Strategic Planning for the Hospitality Industry: LT6018GN Report

This report provides a comprehensive analysis of strategic planning within the hospitality industry, focusing on the Ace Hotel London Shoreditch as a case study. It critically examines the factors affecting the successful implementation of strategies across four key business functions: leadership, structural design, information and control systems, and human resources. The report then evaluates the different performance metrics, including critical success factors, key performance indicators, and the balanced scorecard, and how these metrics affect the effectiveness of business strategies. Finally, the report critically assesses key elements in managing strategic change, including diagnosis, change agents, managing change programs, and levers for change, along with leading types of strategic change such as adaptation, reconstruction, revolution, and evolution. The analysis provides valuable insights into the complexities of strategic planning and change management within the hospitality sector.

STRATEGIC PLANNING
FOR THE HOSPITALITY
INDUSTRY

Table of Contents
STRATEGIC PLANNING FOR THE HOSPITALITY INDUSTRY............................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Critically analyse the factors affecting the successful implementation of strategies on the
following four business functions...............................................................................................3
2. Analyse and evaluate the different performance metrics of your chosen organisation and
how this may affect the effectiveness of the business strategies?...............................................6
3. Critically evaluate key elements (Diagnosis, change agents, managing change programmes
and levers for change) in managing strategic change and leading types (Adaption,
Reconstruction, Revolution and Evolution)of strategic change..................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The hospitality industry is also considered as the service industry in which the
organizations provides various services to their customers and their employees. In this the
services are provided in the form of food, drinks, parking facilities, theme plannings, event
management, travelings, transports, tourism etc. All these facilities provided to the customers
are considered to be hospitality done by the organization fort their employees. The hospitality is
depended on the disposable income and the leisure time. The organizations obtain the
satisfaction of their customers by providing those goods and services which satisfy the needs and
wants of the customers.
The Ace hotel London Shore ditch is the hotel chain which have headquarter in the Los
Angeles, California. The hotel industry was founded in the year 1999 by Alex Calder wood,
Wade Wei gel, Doug Herrick. The hotel industry is] located in 9 different countries.
MAIN BODY
1. Critically analyse the factors affecting the successful implementation of strategies on the
following four business functions.
Ans- The factors which affects the successful implementation of the strategies on the business
functions as follows:

 Leadership
The leadership is very much necessary in all the organization. The successful business is
made only if the business activities and the employees of the organization are working under the
guidance of effective leader. The Ace hotel London shore ditch was having many leadership
qualities which were used in making successful implementation of the strategies were the
employees of the hotel were very hardworking(Pratt, and et.al., 2016). The employees were
provided with various training and development sessions which helped them a lot in managing
all the activities and work of the hotel which satisfy the needs and wants of the customer. The
core values of the hotel which was to provide all the necessary services to their customers which
will be helpful in making strong customer base. There was an strong communication between the
team leader and the employees working in the hotel which was helpful in solving the problems
and issues of the hotel quickly. The effective communication also helped to improve the services
provided to the customer and connect more effectively with the customers. The leaders of the
hotel industry were focusing on increasing the learning capabilities of their employees. The
employees were involved in many business activities which were played in the practical life.
These business activities helped a lot in increasing the experience and learning's of the
employees. The employees were having a balance in their work life which made them more
motivated towards achieving the goals and targets of the hotel.
 Structural Design
The design of the structure of Ace hotels London Shore Ditch was made according to
architectural history. The hotel consists of the warehouses, residential and industrial buildings
and the shops which were included in the structure of the hotel. The hotel was made up by the
traditional bricks and the raw material used in the building the structure of hotel was also
traditional and used in the ancient times. The use of dark engineer brick made in the building the
hotel. The reason was that these bricks more stronger and gives completely different look from
the other buildings which are made up from the normal bricks. The hotels was using the urban
fabric in designing the furniture's of the hotel(González-Rodríguez, and et.al., 2018). This was
done to make the culture and rituals of the organization alive in the market. The customers also
feels a homely atmosphere in the hotel during their stay. The customers were giving a positive
feedback for the fabric used by the hotel in the formation of the furniture. The building of the
hotel was having a rich mixture of the texture used by the builders in the building the hotel. The

use of unglazed and glazed patterns in the formation of the building was making an different
image of the hotel in the market. This pattern was not used by any competitor of the Ace hotels
London Shore Ditch.
 Information and control system
The information and the control system of the Ace hotels London Shore Ditch was
managed by the cloud based system. In this the hotel was sharing all the necessary informations
and their offerings to their customers by online services such as websites, google ads, you tube
video's etc. The information is shared by the strong support network which is build up by the IT
department of the organization. The IT department of the organization is highly skilled and the
employees working in the department are fully responsible for the control of business activities
in the hotel. The confidential information of the organization were kept protected and the
security for those informations was made by the IT department. These informations were kept on
the computer systems of the organization with high security(Ryan, C., 2015). The computer
systems of the organization were having the passwords which cannot be cracked by any
employee or customer of the hotel. The passwords used in keeping the information were changed
time to time so that any one cannot operate the and the length of the password was very long and
typical to understand by any employee or any person other than employees of IT department.
The cloud based system was featuring the PMS and channel mangers which helped in making
the online business fast and easy for the customer. This helped in making the bookings and
reservations online by sitting at the homes(Köseoglu, and et.al., 2015).
 Human Resources
The human resource system of the ace hotels London Shore Ditch was following all the HR
policies and procedures made by the HR department of the hotel. The hotel was hiring new
employees for the expansion of their business in the market. The candidates were given
employment on the basis of their skills and knowledge which will be useful in making the
successful business activities. The job were offered by analysing the specialty of the candidates
and their work experience in the previous organization. Each employee of the hotel was having
their own self - service portal in which they can upload their leaves and status of the work or task
assigned to them. This was helpful in maintaining a proper record of all the activities and the
performances of the employees in the hotel industry. The self service portal was an software
which was operated online by the employees of the hotel(Kao, and et.al., 2016.). The

management training and development sessions were provided by the hotel to their new
employees. In this the employees were provided with training session in which the employees
were trained by the expert so that all the working systems becomes clear in the mind of the
employee. The hotel was conducting the performance appraisal system once in a year in which
all the performances and duties played by every employee were evaluated. The hotel was using
360 degree performance appraisal system to judge the contribution of the employees in the
success of their business in the market.
2. Analyse and evaluate the different performance metrics of your chosen organisation and how
this may affect the effectiveness of the business strategies?
Ans. - The performance matrices used in the Ace hotel London Shore Ditch were as follows :
 Critical Success Factors (CSF)
The critical success factor was used to achieve the mission of the hotel which was to provide the
best services and facilities to their customers. The CSF was used by the hotel to make the
strategies and plannings to run the business successfully in the market. The goals and targets of
the organization were achieved by the of these strategies and plannings. The hotel was very well
aware about the success factors which can be helpful in making the profit in the business. These
factors were the price of the booking of rooms and tables for the lunch, dinner and break fast.
Prices were very low as compared with other hotel of the UK and US. This made an increase in
the number of customers in the hotel. The products and services offered by the hotel were
according to the background and culture of the customers who has visited the hotel. The
preferences of the customers were kept in mind before the offering of the product and services to
the customers. The hotel was already having many differentiated products and services which
were matching to the different taste and preferences of the customers. The quality of the services
provided to the customers was very high and the different from the other hotels of the UK. The
hotel was very well known for the unique services provided by them and in the year 2004, the
hotel started using all digital technologies for the expansion of their business and providing the
best services to their customers. The location of the Ace hotels London Shore Ditch was situated
in the pleasant and peaceful atmosphere where the customers can enjoy the view and beauty of
the nature. The location of the hotel was highly liked by their customers and according to the
survey and feedback it was found that the customers loves the beauty and architecture of the
hotel which was having an historical structure. This made them more attracted towards the hotel.

 Key Performance Indicator
The key performance indicator of the organizations was used to measure the performance of the
hotel as a whole. The organization was success of the hotel was measured by the activities of
their business, engagement of employees and the feedback received from the customers. The key
performance of the Ace hotel London Shore Ditch was evaluated by the online ratings and
reviews given by the customers who had visited the hotel. These ratings and reviews were posted
on the official websites of the hotel by which the customer can get all the information about the
services and facilities offered by the hotels. The percentage of occupancy in the hotel was also
one of the key performance indicator of the hotel. In this the shares and assets of the hotel were
distributed among their customers and other shareholders of the market. The employees were
getting the a good return on the shares purchased by them(Noone,and et.al., 2017). The
percentage of the customers who were occupying the shares of the hotel were not high in the
number, but the shareholders were getting a good return on the shares which helped them in
increasing the loyalty of their shareholders. The average daily rate of the rooms and other
services of the organization were very low and easily affordable by the customers of the hotel.
The customers of the hotel were getting the best and maximum facilities at the low prices which
made the tourism and traveling of the people more in the country. The affordable prices of the
hotel also increased the visit of customers from foreign countries in the UK and US. The revenue
generated in the hotel was distributed among their employees for the improvement in the
performances and for the development in the hotel. The developments were made in the
improvement of services and the infrastructure of the hotel(Wan, S. and Law, R., 2017).
 Balance Score Card
The balance score card for the ace hotel London Shore Ditch was used to improve the
internal business functions which helped in bringing the best outcome from the business
activities. The feedback and reviews given by the customers of the organization were measured
under the balance score card of the hotel. The data collected by the hotel was giving quantitative
result to the managers and other staff of the hotel. The balance score card was helping in
maintaining the financial and non financial activities of the hotel. The balance score card had 4
parts by which the business of the hotel was measured. These parts were as follows:
(I) Financial

The revenue earned by the organization is depended on the visit of each and every
customers and the spending done by them in the hotel. The revenue and the profits earned by the
hotel were based on the availability of the rooms in the hotel for their customers. The data points
were monitored by mangers of the hotel and the efficient space was used fully to provide the
customers with the more space and better experience(Deale, C.S., 2016).
(II) Customer
The hotel was focusing on the sentiments of the targeted market. The reviews of the customers,
results received from the survey's, retention of the customers, complaints filed by them regarding
the service and products offered by the hotel and the customers related data were measured by
the management of the hotel. The major aim of the hotel was to obtain the customer satisfactions
and the competitive advantage in the market.
(III) Internal Business Process
The internal business process of the ace hotel London shore ditch was including
the internal business activities such as the maintenance cost, quality metrics and the accidents
taken place in the hotel industry. The internal business process have directly impacted on the
earning per share and the net incomes of the hotel(Bowie, and et.al., 2016).
(IV) Learning and Growth
The learning's and growth of the business were effected by the training and development sessions
conducted by the mentors and old experienced employees of the hotel. The training provided to
the new employees must be accurate and should result in the development in the personalities of
the employees of the hotel(Pereira-Moliner, and et.al, 2015).
3. Critically evaluate key elements (Diagnosis, change agents, managing change programmes
and levers for change) in managing strategic change and leading types (Adaption,
Reconstruction, Revolution and Evolution)of strategic change.
Ans- Evaluation of key elements of Ace hotels London Shore Ditch:
 Diagnosis
The diagnosis of the hotel are made in the business activities and the processes of the
running of the business in the market. The tools used in the diagnosis of the hotel were focusing
on the individual aspect of the operations made in the business. The final result in the
performance of the business activities of the hotel is effected by the diagnosis tools of the

organization. The solutions and supports of the problems and issues arise d in the business are
solved by doing the diagnosis of the business of the hotel industry(Tracey and et.al., 2015).
 Change Agents
The change agents of the hotel industry are related to changing business strategies
according to taste and preferences of the customers which will be helpful in making bright future
of the hotel in the market. The changes made in the hotel were very much necessary for the
development of the business in the market. All the technologies used in the business and the
operations must be updated with the time. The hotel must be aware about the changes and the
techniques adopted by the competing hotels so that they came with a great competition in the
market.
 Managing change program mes
The changes in the program mes of the hotel were managed by the general manager of
the hotel. The general manager have the right ton make the changes in the policies and the
procedures of the hotel. These changes are allowed only if the HOD departments finds it
appropriate and beneficial for the future of the hotel. The changes can be related to the
management and the strategies of the hotel. The change made in the hotel leads to the change in
the business, profits and revenues earned in the market. The changes made in the program mes
also makes changes in the attitude and behaviour of the customers(Peters, and et.al., 2019).
 Levers for change
The levers for changes includes the 7 major parts by which the activities of the hotel were
managed. These parts were the frosting or making a contract with the changing advocates in the
business. This was helpful in building good contacts with the lawyers and advocates who can
help the hotel in doing the legal activities. The another was the use of the mass exposure and the
hiring of the experts whenever the hotel faces es any kind of problem in the organization. The
shift in the resistance also became a reason for the changing levers of the hotel. The
infrastructure which was needed by the hotel to make strong base and the giving the rewards to
the employees made a change in the levers of the hotel.
The leading types which effected the Ace hotel London shore ditch were as follows:
 Adaption

The hotel adapted all the changes made in the market which were effecting the business of the
hotel industry. These changes were related to change in technologies, taste and preferences of the
customers, shares market and the government policies.
 Reconstruction
As the changes were made in the business, the hotel was adopting them and they were
reconstructing activities and procedures of their business in the market. The reconstruction was
done to make stability in the market and making a strong customer base for their hotel. As the
customers also gets bored from the same offerings and hospitality from the hotels, the
reconstruction is very much needed to attract more and more customers towards the business.
 Revolution
The revolution is made in the hotel by adopting the IT technologies and digital marketing
strategies for the successful expansion of the business. This revolution is necessary because the
changing market is creating a tough competition for all the hotel industry and to remain alive in
the market, the Ace hotel London shore ditch made a revolution in their business.
 Evolution
The evolution in the hotel was done by making various innovations and inventions in the
business. These innovations and inventions were meeting to the needs and wants of the
customers(Postma, A., 2015).
CONCLUSION
The report can be concluded by mentioning all the strategies and techniques used by Ace
hotel London Shore Ditch. There were many leadership strategies, structural design, information
and control systems and the human resource management system performed by the hotel to
manage their staff and employees of the hotel. The use of different matrix was done to evaluate
the business activities of the hotel. These matrix included the critical success factor, key
performance indicator and the balance score card. The elements used in the hotel to increase the
customers base and to stay alive in the market were done by diagnosing the business of the hotel.

REFERENCES
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Deale, C.S., 2016. Entrepreneurship education in hospitality and tourism: insights from
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Bowie, and et.al., 2016. Hospitality marketing. Routledge.
Kao, and et.al., 2016. Organizational culture on customer delight in the hospitality
industry. International Journal of Hospitality Management, 56, pp.98-108.

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Peters, and et.al., 2019. Hospitality entrepreneurs managing quality of life and business
growth. Current Issues in Tourism, 22(16), pp.2014-2033.
Postma, A., 2015. Investigating scenario planning–a European tourism perspective. Journal of
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