Strategic Planning Report: Hilton UK Hospitality Industry Analysis

This report delves into strategic planning within the hospitality industry, using Hilton UK as a case study. It begins by defining various strategic options, including franchising, management contracts, joint ventures, and mergers and acquisitions, providing insights into their advantages and disadvantages. The report then critically analyzes factors affecting strategy implementation, such as leadership, structure design, information and control systems, and human resources. Finally, it describes the evaluation of different performance metrics, including critical success factors and key balanced indicators, essential for measuring and directing the success of any strategy. The report offers a comprehensive overview of strategic planning processes, providing valuable insights into the complexities of the hospitality sector and its strategic decision-making processes.

STRATEGIC PLANNING FOR THE
HOSPITALITY INDUSTRY

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Define the knowledge and understanding about the popular strategic options. .....................1
2. Critical analysis on the factors affecting the implementation of the strategies.......................3
3. Description on the evaluation on the differ performance metrics of the enterprise................4
CONCLUSION...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Strategic planning is process that organisational works as to define the strategy, direction
and management decision so that there can be possibility in terms to proper allocating the
resources to pursue the one effective strategy (Kerai and Saleh, A., 2017). Thus, organizational
leaders work as to determine the vision for future as well identify the goals and objectives of the
enterprise.
The present report is based on Hospitality industry as Hilton, UK. It is global leading
enterprise and engaged in terms to provide effective services to the customers. This is the entity
that provides effective accommodation facilities to its customers. With help of conducting the
organisation activities with the qualified services the all things can be undertaken in better
manner. In addition to this, present report will be inclusive of the following things as critical
analyse the factors affecting implementation of strategies and evaluation of different
performance matrix. Furthermore, the main aim of this report is to have the knowledge and
understanding about the strategies option of the enterprise. With help of successful planning, the
overall objectives of the enterprise can be achieved.
1. Define the knowledge and understanding about the popular strategic options.
The term strategic options are creative and one of the most alternative actions oriented to
the external situation in the enterprise. Thus, it can be said that it is identification, selection,
implementation of the firm long term goals and objectives.
Franchising- It is form of business in which the owner of the product obtains distribution
from the affiliated dealers. In this enterprise, operates its business function at various places. In
addition to this, it can be said that the Hotel Hilton is the part of portfolios of brands at Hotel
worldwide (Bergeron, 2017.). With help of it, they can successfully expand their operation
activities at the various place. This is also useful in terms to having expansion in the profitability
and productivity to the quoted enterprise. The one of core disadvantage of franchising is that
inflexible nature of franchise can restrict ability to introduce changes to business enterprise.
Furthermore, Franchises offers the independence of the small ownership supports by the
beneficial aspects of big business networks. In this, it can be said that they provide the certain
level of the independence where they can operate their business function in systematic manner.
The main source of Hotel Hilton is that this enterprise is operating their business functions
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successfully at the various places. The one of the beneficial aspect of the franchise is that product
and service has established the market share.
Management contracts- It is the kind of arrangement in which the operational control of the
business function is vested by the contract in separate enterprise that work as to perform the
necessary managerial functions (Liu and et.al.,2017). There is slight difference in the both
contracts as management contract and franchise contract that franchise contract is a licensing
contract as it pays the proportion of profits and also conducts certain business activities in an
argued manner. Thus, the management contract of the Hotel Hilton defined the agreement
between the management company and poverty owner in which the operator works as to assume
the responsibility for managing the property with help of providing the direction, supervision,
guidance through the expertise and established methods and procedure. This will be helpful in
order to carry out the things in entity in the systematic manner.
Joint ventures- This term can be defined as that hotel is owned by the wide range of the
customers from the individual to operate their business functions within the LLC and
subchapters. The Hilton gets connected with various businesses of the community and also work
as to provide the excellent services. Thus, it can be said that the Joint ventures might get the bad
reputation but they can also help to complete the projects with the lack of construction financing.
In this term, it can be said that bringing all the projects together as are site, project development
and management, brand selection, operations and equity capital all are essential elements in
terms to run out the operation in the effective manner. In this term, it can be defined as
strategical joint venture is one of business agreement between the two companies to work
together in order to achieve the one common goals.
Mergers and Acquisition- It is process that involves the process of combining the two
companies into the one manner. The main object of the merging two entities is to achieve the
set synergies. The improved economy of scale will be attractive in terms to purchase new
products in the greater quantities. This also need one of effective strategical planning. In this,
there are various organization management and that must have the use of set priorities, focus
energy, and resources. This all will be helpful in terms to strengthen the firm operational
activities and also ensures that employees and stakeholders are working towards the common
goals. The Hotel Hilton work as to acquire the merge and acquisition from the various enterprise
and for this they need to conduct their business activities in the effective manner. This is the
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process that also established the sequence in which those goals the organisation is enables to
reach its stated vision.
2. Critical analysis on the factors affecting the implementation of the strategies
The term strategy can be derived as plan of actinic that will be helpful in order to achieve
the common goal to the enterprise. Hence, it is essential to implement in the following manner as
are-
Leadership - The process of leadership can also have impact over the process of
strategical planning in the enterprise. There are number of the companies with the various strong
operational skill that works as to maintain the status Quo. The effective leadership helps to bring
the operational activities of the firm in the systematic manner. Without the effective leadership
the organisation cannot perform their duties in the systematic mode. In addition to this, it can be
said that the strong leaders will also help the hotel to maximize their productivity and put all the
working in the effective manner (Brewster, 2017). The good plan will be helpful in terms to
reach the one aim to the enterprise. In this term, it can be said that the effectiveness of the
enterprise is directly depends over the effectiveness of the leaders. In this term, it can be said that
the strategic planning is vital in terms to clarifying the organizational activities effectively. The
leader of the Hotel Hilton can bring long term productivity by conducting the each activities in
the well and organized manner.
Structure design- It is effective tool in terms to evaluate the function of the enterprise in
the effective manner. With help of formulating the proper structure of the all team they are able
to conduct the things in the more systematic manner. Thus, it can be said that the strong and
attractive research design will help to formulate the all the things in the systematic manner. In
this term, it can be said the attractive structure will help to enhancement in the brand image of
the enterprise. Lastly, it can be stated that organisational structure is essential for growing
companies in terms to provide guidance and clarity on the specific human resource issues. In this
term, it can be said that structure of the large organisation will be helpful in terms to design the
accommodation in the mos proper manner.
Information and control system- The manager of the Hilton need to timely distribute all the
information so that the operational activities of the enterprise can be conducted effectively. With
use of passing of the information to all the candidates the organisation can able to perform its
business activities in the systematic mode. Furthermore, effective strategical planning can be
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performed effectively in terms to influencing the performance of the enterprise. Thus, effective
business information system carries out the functions in support if the all operations, inclusive of
payroll, employee record stage, preparing and strong the document of the firm. This kind of the
activities will be helpful for the Hotel Hilton in terms to enhance the efficiency and improve the
productivity of the employees.
Human resource- The HR to the enterprise are backbone to the all working. They carry out all
business functions in the systematic mode. It is one of the systematic process that process as to
identifying the human resources to the enterprise for carrying out the past as well present activity
in order to achieve the one common goal. In this term. The Human resource planning should
serve as link between the human resource management and overall strategic planning of the
enterprise (Harvey and Sotardi, 2018). It is one of the practice that works as to attracting,
developing, rewarding retaining employees and it is beneficial for the individuals and
organisation as a whole. It is one of the effective term in order to improve the quality of work
experience and maximise the mutual benefit of employment for both. In addition to this, it can be
said that human resource manager are crucial terms that work as to process the business function
in the systematic mode. In this, it can be said that the human resource manager of the enterprise
is crucial part in order to carry out the all activities in the better manner. Thus, effective planning
all other activities are to be done with the help of proficient and effective human resource
managers so that things can be done in the better manner.
3. Description on the evaluation on the differ performance metrics of the enterprise.
Critical success matters- Strategic planning is one of the effective tool in order to conduct the
success to the enterprise. To frame strategic plans there can be road map for implementing and
managing the direction for the enterprise (Brewster, 2017). In addition to this, it can be said that
critical success factors are those areas that works as to achieve the mission, vision, goals and
objective of the enterprise. It is term that is useful in order to directing and measuring the success
of any strategy. Thus, there are fives source of the critical success factors and it has been defined
in the below presented manner as are-
1 The industry that is demand characteristics, technology employed product
characteristics all the the thing that helps to conduct the things effectively. This is
effective things in terms to cope up with the function of the enterprise.
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2 The competitive strategy and industry position of the business will be determined by
the history and competitive positioning in the industry segments.
3 It also will be helpful in order to get access to the environmental factors that affects the
competitor within the enterprise. With help of it, the influence can be noticed as are
demographic, economic, government and the legislative policies etc. These are those
business metrics that used by the corporate executives and other managers to track and
analyse those factors those will be crucial in terms to track and analyse the factors that
deemed to be crucial for the success of the enterprise.
Key balanced indicators- The company always adopt the thing as Key performance
indicators and this is designed in terms to manage the resources of the enterprise. It is effective
tool that provides a focus for strategical and operational improvements. This is one of the
effective terms that helps to perform the organisational activities in the most appropriate mode
(Liu and et.al., 2017). Furthermore, it can be stated that key balanced indicators are one of the
critical terms that helps to process business activities towards intended results. With help of it,
proper attention can be possible so that all things can be carried out in the proper manner. With
the use of tracking the overall performance of the enterprise the Hotel Hilton can be able to
process the activities of the firm in the efficient mode. The balance scorecard is the performance
metric used in strategic management that will be helpful in order to improve various internal
business functions. This is one of the systematic methods that is helpful to measure and provide
feedback to the enterprise. This kind of activities will be helpful in order to perform the things in
the appropriate manner. In addition to this, Hotel Hilton is focussing over the various things that
will be helpful to promote the things in well and organised manner. Under this, the average daily
rate is need to be considered in terms to used in the lodging industry. With help of it, average
rental income of the per month must be calculated in the given time period. In addition to this,
ADR along with the property occupancy are the crucial foundation that leader to bring effective
financial performance.
The key performance indicator can be find out with help based on the quality parameters of the
enterprise. The online ratings and occupancy this all are the factor that leads to change in the
enterprise. The key performance indicator of the enterprise can be known with the help of
measuring gain or loss that all generated on investment relative to the amount of money invested.
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In order to conduct firms profitability or with help of compares the efficiency of the different
investments the return on the investment can be identified.
The balance scorecard- This is one of the effective tool that helps use in strategic
management (Balanced Scorecard Basics, 2018). With help of it, there can be proper
identification and improvement in the various internal function of business. Thus, it can be said
that Hotel Hilton uses the Balance score card technique in order to measure and provide
feedback to the enterprise. It is strategical planning and management system in which the Hilton
will work as to accomplish the all things in the systematic mode. Furthermore, It is performance
metric system that uses by the strategic management in terms to identify and improve various
internal functions. In addition to this, it can be said it is one of the effective terms in order to take
the proper evaluation with help of it there is need to keep the proper track of the execution of all
the activities in the systematic manner.
The balance scorecard is management system that aimed at translating the organization strategic
goals into the set of performance objectives. In this term, it can be said that the balance scorecard
will be involving of the four set of strategic perspective and this defined in following manner as
are-
Financial- This is the term that will be inclusive of the things as are Return of capital employed,
Economic value added, sales growth and better cash flow system. Thus, this is one of the
effective approach in terms to carry out the function effectively.
Customer- This term can be derived as customer satisfaction, retention, acquisition, profitability
and market share all will be the core element in terms to process the activities in the systemic
manner (Harvey and Sotardi, 2018). With the help of balance score card system Hotel Hilton can
put their major consideration over the customers and their needs so that it can be full filled.
Internal business- It is term that includes the measurement along with internal value chain for the
terms as are-
Innovation It is one of the effective terms that will be helpful in terms to measure that how the
well firm identifies the future needs of the customers.
Operations- This is also one of the effective terms in order to measure the quality, cycle and
cost of the Hotel Hilton so that brand image of the firm can be sustained (Kunasri and et.al.,
2018).
Leaning and growth- This is also one of the effective term in terms to use the measurement for-
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People- This is helpful in order to maintain employee retention, training skill and morale.
System- With help of it there can be measurement in the availability of the critical real time and
this information needed for the front line of the staff of Hotel Hilton.
CONCLUSION
Based on the above report it can be concluded that strategic planning of the enterprise
will be helpful in order to set the all activities effectively. The present report is based on the
business activities of Hotel Hilton, UK, it is global leading brand. In addition to this, the report
will be inclusive of the things as are proper strategic options, number of the factors affecting the
implementation of the strategies and evaluation on term differed performance matrix. .
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REFERENCES
Book & Journal
Kerai, S. and Saleh, A., 2017. Applying the Balanced Scorecard to Improve Student Satisfaction,
Market Share and Profitability. AMR. p.27.
Bergeron, B.P., 2017. Performance management in healthcare: from key performance indicators
to balanced scorecard. Productivity Press.
Liu, D and et.al.,2017. Human resource systems, employee creativity, and firm innovation: The
moderating role of firm ownership. Academy of Management Journal. 60(3). pp.1164-
1188.
Brewster, C., 2017. Human resource practices in multinational companies. The Blackwell
Handbook of Cross‐Cultural Management. pp.126-141.
Harvey, H.B. and Sotardi, S.T., 2018. Key Performance Indicators and the Balanced
Scorecard. Journal of the American College of Radiology. 15(7). pp.1000-1001.
Harvey, H.B. and Sotardi, S.T., 2018. Key Performance Indicators and the Balanced
Scorecard. Journal of the American College of Radiology. 15(7). pp.1000-1001.
Kunasri, K., Panmanee, C., Singkharat, S. and Tansuchat, R., 2018, May. Forecasting of
Thailand and Myanmar Border Trade Value for Strategic Planning. In Proceedings of the
2018 International Conference on Computers in Management and Business. ACM.
Online
Balanced Scorecard Basics. 2018. [online] Available
through:<https://www.balancedscorecard.org/BSC-Basics/About-the-Balanced-
Scorecard>.
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