Strategic Planning for the Hospitality Industry: Assessment 1

This report provides a comprehensive analysis of strategic planning within the hospitality industry, using The Waldorf Hilton as a case study. It begins with an introduction to strategic planning and its importance, followed by a critical analysis of the hotel's strategic direction, including its mission, vision, values, and culture. The report then applies Porter's Five Forces model to assess the competitive environment, examining rivalry, the threat of new entrants, substitutes, supplier power, and buyer power. Furthermore, it conducts a critical assessment of both internal and external environmental factors, utilizing a SWOT analysis to evaluate strengths, weaknesses, opportunities, and threats, along with political, economic, social, and technological factors. The report then evaluates popular strategic options available to the entity, focusing on franchising and its benefits and limitations. The conclusion summarizes the key findings, emphasizing the role of strategic planning and the Porter's Five Forces model in achieving competitive advantages within the hospitality sector. The report also includes a list of references used in the analysis.

Strategic Planning for the
Hospitality Industry
Assessment 1

Table of Content
 Introduction
 Critical analyse of strategic direction of hospitality organisation
 Conducting Porter's five forces models analysis
 Critical assessment of internal along with external environmental factors
 Evaluation of popular strategic options of the entity
 Conclusion and future action
 References

Introduction
Strategic planning can be termed to management
practice of business that is utilised for setting
priorities, strengthening operations, emphasising
energy and resources. For understanding strategic
planning, The Waldorf Hilton is considered. It is a
historic hotel situated in Aldwych, UK. It is
surrounded by beautiful chandelier as well as
columns.

Critical analyse of strategic direction of
hospitality organisation
The Waldorf Hilton is an iconic hotel
which was built in 1800s. It is part of
Hilton Hotels and Resorts chain. It
boosts elegant and spacious rooms,
fitness clubs as well as a chandelier
restaurant.

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Mission: The mission statement of The Waldorf Hilton is to
become most hospitality entity in world through devising heartfelt
experiences for customers, positive impacts on society and
meaningful opportunities for staff members.
Vision: The vision of The Waldorf Hilton is to fill the globe with
warmth addition to light of hospitality. It is passionate for
delivering exceeding experiences to its guests.

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Values: In context to The Waldorf Hilton, its values are honesty,
enthusiasm, hard work, confidence and perseverance.
Culture: Since the establishment of The Waldorf Hilton, it is steeped in
British culture. As time changes, the company have adopted task culture
in which all its staff members works in team for addressing problems or
completing allotted tasks on time.

Conducting Porter's five forces models
analysis
Porter's five force model is
working of Michael E. Porter. It
is effective framework to
examine organisational
competitive environment.

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The forces of the model in relevance to The Waldorf Hilton are as
follows:
Rivalry among current companies: In hospitality sector, there are
various companies which competes against others and have created
high rivalry in industry.
Threat of new entrant: Competitive threat to business is not only from
current players within industry but also from new entrants in sector.

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Threat of substitutes: Substitutes are the offerings of company
which are used in place of other.
Bargaining power of suppliers: Within hospitality industry, there
are end number of suppliers that makes required resources
available for companies on demand.
Bargaining power of buyers: In hospitality industry, buyers are
the travellers or tourists that influences prices within the sector.

Critical assessment of internal along
with external environmental factors
Internal environmental factors:
These are elements that occur inside the
workplace of corporate. In context to
The Waldorf Hilton, internal
environment factors are assessed
through SWOT analysis.

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SWOT analysis of The Waldorf Hilton is as follows:
Strengths Weaknesses
 The Waldorf Hilton is working as customer oriented,
in this context the company offers effective customer
retention schemes to its clients.
 The major strength of the company from financial
point of view is its strong property portfolio.
Moreover, it has best performance management along
with appraisal systems within the industry.
 The major weakness of The Waldorf Hilton is its
dependence on limited market, Which limits
penetration or official presence in oversees market.
 The prices of the amenities and services of the hotel
are very high. Due to this, middle class people cannot
afford this, it covers only higher class people.
Opportunities Threats
 The opportunity of the company is it has market
expansion as a global. It has wide range of properties
with this.
 The main focus of the company is on research and
development. Its strong brand image over the years
saw the development of its portfolio of hotel.
 The biggest threats of The Waldorf Hilton is its
competitors like, Hongkong and Shanghai hotels,
Marriot international. They also plays in global
market with luxury facilities.
 One of the threat is terrorism and political instability,
as it deals with not only in country but outside the
country.

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External environment factors:
The factors which resides or occurs outside
boundaries of organisational workplace are
external environmental factors. External factors
which affect an organisation are categorised
into types.