Strategic Planning & Performance Metrics: Novotel London West Hotel

This report provides a strategic analysis of Novotel London West within the hospitality industry, covering factors crucial for strategy implementation, creative business strategies for enhancing competitiveness, and an evaluation of performance metrics. The analysis includes a PESTLE analysis to assess ...Read More

Strategic Planning for the
Hospitality Industry

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK ..............................................................................................................................................4
Appropriate factors to implement a strategy..........................................................................4
Creative business strategies for the chosen organisation’s future strategy selection to be
competitive in the hospitality industry...................................................................................7
Analyse and evaluate the different performance metrics.......................................................9
CONCLUSION ............................................................................................................................11
REFERENCE.................................................................................................................................12

INTRODUCTION
Hospitality industry is defined as the broad category of service industry that includes
food and drinks, lodging, travel and tourism, event planning, restaurant, tourism agencies and
hotels. Hospitality industry includes two major sectors first is accommodation sector that is
related to staying and lodging industry and second sector is related to food and beverage
segment. It plays important role in growth and development of economy through generating
revenue for country and cultural wealth. Strategic planning is the process through which business
leaders set their visions for future and identify goals and objectives. In this report chosen
organisation Novotel London West founded in the year of 1973 and it is renovated in 2009.
Headquarter of organisation situated in Hammershmith, England, UK. It is concrete and brick
commercial hotel in nine-story that provide better accommodation, food, beverages and other
services to its visitors. This report covers the factors that are important to implement strategy,
business strategy that help organisation to become more competitive. Apart from that different
performance matrices included critical success factors, key performance indicators and balance
scorecard in explained in this report.
TASK
Appropriate factors to implement a strategy
Strategy: Strategy is defined as the plan of actions that are developed by the organisation
to attain business determined goals and objectives on time with great efficiency and
effectiveness. Strategies guide employees to perform operations in right direction that lead
business towards growth and development.
Vision of Novotel London West hotel: The vision of Novotel London West hotel is to
create amicable environment that improves organisational service quality and provide comfort to
every customers. Organisation meet as well as comply all standards related to hospitality
industry (Ahn, Lee, and Kwon, 2020). Vision of organisation is to provide adequate and
advanced mode of communication that help business to deliver exceptional experience to its
guests every time when they visit to hotel.
Mission of Novotel London West hotel: Mission of hotel is to provide finest facilities as
well as services to visitors in market, provide a good place to work to its employees and gain
reasonable return on investments.

Business strategy of Novotel London West: To achieve these visions and missions,
Novotel London West hotel adopts business strategy which is service differentiation. Respective
organisation differentiates its services on the bases of quality, maintaining the highest level of
standards as well as integrating information technology system in various aspects of service
provision. Organisation adopts digital technology that provides competitive advantages to hotel
over other competitors. Novotel London West hotel digitalize its efforts that are related to mobile
services, booking, guest experience and privacy and data-driven personalization.
Factors to implement business strategy:
It is important for organisation to create balance the complexity and sophistication that
help business to implement strategies in efficient and effective manner. There are some factors
that impacts organisational ability to implement strategies in efficient manner are mentioned
below:
Commitment: Commitment is the most important factors that is help Novotel London
West to implement its strategy of service differentiation. Organisational middle management as
well as front line supervisors are committed towards strategy and communicate and align
employee in strategy (Baum, 2019). It helps business to execute strategies and planning in
efficient manner to attain determined goals and objectives.
Organisational structure: Organisational structure in the important factor that helps
business to execute its strategies in effective manner. In the process of implementing strategy, it
is required to have centralised control or decentralized flexibility. It helps Novotel London West
to differentiate its services from other competitors and gain greater efficiency through
standardization. Respective organisation creates business structure that is required to implement
strategy in efficient manner. Managers of organisation conduct regular meetings to take
feedbacks of employees regarding implementation of strategy.
Ability to measure progress: It is most important factor that helps business to execute
strategies. Each and every implementation efforts require trial and error learning. Novotel
London West hotel measure the progress the results of strategy that enable business run in right
direction (Evans, 2019). It helps organisation to measure that strategy is running is right direction
or not and evaluate that what works and what does not work to attain business objectives
efficiently. Managers of hotel review that progress of strategies on monthly, quarterly bases that
help to gain positive results of strategy implementation.

A clear understanding of priorities: It is important for organisation to identify and
understand clear priorities regarding strategies that help business to implement strategies in
systematic manner. Novotel London West develop clear strategies and set priorities that enable
business to provide differentiated services to customers. As organisational resources are limited
so establishing priorities and performing operations according to it facilitates business to execute
strategies efficiently and attain determined goals.
Sourcing adequate resources and budget: To implement strategy in organisation,
resources and budget are the important factors. Resources ensures that all activities and stages of
strategy are running in efficient manner on time (Friedman, 2019). Novotel London West
organisation make sure that all resources and appropriate budget is available to implement
service differentiation strategy in organisation that provides competitive advantages to
organisation over other competitors.
Efficient business culture: Business culture is the factor that important for business to
implement strategies in best way because it connects employees with organisation's mission that
help them to feel comfortable. Novotel London West develop some positive as well as negative
consequences for the achieving or not achieving strategies.

Creative business strategies for the chosen organisation’s future strategy selection to be
competitive in the hospitality industry.
PESTLE analysis: Pestle analysis is defined as the framework that is used by the
organisation to track factors that are related to external business environment impact business
performance and functionality in positive and negative manner (Pateli, Mylonas, and Spyrou,
2020). Novotel London West hotel consider these factors in the process of developing effective
policies that help business to gain competitive advantages. Factors of pestle analysis are
mentioned below:
Political factors:
Political impact the economical surrounding. Political judgement causing the socio-cultural
environment of a country. Political leader can cause the rate of growth of new application.
Leaders can impact the acceptation of new applications. In case of Novotel London West, in the
situation of covid 19, this banning of travel will definitely ban this industry as it could hurt
tourism on an instant basis as a country loses major of its economy.
Economical factors:
Economic components affiliated with commodities, working, and medium of exchange.
Disregard of straight away impacting enterprise, this uncertainty means to fiscal state of the
economic system on a huge level whether that be localized or worldwide. In relation to Novotel
London West, capability and weakness of medium of exchange can impact the attraction of a
holiday place. As, if global currencies are powerful than the American monetary unit, persons
outside of the United States will want to stay.
Social:
Social factors that impact and determine life style, components like social unit, gathering, socio-
economical position and religious belief. These factors may cause enterprise judgement like what
common place to transfer, where to find brick and vessel store and how sharply they engage
online marketing alternatives. In context to Novotel London West, Hotels often run out of
apartments that is availability of rooms during extreme time of year, and when they do not, they
raise the cost of rooms (Ribeiro and Correia, 2021). This is a big issue for hotels who often see a
rise in earnings during prime period of time when rooms are insufficient.
Technological:

Technological factors have a critical macro-economical cause on the operations of a business, its
commodities, how it sends its services, and even its marketplace. So, technology has set
marketing investigation inside reach of even the smallest competition. In case of Novotel London
West, due to the social media the information is accessible and updated 24/7.
Legal:
Legal factors can determine whether or not there is a business organisation at the back of
marketing a specific commodity. In relation to Novotel London West, all people wants to stay
somewhere secure. If the selected organisation is near a place with full criminal rates, it will
battle to live. Selecting a point with less crime is important for all the owners of hotel, other than,
consumers will not stay at their places.
Environmental:
The physical situation in the environment also have an affect on the way an enterprise behave
themselves. In context to Novotel London West, when vacation, consumers want to stay at a
place where there is warm and relaxing and the selected organisation is definitely providing this
in their hotel.
Porter's five forces model: Porter's five forces model is used by organisations to identify
and analyse different competitive forces that shape the industry and help to determine industry
weak and strength factors. It helps business to gain competitive advantages over other
competitors. Forces of model are mentioned below:
Industry Rivalry:
Competitive rivalry is measuring or strength of competence among organization in the similar
organisation or firm. In case of Novotel London West, competence in this is very intense due to
the price of a commodity distinction and switching of prices are low (Rodríguez-Antón and
Alonso-Almeida, 2019). And the development in the chosen firm is more than the rate at which
the business is growing.
Threat of new entrants:
This means to the danger new competition affectation to existent competition in a firm. In
context to Novotel London West, new entrants in this selected industry, they should be more
aware about the target of marketplace and a quality service.
Bargaining Power of Suppliers:

Investing becomes less attractive in these industries. Strong providers can prescribe commodities
dispersion and presence in the marketplace. Powerful suppliers can also make their products
indispensable to an industry. In relation to Novotel London West, here power of suppliers is low
and there is a indirect pressure of other competence firm is high.
Bargaining Power of buyers:
The availability of strong buyers who can actually bargain in the marketplace lessens the net
income potentiality in an business (Sainaghi, Phillips, and d’Angella, 2019). In relation to
Novotel London West, the concentration of buyers is more than the player present in the market
so there is a high bargaining power in relation with the buyers that is who want to take a stay in
the hotel.
Threat of Substitute Products:
This is high when competitors or even organization external to the firm offer more attraction and
lower price commodities. In relation to Novotel London West, it is very low in case of this as
individuals who are looking for cheap kind of accommodation are also easily available in the
hotel that is it provide all kind of its services.
Analyse and evaluate the different performance metrics
Performance metrics is defined as figures as well as data representatives of organisation's
actions, quality and abilities. Business uses different forms of performance matrices such as
sales, customer happiness, return on investment and various other to review organisational
performance. It is used by Novotel London West hotel to measure the behaviour, performance
and activities of organisation. Some performance metrics in the context of Novotel London West
hotel are mentioned below:
Client retention rates (CRR): Client reattainment is the factor that help business to attain
long term profitability. It is the most important key performance indicator that measure
organisational efficiency in delivering brand promises (Goh, and Okumus, 2020). Novotel
London West hotel retains its clients or visitors through delivering all promises that are made by
organisation. Organisation also measures that reasons because of that clients are living the hotel
through conducting exit interviews.
Profit Margin (PM): Profit margin is the another key performance indicator that is uses
by organisation to evaluate performance and efficiency of business through measuring business
revenues. If cost of hotel is more than revenue than it is negative profit margin that indicates that

business can not survive for longer period of time. On the other hand cost is lower than revenue
that business generates profits. Novotel London West hotel controls its expenses and identify
necessary expenditure and which expanse help business to generate profits. Respective hotel
charges enough or appropriate prices to customers that help business to generate higher profits.
Customer review metrics: It is the important performance metrics that helps business to
evaluate customers reviews or feedbacks through portals, social media channels and websites.
Novotel London West hotel ensures that positive reviews and feedbacks online on website on
which potential customers visit (Herédia-Colaço and Rodrigues, 2021). It helps business to gain
success in market and evaluate the effectiveness of organisational services that satisfies
customers and retain them with organisation for longer period of time.
Return on investment (ROI): Return on investment is the effective performance
measurement technique that is used by the organisation to evaluate overall efficiency or
profitability on investment. Novotel London West hotel measures the amount of return on
particular investment in relation to investment cost. It is calculated by the organisation through
dividing the benefits of an investment by cost of investment. It helps business to measure the
viability of investment so, business can take efficient decisions to gain more returns of profit.
Customer Satisfaction Score (CSAT): Customer Satisfaction Score is the measurement
metrics that evaluates that customer's are happy with organisation services or not. Novotel
London West hotel measures customers satisfaction through using rating scale questions that are
asked by customers through conducting survey that are based on their satisfaction level with
organisational services. Respective hotel calculates it by dividing number of happy customers by
total number of customers.
Balance scorecard: Balance scorecard is defined as the strategic performance metrics
that is used by the organisation to identify and improve business internal functions and their
resulting on external outcomes. It is implemented by the Novotel London West hotel to translate
business goals into a set of organisational performance objectives that are measured, monitored
as well as implement changes to attain business strategic goals and objectives in efficient manner
(McGinley, Mattila, and Self, 2020). Key premise of balance scorecard approach is that
organisation follow financial metrics to monitor their strategic goals are insufficient to keep
business on right track. It provides more comprehensive view to stakeholders through
accomplishing financial measures with the help of some additional metrics that evaluates

performance area like customer satisfaction as well as products innovation. There are four
perspectives of balance scorecard that are explained below: Financial analysis is the related to the measure organisational operating income, return
on investment and profitability. Customer analysis is related to the investment on customers and monitor their retention
with organisation. Internal analysis examines organisational internal processes that are linked with
organisational strategic goals (Parviznejad, and Akhavan, 2021).
 The learning and growth perspective monitors employees satisfaction and retention with
organisation.
CONCLUSION
From the above report, it can be concluded that hospitality industry is the broad sector of
service industry that provides accommodation, food and breakfast and various other services to
customers. There are various strategies are developed by the organisation's to attain determined
goals and objectives in efficient manner. Organisation considers various factors that help
business to implement strategies in efficient manner and ensures its success rate. Properly
implementation of strategies facilitates business to gain competitive advantages over other
competitors. Pestle analysis help business to understand internal as well as external factors that
enable business to perform operations in efficient manner. Porter's five forces help business to
analyse factors that shape industry and help to gain competitive advantages. Performance metrics
are used by organisation to evaluate business performance and efficiency.

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