LT6018GN: Strategic Planning for the Hospitality Industry BA Hons

This presentation provides a comprehensive analysis of strategic planning within the hospitality industry, focusing on a case study of a Formule 1 hotel in England. It begins by analyzing the strategic direction of the hotel, including its mission, vision, values, and company culture, utilizing Charles Handy's model. The presentation then delves into Porter's value chain model, demonstrating its application to the hotel's business strategy. A critical assessment of internal and external environmental factors, including innovations, competition, economic conditions, demographics, and regulatory considerations, is conducted using frameworks like Mc-Kinsey. Finally, the presentation evaluates strategic options for the organization using the Ansoff matrix, emphasizing market penetration, product development, and diversification. The presentation concludes by highlighting the importance of strategic planning for achieving short, medium, and long-term targets and emphasizes the need for innovation and adaptation to maintain a competitive edge.

Strategic Planning for the
Hospitality Industry

Table of Contents
 Introduction
 Analyzing strategic direction
 Porter’s value chain model analysis
 Internal and external analysis
 Evaluating strategic options
 Conclusion
 References

Introduction
 Strategic planning is defined as a process in which company leaders and managers determine
their vision and objective for the future needs as well as evaluate their strategic goals.
 The presentation, will give detailed information about vision mission statement of popular
Formule 1 hotel situated in England, providing quality services to their customers and employees.
 This presentation will give detailed information about vision mission statement of popular
Formule 1 hotel situated in England, providing quality services to their customers and employees.

1. Analysing Strategic direction of Formule 1
 The plan that the company implemented for in order to achieve progress towards its
objective, goals and fulfil its vision statements.
 It ensures management team and owner of the company can communicate the importance of
team members work and their efforts to achieve business goals.
 A strategic direction of the organization shared sense of purpose and objective.
 The firm needs to plan according to the preference and needs of customer and employees.
Strategic direction requires innovative thoughts, new ideas and careful planning on time.

CONTD…
Vision, mission and values of Formule 1 is enumerated below :
Mission – A hotel Formule 1 mission is to be offered the finest
facilities and quality services while providing a good place to
work for its employees and providing services to customers.
Vision-. Creating positive and comfortable environment that
maximizes service quality in order to meet hotel industry
standards.
Values- Values are individual beliefs that encourage people to act
one way or other.

CONTD…
Culture
Company culture involves a shared set of values and
beliefs, especially work positive environment, vision
mission of company and their goals. The hotel core
values and culture defines from inside to outside.
Thus, it is said the staff members and employees who
fit into their organizational culture do their best work
and provide great services to guest.
According to Charles Handy's model of culture,
organizational culture includes role, task , power and
person.

Charles handy model of culture
 The hotel industry where teams are formed to achieve common goals or to solve problems follow
the task culture.
 All the employees work together to form a team in order to contribute equally and complete task in
innovative way. Hotel formule 1 has adopted task culture to achieve common interests and
specializations.
 Hotel formule 1 has adopted task culture to achieve common interests and specialization.
 This hotel unit focuses on work allotment by taking into account skills and abilities of personnel.

2. Porter’s value chain model analysis and its
contribution in the business strategy of your selected
organisation.
Porter's value chain analysis's major focus
is on systems, the ways in which inputs
are converted into outputs that will be
bought by customers. So, porter has
explained various activities which are
common to all businesses and therefore,
has divided such activities into 2 major
parts i.e. Primary and support activities.
Formula 1 Hotel can make use of Porter's
value chain analysis to formulate various
strategies by paying attention to activities
which are performed in organization.
Various activities divided by porter are as
follows:

Contd.
Hotel Formule 1 can utilize Porter Value Chain by following the steps:

Contd.
Formula 1 Hotel can apply Porter Value Chain Analysis in order to have competitive
advantage in industry by creating value for guests. Hotel can offer different types of rooms
and allied services according to the requirements of customer and income level.
Hotel can have following strategies;

3. Critically assessing the internal and external
environmental factors affecting organisations
 External factors are termed as those factors which are outside the control of the
company and which may affect the profit of the business.
 These factors have direct impact on the objectives of the business. The company must
check these factors because it has a direct impact on the productivity of the company.
 The following factors affect the productivity of company are:
 Innovations
 Competitors
 Economic
 Demographics
 Regulatory
 Infrastructure
 Partners
 Social and cultural trends

Contd.
 Innovations: New and innovative technologies help the company for the fastest
production of the products. Formule 1 is the big hotel in England, so they must use new
technologies in their hotels which makes the customers attracts to visit and stay over there.
 Competitors: The organization also has many competitors as there are many other hotels
nearby. The cited hotel must do something new and unique in their hotels which makes the
guests attract to visit there.
 Economic: The organization should have control over these factors because it may lead to
downfall of the hotel because of decreasing profits.
 Demographics: The organization must also focus on these factors of demographic and
make prices of the rooms in the hotels. As customers will book the rooms according to
their income.