HOS801: Strategic Management in Hospitality and Tourism Report

This report provides a comprehensive analysis of strategic management within the hospitality and tourism industry. It begins with an executive summary outlining the key focus on strategic human resource management and gaining competitive advantage, followed by an introduction establishing the importance of strategic management in the modern era. The report delves into critical issues such as competition, customer loyalty, and financial aspects, while also examining Crown Perth as a case study. It explores Porter's Generic Strategy, levels of strategy (corporate, functional, and industry), and Porter's Five Forces model to analyze the organization's strategies. The conclusion summarizes the findings and offers recommendations for improving strategic management practices in the hospitality and tourism sector. The report emphasizes the need for organizations to adapt to changing environments and develop strategies to maintain a competitive edge. The strategic tools discussed aim to aid organizations in achieving their short-term and long-term goals.

Running head: Strategic Management in Hospitality and Tourism Industry
Strategic Management in Hospitality and Tourism Industry
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1Strategic Management in Hospitality and Tourism Industry
Executive Summary
The current assignment focuses on discussing the critical issues related to strategic management
in hospitality and tourism industry. The paper aims at establishing the relevance of strategic
human resource management in the hospitality and tourism industry. The paper reflects one key
area of strategic management that is gaining competitive advantage. The paper highlights all the
issues while gaining competitive advantage and formulating strategic plan to achieve the same.
The paper aims at developing critical thinking skills and abilities related to strategic management
and how the organization cope with the current challenges with the use of this concept. At last
the paper give relevant solutions to the strategic management plans for tourism and hospitality
industry.

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Table of Contents
Introduction......................................................................................................................................3
Findings...........................................................................................................................................3
Strategic Management Issues......................................................................................................3
Porter’s Generic Strategy.............................................................................................................4
Levels of Strategy........................................................................................................................5
Porter’s Five Force Model...........................................................................................................5
Conclusion and Recommendations..................................................................................................7
Reference and Bibliography............................................................................................................8

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Introduction
In the modern era there has been significant growth in hospitality and tourism industry
that has led organization to understand the importance of strategic management. The strategic
management has become a critical aspect in each and every organization. The following paper
primarily focuses on identifying and analyzing the critical issue in the organizations under
tourism and hospitality industry. The growing competition is seen to be leveraging in the
hospitality industry. In the past few decades the growing demand of the customers has led
organizations to implement strategies in order to achieve organizational goal and objectives. The
study identifies the strategic management problems for a tourism and hospitality industry. The
paper also focuses on critically evaluating and analyzing the strategies implemented in Crown
Perth, a well-known hospitality and tourism industry in Australia (Harding, 2017). The study
focuses on how the organization faces its competitors and gain competitive edge in the market.
The paper highlights major competitive strategic tools of strategic management in order to
thoroughly analyze the success factor of the organization
Findings
Strategic Management Issues
It is observed that due to numerous factors, the hospitality and tourism industry is facing
issues with financial aspects. Due to the increase in globalization, the effect has been observed
not, only seen in manufacturing companies but also in service providing companies. The level of
occupancy rate is getting low of all ranges of hotels. The growing demand of the customers has
led to huge competition between the organizations (Ansoff et al., 2018).
The major issue which is found in the hospitality and tourism industry is to retain the
customers and gain customer loyalty since, the industry is all about satisfying the need and
demands of the customers are more likely to shift (Harding, 2017). The shifting of the customers
is due to the competition, when the other organizations provide best offerings then the customers
ted to shift. Therefore, it is very difficult for the hospitality and tourism industry to grab the
attention of the customers and gain competitive advantage.

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The industry is facing huge problems with the rapid competition within the market.
Therefore, the business is required to implement appropriate business strategies to tackle with the
growing competition in the market. Crown Perth is a big organization which deals with lodging,
entertainment, tourism and many more services to its customers. The company focuses on these
type of strategic management issues and comes up with profitable solution to face the upcoming
challenges.
Porter’s Generic Strategy
In order to gain competitive advantage, the company tries to implement strategies through
the concept of Porters competitive model that is cost leadership and differentiation. The Porter’s
Generic Strategy aids the company to gain competitive advantage across the pre-determined
market scope. The company Crown resort has developed a mutual strategy of Porter’s generic
strategy to compete with its competitors. Hospitality and tourism industry are among the
industries where both the competitive advantage are reliable and focuses on improving the
innovation. Quality, cost and reliability. In service providing industries the key focus is on its
workforce, since it aims at serving customers with better quality the organization tries to get the
best of its employees (Wicker et al., 2015). The cost leadership helps the organization to reduce
its cost for example, in transportation which has leveraged the growth of the organization. The
decreased cost aids the organization in smoothing the progress to the trade agreement for moving
services and goods and hence making a scope of tourism services. The company will be more
profitable if it give emphasis on the “Focus strategy” (Bertozzi, Ali & Gul, 2017) for its
business. Since, the focus strategy would help the organization to expand its business in the
global market and attract huge number of customers.
The changing environment has brought dynamism in the hospitality industry and Crown
Perth is trying to implement the differentiation strategy to expand its service and products into
broader baseline. The competitors even try harder to offer extraordinary to their customers and
make strong position in the market (David & David, 2013). Therefore, the organizations are
required to make continuous innovation in order to satisfy the changing demands of the
customers. With the increase in the competitive edge the market is becoming more adaptable to
the current changes and challenges as well. In order to sustain the competitive advantage the

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organization needs to develop strategies according to its environment and move of the
competitors (Noe et al., 2017). The strategy played by the hospitality industry is developing any
other competitive advantage before the competitors try to copy them or recognize their counter
attack to their competitive strategy. This level of strategy is quite difficult for the organization,
therefore in order to maintain the competitive advantage proper research of inside and outside of
the organization (Chandra & Sharma, 2018). For industry like hospitality and tourism it is
difficult to put proper attention on the competitive advantage due to changing business
environment.
Levels of Strategy
The drastic rise in the need in strategic management is aired due to numerous on-going
processes. Due to the growing contest in most of the sectors has created complicated work in
order to compete in that atmosphere. The technological advances has also manifested in taking
strategic decisions (Chandra & Sharma, 2018). Since last few decades, organizations have shown
deliberate interest in managing the whole organization by developing and implementing
strategies. A strategy is usually formulated to achieve the short-term and long-term goal. The
type of strategy determines or plans to take the next approach. The strategy formulation is
basically grouped into three stages such as corporate, functional and industry level strategy. The
Crown Perth aims at developing the business level-strategy which helps to focus on which area
to give more emphasis in order to achieve the desired target of the organization
(Crownresorts.com.au 2019). The functional level strategy aims at keeping all the information of
the organization, in order to understand that how the company’s wealth will be well-utilized in
the business operations, marketing and finance. The three level strategy is well applied in the
hospitality and tourism industry where the level of strategy is formulated for various purpose and
to underpin their position in the market. The hospitality and tourism sector are interdependent to
each other, the hotel industry is dependent on the level of tourism and tourism sector depends on
the level of service provided to its customers.
Porter’s Five Force Model
The Porter’s Five Force model is an essential strategic tool which the organizations to
understand the various forces which helps the company to shape competition especially within

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the industry. The strategic tool is highly responsible to adjust the re-determined strategy which
would suit the competitive environment. The Porter’s Five Force model consists of five factors
which is considered by the business to gain competitive edge.
Threat of New Entrants
The Crown Perth is already an established company and hence may face less competition with
the emerge of new entrant. But in hospitality industry, there is more vulnerability of new entrants
in the market. Therefore, continuous research has to be done in the organization. New innovation
has to be fostered in the organization.
Threat of the existing competitors
The top competitors for Crown Perth are Red Rock, Churchchill and Century Casino which also
provides best customer service to the customers. Therefore the organization crown Perth aims at
providing best services to its customers and sharply seeks at knowing the changing needs of their
customers.
Negotiating Power of the Suppliers
When there is strong negotiating power of the suppliers, there are number of buyers and less
number of supplier (Bertozzi, Ali & Gul, 2017). It is observed in Crown Perth that the number of
supplier has weak force due to the number of suppliers. Profitable strategy is applied to gain the
number of supplier in one hand.
Negotiating Power of the Buyer
With increase in demand of the buyers the bargaining power of the buyers also increases. In
Crown Pert the differentiation strategy is well applied in order to satisfy the changing demands
of the buyers (Bertozzi, Ali & Gul, 2017). It is also marked that the purchasing power of the
buyers is low, as their income is relatively low. Therefore reliable pricing strategy is also
necessary to be implemented in the organization.
Threats of Substitutes

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There are few substitutes for Crown Perth in the hospitality industry. The company still needs to
develop strategies in order to satisfy the demands of the customers so that they would not go to
any other substitute service.
Conclusion and Recommendations
It is concluded from the above discussion that the strategic management plays a vital role
in the assessing the business operations. The industries like hospitality and tourism needs special
changing strategies for the organization in order to sustain in the market. The above mentioned
strategic tools helps the organization to develop their next move in order to achieve their
organization short-term and long-term goal and objectives.

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Reference and Bibliography
Ansoff, H. I., Kipley, D., Lewis, A. O., Helm-Stevens, R., & Ansoff, R. (2018). Implanting
strategic management. Springer.
Bertozzi, F., Ali, C. M., & Gul, F. A. (2017). Porter’s five generic strategies; A case study from
the hospitality industry. International Journal For Research In Mechanical & Civil
Engineering (ISSN: 2208-2727), 3(2), 09-23.
Chandra, P., & Sharma, V. (2018). Strategic marketing prospects for developing sustainable
medicinal and aromatic plants businesses in the Indian Himalayan region. Small-scale
Forestry, 17(4), 423-441.
Crownresorts.com.au. (2019). Crown Resorts - Crown Resorts. Retrieved 19 September 2019,
from https://www.crownresorts.com.au/Investors-Media/Annual-Reports
David, F. R., & David, F. R. (2013). Strategic management: Concepts and cases: A competitive
advantage approach. Pearson.
Harding, S. (2017). MBA management models. Routledge
Hesterly, W., & Barney, J. (2010). Strategic management and competitive advantage. Upper
Saddle River, NJ.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2012). Strategic management cases:
competitiveness and globalization. Cengage Learning.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.

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Wicker, P., Soebbing, B. P., Feiler, S., & Breuer, C. (2015). The effect of Porter’s generic
strategies on organisational problems of non-profit sports clubs. European Journal for
Sport and Society, 12(3), 281-307.