Strategic Analysis and Recommendations for HOTS Hotel Operations

This report presents a strategic briefing on HOTS Hotel located in Bondi Beach. It begins with an executive summary and table of contents, followed by an introduction outlining the report's objectives: to analyze the micro and macro environments impacting the hotel and propose strategic goals for the first year of operations. The analysis includes the hotel's location, customer demographics, and services offered. The report then uses theoretical frameworks such as PESTEL and Porter's Five Forces to examine the political, economic, social, technological, environmental, and legal factors influencing the hotel, as well as competitive forces within the industry. The report also assesses the hotel's vision, mission, and specific goals for the first year, including revenue management strategies, food and beverage offerings, staffing considerations, and the implementation of corporate social responsibility policies. The report concludes by emphasizing the importance of strategic goals for the hotel's success, supported by a list of references.

Running head: STRATEGIC BRIEFING HOTS HOTEL
STRATEGIC BRIEFING HOTS HOTEL
Name of the Student
Name of the University
Author Note

1STRATEGIC BRIEFING HOTS HOTEL
Executive Summary
This report seeks to discuss the HOTS hotel located in the Bondi Beach. The purpose of this
report is to look in to the micro and macro environment in which the hotel was functioning and
then to provide certain strategic goals for the next one in order to improve the working of the
hotel. For this purpose several theoretical frameworks such as Porter’s Model and Pestle Model
has been utilized. The report concludes with the importance of strategic goals in the working of
hotels.

2STRATEGIC BRIEFING HOTS HOTEL
Table of Contents
Introduction................................................................................................................................3
Micro and Macro environment................................................................................................3
Overall strategic framework.....................................................................................................4
PESTEL..................................................................................................................................4
Porter’s five forces.................................................................................................................6
Industry and Competitor Analysis...........................................................................................7
Vision and Mission of the Hotel................................................................................................8
Specific goals for the first year.................................................................................................8
Corporate Social Responsibility...............................................................................................9
Ethics Statement........................................................................................................................9
Conclusion....................................................................................................................................10
References.....................................................................................................................................11

3STRATEGIC BRIEFING HOTS HOTEL
Introduction
The briefing is focused towards the analysis of the external environmental factors that
affect the business functions of the HOTS hotel and provide essential recommendations. The
implications derived from the analysis are subsequently used to propose the strategic vision,
mission and goals that could boost the organizations performance in the first year of operations.
The HOTS hotel offers a range of services to the customers. HOTS is located at the seafront and
can have better demand than any of the other hotels in the area.
Micro and Macro environment
The environment of operations of the organization makes it very important that effective
strategies are implemented for developing the HOTS hotel. The hotel was opened as a traditional
hotel in the latter half of the 20th century. It is at the most 30 minutes away from the airport.
Additionally there are bus and other important services that are available close to the hotel.
The hotel industry environment at Bondi beach has experienced significant ups and
downs over time. In the 1980s there was a great boost to the tourism of the area. There was great
affluence and Bondi Beach became a sought after tourist area. Many events were established that
led to the further growth of the hotel industry simultaneously with tourism.
In the 1990’s there was the growth of soft industry and service industry in the area. This
further led to the growth of the industry and the town grew to 160, thousand residents. Many
important centers were built.
However, in the 2000s there was serious decline of the economy of Bondi beach. This
was due to the fact that tourists began to prefer other locations as popular tourist destination

4STRATEGIC BRIEFING HOTS HOTEL
(Gray & Gray, 2017). It can be said that there is good prospects for the hotel industry in Bondi
beach going forward.
Internal environment
The Hots hotel was established as a hotel offering traditional services in Bondi Beach in
the middle of the last century. It has a very convenient location and is less than 30 minutes from
the airport. Moreover, there are ample number of available bus transport facilities. The customers
of the hotel are mostly between the age groups of 30-50 years. The hotel offers 125 standard
sized air conditioned guest rooms. There is 24X7 available front desk services. The hotel also
has a complete serviced restaurant, a bar providing snack service and a lobby lounge. The car
parking is limited and the hotel has to rely on a multi-storied car park that is nearby. The hotel
however does not provide any leisure facilities or business oriented services like conference or
meeting rooms. The company is refurbishing guest rooms, front desk, restaurant and bar.
Overall strategic framework
PESTEL
The PESTEL analysis is being utilized to provide the political, economic, social,
technological, environmental and legal aspects that can affect the hotel.
Political  The political environment can be said to be favorable for Hots
business. The local authorities had provided lower tax rates to the
new small and medium sized businesses that establish themselves in
the area.
 Moreover, the government is using the tax money to effectively re-

5STRATEGIC BRIEFING HOTS HOTEL
establish the seafront facilities.
Economic  The town had an economic boom in the 1980s however it declined in
the 1990s. However, the lower taxes have made it a favorable place
for doing business.
 The town has a significant population and the economic factor that
can affect the organization is between low to moderate.
Social  There is growing interest among the people for visiting the tourist
destination. When the various quarters of the year are considered
there is influx of more people seeking leisure in the 1st and 4th quarter
of the year.
 There is also a significant number of business guests throughout the
year. The effect of social is between high to moderate.
Technological  The availability of technology is good and this can greatly benefit the
operations of the hotel.
 The most important technology requirements are for digitizing the
customer management systems.
Environmental  The company is focusing on the usage of environment friendly
technology for its major business oriented functions.
 The environment of the coastal area is good and no significant issues
have been reported in regards to the same (Punitha, Aziz & Rahman,
2016).
Legal  The Hotel wants to be legally recognized as a star hotel.

6STRATEGIC BRIEFING HOTS HOTEL
 Hence, it is important that the legal aspects of business such as food
standards and service standards are properly followed.
 In conclusion, it is observed that that political, economic and social conditions of the
Bondi beach are favorable for the working of the hotel.
 Moreover, there is an interest in the population to visit the hotel because of its
technological innovation.
Porter’s five forces
Bargaining power of Suppliers The suppliers in this case are the kitchen
equipment suppliers, food and beverage
suppliers and other suppliers such as
electricity, water, etc. The hotel is located at a
more favorable place than others hence
suppliers would give more preference to
HOTS
Bargaining Power of Buyers There are many other hotel in the area that are
providing similar services. However, the
seafront location of the hotel can be a
significant positive point for the hotel. The
buyer bargaining power remains high to

7STRATEGIC BRIEFING HOTS HOTEL
moderate.
Threat of New Entrants As the government has implemented a plan to
impose lesser taxes on the new small and
medium size companies that can enter the
market, the threat of new entry is high. The
new entrants will be facilitated by the better
opportunities.
Substitute products The threat of substitute products or services is
low as there are no parallel services to hotel
services in the area. Conferences are being
increasingly held in the area there can be
growth of rent halls in the future (Divisekera
and Nguyen, 2018).
Competition The competition is growing and is a high
factor that can affect the profitability of the
Hotel. The population is good and there are
many hotels currently providing the same
services. Hence, it is a significant factor
(Salvioni, 2016).

8STRATEGIC BRIEFING HOTS HOTEL
In conclusion it can be said that there are many external factors to be considered if the
hotel wants to grow concerning the present scenario. However, there is also significant scope for
improvement of the organization.
Industry and Competitor Analysis
Since, the hotel is located in a coastal area with significant influx of tourists, the
competing factors are high. This is more because the hotel is a traditional hotel with many other
hotels providing the same kind of service (Aithal, 2016). The industry in the past had witnessed
tremendous growth. However, there was decline after that which is being positively affected by
the revitalization plan. Hence, it is important that the new entrants are considered as serious
competition for the organization.
Vision and Mission of the Hotel
The main vision for the hotel management is to make it the leading hotel in Australia. For
this purpose, it is the mission of the managers and the employees of the hotel is to work to their
full potential.
Specific goals for the first year
The specific goals for the first year should be focused towards improving the value
proposition of the hotel to tackle the strong influence of the competitors over the existing market.
Firstly, the rates will primarily be kept low to medium for both the business and the
leisure customers. After increasing service offerings some rates will be made premium.
Secondly, Revenue management will be done through the creation of dedicated revenue
management teams. Revenue will be generated from the diverse services that will be offered
(Vives, Jacob & Payeras, 2018).

9STRATEGIC BRIEFING HOTS HOTEL
Thirdly, the food and beverage choices will include the local produce of the Bondi Beach
area. Seafood would be made a specialty.
Fourthly, the staffing will be done from the nearby areas as this will ensure cultural
proximity.
Fifthly, more importance should be provided toward giving proper training to the new
employees. Training functions would incorporate the need for better trained employees with
regards to the new services provided.
The new infrastructures like the conference rooms and the business rooms would be
created to incorporate the business classes (Nieves, J., & Segarra-Ciprés, 2015).
The environmental management would be done through usage of green technology.
There will be focus on using renewable energy sources.
Corporate Social Responsibility
The CSR policies of the hotel should target the environmental aspects that are affecting
Boindi beach, hence it is important that the hotel authorities take essential measures like
awareness programs or activities focused towards the same (Otache & Mahmood, 2015).
Ethics Statement
Being a private organization, there is often a tendency to exploit the resources of the
Earth without thinking about the consequences to the society (Lashley, 2016). Thus, there is a
need on the part of the hotel staff and its managers to ensure that it maintains the ethics of
transparency in its financial activities.

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Conclusion
In conclusion, the Hots hotel has to use its location at the Bondi beach to its optimal
potential. It becomes important that the company essentially considers the value that it needs to
add to increase productivity and profitability. The organization is well poised to attract a growing
number of new customers. The company is in great need to improve its functional abilities.

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Australia. Tourism Management, 67, pp.157-167.
Gray, G. M., & Gray, C. A. (2017). Beach-user attitudes to shark bite mitigation strategies on
coastal beaches; Sydney, Australia. Human Dimensions of Wildlife, 22(3), 282-290.
https://www.youtube.com/watch?v=Eq24eYoXgQQ&feature=youtu.be
Kim, H., Woo, E., Uysal, M., & Kwon, N. (2018). The effects of corporate social responsibility
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