Strategic Management in Hospitality: A Comprehensive Report

This report provides a comprehensive analysis of strategic management within the hospitality industry, using Hilton Hotel as a case study. It covers key aspects such as the principles and processes of strategic management, hospitality operations at global and national levels, and the role of strategic management in achieving organizational goals. The report delves into strategic planning techniques, including balanced scorecards and strategy maps, as well as stakeholder analysis, stakeholder matrices, and PESTLE analysis. Furthermore, it explores strategic positioning, Ansoff matrices, Porter's five forces model, and SWOT analysis. The report also examines the impact of technology on service delivery, marketing, and promotion, along with the management of logistics and supply chains. It also discusses Bowman's strategy clock, competitive advantage, competition and collaboration, and game theory. Additionally, the report touches on the hospitality sector's CSR, ethical and social responsibility, leadership approaches, and management skills. The conclusion summarizes the key findings and implications of strategic management in the hospitality sector. This report is available on Desklib, a platform providing AI-based study tools for students.

Strategic hospitality
management

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO1 .........................................................................................................................................3
Hospitality industry and strategic management..........................................................................3
Principles and processes of strategic management.....................................................................3
Hospitality operations at global and national level.....................................................................4
Visions, missions and objectives of strategic management........................................................5
Role of strategic management.....................................................................................................5
Strategic planning techniques with macro and micro analysis...................................................5
Analysis of stakeholders, stakeholders matrix, mapping and PESTLE......................................6
Strategic positioning, Ans off matrix, Porter's five forces model, SWOT..................................8
LO2..................................................................................................................................................8
Technology in service delivery, marketing and promotion, technological tools of business
strategy........................................................................................................................................8
Service delivery process..............................................................................................................9
Management of logistics and supply chain.................................................................................9
Bowman's strategy clock, sustaining competitive advantage.....................................................9
Bowman's strategy clock.............................................................................................................9
Competition and collaboration..................................................................................................10
Game theory..............................................................................................................................10
LO3................................................................................................................................................10
Hospitality sector's CSR with ethical and social responsibility................................................10
Leadership approaches..............................................................................................................10
Management skills with characteristics of a successful manager.............................................11
Approaches to management in communication, delegation.....................................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic management is art of management under which management of a concerned
organisation formulates a strategy to achieve organisational goals and objectives. Strategic
management is the backbone of a business industry which maintains the planning and
functioning of a business in the commercial environment (Ali, 2018). In this report all the major
aspects of hospitality industry are covered with various principles and processes of managing an
organisation in hospitality sector. In this report a brief understanding of hospitality operations at
national and international level is covered with missions, visions and objectives. This report also
covers definition of strategy along with its role, an analysis of micro and macro factors for a
business in hospitality sector is also included along with stakeholder analysis and with matrix.
This report also covers PESTLE analysis of hospitality industry along with leadership skills and
analysis of strategic positioning, competitive analysis and digital marketing. To better understand
hospitality industry in this report example of Hilton hotel is taken into consideration. Hilton
hotel is a global brand of hotels and resorts, founded in 1919 in Texas, United States.
MAIN BODY
LO1
Hospitality industry and strategic management
In the hospitality industry there is a huge competition between various hotels and the
competition is of stiff level. This is very essential for an organisation to formulate various
policies and plans for leading the marketplace with optimum efficiency. This is why there is a
requirement of strategic management in an organisation arise. Hilton hotel is a global chain of
hotels, which faces several competitors in the market. Therefore, hotel has deployed a
professional strategic management in order to deal with various consequences and procedures.
There is a key role of strategic management in an organisation which helps a business to survive
at the marketplace with optimum efficiency.
Principles and processes of strategic management
The principles of strategic management which are followed by Hilton hotel are
following:

 Communication: In the field of strategic management, communication play a crucial
role as it facilitates in the passage of information from one source to another (Altin, and
et. al., 2018). It is important for the management to communicate with several employees
of hotel in order to increase coordination.
 Energy level increase: Energy level is an important principle in the field of strategic
management, with the application of increased energy level in strategic management
organisation can gain efficiency.
 Flexibility: It is important for an organisation to maintain flexibility in its operations as
there are rigid operations performed by Hilton hotel in hospitality sector. Flexibility
should be maintained properly in the organisation throughout the year that will lead to
policy formation for strategy.
 Investment in outside help: This is a crucial principle in strategic management which
deals in providing external help to the employees in case they need any type of support.
Process of strategic management at Hilton hotel:
 Goal Setting- This is a primary task in the process of strategic management which
includes framing of goals for an organisation. Goal setting includes targets and missions
of a company which are to be achieved in short or long term.
 Analysis- Analysis includes a brief assessment of necessary factors which are important
to be considered before formation of necessary strategy.
 Strategy formation- This is the most important stage in process which includes
formation of necessary by keeping in mind the necessary goals and objectives which are
to be achieved.
 Implementation of strategy- Implementation of strategy means execution of strategy
which is formulated by
 Strategy monitoring- The monitoring of strategy is very much essential for a business,
in this field a keen supervision is focused implementation of strategy throughout the year.
Hospitality operations at global and national level
Hospitality industry majorly facilitate several tourists at global level, like Hilton hotel is
operating in different countries and also has a branch in London, UK. The branch in London is
dedicated to provide customer's best accommodation services along with quality food. The hotel
has dedicated branch in several countries which provide various opportunities to tourists and

local people (Benevides, and et. al., 2019). Hospitality operations include various services
related to beverage and food, lodging, travel, tourism and recreation that supports various
economic activities of a country at national and international level.
Visions, missions and objectives of strategic management
The visions, missions and objectives of strategic management are following:
 Strategic management provides a brief overview of all the necessary objectives and goals
which are to be achieved by an organisation.
 Strategic management deals with the minimisation of risk attached to a business by
conducting a proper risk management.
 The application of strategic management also categorises tasks and roles of employees in
an organisation.
 Functions which are performed under strategic management are scientific and useful for a
business.
 Strategic management also facilitate employee development in an organisation and
increases a company's market value.
Role of strategic management
Strategic management play a crucial role by helping an organisation to handle various
operations in the market with the help of precise planning. The role of strategic management in
an organisation also deals in providing effective and efficient solutions to a business at the
marketplace (Chandiok, 2017). The application of strategic management in a business play an
immense role in dividing various tasks to different employees in order to achieve high growth in
market. As Hilton hotel deals in heavy global operations, there are various competitors for the
hotel at global level. This is major responsibility of staff which is deployed for strategic
management at Hilton hotel to handle various day to day tasks and activities effectively. In
global marketplace related to hospitality sector, there is a stiff competition between various
companies. The deployment of necessary practices in strategic management at the hotel is
essential to gain competitive advantage at the marketplace.
Strategic planning techniques with macro and micro analysis
Two major strategic planning techniques are:

Balanced scorecard: This is one of the leading technique in strategic planning and management
which was developed by Robert Kaplan and David Nortorn. Balanced scorecard is totally a
quantitative approach which mainly has three factors-
 Objectives- Objectives include high level organisational goals of a business which are to
achieved in a limited time frame. A particular business in hospitality sector majorly
includes various objectives which are compulsory to be achieved in the long or short run.
 Measures- This factor in balanced scorecard includes various techniques, rules and
procedures which are to be adopted by a business to gain maximum efficiency at the
marketplace.
 Initiatives- In order to achieve organisational objectives, it is very much essential for a
business to take necessary actions and steps. Initiatives include various steps and actions
to achieve objectives.
Strategy map: This is a technical approach used by strategic management to facilitate strategic
planning (Drosos, and et. al., 2017). The strategy map majorly deals in formulation of a
communication design in order to achieve goals and objectives of the company. It is essential for
a hotel to develop a strategic map for managing large number of customers with different
responsibility.
Analysis of stakeholders, stakeholders matrix, mapping and PESTLE
Stakeholders Analysis of Hospitality sector- The stakeholders analysis is important for
a company to identify various needs and demands of its customers. The stakeholder analysis of
Hilton hotel is following:
 Local people- These are mainly people who belong to the society in a city, local people
includes various customers who come from different part of city.
 Developers- These are considered as owners of the hotel, who invest in buying property
for the hotel. Owner of Hilton hotel has established different chains of respective hotel in
various countries to develop role and responsibilities of management and to expand
operations at the marketplace.
 Government- As Hilton hotel is running global chain of hotels at the marketplace, its
regulations and rules are impacted by the government (Elfimova., 2018). Tax and policies
are implemented by government to generate revenue for social welfare.
Stakeholders Matrix and mapping

 Keep satisfied- The satisfaction of stakeholders should be utmost priority of a business
in order to increase their satisfaction. The organisation should fulfil all major duties in
order to increase the interest of its various stakeholders.
 Information delivery- The Delivery of information about the operations and functioning
of company should be done from time to time. Stakeholders should be informed from
time to time about all activities of a business to gain their trust.
 Monitoring- All the activities related to operations of a business should be done from
time to time and there should be a keen supervision on all major activities of company.
PESTLE analysis of hospitality sector
The PESTLE analysis of hospitality sector(Hilton hotel) is given below:
 Political factors- Role and intervention of government is always there in hospitality
sector, there are various political factors like taxes, rules and regulations imposed by
government to control operations and functioning of Hilton hotel.
 Economic factors- Economic factors are related to situation of recession, inflation or
depression in a country. This majorly impacts on revenue generation of a hotel in the
economy and also defines its working methods.
 Social factors- Social factors are mainly related to current trends and practices of the
society. The living standard of society majorly impacts on functioning of a business and
also defines various rules and policies of a company.
 Technological factors- In the era of stiff competition at the marketplace, technology
play a crucial rule. Use of advance IT tools in the hospitality sector impacts its customer
and management handling in different ways.
 Legal factors- Legal factors include various rules and regulations imposed by local
authorities on a business (Konovalova, and et. al., 2018). These factors also includes
various Acts and regulations imposed by Government to handle hospitality sector.
 Environmental factors- These factors mainly include various factors which are present
in external environment of a business. These are generally environmental laws and
policies which are basically related to protection of environment of hospitality sector.
Strategic positioning, Ans off matrix, Porter's five forces model, SWOT
Strategic positioning- It is basically referred to a way in which a business defines
various ways in which a business is different from its competitors. In other words, strategic

positioning is a action plan which includes formulation of target market segments for a business.
It divides whole market on the basis of customer's demand and then provides products and
services.
Ans off Matrix
 Market penetration- This focuses on increasing the amount of sales and output of a
business in order to increase revenue.
 Market development- This element in Ans off matrix is directly related to formation of
a strategy to enter new markets. In other words, it includes various measures which are
adopted by a business to do its expansion at the marketplace.
 Product and development- With the change in recent trends at the marketplace, it is
essential for a business to modify its products and services according to needs of the
customers.
 Diversification- Concept of diversification relates to entering of a business to a new
marketplace along with increase in sales, Customer's targeting is also ensured.
LO2
Technology in service delivery, marketing and promotion, technological tools of business
strategy
Technology is supporting hospitality sector at the marketplace in many different ways,
with the use of computer systems and IT experts are deployed in hospitality industry to majorly
support its operations and functioning (Konovalova, and et. al., 2018).
Technology support in marketing and promotion:
 Social media is used by 4.20 Billion people all over the world, with the help of Internet
and technology it is easier for a business to circulate information about its products.
 Role of information and technology is also helping hospitality sector to transfer
information about products and service through world wide web.
 Technology in service delivery is helping a business to manage all of its customers
online.

Service delivery process
The service delivery process includes all necessary tactics and elements which are kept in
mind by a business while delivering final products and services to the customers. Service
delivery process include:
 Planning- This is the initial stage in service delivery process which includes formation of
an essential necessary action plan in order to deliver product to end customer.
 Execution- This stage deals with the implementation of crucial steps in order to achieve
various objectives and goals. Execution is done by professional management in order to
develop a comprehensive approach in service delivery process.
 Reporting- Reporting includes accountability by the employees who are engaged with
service delivery process to the top management. Each operation related to service
delivery process should be reported to professional management present in the
organisation to ensure quality.
 Feedback- It is also essential for a business to take final feedback from its customers in
order to ensure quality in service delivery. Feedback approach will also help a business to
grow and gain competitive advantage at the marketplace.
Management of logistics and supply chain
In hospitality industry, there is a crucial role of supply chain and logistics chain as they
both are related to manage incoming of materials for a business. A hotel should manage its
supply chain in a precise manner in order to develop fast operations in the field of inventory
management (Koseoglu, 2018). Transportation is the major element in supply and logistics
chain, so a business must supervise all the necessary activities related to transportation and
manage transportation with full efficiency.
Bowman's strategy clock, sustaining competitive advantage
Bowman's strategy clock
The Bowman's strategy clock is a famous model in the field of strategic management which
deals with strategic positioning of business product at the marketplace. This model states
particularly how a particular product of a company is to be placed in the market field in order to
gain edge over competitors. This model helps a business in dividing market segments as well as
in identification of its target customers.

Competition and collaboration
Competition
Competition can be considered as a threat or opportunity to a company, it refers to the other
companies which are present in market with same products and services (Köseoglu, 2018). The
competition impacts Hilton hotel in global market many different ways, the hotel has to deliver
various services and products which are of global level in order to gain advantage over different
companies.
Collaboration
Collaboration in hospitality sector means merging of two or more different companies at the
marketplace for expansion purpose. The collaboration leads to expansion and development of a
business in market with a effective burden and responsibility on management.
Game theory
This theory is considered as mathematical tool which engages different people in the
strategic decision making process. In other words, game theory facilitates decision-making in an
organisation, in which there are different activities related to an interaction are performed. The
outcomes which are result of involvement in game theory are helpful in forming a precise
strategy for a company.
LO3
Hospitality sector's CSR with ethical and social responsibility
In UK, CSR activity is not mandatory for the companies, according to companies act,
2006. Recent trends in social welfare show, so many companies in the hospitality has done social
welfare related to social responsibilities which are even appreciated by UK government. In the
field of corporate social responsibility, hotels of UK has done a tremendous job by providing
necessary education, cloths, shelter homes and different facilities to backward sections of
society.
Leadership approaches
 Transformational leadership- It is basically a type of leadership practice which is
dynamic and changing in nature as it includes changing of a leader on the basis of
situation. This type of leadership always play a crucial role in formation of flexible rules
and policies in an organisation.

 Participatory Leadership- This type of leadership approach helps in formulating
participatory qualities in a leader. This style of leadership is mainly related to recognise
employees as major stakeholders in an organisation.
Skill management in leadership
Management skills with characteristics of a successful manager
Different management skills which are present in a successful managers are:
 Communication and motivation skills- A successful manager has necessary
communication skills and motivation skills which are essential in maintaining employees
at different level (Okumus, and et. al., 2017). Communication facilitate coordination
between employees and motivation on the other hand develops team spirit.
 Mentoring- It is another effective skills which is present in a leader or a successful
manager. Mentoring includes various aspects which deals with guiding and supervising
employees related to their day to day tasks and activities.
Approaches to management in communication, delegation
Approaches in the field of communication are:
 Communication as publicity- Communication is considered as art of influencing mind
of target audience by the use of messages (Parnell, 2018). This practice of
communication is widely practised in hospitality sector and majorly facilitated by coding
and decoding of messages.
 Communication as a reception- The technique of communication as a reception means,
communication is mainly influenced by the perceptions and mind of target audience. This
approach considers audience as a major contributor to the process of communication, and
runs on feedback approach.
Approaches in delegation:
 Delegation plan and strategy- This is the initial approach in the process of delegation
which includes proper formulation of plan and strategy related to a business
(Poddubnaya., 2019). Plan and strategy related to the top management is prepared by
professionals in order to create a precise business strategy.

 Feedback system- This approach in delegation demands necessary feedbacks from
bottom management in order to enhance performance of the individuals and facilitate
their development (Sahin, 2017).
CONCLUSION
From the above discussion it can be concluded that hospitality industry provides all
essential services related to tourism and travelling. Hospitality sector contributes to growth of a
country as well as it also develops various aspects related to support tourism in its functioning.
This report concludes that strategic management in hospitality business play a crucial role in
planning and organising various functions which are beneficial for a business. Leadership and
change management also helps a business in hospitality sector to grow in market with various
advantages. This report concludes that strategic management in this sector also helps a business
to gain competitive advantage at the marketplace as well as enhancing revenue generation. It can
be also concluded that the hotel industry should formulate effective research in order to grow in
market by overcoming the situation of increasing competition.