Strategic and Tactical Management Report: Hyatt Australia Case Study

This report presents a strategic and tactical management analysis of Hyatt Australia, a prominent player in the hospitality industry. The analysis begins with an executive summary outlining the objectives of enhancing market share through effective managerial decisions. The introduction provides b...Read More

Hospitality management simulations

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Executive summary
The strategic management is all about the constant planning, analysis, observing and
assessment of which is required to meet goals and objectives. This report defines the strategic
and tactical management of Hyatt, Australia which is necessitated to enhance market share.
The managerial decisions of the Hyatt have been informed by making use of the two
theoretical platforms such as Pestle analysis and Porter’s five forces analysis.
In the end, it can be concluded that the theoretical models can help Hyatt to position itself in
the market along with increasing market share.

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Contents
Executive summary....................................................................................................................1
Introduction................................................................................................................................3
Findings......................................................................................................................................3
Pestle analysis.........................................................................................................................4
Porter’s five forces analysis....................................................................................................5
Conclusion..................................................................................................................................6
Recommendations......................................................................................................................6
References..................................................................................................................................7
Appendices.................................................................................................................................8

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Introduction
Hyatt, Australia is a five star brand within the Elite. Hyatt is having the business of
the hotels belonging to the world group. All the hotels of this brand are first-class properties
contributing to 200-2000 exclusive rooms. Hyatt offers its guests with the highest
prominence of renovate and values. The brand pursues to distribute on the promise of
assessment and eminence above all. Hyatt is having a good position in the community and
cooperates to develop associations and defends background. This report assesses data in order
to inform managerial decisions.
Findings
Hyatt hotel is extensively recognized, leading brand and follows to the tradition of
innovation. The brand owner, develop, manage, operate, franchise, license and offer services
to a collection of properties. The hotels and resorts work under 7 reputable brands, Park
Hyatt, Hyatt Regency, Grand Hyatt, Hyatt, Hyatt centric Andaz, and The Unbound Collection
by Hyatt. The general managers of the hotel are proficient professionals in the hospitality
segment with the wide hospitality experience in the native markets and host nations. The
overall managers of the brand are authorized to run properties on a sovereign basis by making
use of the market knowledge, expertise, and understanding of the brands. Hyatt mainly
derives its proceeds from hotel procedures, management, and franchise fees. The brand is
likely to generate other revenues from the succeeded and franchised properties. Hyatt has
attained strength in the form of a world-class brand, global platform with convincing growth
potential and experienced management teams. The brand follows the tactic of preserving the
applicable levels of financial leverage by the industry cycles and economic downturns. The
hotel is exclusively positioned for taking gain of the strategic prospects to attain properties
and capitalize on new segments of the business. Hyatt abides by formal investment procedure
in assessing prospects with the input from the several groups within the international
association (Mallen & Adams, 2017).
The hotels are situated mainly in the key markets compromising chief trade centers and
leisure destinations with robust growth capability like Chicago, London, Paris, New York,
Seoul, Miami, Australia, and Zurich. Hyatt believes that its owned assets offer the
opportunity to assist evolution by the temperament of the designated assets to fund
developments of the central business. The hotel has also attained opportunity to reveal added

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shareholder value which offers new ways for growth (Meyer, Neck & Meeks, 2017). On the
other side, Hyatt, Australia makes use of the strategy to pursue long term sustainable
development and generate value for the co-workers, customers, and shareholders by focusing
on the concerns like:
 Maximization of the core business: Hyatt will endure to grow and route Primary
Corporation to the best of the capability to be best in class at the time of making
proceeds to fuel growth.
 Incorporate new growth stands: Hyatt is recognizing new breaks and areas to invest so
that guests care about the organization and offer further methods for the advancement.
It includes wellness and substitute lodgings.
 Enhance capital disposition: An inclusive and disciplined approach has been
undertaken to deploy capital comprising marketing a portion of owned properties. It
enables the organization to capitalize on the new platforms and yield maximum
capital to the shareholders (Zhao, Fisher, Lounsbury & Miller, 2017).
The strategic management of Hyatt includes the following:
Pestle analysis
Political factors: Hyatt hotel, Australia manages its business with various laws and politics
like tax policies, trade policies, VAT policies, health and safety laws, fire safety act, and civil
right act, major policies on the food and service quality. Such policies and guidelines are
strictly followed and checked. Hyatt, Australia is subjected to heavy penalties if any of the
policies or guidelines are disobeyed. The hotel supports the lesbian and gay equality among
the progressing censure of conference arranged by controversial anti-gay marriage activists
the Australian Christian Lobby.
Economic factors: The environmental factors have a great role in keeping Hyatt floating in
Australian hospitality. The factors affecting Hyatt in the Australian hospitality sector are easy
access to loans, stock exchange rates, government spending, unemployment and inflation
(Arif, & Hossin, 2016). The recession and inflation took place in the last 10 years have
affected the business of Hyatt. So the hotel develops strategies in order to overcome such
adverse conditions. Hyatt has been greatly benefitted by the tourism trend in the Australian
economy.

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.
(Budget Direct, 2019)
Social factors: The social factors affecting to Hyatt, Australia are social mobility, lifestyle of
people, ethnic and religious differences. Hyatt is a robust brand and having a great number of
segmentation and target markets like Sydney, Melbourne, Adelaide and more. The hotel
checks out time to time whether its services fit for the religious people or not. The hotel
industry trends in Australia can be identified with the graph given below:
(Australian Government, 2019)

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Technological factors: The technology challenges in the account of Hyatt include changing
technology on a regular basis, investing money in research, and innovating new products for
the industry. The hotel depends more on the technology and innovative products for the guest
based on the hospitality industry (Engert, Rauter & Baumgartner, 2016).
Legal factors: The legal factors comprise the legislation employed in Australia like
competition, employment law, trading policy, health and safety laws. The hotel is greatly
influenced by such laws and monitors due to the existence of the strong authorities. The
personnel of Hyatt has strong voice as they are regulated by the labor law and polices in
Australia.
Environmental factors: Hyatt is using the latest technology and equipment in order to put
less harmful impact on the environment such as green supply chain, hospitality operations,
hospitality management and strategy for saving environment. Hyatt is already adopting
environment-friendly instruments for less pollution (Bryce, 2017)
.
Porter’s five forces analysis
The power of the suppliers is low in the case of Hyatt as several of them are in the
form of people with the organization already. The low power of the suppliers does not
influence to the profit margins of the hotel (Ansoff, et al. 2018).
The bargaining power of the customers is extending in Australia on a regular basis
and is high in the case of Hyatt Australia. The customers have more power to buy or see
another option for the cheap and better quality. Whenever the customers stay in Hyatt and
have occurrence of un-satisfaction then the associates are likely to take opportunity to really
take care of the customers.
The new entrants are a force to keep the Hyatt at the same level. The threat of the new
entrants is low in the case of Hyatt as there are several brands in the marketplace already. So
the new company faces fewer gaps to enter the market (Frynas & Mellahi, 2015).
There are several competitors in the Australian hospitality so the threat of substitutes
is high for the hotels like Hyatt. The customers are having several options so they do not
easily get satisfied in the case of service and quality. So they tend to shift to other hotels
easily.

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The power of the competitors is increasing on a regular basis and Hyatt, Australia is
struggling with the competitors to take stand in the hospitality sector. So the threat of the
competitors is high for Hyatt. On the other side, there are several international players
waiting to conduct their business in the Australian hospitality (Hitt, Ireland & Hoskisson,
2016).
Conclusion
From the above analysis, it can be determined that Hyatt is having substantial market
share worldwide. The steps taken by the hotel are capable enough to attain a large market
share by making use of its financial and economic data. The theoretical model like Pestle
analysis helps to identify the significant factors of the host countries. It is quite helpful in
expanding market share. On the other side, five force analyses can quite helpful in knowing
the current market conditions of the concerning industry.
Recommendations
Hyatt is recommended to build smart by working closely with the stakeholders. It is
quite helpful to improve the focus on constructing more efficient and competitive enough
across the organization. The new constructions were done by the hotel anticipated following
improved sustainable design guidelines (Aguinis, Edwards & Bradley, 2017).
Hyatt is recommended to innovate and inspire. The hotel will also form a funding
mechanism to assist the innovation, ideation, and spurt of sustainable solutions. It can
replicate across the portfolio of the organization as well as the extensive hospitality industry.

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References
Aguinis, H., Edwards, J. R., & Bradley, K. J. (2017). Improving our understanding of
moderation and mediation in strategic management research. Organizational
Research Methods, 20(4), 665-685.
Ansoff, H. I., Kipley, D., Lewis, A. O., Helm-Stevens, R., & Ansoff, R. (2018). Implanting
strategic management. Springer.
Arif, T. M. H., & Hossin, M. Z. (2016). A comparative analysis of internal and external
environments between Hotel Hyatt, UK and Hotel The Cox Today, Cox’s Bazar,
Bangladesh. IOSR Journal of Humanities and Social Science, 21(6), 13-22.
Australian Government (2019). Hotel Industry Trends. Retrieved August 28, 2019 from
http://www.tourisminvestment.com.au/en/research-insights/hotel-performance.html
Bryce, H. J. (2017). Financial and strategic management for nonprofit organizations. Walter
de Gruyter GmbH & Co KG.
Budget Direct (2019). Australian Tourism Statistics, 2019. Retrieved August 28, 2019 from
https://www.budgetdirect.com.au/travel-insurance/research/tourism-statistics.html
Engert, S., Rauter, R., & Baumgartner, R. J. (2016). Exploring the integration of corporate
sustainability into strategic management: a literature review. Journal of cleaner
production, 112, 2833-2850.
Frynas, J. G., & Mellahi, K. (2015). Global strategic management. Oxford University Press,
USA.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management: Concepts and
cases: Competitiveness and globalization. Cengage Learning.
Mallen, C., & Adams, L. J. (2017). Event management in sport, recreation and tourism:
theoretical and practical dimensions. Routledge.
Meyer, G. D., Neck, H. M., & Meeks, M. D. (2017). The entrepreneurship‐strategic
management interface. Strategic entrepreneurship: Creating a new mindset, 17-44.

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Zhao, E. Y., Fisher, G., Lounsbury, M., & Miller, D. (2017). Optimal distinctiveness:
Broadening the interface between institutional theory and strategic
management. Strategic Management Journal, 38(1), 93-113.

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Appendices
(Porter’s five forces)