Strategic Management Report: HOTS Hotel, Australia

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Assessment 1 Strategic Briefing Paper
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Table of Contents
Introduction......................................................................................................................................3
Internal and external environmental analysis of HOTS hotel.........................................................4
Overarching Strategic Framework...................................................................................................8
Macro and microanalysis impact on the decision making categories of the business and
Recommendations..........................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
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Introduction
The hotel industry is continuously developing and there are requirements for preparing the
effective strategic plans for such businesses. This report is prepared to present the strategic plan
of HOTS hotel which is located nearby the famous Bondi Beach of Australia. This hotel provides
boutique hotel rooms. There are approximately 250 guest rooms and also a terrace for dining. It
also provides free local telephone calls as well as the Wi-Fi. This hotel is also surrounded by
cafes, restaurants as well as bars of Bondi. This report is going to present the strategic
management plan of the HOTS hotel by using different theoretical models. These models will
also be used in order to assess their influence on the decision-making plan of the company.
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Internal and external environmental analysis of HOTS hotel
PESTLE analysis
Following is provided the PESTLE analysis for the external environment of the hotel having an
impact on the business activities of the company:
Political Factors: The HOTS hotel is operating in Australia and it is the most suitable and stable
economy of starting any business venture. This is considered as one of the most stable economies
where the people are enjoying a decent standard of living. The country also has good relations
with the neighbor countries which can be considered as a positive point for the business of
HOTS hotel to operate its business in Australia. It can be said the HOTS hotel can operate its
business with ease without any political restrictions on the business (Chan, et. al., 2017).
Economic Factors: Australia is a developed as well as a prosperous economy. There are not so
many barriers to operating the business and very open business environments for the companies.
There is a sustainable growth in the economy of Australia also provides competitive, attractive as
well as a safe environment. These qualities can prove to be very helpful for HOTS hotel to set up
and expand their business in an easy manner within Australia. There is a suitable economic
environment for the business of HOTS hotel (Kyriaki, et. al., 2017).
Social Factors: There is a great literacy rate in Australia and people are also having a decent
standard of living with a good lifestyle. The people there follow western culture. This can be
very beneficial for the marketing and promotion of the HOTS hotel. The Australians also give
the preference to the luxury products, food items as well as the entertainment. The HOTS hotel
and maximize their benefits by attracting the customers providing the services on the discounted
prices.
Technologic Factors: Australia is one of the most technologically developed nations but in the
last few years there is a major decline in the investment over the research as well as development
activities. These factors will directly impact on the HOTS hotels as it will assist the company in
adopting the new innovations from time to time in order to achieve the growth for the business.
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This will also be helpful in accelerating the demand of the HOTS hotel rooms through online
marketing (Mitchell, et. al., 2015).
Legal Factors: In order to stay and be stable in the Australian economy, it is important for the
HOTS hotel to follow all the laws and regulations regarding the businesses operating within
Australia. The Australian economy has the taxation law of charging 30% tax on the total
revenues of the organization. This can be a challenging point for the HOTS hotel as this tax rate
is higher as compared to other countries (Leung, et. al., 2015).
Environmental Factors: Australia is one of the most polluted countries and it has a very
harmful impact on Australians. This is also having an adverse impact on the business of HOTS
hotel. This hotel is situated near a beach and there may be no such a harmful impact of such
business on the business.
Porter’s Five Forces Analysis
The threat of new entrants: There is a need for making a huge investment to enter into the
hotel industry of Bondi. There is a need for high-cost involvement hence they must possess a
great financial backup. It can be said that there are low threats of entrants due to such reason. \
Bargaining power of buyers: There is a great impact on the bargaining power of the customers
on the business of hotels. There are several numbers of the competitors of HOTS hotels where
the customers can go. The customers can easily switch or shift to one hotel to another hotel
without any additional expenses. Hence there is high bargaining power of the customers.
Bargaining power of the suppliers: This is relatively lower in this industry as there are so many
hotels at such place and the suppliers do not want to lose their customers.
The threat of Substitutes: There are no such major substitute products and services available in
the market except at the time of the recessions within the domestic travel. Hence this is also
relatively low.
Rivalry among the firms: There is already so many beaches there in Bondi hence the
competition in the hotel industry there is very high. This is because all the hotels want to make
their place stable (Rotimi, et. al., 2017).
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Value Chain Analysis
Following is provided the value chain analysis of HOTS hotel:
Primary Activities
Inbound Logistics
 Provision for the laundry services
 The contract for the food and beverages
 Inventory control
Operations
 Tools as well as types of equipment used for providing services
Outbound logistics
 The final products and services provided to clients (Prideaux, 2013).
Sales and marketing
 Activities attracting the clients such as happy hours and free conference rooms
Service
 Free complimentary lunch and dinner
 Wi-Fi and internet connectivity
 Free spa treatments
Support Activities
Firm Infrastructure
 Finance as well as accounting
 Management of quality
Human Resources
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 The staff as well as customers
Technological Development
 Software used in managing the operations
Procurement
 Facilities to make the services smooth for the customers.
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Overarching Strategic Framework
Mission
The mission of the HOTS hotel is to be the leader of the hotel industry by creating a great and
heart- filled experience for the guests.
Vision
The vision of such a company is to give the warmth of the hospitality to the customers by
providing them exceptional professional as well as the personalized services every time.
CSR
The CSR policy is being created within the business in order to anchor the sustainability within
the business and preserving the environment for the company. Company will be contributing
some percent of its profitability to the CSR initiatives taken by business (Stentoft Arlbjørn &
Vagn Freytag, 2013).
Ethics
Ethics includes the following points:
 Integrity: There will be maintained the integrity within the business in all respects of the
operations of the hotel.
 Accountability: The hotel will be held accountable for all the activities and tasks
performed within the hotel (Fang, et. al., 2016).
 Trustworthiness: There will be maintained the trust among the employees, staff members
as well as the customers of the hotel.
 Respect for others: Everyone will treat each other with due respect within the hotel.
Objectives and goals
Following are the objectives or the goals of the HOTS hotel:
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 The even distribution of leisure as well as the business travelers throughout the whole
year.
 Developing and reconstructing the facilities for the conferences
 Development of transportation from the area hubs such as rail, airport and major cities
(Jilani & Yasmin, 2016).
This strategic framework presented is important for all the three levels such as upper, middle and
lower level management as it will provide a base for them to create the business strategies and
execute them in such manner so that these objectives can be fulfilled (Benavides-Velasco, et. al.,
2014).
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Macro and microanalysis impact on the decision making categories of the business and
Recommendations
The HOTS hotel is making effective decisions in order to have a significant improvement in the
three decision-making areas such as environment, services as well as the communities. The main
objective of the company is to stand out from all its competitors by providing the best
transportation facilities, best conference facilities as well as providing the even distribution of
leisure. The hotel is required to employ unique facilities as well as the innovation plan to achieve
a competitive advantage within the market (Molina-Azorín, et. al., 2015). The company should
employ the young and energetic staff at the reception in the management services. This will help
in fulfilling the modern society demands. The hotel should also make use of recycled products in
order to reduce the threat to the environment. Further, they can provide the good hospital and
medical services through making the collaboration with the nearby hospitals in order to serve the
community and the customers better (Krass, et. al., 2013).
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Conclusion
This report has presented a macro as well as micro analysis of the business of HOTS hotel
Situated nearby Bondi Beach. There has been identified the significant threats as well as
opportunities for the business in this assignment and then the strategic framework for the
business is also being proposed. The hotel also has the scope of being the great leader in such
surrounding through beating its competitors. There will be made the external as well as internal
environment analysis that can have an influence over the growth of the hotel.
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References
 Benavides-Velasco, C. A., Quintana-García, C., & Marchante-Lara, M. (2014). Total
quality management, corporate social responsibility and performance in the hotel
industry. International Journal of Hospitality Management, 41, 77-87.
 Chan, E. S., Hon, A. H., Okumus, F., & Chan, W. (2017). An empirical study of
environmental practices and employee ecological behavior in the hotel industry. Journal
of Hospitality & Tourism Research, 41(5), 585-608.
 Fang, B., Ye, Q., & Law, R. (2016). Effect of sharing economy on tourism industry
employment. Annals of Tourism Research, 57(3), 264-267.
 Jilani, S. F., & Yasmin, M. (2016). Analyzing the effectiveness of simulation in
promoting learner autonomy: Perceptions of ESP hotel management
students. Psychology, 7(8).
 Krass, D., Nedorezov, T., & Ovchinnikov, A. (2013). Environmental taxes and the choice
of green technology. Production and operations management, 22(5), 1035-1055.
 Kyriaki, E., Giama, E., Papadopoulou, A., Drosou, V., & Papadopoulos, A. M. (2017).
Energy and environmental performance of solar thermal systems in hotel
buildings. Procedia Environmental Sciences, 38, 36-43.
 Leung, X. Y., Bai, B., & Stahura, K. A. (2015). The marketing effectiveness of social
media in the hotel industry: A comparison of Facebook and Twitter. Journal of
Hospitality & Tourism Research, 39(2), 147-169.
 Mitchell, J., Font, X., & Li, S. (2015). What is the impact of hotels on local economic
development? Applying value chain analysis to individual businesses. Anatolia, 26(3),
347-358.
 Molina-Azorín, J. F., Tarí, J. J., Pereira-Moliner, J., Lopez-Gamero, M. D., & Pertusa-
Ortega, E. M. (2015). The effects of quality and environmental management on
competitive advantage: A mixed methods study in the hotel industry. Tourism
Management, 50, 41-54.
 Prideaux, B. (2013). An investigation into factors that may affect the long term
environmental and economic sustainability of tourism in northern Australia
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