BUS304: Strategic Analysis and Recommendations for Double Tree Hotel

This report presents a strategic plan for the Double Tree Hotel located in Bondi Beach. It begins with an introduction highlighting the challenges of entrepreneurship in the hotel industry and the purpose of the report. The analysis section includes an external environmental analysis using PESTLE and Porter's Five Forces to assess political, economic, social, technological, legal, and environmental factors, as well as the competitive landscape. The report then analyzes the current condition of the hotel, including its vision, mission, ethics, objectives, and goals, forming an overarching framework. Finally, it offers recommendations for attractive rates, revenue management, food and beverage, staff, advertising, environmental management, refurbishment, and extra facilities. The conclusion emphasizes the importance of sustainable practices and building a strong brand value for the Double Tree Hotel. The report is based on secondary sources.

Running head: DOUBLE TREE
DOUBLE TREE
BUS304: Strategic Hotel Management and HOTS
Strategic Briefing Paper

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Table of Contents
Introduction......................................................................................................................................2
Analysis...........................................................................................................................................2
Part1: External environmental analysis.......................................................................................2
Part 2: Current Condition.............................................................................................................6
Part 3: Recommendations............................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

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Introduction
Entrepreneurship is a difficult task and the forming of a hotel or a resort, sounds easy but
is a difficult task because it can be considered to be a project which requires ample managerial
skills along with innovative strategies which would help the particular hotel in combating against
competition and make its standing in the business environment (Gamble & Thompson, 2011).
The primary purpose of the report is to prepare a strategic plan for the hotel Double Tree which
will be based in the Bondi beach. The plan will be presenting its first year operations by
analyzing its present condition and factors. It needs to be kept in mind that the particular study
just considers the viability of the particular business and does not present a well proposed
strategy which can be provided to the company at large. The report is divided into three parts
whereby the first part comprises of the external environment analysis using Micro as well as
macro environmental analysis using the tools of Porters five forces and PESTLE Analysis. In
addition to this, the overarching framework for the strategies of the hotels will be discussed
which will then be followed by certain recommendations based on the same, were provided. The
data used in this analysis has been taken from secondary sources.
Analysis
Part1: External environmental analysis
The external environment analysis comprises of the macro as well as the micro
environmental analysis which takes into consideration the factors which lie internal as well as
external to the firm. The external environmental factors which can affect Double Tree are factors
like Political, economic, Social, Technological, Legal and Environment factors. This will be
analyzed using the PESTLE Analysis (Jankoviċ & Krivačiċ, 2014).

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Political The political powers in Australia tend to place a huge amount of
Carbon Tax into the organization and this can have a huge impact
on the profitability of Double Tree. Hence, as a result, Double tree
needs to reduce its carbon emission footprints.
Economic This refers to the inflation and pricing of the hotel based on the
economic condition of the country at large. The hotel will be paying
certain taxes based on the services it provides and needs to ensure that
it looks out for different policies in support of the hotel. Also
comprises of factors like visa, pricing, and surcharges on the different
payments methods
Social The social factors tend to have an impact on the different choices of the
customers and the manner in which these choices have an impact on the
overall functioning of the firm. As the other hotels do not have lounges
and suits, the Double tree hotel with its services has a good scope of
performance and the company can earn well from serving these groups.
Technological
As the technology has improved greatly, features like internet booking,
quick check in facilities have changed the manner in which the hotel
industry functions. Moreover, Double tree can make use of modern

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management system to ensure faster revenues.
Legal
The legislative regulations have changed considerably and due to this,
the health as well as the safety factors tends to have a huge impact on
the firm. Moreover, the penalty rates have changed considerably along
with laws like Lockout and revenue taxes.
Environmenta
l
With respect to environmental aspect factors like weather conditions of
the location of Double tree and the beach size, there are various
environmental considerations to be made by the hotel and ensure that it
follows considerable sustainable practices
The key learnings from the Macro environmental factors are as follows:
The Double tree needs to ensure that its practices are sustainable in nature, they make use
of advanced technology and that the security aspects as taken care of.
Micro Environmental
The micro environmental factors will examine the internal elements as present in the
firm. This is the environment in which the firm operates and this analysis can be done using the
Porters Five Forces which will help in understanding whether the firm in concern will be
successful are not.

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Threat of
new
Entrants
As the tax legislations on the small businesses are considerably less, the
firm can take advantage of this and enjoy the lack of tax obligations as
well. However, the threat of a hotel near beach is high which makes this
overall threat Moderate
Threat of
Substitutes
The threat of substitution comes from the different companies like Airbnb
and other budgeted private accommodations. HIGH power.
Bargaining
Power of
Customers
The bargaining power of the customers is very high because of the influence
of social media and bloggers. The new trends and price sensitivity affects the
different independent travelers.
Bargaining
Power of
Suppliers
The power of the suppliers is also considered to be quite high as the demand
in the city areas have increased (Rice, 2010). This may also be contributed to
lack of Freshness suppliers and the increased supply for local goods.
Industry
Rivalry
The competitive rivalry in the hotel industry in Australia is considerably high
because there exists a presence of a large number of hotels and the place is a
tourist destination with high brand value. Hence, the older businesses enjoy
competition.

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Key learnings from the analysis:
It can be understood that the guests need to be provided with stronger advertisements,
better services and price dynamics to ensure larger customer base.
Part 2: Current Condition
The second part of the report will present an analysis which will be presenting the current
condition of the Double Tree hotel by making use of an Overreaching framework so that final
strategies can be designed effectively. The formation of the framework is important for the
different companies for the achievement of the long term objectives.
Vision
Mission
Objectives
and Goals
Ethics

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Vision – The vision of Double Tree hotel is to ensure that the hotel has an established in the
heart of every customer and wants to present itself as a Sustainable, reliable as well as a
professional hotel. Hence, their focus should be largely environmental friendly and they need to
assure that the different customers enjoy their visit and live in a safe environment.
Mission- The mission of the Double Tree hotel is to become the leading hotel as present for
different categories which involve luxury, safety as well as environmental friendly. As the hotel
is places considerable close to nature, the aim of Double tree is to ensure that they are able to
increase the brand value and see to it that the customers enjoy their stay (Okumus, Altinay &
Chathoth, 2010). Moreover, they aim to make use of the advanced technology and ensure a
comfortable environment for the guests.
Ethics- The safety of the different guests is the prime priority of the Double tree hotel and
hence, they want to ensure the safety of the customers and ensure that they make loyal customers
for the long term. They aim to achieve competitive success with their excellent care and facility.
Objectives and Goals
The goals and objectives of the Double tree have been given as follows:
 To ensure that the new advanced technology is processed and that the efficiency is
improved
 To ensure different types of rooms are added like lounges as well as suites so that single
as well as the family guests can enjoy their stay (Gheibi et al., 2018).
 To engage in a pricing strategy such that the different types of guests can be attracted.
 To build good employee relationships so that the firm can perform well in the future
 To engage in more ecofriendly moves so that people choose them as their prime hotel.

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Part 3: Recommendations
The following recommendations have been made to the Double tree hotel
Attractive Rates The rates which Double tree makes use of needs to be made using
the Penetration strategy. In this manner, the different rates need to
be set for different products and for this purpose, the hotel needs
to ensure that its pricing is competitive in nature which will help
in increasing occupancy and making use of the different facilities
as possible.
.
Revenue
management
The revenue which the hotel will be earning in the first two months by
making use of the booking websites needs to be managed effectively so
as to ensure that there exists no problems.
Food and
Beverage
Along with the accommodation facilities, the hotel needs to collaborate
with the different suppliers who provide natural as well as fresh local
supplies so that the customers can have their health in priority and
make use of these facilities in the hotel itself (Kwahar & Iyortsuun,
2018).
Staff
In addition to this, the different staff in the Double tree needs to be
hired on the basis of a fixed pay system and that training needs to be
provided to them in order to ensure that adequate services are provided

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to the different guests and their style is enhanced.
Advertising The use of social media for the advertisement facility needs to be made
and the use of Influencers as well as Bloggers needs to be made
adequately.
Environmental
Management
System
The Double tree can also make use of an Environmental Management
system whereby they can see to it that the focus is on the environment
and that sustainable practices are adopted.
Refurbishment
Lastly, executive lounges as well as the new suites need to be added so
that the target market of the customers are increased and they are
provided with staying facilities with restaurants and their scope
increases.
Extra Facilities
Lastly, the firm needs to be provided with technical facilities,
improved communication system, internet facilities and quick check in
services.
Conclusion
Hence, the given analysis it can be stated that the given report provided certain scope as
well as recommendations which will assist in ensuring that Double tree will be successfully able
to improve its overall operations and that it focuses largely on the sustainable practices. Double
tree hotel needs to ensure that it makes use of Australian standards and the focuses on gaining
trust and increasing the brand value of the hotel. It is important that Double tree makes use of a

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strong base in the hotel industry of the beach. Certain recommendations based on the same have
also been provided.