Strategic Management Analysis: Leela Palace Resort's Operations Report

This report provides a strategic management analysis of the Leela Palace Resort, examining its strategic direction over the past five years. The report delves into the external environment using the PESTLE framework, analyzes the company's competitive advantages, and assesses the extent of strategic drift. It explores the company's mission, vision, and strategic capabilities, including its cost leadership strategy and focus on own brands. The analysis covers the firm's strategic choices and offers recommendations to meet its objectives, with the goal of sustaining long-term profitability and productivity in the grocery retail and hospitality sectors. The report also discusses the competitive landscape, including direct competitors, and the importance of adapting to changes in the external environment. The report is a comprehensive analysis of the strategic management of the Leela Palace Resort.

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1. Description on the strategic direction of the Leela palace resort’s that has followed in past 5
years. ..........................................................................................................................................1
TASK 2............................................................................................................................................2
TASK 3............................................................................................................................................4
At which extent Leela palace resort is facing strategic drift. .....................................................4
TASK 4............................................................................................................................................7
TASK 5............................................................................................................................................8
The recommendation of firm to meet out the objectives. ..........................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The strategical management can be termed out as the continuous planning, analysis and
monitoring of the enterprise activities in terms to meet the desire goals and objectives. Thus, fast
peace innovation, emerging techniques and kind of customer expectations will be beneficial
aspects in order to remain successful in market. It is process that helps the company leaders to
access the firm situation, strategies and deploy them in order to analyse the implemented
strategies (Hitt and Duane Ireland, 2017).
The present report is based on business activities of Leela palace resort, it is global
leading brand and engaged in providing the Hospitality services to customers. In this report will
cover the following things as strategic direction that company has followed in 5 years,
appropriate model in terms to review external environment, internal analysis tools and strategic
choice models in order to sustain the company positive position. The main aim of this report is to
conduct the strategical so that long term profitability and productivity can be sustained.
TASK 1
1. Description on the strategic direction of the Leela palace resort’s that has followed in
past 5 years.
Leela palace resort, one of the largest privates owned companies, it is grocery supermarket
chain and it is global leading brand provide grocery products to the customers. There are two
organisations that is independent to each other (Barney, 2017 ). The term strategic direction
means how the firm has conducted its operation in the past few years to achieve the long term
gains in market. The strategic direction has been defined in following manner as are-
Leela palace resort, it is supermarket Pvt Ltd, that continues to pursue a rapid and effective
expansion strategy and it enhance its store presence by opening 34 new stores in 2014 to reach
345 outlets across the world. The discounted has effectively communicated and developed its
position as a low cost and better value grocery Hospitality sectorer through making the
investment in large scale advertisement campaigns and that must be inclusive of the television,
print and media etc. In this store, there is aggressive pricing strategy and placed intensified
pressure on leading supermarket chains and it is also inclusive of the Woolworth’s Ltd and
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wasfarmers. In the past some time the Leela palace resort’s comes with the changes in order to
gain competitive advantages and it has defined in following manner as are-
Changing product mix- To bring the variation in Leela palace resort’s product mix the firm will
easily show up physical layout of their stores. In addition to this, the space allocation of five to
ten years ago has been completed revised (Shepherd, Mcmullen and Ocasio, 2017
). Thus, quoted firm has new full scale produce department and that is approaching 100 times.
Leela palace resort’s have done extensive work in pre packaged meats and expanded in dairy.
Thus, they also stock wine and been in some locations.
Shift to gross margin strategy- Leela palace resort’s continues to practice aggressive cost
management and managing merchandising mix in different manner as are-
Leela palace resort’s generates gross profits from general merchandise, perimeter and premium
commodities. It allows them aggressive price points and delivers more effectively. They are
generating profitability at aggressive price points and deliver them effectively.
This firm is working as to generate profit reserves in the month on sales of higher margin
commodities and that must be traffic in weeks 3 and 4 with lower and margin products as
consumer spending slows down.
TASK 2
External environment of Leela palace resort
The external environment of the country helps to know about working of the enterprise
inside and outside the enterprise. With help of it, this is possible to build competitive brand
image in market. Thus, it can be conducted with help of PESTLE and defined in following
context as are-
Political- There are wide level of conflicts and political vulnerability across the global
level. The political situation of the UK is stable. This firm also take various initiatives in terms to
meet out with government legislation so that things can be conducted in better and efficient
mode (Meyer, Neck and Meeks, 2017). On the other hand, entity can works as to have higher
level of loyalty and therefore its represents the desirable employees.
Economical- The economic environment of the UK is not stable. The economical factors
are must be considered because they influence demand, cost, price and profitability of the
enterprise (Younis, 2017). In addition to this, it can be said that the one of the most influencing
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factor in the economy is the greater rate of unemployment levels and it also decrease the demand
for many good and services.
Social- This factor leads to bring the changes in taste and preferences of customers. The
legal authorities must cut down on the benefits, pension and enhance tax rate to pay higher
contributions and health insurance. The demand of the customer must be known so that Leela
palace resort can able to take initiatives to full fill it. This kind of activities will lead to gain
competitive advantage in market.
Technological- The Firm as Leela palace resort’s should bring number of technical
advancement in order to lead business function in the efficient mode. In addition to this, it can be
said that the technology plays vital role in order to enhancing user experience and make it cost
effective. In order to attract the customer, it is essential to undertake innovative techniques so
that better brand image can be developed (Michael, Storey and Thomas, 2017).
Environmental- The government must take various initiatives in order to deal with
various environmental factors so that the increased pressure on many firms and manager can
acknowledge their responsibility to the society. With help of minimum obligations to
stakeholders specified with help of regulations and corporate governance. To launch new
commodities or to have sustainable consumption and production to cut waste, reduce
consumption of the resource and minimal environmental damage.
Legal- The market of the UK must be regulated that makes market entry for multinational
difficult. There are number of legislation and policies and it must have direct impact on the
performance of Leela palace resort. There are many current practice as demanding payment from
supplier and bring changes in agreed price retrospectively (Ma and Seidl, 2018). In addition to
this, it can be said that presence of powerful customers with established brands that aids to
creates threat of intense price and string requirement in terms to product differentiation.
Critical discussion of firm competitive advantage among its direct competitors.
The competitive advantage can be defined as term that makes the firm able to enhance
the profitability as compared with the competitors. Under it, firm need to offer various benefits
for the high cost paid by the customers. Thus, it must be dividing into the following four sections
as are-
 Differentiation focus- The customer satisfaction is must be created by the using the
criteria used by customers at the time of buying products and services (Ertek and et.al.,
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2017 ). The main target of the Leela palace resort belong to middle sector is buying price
factor rather than quality.
 Product and service offered- If the commodities are found to be typical than it must be
submitted to the Leela palace resort store manager. The Leela palace resort is taking
number of initiatives in order to identify need and wants of the customers. There are
number of other firm who are offering effective services as Tesco, Sainsbury etc.
 Cost leadership strategy- This is the kind of the strategy that is produces by the firm at
the lowest level and at the time price is equal or more than the average price of the
market then its starts to gain long term profitability (Volberda and Baden‐Fuller, 2017).
In addition to this, it can be said that low cost producer give discount to the commodities
in terms to have enhancement in the profitability.
 Strategy focus- With help of focussing over few commodities in the high volume the
Leela palace resort should take the initiatives in order to enhance more sales and offer the
price at the minimum level with help of keeping the few branded products and more local
made commodities. This is one of the effective terms in order to choose commodities in
the market and with help of it long term profitability and productivity can be sustained
for longer period. This kind of the things will be helpful in order to build competitive
advantage for longer period.
TASK 3
At which extent Leela palace resort is facing strategic drift.
The organisation as Leela palace resort's is facing higher level of strategic drift as the old
strategical challenge are not suitable fro the enterprise for longer period. Under it, business
falling to adapt to the changing external external environment. In addition to this, there are four
phases of strategic drift as are-
 Increment change- At this level, little significant changes can be seen in the external
environment of the business enterprise. The incremental changes to the strategy enables
the firm to remain touch with external environment.
 Strategic drift- The rate of changes in the external environment is accelerating and small
and this changes in strategy are not enough in terms to remain in touch (Ahammad and
et.al., 2018).
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 Flux- This stage is characterised by managerial decision. There is significant kind of gap
between market expects and what business is delivering. In this way, there can be
disagreement between the senior management team.
 Transformational change or death- The transformational change in the strategic
direction affects the overall working of the enterprise. The external leadership of this
recognition made changes in programme implemented.
Mission & Vision of Leela palace resort-
 Mission- The main mission of the Leela palace resort's is that this firm needs to spend
little and live the most. It defines the aspiration in order to continually set all the
standards of the hospitality services and to have further expansion in the market position.
In this the main motive is to provide the quality products to the customers so that brand
image of the firm can be sustained for the longer period. The main vision of the Leela
palace resort's is to offer the lower quality of services to the customer who are not able to
afford the products and services.
 Vision- Leela palace resort's is taking the various initiatives in order to expand the
business activities in the proficient manner. The main object is to provide the quality
products at the reasonable price. It is strategy that can work very well and it also help to
deal with the economical conditions of firms. In addition to this, the current strategy is
based on offering the customers the product at the lower price. It plays the effective role
in order to grocery Hospitality sector.
Strategic capabilities of Leela palace resort'S-
The one of the most core competency of the Leela palace resort's is to major
consideration over to focus on the price. In addition to this, there are number of the strategic
measures undertaken by the Leela palace resort's as are-
 Cost leadership strategy- In this, it can be stated that Leela palace resort's stocks number
of the commodities and that must be offer in high quality at the competitive pricing. In
addition to this they need to attain their leadership status based on the price they offer to
their customers.
 Focus on own brands- The brand as Leela palace resort should focus over the own brands
in order to remain independent (Demir, Wennberg and McKelvie, 2017.). They need to
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puts its major consideration over the working of the enterprise. There are marketing that
is associated with the national brands and it also set own price, product and quality
policies. They provide the effective hospitality services to the customers so that it is
possible to maintain long term retention of the customers.
In this term, it can be said that the Leela palace resort's contributes success to the enterprise and
to its employees. It is also termed out as the employer of the choice. Due to not offering
maternity leave to the employees they are losing their competitive advantage in the market. In
this manner, Leela palace resort became the first store that offers maternity leaver to the
employees and with help of it they have the long term retention of their employees in the market.
The firms is taking various initiatives in order to pay the above of the market rates for the
managers and above of the reward rates for the store and warehouse itself.
The quoted firm also taking various initiatives in order to invest in lot of the time and
money in training and development of the employees and they also provides the huge beneficial
aspect in order to be the successful in the market. Leela palace resort is an employer who work
as to offers the authority, empowerment as well the personal responsibility to the employees so
that they are able to taken the each things in the proper manner (Hitt and Duane Ireland, 2017).
In addition to this, they work hard for the ethical as well as the customer service standard.
The Leela palace resort's has taken various steps in the people in order to bring the long
term quality and profitability to the employees. In addition to this, it can be said that this firm has
the strong policy of the promoting from the within. Hence, this encourages the employees in
terms to demonstrate the aptitude.
Business canvass model to portray and define the rationale and core logic of how company
creates, delivers and capture value.
This is the model that is helpful in order to catch the real value of the enterprise. This is
the graphical presentation of the number of the variables that also works as to show the values of
the enterprise. On the other hand, it can be said that bushiness model of the canvas can be
deployed as strategical tool in terms to bring development in the organisation performance
(Barney, 2017). On the other hand, it can be said that this model has been developed with nine
categories and they must be defined in the following manner as are-
 Key partners- In the both start and existing organisations they must be significant to
create the alliances with the partners. This is one of the effective model that help to
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provide the strategic information about the each thing. In addition to this, essential
information must be provide by the
 knowing in the advance.
 Key activities- With help of having good knowledge in the core activities of the
enterprise there is important to understanding the value of the proposition. This is the
services that provides the customer the effective value in order to offer good product and
services. In addition to this, better relation can be developed with the existing customers.
This is one of the effective in order to canvassing the new customers so that strategic
things can be done.
 Key resources- The resources are the term that will be helpful in order to undertake the
business activities in the proficient mode. It can be categorized in terms as are physical,
financial, human resource (Meyer, Neck and Meeks, 2017). Under it, the physical
resource will include the assets such as business equipment. On the other hand
intellectual resource inclusive of the other things as are brands, patents and knowledge.
 Value proposition- This is the term that defines the core strength of the company and in
order to make it effective it is essential to meet out the current needs of the customers. In
addition to this, it can be said that this distinction will focus on price, services and speed
of delivery.
 Customer relationship- This is one of the essential term to make the proper interaction
with the customers. The each buyers in the market has some specific needs and to full fill
it the organisation must take the various steps so that they can ensure good and stable
customer relationship in the future (Shepherd, Mcmullen and Ocasio, 2017).
 Channels- The organisation deals with the communication, distribution and sales
channels. In this, the channels to customers have differ stages as awareness of products,
purchase, delivery and evaluation and satisfaction after the sales.
 Cost structure- This must be considered in the economics of the scale, constant and the
variable cost. The cost of the firm will be adjusted in order to make the all other things in
the effective manner.
TASK 4
Discussion on possible strategies that company must be followed.
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The strategy means the ultimate plan of action that helps the firm to define the core
strength of the enterprise. This will help to enhancement in the working of the enterprise in the
huge context. Thus, there are the following possible strategies as are-
Identification of goals- In this, the firm need to take the various initiatives in order to enhance the
awareness of the product and services to the customers. The main aim is to reach the proper
customer segments.
State marketing goals- The marketing function must be undertaken in order to conduct the things
in the proper manner. With help of effective market the all enterprise can able to gain the
competitive advantage.
Research market- It is one of the essential part in terms to marketing strategy. Under it,
information can be gathered in manner as size, trends, social changes and demographics. This is
very crucial in terms to keep eyes on the customers.
Potential customers- The Leela palace resort need to target the customers in the market so that
effective step will be taken in order to promote the good and services in the efficient manner.
With help of targetting the customer the needs can be easily full filled.
Use of 7PS of marketing- This element must be in used in order to promote the product in
market effectively. Thus, price, place, promotion and product all things will be helpful in order
to conduct the things in the effective manner.
TASK 5
The recommendation of firm to meet out the objectives.
On the basis of above the following recommendation has to be given as are-
1. The Leela palace resort's must put their major consideration on the cost of the products so
that they can attract the customer in the wide manner.
2. The firm must take customer retention strategies by providing innovative commodities so
that long term revenue can be generated.
3. The organisation should adopt the number of the promotional strategies so that they can
able to conduct the things in proper and efficient mode. This kind of the activities will
leads to promote the product and services in the enterprise.
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4. In this, Leela palace resort. Should take the initiatives in order to maintain the good
customer relationship with help taking the timely feedback of the employees so that they
can perform all the things in the better manner.
5. By adopting the suitable marketing opportunities, it is possible to conduct the all things in
the better mode and promote the products in order to enhance customer awareness.
CONCLUSION
Based on the above report it can be concluded that Strategic management is helpful in order
to conduct the strategic directions of the firms. The strategy means ultimate action that helps the
company in order to drive business functions successfully in market. The present report has
covered the business activities of the Leela palace resort”s, it is global leading brand and
engaged in hospitality sector. In addition to this, report will cover things as are strategic direction
that company has followed in the past years, appropriate model to review the external
environment, critical discussion of competitive advantage and extent through which firm is
facing the strategic drift. Lastly, possible strategies are must be formulated in order to defend the
core business activities in the effective terms.
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REFERENCES
Books and Journals
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship, pp.45-63.
Barney, J. B., 2017. Resources, capabilities, core competencies, invisible assets, and knowledge
assets: Label proliferation and theory development in the field of strategic
management. The SMS Blackwell handbook of organizational capabilities, pp.422-426.
Shepherd, D. A., Mcmullen, J. S. and Ocasio, W., 2017. Is that an opportunity? An attention
model of top managers' opportunity beliefs for strategic action. Strategic Management
Journal. 38(3). pp.626-644.
Meyer, G. D., Neck, H. M. and Meeks, M. D., 2017. The entrepreneurship‐strategic management
interface. Strategic entrepreneurship: Creating a new mindset, pp.17-44.
Younis, T. S., 2017. Strategic vision to knowledge management strategy: An evaluative
paradigm. In World Sustainable Development Outlook 2007 (pp. 86-93). Routledge.
Michael, S., Storey, D. and Thomas, H., 2017. Discovery and coordination in strategic
management and entrepreneurship. Strategic entrepreneurship: Creating a new mindset,
pp.45-65.
Ma, S. and Seidl, D., 2018. New CEOs and their collaborators: Divergence and convergence
between the strategic leadership constellation and the top management team. Strategic
Management Journal. 39(3). pp.606-638.
Ertek, G. and et.al., 2017. New knowledge in strategic management through visually mining
semantic networks. Information Systems Frontiers. 19(1). pp.165-185.
Volberda, H. W. and Baden‐Fuller, C., 2017. Strategic Renewal Processes in Multi‐Unit Firms:
Generic Journeys of Change. Strategy Process, pp.207-231.
Ahammad, M. F. and et.al., 2018. Strategic Talent Management in Emerging
Markets. Thunderbird International Business Review. 60(1). pp.5-8.
Demir, R., Wennberg, K. and McKelvie, A., 2017. The strategic management of high-growth
firms: a review and theoretical conceptualization. Long Range Planning. 50(4). pp.431-
456.
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