Bimbadgen Hotel: Strategic Management, HOTS & Performance Analysis

This project report provides a comprehensive strategic analysis of Bimbadgen Hotel, a 4-star property located in Bondi Beach, Australia. It examines the hotel's performance over the past three years, utilizing internal and external analysis tools such as TOWS and PESTLE, along with Porter's Five Forces, to evaluate its competitive position and strategic environment. The report covers key areas including marketing strategies, market positioning, pricing tactics, and operational management, highlighting the hotel's efforts to attract foreign travelers, promote eco-friendly services, and enhance customer and employee satisfaction. Financial performance is also reviewed, demonstrating the hotel's revenue generation and projected growth over the next two years. The analysis aims to provide a basis for securing a contract renewal by showcasing the hotel's strategic planning, adaptations to market changes, and commitment to sustainable growth.

Strategic Hotel
Management and H.O.T.S
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EXECUTIVE SUMMARY
This project has been summaries specific information about the change management which
is one of the most valuable parts in hospitality sectors. In order to analyse the performance of
Bimbadgen Hotel this is located in bondi beach. The primary motive of this business report is to
examine the both micro and macro environment factors that affecting the performance of hotel
from the past 3 year as well as coming next years. For this purpose, some of the analysis has
been done below:
External analysis
 In order to retain maximum hotel staffs a well organise employee training and personal
development plan has been made to get high customer satisfaction.
 To get more sustainable method in relation to Bimbadgen hotel a public awareness
campaign has been conducted among the society.
Strategic environment
 The hotel has planning to provide superior quality of services in their stay at a
economical cost.
 They are maintaining its market share position through attracting the foreign travellers to
increase brand recognition.
Marketing
 Bimbadgen hotel is aiming to have a positive advertisement as well as spending valuable
amount of money in promoting their services.
 Keeping the record of last 3 year they are planning for 4th and 5th year in term of
promoting more eco-friendly services to the guest.
 The hotel is aspiring to deliver maximum class services that would enlarge their business
as each year is passing.
Operational management
 Because of high range of demand of foreign guest, Bimbadgen has decided to increase
capacity of restaurant and bar.
 The hotel is also planning on staff as well as employees satisfaction by providing them
effective training services to them.
 In the coming 2 years, they are going to enhance the cost of training as well as marketing
strategies for maintain proper balance among the market condition.
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Finance
 In the initial stage, Bimbadgen hotel has being able to managed to generate sufficient
amount of earning around $3222262 at the end of 3rd year. It has been projected to
incur a net increase of 3.27% by the close of 5 year.
 In respect to ROCE and GOP percentage which is increasing in each year. Looking
into this growth the hotel has planning to increase the return by twice in the 5th year
end.
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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
SECTION 1.....................................................................................................................................5
Internal and external analysis......................................................................................................5
TOWS analysis:...........................................................................................................................6
PESTLE analysis.........................................................................................................................8
Strategic capability analysis......................................................................................................11
SECTION 2...................................................................................................................................16
Marketing...................................................................................................................................16
Market positioning and strategy................................................................................................16
Pricing tactice............................................................................................................................19
Operational report......................................................................................................................19
Financial statement....................................................................................................................22
CONCLUSION..............................................................................................................................23
REFERENCES..............................................................................................................................25
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INTRODUCTION
Strategic management is the continuous planning, controlling and assessing all essential
aspects of an organisation which are essential to attain their goal and objectives. It is basically
involves the development as well as implementation of initiatives that are taken into account by
an organisation’s top management in relation to their owners. In case hotel industry, effective
strategy creation and execution are primary key elements in a hotel recipe for its success. This
would guide hotel managers about the ways strategies are manage, implemented and maintain
within hotels. Bimbadgen Hotel is the 4-star property which is located in front of beautiful white
sand see coast of Bondi beach. In relation to the features of awesome standards of rooms,
encompassing with an expensive cellar door, Esca Bimadgen restaurant, café and outdoor
amphitheatre, accommodation to all in the one dramatic areas and modern testing rooms as well
as car parking facilities area is also provided by the hotel (Ghemawat, 2007).
This project report aimed at analysing the past three year performance of the hotel in order
to analyse the attainment performance and success. Apart from this, evaluation of hotel operation
tactics and strategies (HOTS) of Bimbadgen hotel has also be covered effectively. An overview
of hotel last three year performance along with appropriate strategic business approach is
examined clearly. Further, this report demonstrates analysis of hotel present state in respect to
formulate management techniques has also focus. Both internal as well as external analysis and
Porter five forces are also critically used to know the potential changes occur in the hotel. This
report would also deal with the marketing techniques by indicating 3-years performance data
about customer satisfaction, employee facilities and overhaul position by functioning
administration. At the end of the report, a well organise financial reviews are also done to know
the profitability position of the hotel.
SECTION 1
Internal and external analysis
Internal analysis:
In order to know the inner strength of Hotel most of the time internal analysis is best
option for any researcher. As it is an examination of industry competency, cost position as well
as competitive viability in the market area (Gupta, Wakayama and Rangan, 2012). It has been
seen that conducting internal analysis is more often tends to measure all useful information
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regarding hotel positive as well as negative aspects. In order to analysis the internal position of
Bimbadgen Hotel, TOWS analysis has to be taken into consideration which is mentioned below:
TOWS analysis:
According to this particular analysis which is used for the purpose of audit and analysis of
inner strength and weakness of Bimbadgen Hotel (Hill and Jones, 2012). It is basically used to
examine hotel outside opportunities and threats as well as compare them to their industry
strength and weaknesses.
Bimbadgen Hotel Threats
 Reduction in
disposable value
because of
unemployment rate
has increased of 2.4m.
 In relation to budget
hotel whose market
has grown to 30%
more.
 Social lifestyle of
people has also
changes they most of
the time preferred to
sit back home and use
trade network
conferencing
Opportunities
 Maximum chances of
growing wide number
of foreign traveller by
using internet and
phone in new coming
years.
 Economy growth
because of high level
of GDP. Example, life
expectancy rate.
 Sharp increment in the
internet as well as
phone within last
couple of year.
Weaknesses
 Minimum hotel
Quality index.
 In last couple of
years, it has been seen
moderate staff
turnover.
 It has been seen that
customer with
minimum disposable
income would select
more economical
alternatives that
results in huge growth
 It has been seen that
most of the hotels
usually provide online
discount, however
Bimbadgen do not
offer such kind of
discount. This is the
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 Moderate occupancy
percentage.
 Lack of outside
visitors because of
inappropriate
marketing strategy.
of market share. (W1,
T1, T2)
biggest opportunity
miss out to increase
online users.(W1, O1)
 With Australian dollar
is having high value,
foreign customer will
want discount on their
accommodation. (W1,
O2)
Strength
 Maximum brand
recognition
 Natural landscape by
capturing the
surprising views from
sea point.
 It exemplifies the
unique aspects of
winery restaurant.
 It has won two awards
at National savour
Australia restaurant &
catering Hostplus for
excellence.
 Positive awareness of
customer.
Having multiple services in
Bondi beach (Australia) and
providing a remarkable
hospitality experience visitors
are willing to pay maximum
prices so Bimbadgen remain
competitive. They are more
popular because of positive
feedback from non-buyer.
(S1,S3 T1, T2)
With an enhancement of
valuable customer feedbacks
from the Australia and global
target markets can tends to a
wide customer base. It can
also be an effective ways to
increase market share as well
as experience maximum
customer loyalty in coming
period of time. (S4, S2, O1,
O3)
Table 1.3 TWOS MATRIX
External analysis: It is one of the key strategic tools which tend to identify all the
outside elements that can affect the Hotel performance. It has been seen that hotel industry is
greatly impact because of its environment. Every situational aspect that determine in present day
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scenario can impact the performance of the company. To get best results about the external
environment of Bimbadgen Hotel PESTLE analysis is taken into account.
PESTLE analysis
It refers as a complete framework that is used for the purpose of analysing and
monitoring the macro-environmental factors that is having impacts on Bimbadgen Hotel
performance (Lamb and et.al., 2013). It is basically more useful in case an organisation is going
to start a new hotel in other parts of the country.
PESTLE FACTOR Analysis Impacts on Business
Political It has been seen that because
of unstable politic, it is
difficult for Bimbadgen Hotel
to operate its business in the
Country.
Taxation as well as tax rate
and incentive would be major
political aspects that could
impact the hotel business.
Because of political stability
or industry safety regulation
would have negative impacts
in buying behaviour of
customer in tourism sector.
Tax-free benefits provided to
the hotel because of natural
environment are great
benefits to the owners of
Hotel.
Economic With the growing GDP of
nation travel and tourism
from 9.2 percent to 9.8% by
2020 is estimated by the
Global travel and tourism
council report.
Getting awareness among
customer and Hotel growth is
primary base for GDP
increment.
Social It make future more good
because of total number of
people that are planning to
travel internationally will
increase by 13% among 2014
to 2015.
Cultural changes that could
impact Bimbadgen hotel
consists of increasing number
of Asian Travellers. It would
enhance the demand for
specific kind of travel
experiences like, packaged
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luxury resorts other services.
Technology It would have great impact on
the hotel operation in the
form of rental services such
as private individual rent
rooms or home directly to the
customers. It would also
increase rate of technology
transmission.
Increase guest overall
satisfaction through delivery
valuable technological
services such as WIFI, online
booking facilities.
Environmental It has been seen that CSR
activities as well as
environment protection
campaign in the hotel can
emerge control value through
putting go green practices.
Tough decision and actions
must be taken into account to
protect the environment.
Example, giving more
importance to green or
ecological products.
Legal In order to get employee
satisfaction, proper
employment law contract,
WHS policies and Right of
employees at the workplace
should be taken into
consideration.
Consumer protection and e-
commerce services should be
ensuring so that minimum
staff turnover percentage can
be maintain for long time.
TABLE 2: PESTLE Analysis
From the above pestle analysis, there are various crucial components or key points are
extracted to develop an effective business strategy. These are mentioned below:
 The Bimbadgen Hotel is getting valuable amount of government support to taking active
participation in go-green campaign in order to promote business more effectively around
entire nation (Okumus, Altinay and Chathoth, 2010).
 The overall development of Hotel would tend to continues because of growing total
number of customer because of technical facilities and economic factors.
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 Involvement in CSR (Corporate social responsibility) and environmental friendly
activities will lead to create maximum amount of gust awareness. Because of which
changes of increasing profitability and long term sustainability can be increase in near
future time.
 The workplace legal responsibility and opportunity are related with all sort of positive
drivers that are helpful of taking management decision for the overall goodwill of the
Hotel.
Porter five Force model:
It is said to be one of the effective tool that is used for the purpose of evaluating
competition of Hotel business operation (Abrate and Viglia, 2016). It tends to draws from overall
industrial organisation economies that is related with five forces which examine overall
competitive intensity of Bimbadgen Hotel. Henceforth, the attractiveness of Hospital industries
in relation to profitability is been analysed accordingly.
Threats of new entry:
(High)
In hotel industries, there are new ways to conduct things that
can put maximum pressure on Bimbadgen Hotel by lower
pricing strategy and reducing cost to customer. The hotel has
deal with such kind of issues by building economies of scales
through minimising the fixed cost of per unit.
Supplier power: Moderate Despite being the entire extra burden the presence of various
suppliers, Bimbadgen hotel relies on its values services and
winey products. They have tackled these by developing
efficient supply chain with their regular suppliers.
Bargaining power of Buyer:
(High)
Throughout the year, Bimbadgen play to host a wide range of
entertaining events whose total size of people is around 10000.
These sorts of attendance show the awareness of people about
the hotel value and its prices.
Threat of substitute: (High) There are plenty of 4-star hotels available in the same area
which is one of the key threats for Bimbadgen. Most of the
time hotel owner used to make comparison of their brand value
rather than the price.
Competitive rivalry (Close Presence of different 4-star hotels. In order to cut down the
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to high) competition the hotel is planning to introduce innovative and
sustainable events for their customers. They are trying to
provide homogenous items and services as compare to same
level of hotels.
TABLE 3: Porter’s five force model
According to the above porter analysis, it has been seen that there are various future
business strategies which are needed to be coming some of them are mentioned below:
Use of advance EMS system for Bimbadgen hotel in overall sustainability and maintain
its costs has been be given more propriety (Noe and et.al., 2017). It is an effective system which
is control through computer by electric utilisation grid to measure the overall performance of the
hospitality industry. Development of loyalty campaign activity and training program to improve
staffs quality has to be given in relation to provide maximum benefits in coming period of time.
Formulating effective relationship in respect to create new business growth strategies through
providing valuable services to international customers those are visiting to the hotel.
Strategic capability analysis
It is said to be one of the effective process of analysing the strategic capability of
Bimbadgen Hotel performance from the last three years. It is basically depend on the data
collected from the annual reports and market trends that would to be determine in a given
hospitality sectors. It seems to be the ability to get successful employ of competitive plan that
can allow hotel to survive and enhance their value during the period of time (Gannon, Roper and
Doherty, 2015).
Basis Resources Competencies
Human More capable hotel staffs and
manager
Trained and capable employees and
support members
Guest/ customers
The overall skilled ability of staffs
to serve the customer would make
valuable satisfaction to the hotel
as well as guest at the same time.
By giving regular allowances and
incentives employees get
motivated to perform their job
more effectively in Bimbadgen
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Hotel.
It is crucial for hotel staffs to
maintain proper relationship
among their customers through
offering better services to them.
Financial Income statement
Cash flow
Balance sheet
These are valuable reports which
will provide specific information
about the performance and
position of the Bimbadgen hotel
from last couple of years.
Physical aspects Check-in and out services
Restaurant and bar
Accommodation training room
Café’s
The availability of various
services and products facilities
would increase the percentage of
guest in Bimbadgen hotel. It
would also increase value and
future expectation for the hotel
industry.
Marketing Advertising and promotion The company tends to use social
media techniques such as hotel
booking apps with valuable
discount as primary promotional
tools.
TABLE 4: Strategic capability analysis
Strategic statement
It is one of the crucial statements that tend to communicates Bimbadgen hotel strategy to
everyone within all around the nation. This particular statement includes basic components such
as object, competitive benefits and scope and so on. It will assist employees and hotel to examine
their specific roles while executing the hotel strategies (Xiao, O'Neill and Mattila, 2012). The
overall statement and formulation of basic set of strategies would assist in attaining competitive
benefits to strategic management procedure.
Strategic Direction
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