Management- It is another CSF for any hotel and company has to go beyond the
imagination of the consumer services in order to provide best quality services. It may include the
additional factors such as workforce involvement and satisfaction. Whereas the single random of
interaction with Hilton hotel where the employees can make difference on customer impress the
customer. This can impact their reviews and feedback (Okumus and et.al., 2019). By giving
concentration on the employee satisfaction and the customer services, through this Hilton hotel
can increase the quality of their products and services as it is one of the most CSF for the
company.
Flexibility- it is one of the key factors for the organisational success in the industry. As
the consumer have unique expectation of Hilton hotel, because of that manager need to provide
authority to make the decision to meet those expectations. If there is less flexibility in the
organisation it will have effect on setting policies which may hinder in improving the business
operations and addressing consumer issues (Peršić, Bakija and Vlašić, 2015). Manager with
power can make exception when there is a much better in position that to turn around a situation
& earn good reputation of the consumer service &high in Quality.
Global Outlook- Even hotel require and should be able to develop positive outlook at
local and international level in order to be successful. Based on the outlook guests decide and
select the particular hotel over other hotels in the world. If the hotel are competed solely on the
location and price, while near to the competitor also emphasis by making the quality experience
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for buyer than the visitors. Also, Hilton hotel are required to be aware of all the hotels over the
world and try to attract the new consumer and earn loyalty (Quintiliani, 2018).
Key performance indicators
A KP is an quantitative value which determines how effective an organisation is achieve
key business objectives. Hilton Hotel use KPI's to evaluate the success at achieving targets. High
key performance make emphasis on analyzing the overall productivity of business, whereas as
low performance indicator focuses in processes in areas like marketing and sales. HR and
support. There are few key performance indicators and which are used by Hilton Hotel for
measuring the performance and are as follows-
Profit- This is one of the most important KPI. It helps in finding out the profit of the organisation
as organisation used to analyse both gross and net profit margin to better understand business
operations are generating high rate of return ( Secchi, Roth and Verma, 2018).
Cost- This is the KPI and it is very important as helps in managing cost effectiveness and finding
out the beast ways for reducing and managing the cost of operations. Through this Hilton Hotel
analyse the cost and measures can be taken for making improvement.
Customer satisfaction and retention- Hilton Hotel uses this KPI as the main of the organisation
is to satisfy the customers. Through this Hilton Hotel gets to know about their customers as they
are satisfied with the services offered or not. Through this organisation can make new practices
for fulfilling the needs of consumers and thus, satisfying themselves.
The balance scorecard
A balance scorecard is a management performance tool which used for identifying and
improving various internal functions of business and resulting their external outcomes. Balance
scorecard are used for measuring and providing feedbacks to organisations (Zohry and Hammad,
2019). Data gathering is very important for providing measures which are quantitative results in
this way that administrator and managers gather and uses the data and use it for making new
plans for business and better decisions for the business. Through balance scorecard Hilton Hotel
analyses the condition of the business. It assist the leaders in making new policies and
frameworks so that the business operations can be carried out in an smooth way.
Balance scorecard assist Hilton Hotel to attain the objectives, measurement and goals.
Through this the organisation get to know about their weak points assisting them to make
measures so that the weak points can be addressed.
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Financial data like income, expenditure, sales etc are used to know the financial performance of
Hilton Hotel. These financial tool includes amounts of dollar, income targets and variances in
budget (Lopes, M., 2016). Through balance scorecard business processes are evaluated by
investing, how well the goods and services of the hotel are performing and by the services
customers are satisfied or not. Operational management is analysed for tracking the gaps, delay,
shortage and wastes. And any improvement required can be made urgently by Hilton Hotel.
3. Critical evaluation of key elements.
There are various key elements through which the organisation can manage the change.
The key elements are as follows.
Change agents- Change agents are persons which may be within the organisation and outside
the business. They assist the company in transforming itself by giving attention on matters like
effectiveness of organisation, improvement and overall development. Change agents assist
Hilton Hotel in making changes (Alotaibi, 2016). As the organisation is planning to make
changes in the working practices and it is not that much easy. Change agents assist the
management in adopting the change, as some employees in the workplace are not happy with the
change made. So change agent assist the organisation by making policies and frameworks so that
change can be adopted by the employees in an desired manner. Some times organisation wishes
to reconstruct the practices which are followed in business for making the business operations
faster. But it is not that much easy to reconstruct whole working practises, So for that change
agents helps the organisation by giving their guidelines and practices (Bontis, Janošević and
Dženopoljac, 2015).
As with the help of change agents Hilton Hotel can easily reconstruct any practices which
they want to be reconstructed. They help the company in making revolution in the business, as
the policies and frameworks becomes outdated so it is necessary to revolute that. Change agents
assist Hilton Hotel by proving useful data so that the revolution of the practices can be done in
an effective manner. They have much experience about the practices which can be followed so
that firm can lead to success. They are people who motivates the employee of the organisation
and thus, helps in making revolution successful.
Managing change program- It is very necessary that change must be made so that the practices
and procedures of the organisations do not become outdated (Chambers and Taylor, 2019)
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. There are various models for making change effective but the model which can be used by
Hilton Hotel is Kurt Lewin's change model. The author developed a model which consists the
three steps. The model used to represent a very easy and practical approach for studying the
change process. The three steps through which change can be implemented in Hilton Hotel are as
follows-
Unfreezing- This is the first step of making change. In this step the current practices and
procedures of the organisations are stopped. Ways of thinking, practices, old behaviours and
structure of organisation must be carefully analysed so that Hilton Hotel can show the employees
how necessary the change is (Dortaj and et.al., 2018). As why organisation is adopting new ways
of working, business is planning to reconstruct some of its practices so all these are
communicated with the employees so that they also feel motivated and change can be
implemented without any issues. Communication is very essential at this step so that workers
understand the reason behind the making the change and how change will be beneficial for each
employee.
Changing- This is the seconds step in which is also known as transitioning. During this step the
workers began to learn new behaviours, practices and different ways of learning and thinking. It
is recommanded that employees must be prepare for the change so that it becomes easier for
them to cope up with that. As Hilton Hotel is planning reconstruct some the ways of working so
in this step the change will be made and organisations will adopt new measures. New policies
and frameworks are made so that the change can be made successful (Drivas, Damaskinou and
Sakas, 2017). Through out this process workers are reminded about why change is made and
how each employee will benefit from the change one it is implemented successfully.
Refreezing- This is the last stage of the change model in this stage the change made to
organisational process, structure and public are accepted and rephrased in an new form. Lewin
found this stage to be very essential as to make sure that employees do not turn back to the old
practices of working. Hilton Hotel has adopted new measures for working so at this stage all the
change made are refereezed. Positive rewards and recognition of employees are used to remade
the new stage as it is observed that positive reinforced is likely to be repeated (Kaluthanthri and
Osmadi, 2016).
Levers for change- There are five levers for changes that the change implemented in an
successful manner. The stages are as follows-
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Make change understood- This is the first stage in the change Hilton Hotel is going to
implement is communicated to employee so that they can understood very well. As when is
properly understood by employees it becomes easy for them to adopt the change. Workers very
well understood the reasons for reconstruction of practices in Hilton Hotel.
Make change easy- The change is made in an easier for so that it can become easier for workers
and work according to that ( Kavoura, Sakas and Tomaras, 2017). Change made in easier form
assist the employees in performing well. It is made easy so that adaptation and reconstruction
can be done in an desired manner.
Make change desirable and rewarding- The change made must be desirable and rewarding so
that the employees feel satisfied & retain in organisation for longer duration thus making the
change successful.
Turning change into habit- This is the biggest challenge that how change made in Hilton Hotel
can turn into habits of employee. For this different types of training is provided so that
employees become habitual of the change.
CONCLUSION
The study summarized that key indicators plays an vital role in measuring the
performance of the industry. As by this companies get to know about the current performance
and any improve required can be made. There are several key performance indicators like profit,
by comparing the current profit of the firm with past profits performance is measured. By the use
of balance scorecard the organization get to know about their weak points and help them in
making measures so that the weak points can be addressed. Further, the study conclude about
change ie, as change is necessary to made so that procedures followed in the organisation do not
become outdated and business can lead to productivity. For making change successful there are
several change models which can be used as Kurt Lewin model of change, in this model there are
three stages and by following this change can be successfully implemented.
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REFERENCES
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