Strategic Planning for the Hospitality Industry: Hilton's Report

This report provides a comprehensive analysis of strategic planning within the hospitality industry, specifically focusing on Hilton. It examines the factors influencing the successful execution of strategies related to human resources, leadership, structural design, and information and control systems. The report identifies and measures key performance metrics of Hilton, assessing their influence on business effectiveness. It delves into critical elements of strategic change management, including diagnosis and levers for change. The analysis covers Hilton's strategies in a dynamic environment, the impact of various factors on its operations, and the company's approach to maintaining a competitive edge in the global market. The report highlights the importance of adapting to change and the role of leadership in driving strategic initiatives. Overall, the report offers insights into Hilton's business strategies and provides a framework for understanding the complexities of strategic planning in the hospitality sector.

Strategic planning for the
hospitality industry

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
1) Critically examine the factors which are influencing successful execution of strategies on
human resource, leadership, structural design and information and control systems. ...............1
2) Examine and measure distinguish performance metrics of Hilton and how it influence
effectiveness of the business strategies. .....................................................................................3
3) Explain key elements such as, managing change, diagnosis, levers for change and etc. in
managing strategic change and leading of strategic change. .....................................................6
.........................................................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Business can grow and develop in the open market through strategic planning. It is very
essential to plan tactics by scanning the dynamic environment accordingly (Adeyinka-Ojo,
2018). Organization is able to compete with it's rivalry through strategic planning in the global
market. Strategic planning of the business need to be modified as per the changing environment
so that productive results can be attained easily in specific time duration. Hilton is selected for
the project completion. It is a American hospitality company founded in the year 1919. Conrad
Hilton was the founder of this leading hospitality business. This successful hospitality company
is suited in Tysons Corner, Virginia. This assignment covers factors influencing execution of
strategies of structural design, human resource, leadership and information and control system.
Numerous performance metrics is identified and how they affect business effectiveness is
studied. Critical evaluation of diagnosis, managing change, change agent and so on is done in
handling strategic change and leading types.
Main Body
1) Critically examine the factors which are influencing successful execution of strategies on
human resource, leadership, structural design and information and control systems.
Hilton is a leading American hospitality company serving it's best services to their
customers worldwide. This particular hotel has 923, 110 rooms in 113 countries . It is dealing in
hotels and resorts across the globe. Management of the hotel is keep eye on the dynamic
environment fluctuation so that strategic planning can be mould accordingly in the global
market. Hilton is top leading hospitality business and there are distinguish factors which are
either directly or indirectly affecting implementation of strategies on human resource, leadership,
structural design and information and control systems. In order to remain in the competitive
world top level management need to cope up with those factors which are affecting business
function to a large extent (Ali, 2018). In order to implement the strategies for the betterment of
human resource, leadership, structural design and information and control systems various
factors need to be overcomed. The critical evaluation of this factors are done in order to frame
strong and best tactics so that tough benchmark can be created for rivalry. The Influence of this
factor are illustrated briefly which are as follows:
1

Human resource: In the competitive market place there are various factors like,
technological advancement, workforce demographics, economic conditions and government
regulations which are influencing successful execution of strategies on human resource in Hilton
working premises. Due to which skilled and capable employees can not be retained for longer
time duration. All this factors gradually cut down the market value of the hotel due to which
customers are switching to other hospitality business who can full-fill their demand. Hilton
management need to frame policies in order to overcome this factors impact on day to day
business operation. Human resource the most valuable assets of organization. It is the priority
task of the organisation to work on the factors which are creating barriers in it. Negligence in this
decreases goodwill which is a negative mark for the business in cut throat competitive world.
Leadership: There are some factors which are affecting leadership of Hilton in the
working environment (Bouranta and Pantouvakis, 2017). Technology, sociological factor,
organizational culture, training and support are certain factors which influencing successful
execution of strategies on leadership. By this productive outcomes are not attained in the set time
duration. As well as assigned task are not properly accomplished in the set deadline according to
the requirement. Management of Hilton should conduct research and development work in order
to resolve this factors impact on business working conditions. Organization will face many issue
if this factors continuous to affect leadership at tremendous scale. Proper guidance can not given
to the employees at the time of completion of work. Due to which best and appropriate services
can not be given customers in the global market. Additionally, hospitality business is unable to
cope up with rivalry prevailing in the open market place.
Structural design: Organization's structural design is influenced by many factors such
as, strategy, environment, size of the organization and technology. The influence of this factors
varies from organization to organization. Influence of the factors on structural design varies
according to the type of business functioning in the market. In the global market all this factor
influence successful implementation of strategies on structural design to a large extent in
negative manner. It raises capable staff members turn out ratio due to which overall workforce
efficiency reduces immediately. However, chances of closing down of business raises more from
the international market. Employees work in an organization if they provided smooth and calm
working environment. It is essential to work on those factors which are decreasing their overall
working capacity (Buhalis and Leung, 2018).
2

Information and control systems. Nature of the operation and their divisibility, people
perception, laws and regulations and responsibilities in a company are some of the factors that
are directly or indirectly impacting successful implementation of strategies on information and
control systems. Hilton is providing adequate training to their employees so that business can
overcome from this factors easily. Strategies are modified according to the dynamic environment
so that information and control system work can be performed smoothly without facing any kind
of difficulty. In order to survive and sustain in the global environment it is essential to work on
the factors impacting information and control systems.
2) Examine and measure distinguish performance metrics of Hilton and how it influence
effectiveness of the business strategies.
Business metrics is said to be one of the crucial approach that helps in identifying number
of quantifiable measures, which may aid business organisations in tracking the overall process
and to take number of decisions as well. Including this, it has been analysed that business metrics
stays enclosed with company, employees, consumers along with the investors as well that aid in
managing the performance in much effective and in efficient manner as well. Including this, it is
said that for every single area in which the company like Hilton is operating consists with
number of performance related business metrics (Camilleri, 2018). On the other hand, it is also
said that performance metrics is a crucial tool that lead a company towards success. Therefore, it
is vital for every single business company needs to determine all the different factors, so that
they could gain competitive advantage. Away with this, it has been found that it is particularly a
reason that mainly identifies various factors that aid in analysing the performance. If it is talked
about Hilton, then this is particularly carrying number of metrics that may become able to reach
to success level and all these are presented underneath:
Critical Success Factors (CSF): This is being considered as one of the crucial
management tool, which may aid Hilton to attain it's desirable goals and achieve mission as well.
Here, if it is talked about Hilton the this hotel is specifically holding a number of success factors
and all of these are presented underneath:
 Global Outlook: This is one of the crucial critical success factor for Hilton because, this
would directly aid in competing at the international level where company has considered
as effective approach because this is where Hilton tried to grab the attention of customers
at the time of vacations.
3

 Profitability: This is being another success factor that Hilton is holding at present where,
company focuses on getting the best profit out of all the service they have offered to the
consumers. This is where, Hilton mainly puts an aim to enhance the profit margins
through improvising existing services that they are offering to consumers (Secchi and
Verma, 2018). Including this, it is also said that organisation also grabs the attention of
public through developing a number of strategies, which may aid firm in meeting new
targets.
Evaluation of the success factors in terms of business strategies: Considering the
above elements it can easily be said that Hilton mainly develops number of factors, which may
aid all the business functions of Hilton in working in a much more appropriate way towards a
particular goal. On the other hand, it has been found that most of the time all the critical success
related factors offers right direction towards success.
Key Performance Indicators: This is specifically being considered as a crucial
indicator, which aid in measuring values that Hilton is holding within the international and
national market. Away with this, it is also said that this is something, which facilitates Hilton in
comparing performance with other business organisations in the same industry. Some of key
performance indicators of Hilton are presented underneath:
 Employee Performance: It is said that cost of labour is not only related with the salary
of the employees which they are being given but even it also includes several expenses
which is based on the performance of employees (Dimitropoulos, 2018). It is needed to
understand that performance is analysed on the basis of obtained result where it mainly
includes speed of services and many more. In simple words, it gives the idea to the
employees of Hilton that how they are required to perform to manage their performance.
 Average Daily Rate: It is mainly used for the purpose of calculating the charges which is
needed to be charged from the guest who visits the hotel. The average daily rate of the
room is needed to be calculated on the basis of total revenue and number of room
available in the Hilton Hotel. It even gives the opportunity to evaluate the past
performance .
Evaluation of KPI in terms of effectiveness of business strategies: In any of the
business organisation, any of the strategies can be formed effectively on the basis of performance
shown by the employees which directly helps to accomplish the goals of an organisation. Every
4

time rates of room are calculated on the basis of monitoring and according to that rates are
decided by the management of Hilton Hotel. In simple words, it helps company in the
formulation of effective plans and policies through which effective results can be obtained.
The Balanced Scorecard: It can be defined as the business tool which simply explained
that how internal performance of the organisation can be improved in limited time period with
the help of effective communication process (Peters and Kallmuenzer, 2018.). It discussed that
where company is required to reach and how they can be done. In addition, feedbacks can be
obtained by the business organisation which is help to uplift the performance. Some of the
perspectives which are being followed by the business organisation like Hilton are explained
below:
 Financial: It is one of the crucial components which will allow Hotel Hilton to determine
that how they are performing within the market on the basis of financial performance.
Some of the expenses which are needed to be included by the Hotel Hilton over here is
salary being provided to staff, charges that occur at the time of purchasing the cooking
products and equipments. By looking at all of the expenses they can form the policies.
 Customers: The main thing which is needed to be focused over here is that how
management of Hilton can manage all of the work to satisfy the customers (Kariuki and
Ochiri, 2017). Some of the services which they will focus to form any of the strategy is
satisfaction of the guest, delivering the necessary services to the customers. At the time of
formulating the strategy they will be able to decide where changes are required.
 Internal Processes: In this, the management of Hilton will look for information system,
employees capabilities and many more. According to that they will form the plans and
polices and even improvement can be done easily.
 Organisational Capacity: The area which is needed to be focused is human resources,
infrastructure and many more. For the purpose of improving the performance, it is
necessary that management of Hilton Hotel must adopt latest technologies for better
result.
Looking at all of the different performance metrics, it will be crucial for Hilton to adopt
balance scorecard as it will try to identify each and every area before the formulation of any of
the strategy (Sehitoglu and Köseoglu, 2017).
5

3) Explain key elements such as, managing change, diagnosis, levers for change and etc. in
managing strategic change and leading of strategic change.
Strategic change is illustrated as procedure of handling and tackling change in an
organization. In competitive world there are various ways through which business or
organization can easily manage and lead strategic change. However there are numerous leading
change prevailing in the market which are, reconstruction, evolution, adoption and
reconstruction. Hilton need to examine key elements like, change agents , diagnosis, managing
change and so on in order to make necessary improvements in the loop holes (Metaxas and
Koulouriotis, 2019). The points are showcased below:
Diagnosis: It refers to as discovering problems faced by company and to understand the
root cause of them so that solution can be designed accordingly. It is important for Hilton to
diagnosis so that better results can be identified for the problems prevailing in the premiss. By
this positive working environment can be provided to the employees. Which helps in meeting set
objectives in set time duration. If diagnosis is not done then best outcomes are not attained as
well as tough challenges are not created for rivalry. Hospitality business can survive and sustain
in the market only if diagnosis is done appropriately and lead by adopting them.
Change agent: In the global market change agent is described as an individual who
supports and promotes change in an organisation. They are the one who motivates and convince
other to adopt change easily as soon as possible. Hilton is able to bring change in the working
premises due to the change agent. They are capable enough in managing and handling changes
taking place in the working premises. Change agent lead changes in the hospitality business by
adopting them in the company and ensuring the benefits of change among staff members
(Moutinho and Vargas-Sanchez, A. 2018).
Managing change programmes: In an organisation it is illustrated as procedure of
planning and executing change in the working premises in order to cut down the staff members
resistance to a large extent. Hilton is evaluating this key element in order to successfully execute
the change at workplace. By this chances of creating tough benchmark for rivalry is raised which
is a positive mark for the business. Managing change programmes can be managed and lead by
reconstruction and adoption of strategic change. With the changes in the dynamic environment
managing change programmes also modified so that both employee and employer are benefited
6

in the intense competitive world. Hospitality business need to keep eye on the managing change
programmes so that large customer can be attracted towards the services provided by the them.
Levers for change: In this case, it is illustrated as strategy and condition which is
adopted to enhance business overall performance and revenue (Titomir and Danylova, 2018).
Organization nee to examine levers for change in order to raise profitability ratio as compare to
rivalry prevailing in the international market. Levers for change can be managed and lead by
revolution .
CONCLUSION
From the above discussion the conclusion drawn is that it is essential for organization to
focus on strategic planning. It need to modified as per the requirements in the global market.
Across the globe there are distinguish factors which are affecting business functions to a large
extent. Some of the business functions are human resource, leadership, information and control
systems and structural design. Factors impacting successfully implementation of strategies is
studied in order to identify best ways or methods to resolve them as soon as possible. This is
done because factors decrease the overall productivity of the business and cut down market
value. Evaluation of performance metrics is done to reduce the impact of effectiveness of
business strategies. By this set objectives can be attained easily. Brief explanation of key
elements like, managing change, levers of change, diagnosis in managing strategic change is
done in order to make improvements in the loop areas.
7

REFERENCES
Books and journals
Adeyinka-Ojo, S., 2018. A strategic framework for analysing employability skills deficits in
rural hospitality and tourism destinations. Tourism management perspectives. 27. pp.47-
54.
Ali, A. A., 2018. Strategic planning–organizational performance relationship: Perspectives of
previous studies and literature review. International Journal of Healthcare
Management. 11(1). pp.8-24.
Bouranta, N., Psomas, E. L. and Pantouvakis, A., 2017. Identifying the critical determinants of
TQM and their impact on company performance: Evidence from the hotel industry of
Greece. The TQM Journal. 29(1). pp.147-166.
Buhalis, D. and Leung, R., 2018. Smart hospitality—Interconnectivity and interoperability
towards an ecosystem. International Journal of Hospitality Management. 71. pp.41-50.
Camilleri, M. A. ed., 2018. Strategic perspectives in destination marketing. IGI Global.
Dimitropoulos, P. E., 2018. Profitability determinants of the Greek hospitality industry: The
crisis effect. In Innovative Approaches to Tourism and Leisure (pp. 405-416). Springer,
Cham.
Kariuki, S. N. and Ochiri, G., 2017. Strategic succession planning strategies on organizational
productivity: A case of Githunguri Dairy Cooperative Society. International Academic
Journal of Human Resource and Business Administration. 2(3). pp.179-200.
Metaxas, I. N., Chatzoglou, P. D. and Koulouriotis, D.E., 2019. Proposing a new modus
operandi for sustainable business excellence: the case of Greek hospitality
industry. Total Quality Management & Business Excellence. 30(5-6). pp.499-524.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Peters, M. and Kallmuenzer, A., 2018. Entrepreneurial orientation in family firms: The case of
the hospitality industry. Current Issues in Tourism. 21(1). pp.21-40.
Secchi, E., Roth, A. and Verma, R., 2018. The impact of service improvisation competence on
customer satisfaction: Evidence from the hospitality industry. Production and
Operations Management.
Sehitoglu, Y., Ross, G. and Köseoglu, M. A., 2017. Business ethics research in the hospitality
industry: topics, methods and trends. International Journal of Bibliometrics in Business
and Management. 1(1). pp.80-96.
Titomir, L. and Danylova, O., 2018. Investigation of backgrounds for the innovative
development of the hospitality industry in various regions of Ukraine. Technology audit
and production reserves. 4(2 (42)). pp.16-23.