Strategic Management in Hospitality Industry: A Detailed Report

This essay provides a comprehensive analysis of strategic management within the hospitality industry, focusing on key concepts, models, and their applications. It begins by defining corporate strategy and its importance in the hospitality sector, highlighting the role of strategic planning in organizational growth and tourism promotion. The essay explores various strategic management models such as SWOT, PESTLE, and Porter's Five Forces, illustrating their use with examples from companies like Premier Inn, British Airways, and Britannia Hotels. It further discusses the implementation of strategies, emphasizing the significance of employee coordination and the continuous efforts required to improve service delivery and customer experience. The analysis underscores the importance of adapting to both internal and external factors to achieve a competitive advantage and ensure sustainable business operations in the dynamic hospitality environment. Desklib provides access to similar essays and resources for students.

Strategic Hospitality
Management

Contents
INTRODUCION........................................................................................................................3
MAIN BODY.............................................................................................................................4
ESSAY.......................................................................................................................................4
CONCLUSION........................................................................................................................12
REFERENCES.........................................................................................................................13

INTRODUCION
Tourism and hospitality sector are one of the largest industry or sectors in existing
business environment. For instance, it includes all the business organisations engaged in
providing hospitality services to customers including accommodation, lodging, Food &
Beverages, etc. In addition to that, Tourisms revolves around attraction towards places,
activities, organised events, etc. which attracts customers from all around the world.
Corporate strategy is determined as planning towards accomplishment of desired goals and
objectives of a business organisation. Strategic management is referred to a meaningful
process of setting up of objective, procedures, strategies, and goals in order to attain a
competitive advantage out of the same. This report essay will be comprised of insightful and
essential knowledge of strategic management in context of hospitality industry (Lynch,
2018). Furthermore, it will be including understanding of various models and theories related
to the determined topic or subject matter. It will be highlighting critical analysis of strategic
management process and will further determine issues and challenges that could arise in
implementation of these strategies into workplace. In this project example of Air BnB airlines
company is taken into consideration which is a major vacation rental company of United
States of Ameriica. The CEO of AirBnB is Brian Chesky and its headquarters are located in
San Francisco, California, United States. It is a company that operates an online marketplace
for lodging, primarily homestays for vacation rentals, and tourism activities. This report also
includes example of Premier Inn hotel, Britanica hotel, British Airways and Virgin airlines to
understand key business models.

MAIN BODY
ESSAY
Corporate strategy is the term used to denote consideration of particular techniques or
practices in order to create value and developer USP. For instance, corporate strategy is
observed in Air BnB organisation which further facilitates in capturing or acquiring higher
market share with implementation of determined strategies. In addition to that, corporate
strategy revolves around aims and objectives of company as it involves development of
specific techniques and practices in order to accomplish these determined goals and
objectives. Moreover, the basic in general corporate strategies include organisational growth,
stability, and further expansion of the same.
Referring to hospitality industry, corporate strategy plays a primary and major role in
carrying out business operations and activities. For instance, the primary and major of these
strategies include building the franchise, attaining operational excellence, enhancement of
customer value, etc. Management representatives in business organisations operating in
hospitality industry are determine that consideration of each and every aspect of factor that
result in impacting upon business operations and activities in development of desired
strategies (Ansoff, and et. al., 2018). Moreover, these factors and aspects associated with
tourism and hospitality industry include innovation, internal marketing, value proposition,
customer relationship management, etc.
According to Anastasia Belyh, 2019, In order to develop successful wonders, there is
a need for a well-made plan where is Defines and determines operations and practices we
carried out for the same. Strategic management is a very huge and wide concept which
includes decision making those further influences and affects functional units of a business
organisation. In addition to that, the formulation of corporate strategy initially starts with
defining the organisation as well as environment in which it operates including target market,
customers, products and services offered, and other aspects. All these aspects further
facilitate in defining organisation end environment in in which it operates. In addition to that,
the succeeding step comes in is determined as defining this strategic mission which a
business organisation wants to achieve in near future. Moreover, it includes somewhere
indication to long term vision, primary and foremost values, market position of business, etc.
After defining the missions, setting up objectives comes in place as further step of
formulation of corporate strategy by Air BnB. Furthermore, after all these considerations the

actual strategies developed with consideration of most suitable and appropriate strategy
according to respected business organisation. Therefore, the develop strategy is further taken
into account for implementation and controlling practice in order to evaluate issues and
effectiveness associated with determined strategy (Steps to strategy Formulation, 2019).
Referring to hospitality industry, strategic planning is said to be significant and
essential as it facilitates in ensuring organisational growth and success. For instance,
development of strategies and implementation of the same in workplace result in being the
major reason behind completion of organised operations and activities in an efficient manner.
In addition to that, it further facilitates in providing and defining movement of business
organisation towards their success and growth with considerations of factors and aspects
impacting upon the same. Moreover, effective strategic management practices carried out by
business organisations operating in hospitality industry result in promoting tourism of that
place as it attracts higher number of customers and tourists from local as well as international
geographical location. Furthermore, effective strategic management is one of the influencing
factors of tourism in a geographical location which should be adopted by Air BnB
(Konovalova, and et. al., 2018).
There are various models associated with strategic management in hospitality
industry. For instance, the primary and foremost of these strategic management models
include SWOT analysis model, PESTLE analysis model, and Porter's Five forced model.
Beginning with SWOT analysis, this determined model is described as a analytical model
which facilitating identification and determination of internal factors that result in impacting
upon operations and activities of respective organisation. SWOT analysis is comprised of
four major classifications of factors including strength, weakness, opportunity, and threat. For
example, Premier Inn operates on large scale operations and activities with presence in
various different economic nations all around the world. Global presence and large-scale
operations is determined as strength of respective organisation. The strenghts are considered
as key approaches which helps a business entity to develop focused approach at the
marketplace. The major strengths of Premier Inn hotel also includes its marketing and human
resource management. The key weakness of Premier Inn hotel includes its operations and
front office departments whihc are unable to provide best customer experience. The
opportunities are considered as golden chances for the Premier Inn hotel which can increase
the profitability and revenue of the business firm. Growth and expansion at the marketplace
are two major opportunities available to Hotel Premier Inn. In order to take advantages of

available opportunities, it is essential for Premier Inn hotel to develop strategic and planning
framework. The competitors are one of the key threats for the hotel Premier Inn whihc helps
in increasing the chances of focused development approach. It is essential for Premier Inn
hotel to face all the threats in order to move ahead of its competitors like Holiday Inn, Hilton,
and Marriott hotel.
On the other hand, PESTLE analysis is another strategic marketing model which
deals in determination of external factors that could impact upon respective organisation. It
involves classifications of these factors including political, economic, social, technological,
environmental, and legal. For example, political instability is a political factor that could
impact upon respective organisation in a negative manner. If the example of British Airways
is taken into consideration then, the political factors like BREXIT and UK government policy
has impacted on its functioning in a major sense. The economic factors also impact on
functioning of British Airways in a major sense that includes key economic factors like
deflation, inflation and recession rates. If the social factors are taken into consideration then
traditions and culture of society of United Kingdom also impact on the working of British
Airways. The information and technology are two major dimensions whihc needs to be
covered by a business entity in order to lead the competition. The British Airways use
advanced computer systems and key software to perform major operations. Legal factors
include rules and regulations developed by local authorities in order to perform key business
operations in an ethical manner. The legal policy and framework developed by law is
followed by British Airways to develop legit business. Environmental factors include
environment policy of United Kingdom in order to develop and perform key operations. The
environmental policy of United Kingdom government should be followed by British Airways
to conduct sustainable practices.Furthermore, Porter’s five forces model is model or
framework comprised of 5 forces that could influence and effect market position of a
business organisation. It includes competition, bargaining power of players, bargaining power
of Suppliers, threat of substitutes, and threat of new entrants. For example, Britannia hotels is
engaged in operating in highly competitive business environment which has higher
bargaining power of customers that could impact upon respective organisation in a negative
manner (The Models Of Strategic Management, 2021).
Premier Inn is among leading business organisation operating in hospitality industry
based in UK. For instance, the segment of parent company Whitbread contributes a large
amount of overall revenue generated by the same. Tourism industry and the macro

environment has been determined as major consideration of respective organisation in
formulation of corporate strategy. In order to attract maximum customer base, respective
organisation invest every amount in advertising in marketing of production services offered
by the same. In In addition to that, management representatives in Premier Inn are aimed end
determined at serving quality products and services to customers by getting out their business
operations and activities. Pestle analysis has been taken into consideration by respective
organisation in order to analyse macro environment factors that could impact upon business
operations and activities.
In order to ensure effective implementation of the determined strategy into workplace,
management representatives of respective business organisation are aimed at maintaining
upright coordination and collaboration of employees in workplace. For instance, it includes
clarity in defining job role, delegation of authority according to roles and responsibilities,
clarity in reporting relationship, etc. In addition to that, management representatives engaged
in respective business organisation initiate additional efforts towards development of
strategies to be taken into consideration in order to be implemented in carrying out operations
and activities. Furthermore, it further facilitates in serving customers with products and
services offered by respective business organisation (Konovalova, and et. al., 2018).
Britannia Hotels in a UK based chain of hotels engaged in providing hospitality
services to their customers with enormous number of business units all around the world. For
instance, services provided by respective business organisation include accommodation,
lodging, F&B, Bar, etc. which could be consumed by their customers in order to get a
delightful experience out of the same. In addition to that, strategic management models are
taken into account by management representatives of Britannia hotels in development of
strategies with reference to outcomes of these models and frameworks. Moreover, all these
models of strategic management are based upon internal as well as external factors impacting
upon operations and activities of respective business organisation which further facilitate in
development of suitable strategies.
Referring to above mentioned information, Britannia Hotels, United Kingdom uses a
strategy of cost leadership in a view of maximising profitability with maximum share of
products and services offered by them. For instance, it requires effective employee
engagement and coordination in workplace in order to meet desired goals and objectives of
respective business organisation. Furthermore, operations and activities of respective

business organisation are primarily focused upon accommodation as well as F&B services in
their business units. Britannia hotels is about to introduce their additional concept of
travelling and tourism operations in order to introduce and ensure additional source of
income. Therefore, all these considerations further contribute additional values towards
implementation of desired strategies into workplace of respective business organisation
(Köseoglu, and et. al., 2019).
The formulation of ideal and suitable corporate strategies in hospitality industry
initially starts with determination of business organisation in particular classification of
business organisation. For instance, it will further facilitate in application of strategic
management models in an efficient manner with consideration of all relevant and applicable
factors. In addition to that, businesses in hospitality always looks after contributing maximum
values to tourism culture, hospitality industry, business environment, etc. by carrying out
effective and efficient operations and activities in their workplace. Furthermore, research
function plays a crucial role in development of strategies as it provides information regarding
upcoming market trends and customer preferences towards tourism and hospitality industry.
Businesses operating in tourism and hospitality sector are facilitated with opportunity of
getting ready with prior preparations and precautions regarding the same.
Referring to respective business organisations, i.e., Premier Inn and Britannia Hotels, UK, are
aimed at being among leading businesses in hospitality industry by contributing maximum
values towards the same. For instance, both of these determined business organisations are
aimed at consideration and use of strategic management models in process of development of
strategies for carrying out business operations and activities. In addition to that, outcomes of
application of these models facilitate in understanding the overall internal as well as external
scenario of business organisation and business environment. It results in contributing
additional values towards development of suitable and appropriate strategies according to
specific business organisation (Koseoglu, Law, and Dogan, 2018).
A business organisation operating in tourism and hospitality industry itself represents
and promotes culture of that particular geographical location. For instance, culture of specific
geographical locations results in influencing formation of corporate strategy for that business
organisation. In addition to that, mutual concern of workforce or common goal of the group
further facilitate in effective implementation of desired strategies in carrying out operations
and activities in workplace. It also facilitates a business organisation in being ready to face

potential future deviations and threats that could lead to degradation of efficiency and
productivity of respective business organisation. Furthermore, with effective teamwork and
adaptability, respective business organisations tend to implement developed and determined
strategies in their workplace.
According to Morten Dalum, 2020, strategic management is a meaningful and
significant process for each and every business, but still businesses observe various issues
and challenges in implementation of desired strategies in order to carry out operations and
activities in an efficient manner. For instance, primary and major of these issues faced by
majority of businesses include Weak strategy, insufficient workforce training, lack of
communication, unavailability or lack of resources, and lack of following through. All these
issues and challenges are generally experienced by business organisations in implementation
of desired strategies in their workplace. The author was aimed at contributing understanding
of the essential concept of strategic management in context of hospitality industry. Being one
of the leading industry or sectors with immense heights, there is a need to develop and
implement efficient strategies in order to regulate consistency in growth and development of
the same (The 5 Biggest Challenges to Strategy Implementation, 2020).
BCG matrix is a key approach which helps the organisation to develop key and
effective marketing operations. The BCG is considered as major planning tool which helpsin
increassing the graphical approach. BCG matrix is considered as key appraoch which should
be adopted by a business entity in order to lead the marketplace within a set period of time.
The application of BCG analysis is conducted for Air BnB company in order to know its
marketing planning coverage. The dog products in BCG focus on low market share products
and they have a minimum growth rate. The dog products of Air BnB requires major attention
of company's marketing management in order to increase their sales and increase the market
share. The cash cows are products of Air BnB includes focus on large market share and the
product are in low growth areas. The star products of Air BnB includes key focus on high
growth markets and large market share. The company should consider key approach in
making development of its products and services with innovation in order to increase their
profitability and revenue.
Referring to Premier Inn, the primary and foremost issues faced by respective
business organisation in implementation of determined strategies is considered as lack of
available resources in improvisation and enhancement of existing scenario. As the respective

business organisation operates upon large scale operations, fixed cost of Premier inn is quite
higher as compared to other competitor brand engaged in hospitality industry. Being a part of
large group, there is possibility and chances of potential conflicts among owners and higher
management officials of respective business organisation in necessary decision-making
procedures. Vertical integration has been taken into consideration by respective business
organisation which is aimed upon reduction in production or operating cost of operations in
workplace instead of horizontal integration which involves reduction and elimination of
competition in market. In order to prevent these issues and challenges, workforce engaged in
respective business organisation is aimed at initiating additional efforts towards completion
of determined operations as well as adaptation of required changes. Therefore, prevention of
these issues and challenges will allows Premier inn in maintaining higher market position
among various competitors in the market (Elfimova, and Radishauskas, 2018).
On the other hand, Britannia hotels in United Kingdom faces several issues in
implementation of determined strategies in workplace in carrying out operations and
activities. For instance, primary and major of these issues and challenges include
unavailability of sufficient and skilled labour, lack of resources, degradation of profitability,
etc. In addition to that, respective business organisation has a higher employee turnover
which impacts organisational growth and success in a negative manner. Furthermore, lack of
parking space in organisation premises is considered as lack of sufficient resources which
further impact upon attracting customers towards products and services offered by respective
business organisation in marketplace. In order to prevent these issues and challenges, heavy
investment in R&D and effective employee engagement has been taken into account by
Britannia hotels. Investing more in R&D department will provide respective organisation
with sufficient amount of information and knowledge according to their needs and
requirements. On the other hand, effective employee engagement will allow management
representatives in receiving various ideas and opinions of workforce which will further
facilitate in development or consideration of suitable and appropriate strategies to be
implemented in workplace of respective business organisation (Phillips, and Moutinho,
2018).
Effective strategic management plays a crucial and significant role in accomplishment
of organisational goals and objectives. For instance, it results in contributing various
additional values towards organisational success and growth in various areas of a business
organisation. An effective strategic management approach looks out for strengths and

weakness as well as other external factors impacting upon operations and activities of
respective business organisation. These factors and aspects further facilitate in development
of most suitable and appropriate strategies that further facilitates in maintaining efficiency
and productivity in workplace. In addition to that, each and every business organisation has
different needs and requirements of strategies in order to attain competitive advantage among
competitors as well as accomplishment of organisational goals and objectives (Altin, and et.
al., 2018). The Air BnB company should take into consideration hiring of professional and
expert employees in its strategic management team to gain desired results.
There are various effectiveness or advantages associated with effective strategic
management which include forces an objective assessment, provides a framework for
decision-making, allows performance management, provides a perspective to organisation,
etc. All these advantages or effectiveness associated with strategic management facilitates in
ensuring organisational growth and success. In addition to that, one of the primary reasons
behind consideration of strategic management lies in discharging of responsibility of board
towards workforce. Moreover, it creates an assessment of decision-making practises which
management representative need to undertake apart from routine operations and activities.
The representative engaged in management practises will contribute additional efforts words
thinking about future of respective business organisation with development of suitable and
appropriate strategies. Furthermore, models and frameworks related to strategic management
allows management representatives to understand the existing scenario of respective
organisation with business environment (Ribeiro, Vasconcelos, and Rocha, 2019).
Though, strategic management but result in being a bit costly and time consuming
what it results in contributing immense values towards betterment of respective organisation.
For instance, coping up with changes according to strategic management results in
improvisation and enhancement of flexibility in workplace with adaptation of necessary
changes. In addition to that, these benefits or effectiveness could be long term as well as short
term according to the needs and requirements of a business organisation. Long term benefits
of strategic management lie in contribution of additional values towards attaining determined
vision of business organisation. On the other hand, short term benefits of effective strategic
management lie in fulfilment of determined objectives or short-term missions offer respective
business organisation. Therefore, all these positive aspects further facilitating organisational
growth and expansion accomplishment of determine goals and objectives. Air BnB company

should focus on increasing the chances of strategic development by making appropriate
strategic choices.
CONCLUSION
From the above report essay, it could be concluded that effective strategic
management plays a crucial role in organisational success and growth. For instance, premier
inn is among leading business organisation which commonly faces issues including lack of
resources and availability of skilled labour in implementation of determined strategies in
carrying out their business operations and activities. On the other hand, Britannia Hotels in
London are one of the leading business organisations in hospitality industry in United
Kingdom which faces issues and challenges of insufficient parking space, profitability due to
cost leadership, and other issues. This particular report is aimed at providing understanding of
effective strategic management in context of tourism and hospitality industry. In carrying out
this particular report essay, I was provided with insightful and essential information and
knowledge regarding the determined concept of strategic management. It further facilitated
me in improvisation and enhancement of my research skills by acquiring information from
available sources of information. Furthermore, it allowed me to understand ethical and
authorised approach of effective strategic management to be implemented in a business
organisation.

REFERENCES
Books and Journals
Altin, M., Koseoglu, M.A., Yu, X. and Riasi, A., 2018. Performance measurement and
management research in the hospitality and tourism industry. International Journal of
Contemporary Hospitality Management.
Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R., 2018. Implanting
strategic management. Springer.
Elfimova, Y. and Radishauskas, T., 2018. Management of innovative activity in the field of
hospitality. In Sustainable development of tourism market: international practices and
Russian experience (pp. 57-59).
Konovalova, E.E., Yudina, E.V., Bushueva, I.V., Uhina, T.V. and Lebedev, K.A.E., 2018.
Forming approaches to strategic management and development of tourism and hospitality
industry in the regions. Journal of Environmental Management & Tourism, 9(2 (26)), pp.241-
247.
Konovalova, E.E., Yudina, E.V., Ukhina, T.V., Lagusev, Y.M. and Zvyagintseva, O.P., 2018.
Methodological approaches to development strategies for the tourism and hospitality industry
enterprises. International Journal of Engineering and Technology (UAE), 7(4.38), pp.277-
280.
Koseoglu, M.A., Law, R. and Dogan, I.C., 2018. Exploring the social structure of strategic
management research with a hospitality industry focus. International Journal of
Contemporary Hospitality Management.
Köseoglu, M.A., Okumus, F., Dogan, I.C. and Law, R., 2019. Intellectual structure of
strategic management research in the hospitality management field: A co-citation
analysis. International Journal of Hospitality Management, 78, pp.234-250.
Lynch, R., 2018. Strategic management. Pearson UK.
Phillips, P. and Moutinho, L., 2018. Contemporary issues in strategic management.
Routledge.
Ribeiro, M.L., Vasconcelos, M.L. and Rocha, F., 2019. Monitoring performance indicators in
the Portuguese hospitality sector. International Journal of Contemporary Hospitality
Management.
Online
Steps to strategy Formulation, 2019. [Online] Available Through:
<https://www.cleverism.com/strategy-formulation-guide/>
The Models of Strategic Management, 2021. [Online] Available Through: <
https://harappa.education/harappa-diaries/models-of-strategic-management/>
The 5 Biggest Challenges to Strategy Implementation, 2020. [Online] Available Through:
<https://acadal.com/the-5-biggest-challenges-to-strategy-implementation/>