MGT501 Business Environment: Stakeholder Analysis of Hyatt Hotel

This report provides a comprehensive stakeholder analysis of the Hyatt Hotel, a prominent hospitality company. It begins with an executive summary and introduction, followed by an overview of the hotel's functional areas, including food and beverage, housekeeping, the kitchen, front office, concierge, financial department, human resources, sales and marketing, and maintenance and engineering. The report then identifies and analyzes both internal stakeholders (employees, owners, managers, auditors, and the operations team) and external stakeholders (customers, suppliers, government, shareholders). Stakeholder matrices are used to illustrate their interests and influences, providing a detailed mapping of stakeholder relationships. The report further compares the hospitality industry with the retail industry based on stakeholder dynamics. Finally, it offers recommendations for effective stakeholder management and concludes with a bibliography of cited sources. This report, available on Desklib, offers insights into stakeholder management within the business environment.

RUNNING HEAD: STAKEHOLDER: A KEY RESOURCE
MANAGEMENT
BUSINESS ENVIRONMENT

STAKEHOLDER AS A RESOURCE 1
Executive summary
The key points are summarized below:
 Hyatt hotel is a highly recognized hospitality company with high presence in
Australia. Its functional areas include Food and beverages, Sales and marketing, Front
office, kitchen, Concierge, Financial department, Human resource and Maintenance
and engineering.
 Its stakeholders include owner, manager, employees, auditors, operations team,
customers, shareholders, government and suppliers. The organization has distinct
responsibilities for each stakeholder as they differ in their interest and influence in the
organization.
 Considering the stakeholder mapping, it is acknowledged that Hyatt keep its
shareholders highly informed, manage the suppliers and employees, anticipate the
customer’s needs and make low contact with the government.
 Stakeholders show distinct interest and influence on contrasting Hospitality industry
with retail industry.
 It is suggested that Hyatt should keep regular information about its stakeholders to
maintain their interest in the organization.


STAKEHOLDER AS A RESOURCE 2
Contents
Introduction................................................................................................................................3
Functional areas.........................................................................................................................3
Stakeholders...............................................................................................................................4
Internal.......................................................................................................................................4
External......................................................................................................................................6
Stakeholder’s matrix..................................................................................................................7
Table 1....................................................................................................................................7
Table 2....................................................................................................................................8
Mapping..................................................................................................................................9
Industry comparison (based on stakeholder)............................................................................10
Recommendations....................................................................................................................12
Conclusion................................................................................................................................12
Bibliography.............................................................................................................................13

STAKEHOLDER AS A RESOURCE 3
Introduction
The report emphasizes on stakeholder management in organization named ‘Hyatt
Hotel. It is an American based hospitality company with high presence in Australia and
international market. It was founded in the year 1957 and it has more than 700 hotels in 56
countries (Hyatt, 2020). In Australia, the brand has its hotels in famous locations like Sydney
and Melbourne. It is a highly reputed hospitality company offering luxury rooms at high
prices. It is an international organization and it allows the company to gain high financial
returns. In the year 2018, it has earned a profit of 4.45 billion dollars (Lock, Revenue of
Hyatt Hotels Corporation 2008-2018, 2020). Its key competitors are Marriott, Hilton and IHG
group (Owler, 2020).
Focusing on the report structure, the initial section includes the information based on
key functional areas in the organization. The next section comprises of detailed description of
internal and external stakeholders. It also includes their roles and company’s responsibility
towards them. The passing part includes their differentiation based on interest and influences.
The succeeding part contrast the ‘Hospitality industry with the ‘Fast food industry’ based on
stakeholders. Additionally, it also includes key points for effectively managing the
stakeholders for effective business operation.
Functional areas
Every industry differs in its functional area and Hyatt Hotel forms the part of hospitality
industry and each department performs different set of actions. Following are the departments
in Hyatt Hotel.
1. Food and beverages: It is one of the significant departments of the company because
it is responsible to supply food and beverages to the guest in Hyatt Hotel. It mainly
includes cafes and restaurant and forms the part of room service.
2. Housekeeping: It plays a vital role in attracting and keeping the guest in hotel for a
longer period of time. They are responsible to clean the guest’s room, public areas and
perform laundry services within the unit (Andrews, 2013).
3. The kitchen: Its forms the part of back operations as it is responsible to prepare food
for the guest in Hyatt Hotel.

STAKEHOLDER AS A RESOURCE 4
4. Front office: This department directly contact with the guest as they perform
activities of cashier, and night auditor. They are responsible for handling check-in,
check out, guest account and guest inquiries.
5. Concierge: This department manage the guest parking, luggage and inquiries. It also
considers the mails that are sent and received from the guest of the hotel.
6. Financial department: This is highly valued department as it looks after the revenue,
and expenses incurred in the hotel. It also obtain fund from the sources to run business
activities. It does not develop direct contact with the guests but included in back
office. It has also sub departments like purchase department and stores department.
7. Human resource: This department performs multiple functions like recruiting and
training the employees of the organization. It also rewards and motivates its
employees for their performance. Conducting performance appraisal is also one of the
duties of this department (Noe, Hollenbeck, Gerhart, & Wright, 2017).
8. Sales and marketing: It designs menu, brochures and responsible for attracting the
customers (new and existing) to increase the sales of the organization. The marketing
department of Hyatt develops the use of multiple channels to promote its services to
the customers. It opts for social media marketing as well as sales promotion to gain
customer’s attention towards the organization (Kotler, Bowen, Makens, & Baloglu,
2017).
9. Maintenance and engineering: It is responsible for managing the day to day
operations of the organization. Additionally, it has no direct contact with the guest
(Brotherton, 2012).
Stakeholders
Stakeholders are the individuals and groups that attain an interest and are affected by
the organization. There are multiple parties that are referred as Stakeholders in the business
entity.
Internal
The stakeholders operating within the business unit of an organization are referred as
‘Internal stakeholders’. They are directly affected by the business activities and attain close
relation with the organization (Roeder, 2013).

STAKEHOLDER AS A RESOURCE 5
Employees/Workers: These are human resource of an organization and assist the
organization in fulfillment of its objectives and goals. They help the organization in fulfilling
customers need and demand in respect of product and service (Seifi & Crowther, 2018).
Worldwide, Hyatt Hotel has employee strength of around 54000 with an increase of 20%
from previous year (Macrotrends, 2020). The increase in employee’s number states that it
employees are satisfied with the organization. The organization has received high number of
positive reviews and a rating of four stars from its employees in response to the benefits
provided by the organization (Indeed, 2020). This clearly depicts that the organization offers
high number of benefits and perks to its employees.
Figure 1: Bar graph stating employee strength in Hyatt Hotel
Source: (Macrotrends, 2020)
Owner: Owner is the individual that has invested a capital in the business. The owner
is responsible for taking crucial decisions in response to internal and external factors. The
parent organization of Hyatt hotel is ‘Global Hyatt’.

STAKEHOLDER AS A RESOURCE 6
Manager: Manager forms the essential part of an organization. He/she is responsible
for controlling the business unit. There are multiple managers in Hyatt Hotel according to
different areas and departments.
Auditors: They deal with the legal matters of an organization. Likewise, Hyatt Hotel
also has auditors to manage its legal issues.
Operations team: They also form the part of internal stakeholders as they are
responsible for performing the day to day operations (Andriof & Waddock, 2017).
External
External stakeholders are not directly connected with the organization but they show
high interest in the business activities. They operate beyond the business unit but form a
significant part of the organization (Andriof & Waddock, 2017).
Customers: The product and service of the enterprise are aimed at customers and
they are the main profit builders. They allow the organization to operate successfully by
providing them financial resources in return of goods and services. Hotel Hilton targets
customers of 56 countries including Australia, Canada, India and United States (Hyatt, 2020).
It lays high attention in offering quality service in return for the payment. This has enabled
the organization to gain high customer satisfaction score (Lock, American customer
satisfaction index for Hyatt hotels in the U.S. 2008-2019, 2019)
Suppliers: They help the organization in providing essential supplies for fulfilling the
customer’s demand. It avail the essentials (food, beverages and operating supplies) from
diversified suppliers and it allows the company to meet its customers need (Hyatt, 2020).
Government: The legal body also counts as a stakeholder because they lay high
attention in business. They seek that the organization is complying with the labour and
employment laws and paying the corporate tax (Rowley, 2011). The government of all the 56
countries (number of countries in which Hyatt operates) regulates and controls the operations
of the hospitality company.
Shareholders: They are the backbone of the organization because they provide
necessary fund and resources to offer support. They are the partly owners of the business
according to the number of shares held by them. It has multiple shareholders and it includes
KLP Enterprise LLC, Select Equity Group LP, The Vanguard Group, Principal Global

STAKEHOLDER AS A RESOURCE 7
Investors and Long pond capital. All these have ownership in distinct percentage
(Marketscreener, 2020).
Figure 2: Name of shareholders of Hyatt Hotel
Source: (Marketscreener, 2020)
Stakeholder’s matrix
Table 1
Stakeholders Interests
Profit growth Job
satisfaction
Long term
contract
Tax receipt Service
availability
Employee 
Manager 
Owner 
Auditors 
Operations
team

Customer 
Supplier 
Government  
Shareholder  
Community 

STAKEHOLDER AS A RESOURCE 8
Profit growth: The government, manager, owner and shareholder show high interest
in the profit growth of Hotel Hyatt. This is because to earn profit is the key aim of the owner.
It will enable the government to gain high taxation (income for the legal bodies).
Shareholders show interest because they have the share in the profit and high profit growth
will increase their return as well. Additionally, Manger and owner are also shows high
interest in profit growth.
Job satisfaction: Employees are heavily affected by the job satisfaction and it attains
a key importance in their work life. The presence of job satisfaction allows the employees to
show high focus on their work. Additionally, they contribute in healthy and positive work
environment in Hyatt hotel.
Long term contract: The employees, suppliers, operation team and shareholders are
the key parties that have a high interest in maintaining long term relation with Hyatt because
it is a reputed business organization. It offers work to operational team, high career
opportunities to employees, reasonable pay to suppliers and low risk and fine return to
shareholders.
Tax receipt: Auditors and government is interested in tax receipt as it is an income
for them but one of a responsibility of Auditors.
Service availability: Customers show high interest in availability of service as they
are ultimate ends users for utilizing the services offered by Hyatt hotel. They try to obtain key
information about the service like its price, quality and time period (Crane & Ruebottom,
2011).
Table 2
Stakeholders Influences
Staff turnover Word of mouth
recommendation
Regulation
and taxation
Pricing Election of
directors
Employee 
Executive
Managers

Owner  
Auditors 
Operations 

STAKEHOLDER AS A RESOURCE 9
team
Customer  
Supplier 
Government 
Shareholder 
Community 
Staff turnover: Owner and manager are highly influenced by this factor as they have
to devote high efforts to recruit more potential employees. High staff turnover depicts low
employee satisfaction in the organization. The Hyatt hotel has low staff turnover rate and it
motivates the other skilled individuals to apply for recruitment in the hospitality company.
Word of mouth recommendation: Customers are highly influenced by the word of
mouth marketing techniques as they are conceived as genuine and trustworthy. The positive
word of mouth for Hyatt Hotel motivates the customers to show higher preference.
Regulation and taxation: The government and auditors lays high attention that
weather Hyatt Hotel is aligning and following with the industry regulations (Rodrigue,
Magnan, & Boulianne, 2013).
Pricing: It is one of the key elements that have a high influence in customer decision
process. The genuine pricing in return for the service motivate the customers to choose Hyatt
Hotel. The Hyatt hotel charges reasonable prices (according to the service) and it helps in
attracting a large customer base from distinct corner of the world.
Election of directors: The shareholders members are influenced by the decision of
the company to elect director as they have the voting power (Andriof & Waddock, 2017).
Mapping
SHAREHOLDERS
(Keep completely informed)
SUPPLEIRS AND EMPLOYEES
(Manage most thoroughly)
GOVERNMENT
(Regular minimal contact)
CUSTOMERS
(Anticipate and meet needs)
Keep completely informed: The Hilton hotel keeps its shareholders completely
informed about the key decisions as they provide financial resources to the organization.
Additionally, they hold an ownership in the company therefore; it develops the duty of the

STAKEHOLDER AS A RESOURCE 10
company to provide full transparent information to them. It conducts regular meetings and
gave prior consideration to their ideas and suggestions.
Manage most thoroughly: The Hilton hotel lays prior consideration to manage its
suppliers because they provide essential raw material to the company. Failure in effective
management may result in inadequate raw material for fulfilling the customer’s demand.
There is a high need to manage employees as well as they are high in number. It helps the
organization to avail best possible outcome from the employees. Motivating the employees
assist the company to raise employee’s morale and keep them motivated. It offers paid leaves,
incentives, discounts, maternal leave; reasonable pay and other benefits to raise satisfied
employees. It develops the use of trainings (coaching, mentoring and leadership) to improve
its employee’s skills and performance. It has also designed ‘The Corporate Management
Training Program’ (Heysucess, 2020).
Failure in managing the employees develops the possibility of conflicts in the
workplace. The company effectively leads the employees for smooth working operations.
They lay prior consideration to follow unity of command (to receive orders from only one
boss).
Regular minimal contact: The organization does not have high contact with the legal
bodies of the country. It regularly contact with the legal authority for taxation purpose. It
provides financial data to the government as a proof for correct amount of taxation paid. It
has to fulfill the legal obligation of the company by paying the tax to the government.
Anticipate and meet needs: The key aim of an organization is to raise high number
of satisfied customers. Likely, Hotel Hyatt anticipates the needs of its customers and
undertakes actions to fulfill them. The customers have distinct needs and therefore it has
established its hotels in multiple locations. It aligns with the market trends to provide quality
and upgraded service. To raise customer satisfaction it offers easy accessibility, secured and
healthy environment in its hotels.
Industry comparison (based on stakeholder)
Below is the differentiation of Hospitality industry with Fast food industry based on
stakeholders:

STAKEHOLDER AS A RESOURCE 11
Customers: The customers of Fast food industry have different interest than from
hospitality industry. The customer has high interest to avail fast service and good quality fast
food from the fast food companies like Burger King and McDonald’s. In order to maintain
customer interest, Dominos has developed an offer of free pizza if it fails to deliver fast
service (pizza) to its customers. This marketing strategy has helped the company to maintain
its customer’s interest, gain more recognition, and avail better financial resources. Besides
this, the company avail the use of right choice of transportation to provide early service as it
avails the use of ‘two wheelers’. This allows the company to encounter less traffic and reach
its customers at minimum possible time.
Employees: They are the core asset of an organization. They show interest to avail
work life balance as they are highly called for delivering products 24*7 to the customers. In
order to provide timely services to the customers, the employees are lacking to attain work
life balance by working in fast food industry.
Owner: They are individual liable for the business. The company owners in both the
industry show high interest for the organization.
Manager: The managers of company operating in fast food industry aim to recruit
high number of employees to fulfill the rising demand of the customers for fast food.
Auditors: they have to lay consideration towards the organization that weather the
company is aligning with the health and tax laws of the country.
Operations team: They have to undertake measure to maintain product quality in the
production process.
Suppliers: This fast food industry supplier’s show adequate interest to receive order
in bulk as the number of customers is also rising. Example: The suppliers of McDonald’s
have an interest of gaining high number of order for burgers buns or meat.
Shareholders: The shareholder’s interests remain nearly same in every industry.
Therefore, they show active attention towards granting regular payment for their investment.
Government: The government laid interest in subsidies of the fast food companies as
they are continuously increasing in number. Example: With the passing years, the McDonald
is increasing its number of subsidies in Australia and international market.