Strategic Hospitality Management: Corporate Strategy in Hospitality

This report provides a comprehensive analysis of strategic hospitality management, focusing on the formulation and implementation of corporate strategies within the industry. It begins with an introduction to strategic management, its importance, and application in hospitality, including definitions and the competitive nature of the sector. The report then delves into corporate strategy formulation, outlining the different levels of strategy and the steps involved, using Compass Group as a case study. It explores the strategic management process and the use of models like SWOT, PESTLE, and Porter's Five Forces for environmental analysis. The main body includes a case study of Hilton Hotels and Seven Events, examining their corporate strategy formulation processes, including analyzing the business environment, defining strategic missions, setting objectives, and selecting courses of action. The report also addresses the implementation of corporate strategy, discussing issues and challenges, and evaluating the effectiveness of strategic management in the hospitality context, concluding with a summary of key findings and recommendations.

Strategic Hospitality
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
Formulation of corporate strategy....................................................................................................3
Corporate strategy formulation and strategic management applied to hospitality industry...3
Models and analytical tools....................................................................................................5
MAIN BODY...................................................................................................................................6
Choice of literature and case study.........................................................................................6
Treatment on the process of corporate strategy formulation in context to hospitality industry
................................................................................................................................................6
Treatment on the implementation of corporate strategy and strategic management process.8
Issues and challenges of implementation...............................................................................9
Discussion on effectiveness..................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCE.................................................................................................................................12

INTRODUCTION
Strategic management is the continuous preparation, supervision, review and evaluation of
all the resources required by an organisation for achieving the goals and objectives. The changes
in any cooperate is necessarily for the organisation to evaluate their performance strategies.
Strategic management in hospitality is all related to all the companies that offer and interactive
facilities to the customers for their enjoyment which means that they make sure that it not only
covers lodging, restaurant, breakfast but also include entertainment for event, shipping and many
more (Moutinho and Vargas-Sanchez, 2018). They also make sure that the organisation uses
resources efficiently and for the production process. The hospitality industry is very much
competitive as they have a strong competition in which the strategic management will help in
creating effective plans and making the hospitality business successful. In this report it covers
formulation of all the corporate strategies which includes all the models of strategic management
as well as analysis of industry practises of the corporate strategy and strategic management
process.
The aim and objective of this report is to demonstrating all the understanding of corporate
strategy formulation and strategic management that is being applied to the hospitality industry.
Strategic management is the systematic usage organization's assets to achieve its goals and
objectives. Strategic management includes a constant analysis of an institution's systems and
practices as well as external elements that may have an influence on how the firm operates.
Along with this, the process and implementation of corporate strategy with their issues and
challenges is discussed. It also includes all the strategic management processes and models.
Formulation of corporate strategy
Corporate strategy formulation and strategic management applied to hospitality industry
Cooperate strategy formulation is a process of selecting the most suitable course of action
for the achievement of goals and objectives of the organisation as well as fulfilling the vision of
the firm (Ahmad, Bakar and Ahmad, 2018). It is a part of strategic management process as it
enables an organisation to evaluate their finance, creating the financial plan and as well as
determining the best course of action for increasing the income. There are three levels of strategy
formulation in an organisation such as corporate level strategy, business level strategy and

functional level strategy. Corporate level strategy focuses on what the company wants to achieve
which can include growth, stability and so on whereas in business level strategy, it tells about
how the organisation can compete and how an organisation will be grow is describes in
functional level strategy (Yoon and Lee, 2017). Compass Group is a multinational contract food
service organisation which serves meal in different locations such as organisations, factories,
learning institutions and many more. The process of corporate strategy formulation includes six
steps such as setting the objectives of the organisation, evaluation, setting the target, aiming with
the divisional plans, performance analysis and the strategy to be used (Butkouskaya, Llonch-
Andreu and Alarcón-del-Amo, 2021). First, the selected organisation will set their goals for a
long term purpose and different strategies for achieving them and these strategies can include
both the fixation of the objective as well as medium to reach the objective. Then evaluation will
take place where it will evaluate the strength and weaknesses of the organisation as well as
economic and industrial environment in which the organisation is going to operate. Along with
this, it also includes the qualitative and quantitative review that is important for the organisation
to be successful in the competitive market. After this, compass group fix target value for the
objective of the organisation that leads to comparing with the long term customers. Each
Department of the organisation will plan their strategies for achieving the target. Performance
analysis will help the organisation in analysing the gap between the expected performance and
the desired performance (Chandra, 2020). This will also help some making the objective long
term and estimate the time for achieving the same and after this, the organisation will apply
strategy for achieving the goals as well as establishing themselves.
Strategic management in hospitality industry provides a right track for an organisation to
achieve the goals and objectives by making plans and policies for them (Volk and Zerfass,
2018). The hospitality sector is one of the most competitive sectors as a large number of
competitors are present. Compass group have the competitive advantage of cost, innovation,
quality which has them in achieving the competitive advantage. Their services are considered to
be so effective that it become multinational contractor a food service. The formulation strategy
helps in focusing on the trains and demands of the hospitality business. It is able to track all the
competitors and their future plan of action.

Models and analytical tools
Strategy formulation involves the evaluation of all the internal and external environment
factors which helps them to compete with other organisation. There are different models which is
used for the formulation such as PESTLE analysis, Porter’s five forces, SWOT analysis and
many more (Grande, 2021). The weaknesses also compass group is very crucial for achieving the
Golden objectives. One of the weaknesses was that, the organisation was facing declining market
share and also they have a limited operating margin. The organisation has a threat such as the
political stability and regulation.
SWOT analysis
SWOT analysis is considered as a tool which is used by organisations in analysing their
competitive strategy as well as their position in the competitive market. In context to Compass
Group, the SWOT analysis is mentioned below:
Strength: Compass Group has minimal cost structure that enables it to manufacture at a
minimal price and offer its products at a cheap price, making it accessible to its clients. They also
have a close relationship with its partners, who not only supply them with material but actively
promote the firm's goods and provide training.
Weaknesses: The companies are investing more than the market standard on research and
development, Compass Group spends far less than selected firms that have gained a major edge
as a consequence of their unique goods. The company’s current earnings are low in comparison
to its current responsibilities which might cause liquidity issues in their operations.
Opportunities: The new consumer behaviour changes may open new opportunities for
Compass Group. It is an excellent chance for the company to generate new sources of revenue
while also diversifying into new product segments.
Threats: The skilled labour shortage in particular worldwide markets threatens Compass
Group's ability to maintain regular profit rise in such areas. In the longer run, emerging
technologies produced by the competitors or market disruptor might impose a serious challenge
to the business.

MAIN BODY
Choice of literature and case study
In context to the understanding and demonstration of corporate strategy case study of hotel
Hilton and seven events is going to be considered. Corporate level strategy is also known as a
broad level strategy which involves the selective management and strategic approach for the
biggest level of businesses management search is in context to the hotel Hilton management
strategy is can be considered as a corporate when it considered all branches of the organization.
In context to effective resources management and brand portfolio management this strategy is
use by the company. In context to the seven in the use corporate strategic management for
management of business portfolio throughout the different countries in order to get higher event
management opportunities from different clients (Seifzadeh, and Rowe, 2019). Hotel Hilton is
planning for the calculative allocation of resources in their different branches according to
supply and demand.
Treatment on the process of corporate strategy formulation in context to hospitality industry
Now a days innovation and technology and higher concern of corporate social
responsibility in hospitality organization is increasing the demand of improvement and
betterment of process of corporate strategy formulation in context to the effective and sustainable
strategic management process. Now the process of corporate strategy formulation is can be more
effective and sustainable within the application of innovative tools and techniques along with the
implementation of CSR guidelines. Hotel Hilton has place the specific change and improvement
in there process of the corporate strategy formulation. In context to sustainability concern, such
as the basic steps of corporate strategy formulation is involving the following steps which is
illustrated below along with the consideration of hotel Hilton and Seven in corporate strategy
improvement and implementation (Kunisch, 2017). As corporate social responsibility is extremely
relevant at the Savoy Hotel. These concerns are around the health and welfare of people. They
have an aim to assess the environmental implications on a daily basis and to adhere to the current
standards for sustainable tourism, eliminating emissions, ensuring proper treatment of
environmental assets and residues.
Analysis of business environment- That is the first initial step of corporate strategy
formulation as it done in broad spectrum so that is involving the analysis and evaluation of

complete range of organization products target market, customers and leading challenges of the
business environment in order to effectively reach second step of the corporate strategic
formulation. Such as hotel Hilton has analyzed the adverse impact of covid-19 which is leading
the higher the challenges along with that corporate social responsibility standards are forcing the
organization to be sustainable in their business operations and activities. In context to that
company have managed is sustainable use of resources. In another, hand seven in is planning to
grab this sustainable business approach opportunity to increase their brand value along with the
improvement of organization portfolio. The Savoy Hotel ensures that they are following the
guidelines and standards established by The HSE, WHO, and the Irish Government.All visitors',
employees', and vendors' health and wellbeing are of the utmost importance to them.
Define strategic mission- This step of the corporate strategic formulation it is very
important because that is involving the core aspects of business strategy. That is involving the
three sub steps consideration of status that where is organization at current situation, and future
status objective of organization where they want to be, then finally deep learning key
consideration of that how they can be there. Such hotel Hilton machine is currently world's best
hotel chain, and its mission is to become one of the most positive and sustainable hospitality
organization throughout the world. Seven in is the event management organization aims to be e
most effective event management organization within the industry(Ocampo, 2021).
Set the strategic objectives- That is involving important goals and objectives of
Organization in context to their mission which helps to be competitive in the business
environment. Hotel Hilton having the objective to manage their resources allocation techniques
with the help of new innovative technology in order to reduced large scales consumption of
resources which help them to become most sustainable business and reduced cost of expenses.
Seven in is having the objective of developing best organization portfolio which should be full of
the sustainable and corporate social responsibility awards where as The Savoy Hotel have the
objective to match its employees' interactions with those given to the hotel's exclusive client
base. In context to which it is having the objective of organizing charity, environment safety
programs and waste management education program.
Selection of the most appropriate course of action-that is another important step of
corporate strategy formulation which involves the selection of appropriate or alternative course
of action related to the business objectives. Due to the higher innovation in technology where are

the multiple tools and techniques and guidelines to achieve business objectives. Such as in
context to the hotel Hilton resources management objectives for waste control and reduce the
higher use of resources. There is the information technology which helps to co-ordinate with the
resources allocation strategic process effectively and reduce the waste of resources by reducing
the chances of are necessary resources storage and collection, block chain technology is selected
by the hotel Hilton to manage their resources allocation. Seven in has selected the It portfolio
management tool along with CRS related business programmers.
Implementation of strategy-Ones organization have completed with the strategic
planning then it needs the very important step to achieve success and that is implementation of
all those strategy with the help of specific tools and techniques. Such as new business strategy is
changing factor for the employees and Organization which is difficult to implement and make
Stable so in context to that, there is a need of specific planning for implementation strategy.
Below is the brief illustration of implementation strategy and strategic management
process(Sakapurnama, Muslim, and Asriyadi, 2020).
Treatment on the implementation of corporate strategy and strategic management process
Corporate strategy formulation is the broad level of planning and strategic development
which further involves the participation of strategic process in order to process the corporate
strategy guidelines and instructions which collectively helps to achieve sustainable business
outcomes. As corporate strategic formulation is involving the determination of business goals
and objectives along with the identification of best course of action for accomplishment of all
those goals and objectives. Similar to that seven in event company house plant to improve their
corporate strategy by selecting the sustainable alternative courses of action fore accomplishment
of their business goals and objectives in order to increase the brand value with the effective
sustainability practices.
Communicate and align- That is the first step of strategic implementation which is
involving the responsibility of CEO, leaders and managers in context to the employees worked
translation related to the new goals and objectives. Such as leader have to provide specific
guidelines and regulation to the leaders and manager of the organization which can be further
transfer to the employees for making the effective change in context to new goals and objectives.
Drive accountability- That is important and responsibility of CEO to make other members
of the company aware of new goals and objectives, which should be clearly understandable by

them. The sharing of views goals and objectives build the understanding and help in the
implementation of strategy.
Create focus- That is important to work step by step for goals and objectives achievement
that is important to make employees focus the roles and responsibility in context to goals and
objectives. So for that CEO of the organization have to manage weekly meetings and seminars in
order to assess the progress and guide for improvement.
Action oriented- In order to get success in overall goals and objectives that is important to
make employees very focused about their everyday achievements which can further help to get
success in overall objectives.
Monitor outcomes and progress- That is important for manager and leader to monitor the
everyday activity of employees in order to track their performance and improve the errors which
is important for goal accomplishment (Hussin, Jamaludin, and Yu, 2017).
Issues and challenges of implementation
Strategy formulation Involves the implementation of the goals and objectives of the
organisation for competing in the market and it can be more effective with the help of
implementing the different tools and with the help of CSR guidelines. There are various issues
and challenges that are faced by hotel Hilton, Seven and Savoy in the process of analysing their
business environment such as the impact of COVID-19. COVID-19 has impacted the worse on
the hospitality industry as people were not allowed to step out of their houses, the visitors were
not able to visit tourist places as well as check-in into their hotels (Jabeen, Faisal and
Katsioloudes, 2017). Due to the lockdown, all industries was shutdown and even some industries
also sell part for paying their instalments as they were running out of money. The employees
that were working in the hotel also lost their jobs and they were not able to find any job that
makes them stressful and also tries suicidal attempts. Not only employees and industry was
affected but also the whole country as well as world was facing this situation Along with this,
this lockdown has also created impact on the GDP of the country as it has been declined. Also
the hotels were forced to be sustainable in their operational activities to maintain their corporate
social responsibility standards. Corporate social responsibility helps the hotel to use sustainable
resources for protecting the environment. On the other hand, hotel Hilton was also facing a
challenge as Seven was trying to grab this opportunity for increasing their brand value as well as

from the Savoy Hotel as it is a well established hotel worldwide and also their organisational
portfolio (Magnini and Zehrer, 2021). The implementation of corporate strategy formulation was
challenging as the analysis of the target market, customers time taking. Along with this, for
defining the mission of the hotels was challenging as the mission should be achievable as well as
the goals and objectives helps them to be in the competitive business environment.
Discussion on effectiveness
Cooperate strategy formulation and strategic management is important for an
organisation to be in the competitive environment. Both these strategies helps in planning of the
different strategies what do we implement on the organisation for achieving a sustainable
business result (Nusair, 2020). Hotel Hilton, Seven and Savoy Hotel evaluate the business
environment which includes different challenges which helps them and reaching the target
customer and market. They set their goals and objectives to compete in the business environment
and also tries to achieve the mission. Hotel Hilton is considered as the world's best hotel chains
as their mission was to become sustainable organization in the hospitality industry whereas the
mission of seven was become and effective even management organisation in this industry. The
Savoy Hotel is the oldest and world famous hotel which is currently running by Fairmount Hotel.
The effectiveness of setting goals and objectives well then can be seen when they achieve the
target mission (Stewart and Tyler, 2019). Along with this, they also have an objective to manage
their resources with the help of emerging technologies for becoming the more sustainable
business while sever is the best organization portfolio which is the most number of awards in
terms of corporate social responsibility please stop as they have already appropriate course of
action an implement strategies on the organisation helps them in achieving the success.
Moreover while implementing all the strategies the employees also contributed in their goals and
objectives (Torres. and Mejia, 2017). The CEO of the organisation has a responsibility of sharing
the goals and objectives with the organisation for implementing this strategy. Also the whole
organisation was goal oriented as well as action oriented which helps them in becoming the
successful.

CONCLUSION
From the above discussion, it can be concluded that, both corporate strategy formulation
and strategic management is vital in a hospitality industry as it helps them in planning out the
different strategies to be implemented on the organisation. These strategies not only helps in
running the organisation but also helps and becoming competitive in the hospitality industry as
these industries are very much competitive. In this report, it includes the understanding of
corporate strategy formulation and strategic management apply to the hospitality industry. It also
includes the different types of models which is used by these strategies for finding out the
internal and external factors which can impact the organisation. Along with this, the process of
corporate strategy formulation and its implementation is also included with strategic
management process. This helps the organisation in setting out their objectives to implementing
the strategies that they make for the organisation to achieve their goals and objectives. The issues
and challenges of implementation are also explained.
Corporate strategy formulation assist making the plans and strategies to implementing on
the organisation for achieving the goal do this the strategy management is the tracking on
evaluating all the necessities often organisation to achieve the objectives and goals. The process
of cooperate strategy formulation helps the organisation in improving their strategies which will
implement on the organisation. Here the analysis of business environment takes place where the
evaluation of both internal and external environment is considered to be in the competitive
business environment. They defined their mission, said their objectives and then take action for
the same after that, to implement the strategy on the organisation with the help of different tools
and models that helps them too identify all the threats and opportunities. Strategic management
process includes communication about the goals and objectives of the organisation to their
employees. The manager make sure do share the purpose of the organisation and makes
employee focus to contribute to the organisation the manager and leader track all the activities of
employees as well as their performance. While implementing these strategies the organisation
also faces different issues and challenges such as COVID-19 and corporate social responsibility.
Due to COVID 19, the hospitality industries and other industries were shutdown as people were
not allowed to work outside their houses. Whereas the hotels are stick to follow the corporate
social responsibility standard and use sustainable resources for running the organisation.

REFERENCE
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