Detailed SWOT Analysis Report: Pullman Hotel Sydney, Management

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This report provides a comprehensive SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of the Pullman Hotel Sydney, a luxury hotel brand owned by Accor Hotels. The analysis begins with an overview of the SWOT framework, emphasizing the importance of evaluating internal and external factors to formulate effective organizational strategies. The report then delves into the specific application of SWOT to Pullman Hotel Sydney, examining its strengths such as experienced management, prime location, and key service offerings, and weaknesses including potential staff training deficiencies. Furthermore, the report explores opportunities like expansion in emerging economies and identifies threats such as competition from Starwood Hotels, Hilton Hotels Corporation and Best Western. The analysis is supported by relevant literature, including journal articles and books, to justify the identified factors and provide a well-rounded strategic assessment.
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Running head: MANAGEMENT
Strategic Planning and Strategic Management
Name of the Student:
Name of the University:
Author Note:
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Executive Summary:
The aim of the report is to provide a literature review on SWOT analysis with respect to Pullman
hotel Sydney. The report separately focuses on the internal and the external strengths and
provides a detailed description of strengths, weakness, opportunities and threats.
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Table of Contents
3.0 SWOT Analysis.........................................................................................................................3
3.1 Strengths:...................................................................................................................................3
3.2 Weakness:..................................................................................................................................4
3.3 Opportunities:............................................................................................................................4
3.4 Threats.......................................................................................................................................5
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3.0 SWOT Analysis
According to Mizrachi & Sellitto (2015), the SWOT analysis helps in the evaluation of
the internal weakness and strengths and the external threats and opportunities and within the
given environment of an organization. The internal analysis is primarily used for the
identification of the core competencies, capabilities, competitive advantage and resources that
remains inherent to an organization (Gürel & Tat, 2017). The external analysis on the other hand,
helps in identifying the opportunities and threats by keeping a tab one of the resources, industry
and general environment of the competitors (Sammut‐Bonnici & Galea, 2015). The aim of the
SWOT analysis lies in utilizing the knowledge about the internal and the external environment in
formulating strategies of an organization (Jean, 2014).
Pullman Hotel Sydney represented a luxury hotel brand owned by the Accor Hotels. The
hotel combines designs and lifestyle for business as well as leisure. The internal analysis of
Pullman Hotel Sydney indicates identification of the strengths and Weakness. Strength is viewed
in terms of presence, network, business model, location, guest program and loyalty programs
while weakness is focused on activities that lead to business loss. However, the external analysis
is focused on threats and opportunities. Opportunities include its growth in the emerging
economies while the threat is focused mainly on the competitors.
3.1 Strengths:
According to Phadermrod, Crowder & Wills (2019), strength represents the qualities that
aid the managers in accomplishing the mission of the company. Strengths are the characteristics
and the attributes within organization that needs consideration for determining the success of the
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firm (Sutrisno et al., 2016). Strengths might be either intangible or tangible which includes
experienced management, competitive capability and assets. Al-Araki (2013) put forward a
different perspective stating that strengths are tools used by an organization in countering threats
and seizing the opportunities. Hence it requires thoroughness. However, a thorough strength list
can be generated by examining the functional areas of the company that includes finance,
marketing, operations, production and the human resource (Hitt & Hoskisson, 2012).
As far as the strengths of the Pullman hotel Sydney is concerned, it has experienced
management with well trained staffs. It is also located in one of the prime locations which have
been the epicenter of retail, arts and business precinct. Besides, some of its prominent service
includes online check in, Wifi internet access and accessibility to people with reduced mobility.
3.2 Weakness:
Ifediora, Idoko & Nzekwe (2014) stated that weaknesses are those internal factors that
prevent a company in achieving successful results. Presence of weakness deteriorates the
influence on organizational growth and success. According to Singh (2012) weakness represent
factors that does meet the standards that they are desired to meet. Lehr (2015) mentioned that
weaknesses are controllable and should be eliminated and minimized. Weaknesses within an
institution mostly represents lack of staffs, insufficient facilities etc that causes business loss
(Köseoglu, Ross & Okumus, 2016).
The weakness of Pullman hotel Sydney lay in lack of staff training that sometimes causes
hazards to the guests thereby leading to business loss.
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3.3 Opportunities:
According to Kang (2013), this represented one of the external elements that would help
it in achieving its objectives. They arise when the company is able derive benefits from the
environment thereby helping them to execute and plan strategies and become more profitable
(Grant, 2016). The opportunities also help a firm in gaining competitive advantage Yu, Byun &
Lee, 2014). Hence, organizations need to be careful in recognizing the opportunities and grasp
them as soon as they arise. Abraham, (2013) stated that opportunities may be in terms of a good
match, competitive advantage and best prospects.
The opportunities of Pullman Hotel lie in acquiring the best prospects. Pullman Hotel
has close to over one hundred and seventeen hotels as well resorts in thirty nine countries
including Africa, Europe, Middle East, Latin America and Asia Pacific. As far as the hoteliering
business is concerned, the emerging economies of Africa and Asia are believed to provide better
scopes since there is a surge of tourists in these particular destinations. Hence, Pullman hotel can
make better business in these economies.
3.4 Threats
According to Bull et al. (2016), threats arises when the conditions of the external
environment jeopardizes the profitability and reliability of the company. They complicate the
vulnerability of the organization when related to weakness (Gürel & Tat, 2017). Threats are
mostly uncontrollable (Phadermrod, Crowder & Wills, 2019). The presence of threat not only
shakes the stability but also questions the survival of the organization. The possible threat that
remains critical to any analysis includes changing technology, presence of competitors and
negative public image (Adl et al., 2013) .
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Pullman hotel Sydney is threatened by the presence of the competitors Starwood Hotels,
Hilton Hotels Corporation and Best Western.
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References:
Abraham, S. (2013). Will business model innovation replace strategic analysis?. Strategy &
Leadership, 41(2), 31-38.
Adl, A., Ashouri, M., Jamalpour, G., & Sandoosi, S. M. (2013). Overview SWOT analysis
method and its application in organizations. Singaporean Journal of Business, Economics
and Management Studies, 51(1114), 1-6.
Al-Araki, M., 2013. SWOT analysis revisited through PEAK-framework. Journal of Intelligent
& Fuzzy Systems, 25(3), pp.615-625.
Bull, J. W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C., ... &
Carter-Silk, E. (2016). Strengths, Weaknesses, Opportunities and Threats: A SWOT
analysis of the ecosystem services framework. Ecosystem services, 17, 99-111.
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley &
Sons.
Gürel, E., & Tat, M. (2017). SWOT analysis: A theoretical review. Journal of International
Social Research, 10(51).
Hitt, M.A., Ireland, R.D.& Hoskisson, R.E. (2012) Strategic Management Cases:
Competitiveness and Globalization, South-Western Pub, USA.
Ifediora, C., Idoko, O., & Nzekwe , J. (2014). Organization’s stability and productivity: the role
of SWOT analysis an acronym for strength, weakness, opportunities and threat.
International Journal of Innovative and Applied Research, 2(9), 23- 32.
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Jean Paolo G Lacap RMP, A.F.B.E., 2014. Competitiveness and sustainability of the hotel
industry: the case of hotels in Pampanga. Business Management and Strategy, 5(1),
p.115.
Kang, S. U. (2013). GPR119 agonists: a promising approach for T2DM treatment? A SWOT
analysis of GPR119. Drug discovery today, 18(23-24), 1309-1315.
Köseoglu, M. A., Ross, G., & Okumus, F. (2016). Competitive intelligence practices in
hotels. International Journal of Hospitality Management, 53, 161-172.
Lehr, D. D. (2015). An analysis of the changing competitive landscape in the hotel industry
regarding Airbnb.
McDonald, M. and Wilson, H., 2016. Marketing Plans: How to prepare them, how to profit from
them. John Wiley & Sons.
Mizrachi, I., & Sellitto, C. (2015). Building a Facebook strategy: some insights from Australian
accommodation small tourism enterprises (STEs). Journal of Quality Assurance in
Hospitality & Tourism, 16(1), 63-79.
Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis based
SWOT analysis. International Journal of Information Management, 44, 194-203.
Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis based
SWOT analysis. International Journal of Information Management, 44, 194-203.
Sammut‐Bonnici, T., & Galea, D. (2015). SWOT analysis. Wiley Encyclopedia of Management,
1-8.
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Singh, N. (2012). Swot Analysis – A Useful Tool For Community Vision: A concept paper of
central Himalayan village. Researcher, 2(9), 16-18.
Sutrisno, A., Kwon, H. M., Gunawan, I., Eldridge, S., & Lee, T. R. (2016). Integrating SWOT
analysis into the FMEA methodology to improve corrective action decision making.
Yu, Y., Byun, W. H., & Lee, T. J. (2014). Critical issues of globalisation in the international
hotel industry. Current Issues in Tourism, 17(2), 114-118.
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