Strategic Hospitality Management: Formulation, Analysis, and Practices

This report provides a comprehensive overview of strategic management within the hospitality industry. It begins with an introduction to strategic management and its importance, followed by an in-depth exploration of corporate strategy formulation, including the development of action plans and the use of models like SWOT analysis and the balanced scorecard. The report then delves into a critical analysis of industry practices, examining the implementation of strategic management processes, the importance of organizational objectives, and the challenges associated with implementation. The report also highlights the role of corporate social responsibility and its benefits in the hospitality industry, providing a holistic understanding of how strategic management can be effectively applied to achieve business objectives and maintain a competitive edge in the dynamic hospitality sector. Finally, it offers insights into how organizations can adapt to the changing landscape and leverage these strategies for success.

Strategic Hospitality
Management

Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Formulation of the corporate strategy................................................................................................3
Critical analysis of the industry practices..........................................................................................5
CONCLUSION...................................................................................................................................10
REFERENCES....................................................................................................................................11

INTRODUCTION
Strategic management in the hospitality sector allows for the establishment and
execution of the objectives aimed at improving an organization's standing in this specific
field. After evaluating the available tools within the organisation, the executive committee
creates the plans on behalf of the members (Ali, A.A., 2018). The main aim of this report is
to tell about the introduction of corporate strategy so that in hotel sector they can achieve the
business objectives. The report includes about the strategic management and planning with
their models. The report also include about the literature and case study so that they can
manage the functions of an organisation. It also includes implementation of corporate
strategy with their issues and challenges. There is some effectiveness, issues and challenges
of strategic management so that they can achieve business objectives( Chepkwei, 2021).
There are some role and benefits of corporate social responsibility in the hospitality industry.
With this they can develop strategies so that they can manage the operations in hospitality
management.
MAIN BODY
Formulation of the corporate strategy
The hospitality industry includes all companies that provide travellers with
complimentary and luxury services Which ensures that it covers not only hotels, motels and
guesthouses, but also industries, such as concerts, sports, transportation and cruise ships. This
includes businesses (Butkouskaya, V., Llonch-Andreu, J. and Alarcón-Del-Amo, M.D.C.,
2021). It is essentially a hospitality business whether it is a need rather than a necessity and is
paid for with discretionary revenue for leisure. Since hospitality is strongly competitive,
strategic management in the hospitality sector is essential for companies' growth, and because
efficient strategies and procedures are developed for good hospitality. In order to achieve
corporate objectives, the industry has to provide a strategic management framework for unity,
strategy and identification. Strategic management would assist the industry with an efficient
and consistent implementation of its operational objectives. There are four key techniques to
be focused on by corporate hospitality owners and administrators. All four of these
techniques include identity construction, consumer service improvement, the achievement of
organisational success and a strong corporate citizen. Those tactics will help you overcome
your rivals if you have a hospitality business. Assume an example owning a small hotel in the
chain (Cabral, C. and Jabbour, C.J.C., 2020). There have a gorgeous property with 75 rooms
that belongs to a popular brand of over 3000 hotels. The following tactics assist in developing
opportunities to develop the market of your hotel. A hospitality policy is an action plan
developed by a particular company to accomplish its corporate objectives. This is focused

around how various commitments can be combined to succeed. An effective plan allows the
company to achieve unrivalled growth, which in the long term increases revenue, value and
market dominance. For example, the Hotel Marriott has develop strategies so that they can
achieve the business goals and can gain competitive advantage in hospitality industry. In this
way, they provide better services as compared to other hotels so that they can retain new as
well as existing customer in market (Chandra, M., 2019). A hospitality strategy is an action
plan developed by a particular company to accomplish its corporate objectives. This is
focused around how various commitments can be combined to succeed. A effective plan
allows the company to achieve unrivalled growth, which in the long term increases revenue,
value and market dominance. With the help of this they make effective strategy so that Hotel
Marriott can provide them special offers so that they can solve the issue of guest in there
hotels. As they are operating in different areas of country so they have to develop strategies
so that they can enhance their business in other countries. The main strategy of Hotel Marriott
is that they advertise about their hotels on social media and their website so that customer can
engage in an effective manner(Le and Phi, 2021). With the help of example of Hotel Marriott
it is clearly understood that that they have to develop strategies so that they can effectively
operate their business which help them to sustain in market for long time period.
The strategic management model and theories is to explain the power where they have
to work and can operate their hospitality business in proper manner. With the accordance
with that they have to understand about their strength, weakness, opportunities and threats so
that they can maintain their position in market. There are various models for strategic
management but most of the hospitality industry adopts the SWOT analysis and balance
scorecard approach to identify their internal and external factors. It leads to ultimately
understand which factors affect the hospitality industry so that the organisation can easily
overcome the problem and can attain their goals and objectives (Dev, C.S., 2020). The
strength of hospitality industry is that in SWOT review of the hotel industry or the hospitality
sector as a whole aims to develop an effective approach to remain competitive in the
marketplace. Its greatness is that hoteliers can build and execute rigorous and sound market
plans worldwide. They will expect to see a straightforward market plan for an industry that
has such a huge financial strength. The strength of hospitality industry is that they are
providing the best services and helpful when people are away from their homes. So, that they
can book rooms and take services from hotel. The strength is that they every hotel contributes
to the local economy so that they can contribute to the success of economy. On the other
hand, weakness of hotel industry is that they have huge cost is involved and their services is
so high that many people cannot afford( Leta and Chan, 2021). The opportunities which is
available with hospitality industry is that they adopt the latest technology so that they can
build the better customer experience. They also target different categories of customer such

as providing the different services according to the age group. The threat is that in hospitality
industry due to the uncertain situation such as Covid-19 it reduces the sales and revenue of
organisation (Dixit, S.K. ed., 2017). This is because people do not come out to their because
of fear and their health conditions. The second method of hospitality industry is balance
scorecard approach which means that it offers high-level information on actions and
programmes. The Balance Scorecard or this model of strategic management displays the
status of each goal, measurement and effort. For example, hotel industry take reviews and
rating from their guest so that they can about the challenges and problems of customers. With
the help of this hospitality industry can improve their services which are offered by them so
that they can enhance their productivity in market. The hotels also take feedback from their
visitors so that they can understand their issues and concern (Hsiao, T.Y., Chuang, C.M. and
Huang, L., 2018). So, they can solve the problems of their guest in proper manner which help
them to retain the interest of customer in market and build the reputation of hotel in the
specific sector. This management model and their will help hospitality industry to understand
about the their strength and opportunities so that they can overcome the threats and weakness
of their organisation.
Critical analysis of the industry practices
According to Harrison and John (2018), the traditional viewpoint of the author is that
managers respond to certain programmes, which helps make choices that are consistent in
terms of a set schedule. The arrangements must be purposeful, though. It is often said. This
kind of deliberate approach allows managers to prepare their future path. However, it's
mainly a flow of opinion in dew cases. During their jobs, manager’s report. A technique that
has not been intended or prepared is said to be created. As a consequence, management gets a
chance to learn about the process. In context to hospitality industry, the manager has to
develop the strategy so that they can understand about the rules and regulation and
communicate to the staff members. Such as they have to tell their staff members to regularly
clean the equipment’s and the food preparation areas and other polices so that they can work
accordingly (Iyer, G.R. and Jarvis, L., 2019). In this way, they can gain competitive
advantage from the hospitality industry. The formulation of the plan usually consists of three
phases such as industrial, practical and corporate strategy. The key feature of the corporate-
level approach is to define the activities of a business in a given market by a range of places
that an enterprise can trade with other competitors. The fast rising network of competitive
companies worldwide is that of hotels and tourism enterprise. The hospitality sector consists

primarily of companies that provide lodging, food and beverages with their facilities and a
combination of these operations (Konovalova and et. al., 2018). The hospitality industry
offers these services that are distinctive from foodstuffs, since they are made for immediate
consumption. They also differ by offering housing for people who move away from home to
their local residency in several cases from other services. In this way, hospitality industry has
to develop strategies so that they can attract customer in order to achieve business objectives.
The corporate strategy formulation is the mechanism by which an organization's aims,
goals and purpose can be determined and defined, and the necessary and best actions or
management strategies can be identified between the alternative solutions available. This
route or system will be developed by formulating a strategy (Moutinho, L. and Vargas-
Sanchez, A. eds., 2018). In context to the hospitality organisation they set the vision and
mission of organisation and communicate to employees so that they focus to achieve them in
an effective manner. With the help of this they can give better services to their guest in an
effective manner. There are six steps for the process of strategic management process such as
setting organisational objectives, evaluating organisational development, quantative targets,
performance analysis and choice of strategy. With the reference to hospitality management,
the first step is organisational objectives which mean that they have to set the objectives so
that they operate their business in an effective manner ( Hemmington and Neill, 2021). For
example, hotel industry set the objectives to serve their customer or guest best and provide
them foods according to their needs and wants. On the other, the main objectives of hotel
industry are to solve the issues of their visitors (Okumu and et. al., 2019). The second process
is to evaluate the strategies in order to develop and grow the business in other countries so
that they can attract large number of customer. The third step is to analyse the performance
their employees and if any staff is not properly working their duties. Then they can train their
employees by giving session so that they can develop their skills in order to achieve business
goals. The last process is choice of strategy which means that the best way to respond is to
take operational targets, corporate capabilities, prospects and external possibilities into
account
Implementation is a process which transforms policies and tactics into action to
achieve goals and objectives. It is necessary, or perhaps more essential, to execute your
strategic approach than your policy. In context to hospitality industry, it means that it is a way
in which an organisation develops, uses and combines its organisational structuring, control
mechanisms and culture is often known as the ways in which it follows policies that

contribute to competitive benefits and improved efficiency. The organisational framework
assigns workers special importance tasks and positions to establish and describes the
correlation between these tasks and roles to improve performance, productivity and customer
satisfaction—pillars of competitive benefit (Russen, M., Dawson, M. and Madera, J.M.,
2021). However, in context to the hospitality industry the corporate structure alone is not
enough to inspire workers. There still has to be an internal management structure. This
management structure provides motivating rewards for supervisors and guidance on staff and
corporate success. Organizational culture refers to the specialised selection of community
members and classes of traditions, behaviours, standards and beliefs. There are some steps to
implement the strategy management so that hospitality industry can implement the steps in an
effective manner. The first step is to develop an enterprise with the ability to effectively
implement a plan. The second step is to disbursement of large capital for critical strategic
operations ( Kim, Kim and Wang, 2021). The third step is to develop strategies that promote
strategy. Fourth step for implementation is that they should use best practises and services to
change constantly. The fifth step is to connect the framework of the award to achieve the
results. The last step is to utilizing strategic management. With the help of these steps, the
hospitality industry such as hotels, motels, cafes and other industry can implement the
strategic management in a proper and systematic way.
In hospitality industry when implementing the strategy management and formulation
there are various issues and challenges that occurs in various sectors. The issues and
challenges arise in various sectors which hinder the performance of organisation. This means
that if problems occur in organisation when implementing the strategy then they will reduce
their sales and profit of organisation and decrease their reputation in market. In this way there
are various issues and challenges such as ineffective training, lack of communication,
inability to track process and many others (Tu, H., 2020). For example, in hotel industry if
there will be no proper training given to their employees then they will not implementing the
strategies in a systematic manner. In this way, it reduces the performance of hotel and
customer does not visit because of bad experience. The first is training and development
which means that without proper planning for staff required implementing, a new strategic
plan will never come into being. Many excuses are given to businesses to skimp on the right
enterprises and workforce learning experiences and we have disrupted them in a previous
blog post. The second is lack of communication which means that the most direct expenses
for the implementation of a new policy are the contractors or members of the board involved

in the planning, execution and delivery of preparation and the costs of any new related
technologies. For an organisation of any scale, particularly small to medium-sized and non-
profit organisations, this may be prohibitive. The last issue and challenge is that many
companies do use Devices to track goals. However, these programmes cannot easily combine
outcomes or provide accountability between managers and employees. Furthermore, their use
reduces the capacity to achieve competitive objectives in real time. With the reference to
hospitality industry, if they will develop strategies to overcome this issue that they can build
the better customer experience so that they can give better services to their clients. With the
strategies they can train their employees and develop their skills so that hospitality industry
provides better services to their customers.
Successful execution of policy means that the strategy's effectiveness depends not on
how effectively you have executed the strategy, but on the consistency. You have to ensure
that your plan suits your company type in order to successfully execute your strategy. An
hierarchical framework that subordinates power needs a strategic approach that calls for rapid
task level intervention and work piece decision-making. In a corporate system that has central
authority, a policy that depends on close control at the high management levels is the right
way. The plan needs to be adjusted according to your business' organisational structure. In
hospitality industry, the effectiveness of implementing the strategy is that they can
performance better and solve the issue of customer so that they can recommend to other in an
effective manner. The effectiveness will begin assigning your workers to the specific
assignments after you have finished the execution schedule. In order to offset specific costs,
certain activities require external services such as software, promotions and capital. The
hospitality industry must ensure that all the activities and services you need for full plan
execution are carried out in your squad. Hospitality industry will need to share details about
the approach and how you intend to execute it after your team has been established and you
have allocated their assignments. In order to answer questions, to discuss progress and to find
answers to challenges, written explanations, processes, photographs and drawings will
provide the basis for team meeting( Pinos Navarrete and Shaw, 2021). Online tools like
those used in office productivity software may help to promote cooperation among team
members. The hospitality industry in this way can effectively perform duties according to the
rules and regulation so that they can achieve business success effectively. With the help of
this, the hospitality industry can gain competitive advantage to remain in market for long
time period.

CONCLUSION
From the above discussion, it is stated that there is strategy formulation and
implementation which help organisation to achieve business objectives. In this way, they can
sustain in market for long time period. This means that there is strategy implementation so
that they can implement them successfully. In this way, the report includes the SWOT
analysis which stands for strength, weakness, opportunity and threat. With the help of this,
they can analyse the internal factors. On the other hand there is balance score card approach
which helps them to achieve business objectives. There are issues, process of strategy
implementation.
Reflection: I have analysed from this report that there are various issues and challenges that
occur while conducting the report. The issue such as time management and research skills
which means that they have to implement the strategies in an effective way so that I can
conduct my report in proper manner. In this way I understand that it is important to improve
the skills so that it help me to properly analyse and can effectively achieve the success. From
this I can gain knowledge which help in future to develop my career which will help me to
understand about social media.

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