Strategic Planning and Organizational Goals: HID Company Report

This report analyzes the organizational planning of HID, a hotel company operating in Australia and Fiji. The report examines the company's mission, strategic goals, and the conflicts arising between the CEO's vision for expansion and the management team's more conservative approach. The CEO aims to expand the business to over 50 hotels in various locations, including urban cities and potentially foreign countries, while the management team prefers maintaining a focus on medium-priced hotels within Australia. The report explores the changes required in the company's mission, target market, and pricing strategy to align with the new goals. It also discusses the use of negotiation to reach agreements and the factors contributing to disagreements among managers regarding the direction of the organization, such as experience levels and conflicts of interest. Finally, the report emphasizes the importance of clear, realistic, and achievable goals and a comprehensive strategic plan to navigate the dynamic business environment.

Running head: ORGANIZATIONAL PLANNING 1
Organizational planning.
Student Name
Institution

ORGANIZATIONAL PLANNING 2
Table of Contents
Synopsis...........................................................................................................................................3
Introduction......................................................................................................................................4
Question 1........................................................................................................................................4
Question 2........................................................................................................................................5
Questions 3......................................................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

ORGANIZATIONAL PLANNING 3
Synopsis
Hid is a company that is currently operating medium priced hotels in Australia and one
big hotel in Fiji. Dave Collins who is the CEO of the company wants to set strategic goals and
plans that will enable the firm to grow. The company hired a consultant to help them make the
strategic plans and goals. The CEO and his management team were told to spell out their mission
for the company and their strategic plans. The CEO set the goals that the company will be
owning more than 50 hotels within ten years. The management team, on the other hand, viewed
the goals as being unrealistic and they said the company would not even manage to own more
than 20 hotels within that given period.
The management team criticized their growth targets saying that they were unrealistic
because they did not have enough staff who can make those goals be achieved. The management
team wanted the hotels to be built in Australia, but the CEO wanted the hotels to be built in cities
in Australia and other countries. The CEO wanted the company to change the target market, the
pricing strategy and start managing expensive hotels but the management team was worried by
the stiff competition the company is going to face, and they wanted to continue managing
medium priced hotels in small towns in Australia.

ORGANIZATIONAL PLANNING 4
Introduction.
Organizations are established with a hope that they will grow in terms of expanding their
operations to other geographical areas, increase their revenue and open up new ventures with
different mission and vision (cummings, & worley, 2014). To achieve this fete, the organization
needs to set goals that the organization should strive to achieve and which will serve as the
vision of the business. The organization will also have to establish a comprehensive plan that
will help the organization to achieve the set goals. Organizational planning can be described as
the process that helps the business to identify the goals of the firm and put in place the relevant
strategies that will help to achieve the goals of the organization (Goetsch, & davis, 2014).
Organizational goal setting refers to clear statements of tasks that should be accomplished to
achieve the goals of the organization. This report is written to analyze HID case study.
Question 1.
At present, HD’s mission is to be the leading organization that has medium priced hotels
in all the small towns and cities in Australia. Their mission is to build hotels in Australia as it
serves as their geographical area of operation. The primary target market of hid is the market
segment that can afford the medium priced hotels as they are based in small towns. Moving to
large cities will mean that they need to raise their prices to meet the operational costs and they
will also face stiff competition from the established hotels in big cities.
The HID mission will soon change because the organization has set other goals and the
business is planning to expand their business to large cities and even move out of Australia. The
company’s core purpose was to operate in Australia, but that mission will change because of the
new set goals. The organization's mission was also to operate medium priced hotels, but that
mission will change because hid is planning to change the pricing strategy of the organization

ORGANIZATIONAL PLANNING 5
because moving to big cities will automatically mean that the organization will have to change
the pricing strategy. The hotels operated in big cities will have to charge high prices to meet their
operational obligations. Failure to change the pricing strategy will force the business to make
losses (Wagner iii, & hollenbeck, 2014).
The mission also changes to adopt a national outlook as the organization is planning to
operate hotels in all cities in Australia and not focus on small cities. The organization is also
planning to change the target market. The mission of the organization will change as there is
need to align the mission of the organization with the plans of the organization. Due to business
environment dynamics, organizations are forced to change their missions to continue operating
smoothly (Zarkovic, cetkovic, & knezevic, 2015). Change in organizations in inevitable and
failure to change will result to business not operating effectively. Business planning also leads to
the identification of new business opportunities which forces the organization to change its
mission to exploit the new opportunities.
Question 2.
At the end of the planning session, HID’s mission will be to operate the best large hotels
in urban cities in Australia and the world at large with competitive prices. The strategic goals of
HID are to move to urban areas in Australia and even in foreign cities and operate more than
fifty hotels in ten years' time. Organizations should set strategic goals that should be clear so that
employees can understand them because if the subordinate does not understand the goals the
organization will not have a sense of direction (Hartley, 2014). The strategic goals should also be
realistic and achievable and this is ensured by realistically assessing the business environment to
ensure that it can accommodate such goals.

ORGANIZATIONAL PLANNING 6
Strategic goals of HID are likely to be effective as it has considered all the required
factors when setting strategic goals and this will benefit the firm. HID's goal is to operate fifty
hotels in ten years. This seems impossible, but with the right strategic plan, the goal is
achievable. A strategic goal should be feasible, achievable and difficult to achieve (Smith, 2014).
If the dream is achieved, it will lead to the growth of the business. Hid has also set the time
frame to achieve the goals and this is very important in setting strategic goals and this will enable
the organization to work hard to ensure the goals are achieved within the given time frame.
Achieving the goals outside the stipulated time frame will lead to increased costs and the
company will put the needed efforts to avoid these costs.
The strategic plan helps the company to achieve its strategic goals. HID's strategic plan is
to change the target market, change the pricing strategy, increase the workforce and come up
with a plan to counter the increased competition. The target market will be people living in urban
areas. This will imply that the plan will include introducing the products that satisfy people the
tastes and preferences of people living in big cities. The company will employ the 4p's marketing
mix which comprises of the price, product, promotion, and place (Pfitzer, bockstette, & stamp,
2013). The products will be of high qualities to help minimize the high competition in urban
areas. The products should also be innovatively produced, branded and packaged so as adopting
high pricing strategy will be justified as the product reflect the customers’ value for their money
(Bakıcı, almirall, & wareham, 2013).
The strategic plan should also show how the company will change the pricing strategy.
The pricing strategy will be influenced by the target market. In some target market. Hid will use
high prices because the new target market associates high prices with high quality. This means
that charging high prices for hotels will help to attract more customers and minimize competition

ORGANIZATIONAL PLANNING 7
(Songini, gnan, & malmi, 2013). In some urban areas, HID plan will be to offer products and
services that fully satisfy the needs and of the customers and charge competitive prices. The
strategic plan should also select the best strategic areas to set up the hotels. The hotels should be
strategically placed in areas with a high number of the target market to ensure the hotels have
enough customers. The strategic plan will also involve hid increasing the number of employees
to work in the newly established ventures.
Questions 3.
Negotiating behavior was used to help the managers reach an agreement (Lent, & brown,
2013). This is because each manager had his/her opinion on different goals of the organization.
There was the need for the consultant to allow the managers to discuss to reach an agreement.
During the discussion, the managers are given an opportunity to express their concerns and
critique the other managers’ opinions. This ensures that the agreed decision is well analyzed and
all the challenges that may hinder the achievement of the goals are known and planned for. The
consult refocuses the discussion to ensure that the managers agree where their company should
be to achieve their mission and tells them to support a national outlook for their company.
No. Managers do not typically disagree on the direction of their organization.
Disagreements between managers on the direction of the organizations are caused by various
factors which include;
Lack of experience.
Managers in an organization have different levels of experience. Some managers have
adequate experience while others have little experience when it comes to organizational goal
setting and planning (Klofstad, sokhey, & mcclurg, 2013). The managers will little experience

ORGANIZATIONAL PLANNING 8
will tend to see some goals as being unrealistic because they have never set such goals before.
This lack of experience will result to disagreements.
Conflict of interest.
Conflict of interest when making organizational goals will also cause the managers to
disagree (Bateh, castaneda, & farah, 2013). In the case of HID, managers new the mission of the
organization was to operate within Australia targeting medium priced hotels. The CEO's goals
for the organization conflicted with the current mission and the managers thought the goals were
unrealistic because the CEO’s goals were to change the pricing strategy, expand to urban cities in
Australia and other foreign cities.
Conclusion.
Due to business environment dynamics, change in organizations is inevitable. This forces
the organization to change its goals and plans. This will also cause the organization to change its
mission so that it can align with the goals of the organization. Organizations need to set clear,
realistic, challenging and achievable goals. The strategic plan should be comprehensive to cover
all the strategies to achieve the set goals.

ORGANIZATIONAL PLANNING 9
References.
Bakıcı, t., almirall, e., & wareham, j. (2013). A smart city initiative: the case of barcelona.
Journal of the knowledge economy, 4(2), 135-148.
Bateh, j., castaneda, m. E., & farah, j. E. (2013). Employee resistance to organizational change.
International journal of management & information systems (online), 17(2), 113.
Cummings, t. G., & worley, c. G. (2014). Organization development and change. Cengage
learning.
Goetsch, d. L., & davis, s. B. (2014). Quality management for organizational excellence. Upper
saddle river, nj: pearson.
Hartley, m. (2014). Call to purpose: mission-centered change at three liberal arts colleges.
Routledge.
Klofstad, c. A., sokhey, a. E., & mcclurg, s. D. (2013). Disagreeing about disagreement: how
conflict in social networks affects political behavior. American journal of political
science, 57(1), 120-134.
Lent, r. W., & brown, s. D. (2013). Social cognitive model of career self-management: toward a
unifying view of adaptive career behavior across the life span. Journal of counseling
psychology, 60(4), 557.
Pfitzer, m., bockstette, v., & stamp, m. (2013). Innovating for shared value. Harvard business
review, 91(9), 100-107.
Smith, w. K. (2014). Dynamic decision making: a model of senior leaders managing strategic
paradoxes. Academy of management journal, 57(6), 1592-1623.
Songini, l., gnan, l., & malmi, t. (2013). The role and impact of accounting in family business.
Journal of family business strategy, 4(2), 71-83.

ORGANIZATIONAL PLANNING 10
Wagner iii, j. A., & hollenbeck, j. R. (2014). Organizational behavior: securing competitive
advantage. Routledge.
Zarkovic, m., cetkovic, j., & knezevic, m. (2015). Organization of enterprises in function of a
successful business. Stroitel'stvo unikal'nyh zdanij i sooruzenij, (1), 91.