Strategic Planning for the Hospitality Industry: Park Plaza Analysis

This report provides a comprehensive analysis of strategic planning within the hospitality industry, using Park Plaza Hotel & Resort London as a case study. It begins with an evaluation of the factors that influence strategy implementation, such as leadership, structural design, information and control systems, and human resources. The report then assesses various performance measurement tools, including critical success factors, key performance indicators (KPIs), and the balanced scorecard, detailing their impact on business strategies. Finally, it critically evaluates the key elements of managing strategic change and leading types of strategic change within the context of the hospitality sector. The report aims to provide a thorough understanding of the complexities and best practices in strategic planning for the hospitality industry.

Strategic planning
for the hospitality
Industry

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Critically evaluate the factors which affect the implementation of strategies in context of
organizations................................................................................................................................3
2. Evaluate the performance measurement tool and how it will affect the effectiveness of
business strategies........................................................................................................................5
3. Critically evaluate the key elements of managing strategic change and leading types of
strategic change............................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................11

INTRODUCTION
Strategic planning used by the organization in order to make plans, roadmap, guidelines
for the hotels. It is beneficial for the hotel managers to implement their plans in well manner or
achieve their goals & objectives through their satisfy their consumer's needs. In hospitality
industry, strategic panning based on the company's vision, mission, goals, values that indicate
the specific strategy or actions required to achieve these elements (Ajagunna and Crick, 2014).
This report based on Park Plaza Hotel & Resort London. It is generally known as Park Plaza
which is a chain of hotels and they also run the several hotel groups as franchises. Company
established in 1986 and the owner of this hotel is Radisson Hotel Group. This project report
cover various topics such as those factors which affect the implementation of strategies and
evaluate the different performance measurement metrics. In addition, it includes the key
elements of managing change and leading types.
MAIN BODY
1. Critically evaluate the factors which affect the implementation of strategies in context of
organizations
There are various factors in the organization which affect the business at the time of
implementing strategies. Some of them discussed below:
Leadership: It is the process of leading a group of people which helps the business to
perform their operational activities. It includes the various aspects such as vision, mission,
strategic objectives of the company. Every organization need to adopt effective leadership style
in order to implement their strategies in well manner or able to achieve organizational gaols &
objectives. Implement the strategies in Park plaza required team efforts which lead by the leaders
of the company. Every individual involved in the change management and they has to be
responsible for their activities. Basically leadership play very essential role in the organization at
the timer of implementing strategies for the successful outcomes. At the time of implementing
strategies, it is important to have employees involvement from each department which one is
going to affected (Altinay, Paraskevas and Jang, 2015). Interest of staff members also affect the
Park Plaza operations at the time of implementing strategy. Regular monitoring of the
implementation of stargates also affect the organization.

So basically above mention factors such as individual interest, participation, monitoring
etc. are affect the Park Plaza hotel at the time of executing their strategies which help the
company to maximise their efficiency as well as effectiveness in order to achieve their goals &
objectives. Managers of Park plaza need to ensure that they follow effective leadership style for
the final outcomes. Such as company follow the democratic leadership style in order to maximise
individual interest, their participation which helps in maximising their involvement in the
business activities.
Structural Design: It is the important factors which affect the business at the time of
implementing various strategies which further impact the productivity as well as profit margin of
the company. In context of Park Plaza Hotel, managers need to build their structure as per the
requirement of functions such as organizational structure should be top management to lower
management and how they convey the information to the each department or every individual so
they can perform their task accordingly. Park Plaza Hotel have mangers who handle their
department and make sure that they perform each task according to the strategies which they
formulated for the better results. Strategic design is the important factors which affect the
operations of the hotel industry (Arasa, 2015). Manager of Park Plaza Hotel need to build their
strategies through analysing organizational resources that they are able to perform their task
accordingly or maximise internal efficiency as well as effectiveness.
Information and Control System: Every organization use the management control
system which is useful in collecting information in order to evaluate the performance of
individual. This factor affect the business operations of Park Plaza Hotels at the time of
implementing strategies. Under control system managers manage the resources like financial,
human resource, physical resources etc. These elements need to evaluate at the time of
formulating strategy because this factor affect the implementation. Information should be
accurate otherwise it provide unable to company to get their desired results. In context of Park
Plaza, manager should collect accurate information regarding consumer taste and preference
which make them able to build their strategies accordingly and implement in well manner.
Managers of the Hotels need to control internal operations activities for the period in order to
analyse the performance.
Human Resources: It is one of the important factors which affect the organization at the
time of implementing their strategies (Buhalis and Leung, 2018). Because each and every task

performed by the human resources so they need to manage their human resources as well as
make them capable to perform every task. Human resources professionals are contributing in the
success of the organization and they know that how to perform their task in well manner. In
context of Park Plaza Hotel & Resort, hotel staff are the human resources for the company who
manage various operational activities in order to get success. With the help of effective
leadership, managers able to manage employees or ensure that they perform according to the
strategies or provide success in their task. For this, Hotel need to high HR professionals which
can promote the strategies or create value for them. Along with this, they provide required
training & development in order to enhance the efficiency as well as effectiveness to an
individual which required at the time of implementing strategies.
Above mention factors such as human resources, leadership, structure design,
information and control system all are influences the Park Plaza Hotel at the time of
implementing their strategies. Managers of the company need to evaluate these factors and make
strategies accordingly and monitoring at the time of implementing which helps in getting huge
success in terms of profitability (Claveria, Monte and Torra, 2015). For the effective
implementation of strategies they need to build vision, mission or strategic objectives and
provide proper guidance for the completion of their work. Every member of the organization
need to share common goals, so they able to perform accordingly or achieve desired goals &
objectives.
2. Evaluate the performance measurement tool and how it will affect the effectiveness of
business strategies
Performance measurement tools used to evaluate the individual as well as entire
organizational performance in terms of productivity as well as profitability. With the help of it,
managers able to evaluate the efficiency as well as effectiveness of the task. There are some
measurement tools which is used to measure the result or outcomes. Some of them discussed
below:
Critical success factors: It is the tool that used in the organizations in order to ensure
that project will achieve their vision, mission or objectives which helps in maximising
productivity as well as profitability (Hassanien and Dale, 2019). There are total five key success
factors which Park Plaza Hotel need to analyse. Some of them mentioned below:

 Strategic focus: Hotel managers of Park Plaza should follow effective leadership style,
management practices and formulate strategies for the effective implementation.
Management need to focus on these elements and try to maximise overall performance.
It further affect the business strategies which successfully implement to achieve i6ts
desired goals. In context of Park Plaza, hotel managers focus on management, leadership
and planning.
 People: Managers need to focus on people because they are the most important factor for
the organization which provide the huge success or able to achieve desired goals. It
include the individual employee and their training & development process which required
top enhance their overall skills and competencies. Hotel managers of Park Plaza need to
focus on their staff development which helps in maximising their efficiency or satisfy
their guest with the help of appropriate services.
 Operations: Here organization should focus on process which used by the hotels for the
successful results. Along with this, work should be completed on time in order to meet
the deadline which is very important for the hospitality sector (Hertzman, Moreo and
Wiener, 2015). In context of Park Plaza hotel, they are deal in service sector so they have
to satisfy their customers through providing quality services.
 Marketing: Managers of Park Plaza need to focus on their marketing strategies which
provide the success to make them able to achieve desired goals & objectives.
Organization need to build strong customer relations in order to maximise their sales and
positive review from their guest. Basically, Park Plaza need to focus on marketing
strategies in order to get success in their operational activities.
 Finance: To get success in their operational actions, so they need to focus on their
finances in order to manage their spendings. Managers of Park Plaza formulate budget
and try to minimise the cost of each activities in order to raise profit margin.
Above mention critical success factors required to focus because managers have to build
their strategies through analysing all the elements which helps in maximising productivity as
well as profitability.
Key Performance Indicator (KPI): It is one of the effective measurement tool that used
to evaluate that how organizations effectively manager their resources in order to achieve
business objectives. In context of Park Plaza, managers have to measure their hotel performance

on the basis of accommodation where they evaluate the various elements such as average room
rate, bedroom occupancy rate, food & beverages demand and their quality. Park Plaza hotels
deals in services industry so they need to focus on customer satisfaction and make sure to meet
their objectives (Harrington and et.al, 2014). In order to measure the effectiveness of business
strategy, managers has to link KPI with the strategies after mapping the progress of these
indicators. This tool used to empower employees through providing various relevant
information. Managers of Park Plaza have to consider vision, mission or value of the hotel and
measure the progress from previous performance. It also beneficial to measure the individual
performance through collecting required data and analyse it. It is also beneficial for the
stakeholders of the company to ensure that organizations are profit making or not.
Balance Scorecard: It allow the hotel managers to measure the progress toward their
strategic objectives. It include the financial or non financial aspect which helps in measuring
overall performance of the operations. In the hospitality sector, feedback from clients are most
important and they have to focus on those aspect on prior basis. There are some key scorecards
categorises such as financial, customer, internal business process, learning & growth etc. In
context of Park Plaza, hotel managers evaluate the financial aspects where revenue per guest and
revenue of available room are same found in the hotel. If revenue of per room will be reduces in
comparison to availability of room then it required various adjustments in order to maximise
their revenue. Other financial measurements are earning per share, stock price, net income etc. In
addition, they need to focus on customer and their sentiments and hotel managers have to target
accordingly. This measurement include the survey results, complains of customers, customer
retention, guest related data etc. Hotel industry have to more focus on customer satisfaction
which is the major factor to measure organizational performance and its progress. If complaints
are decreases then it means people are satisfy with their services (Kasemsap, 2016). Along with
this, they need to maintain cost, accident or quality matrices in order to measure the internal
business process. Hotel managers of Park Plaza should focus on these elements and make
strategies accordingly.
Above mention performance tools used by the managers of Park Plaza in order to
measure overall performance of the company. Along with this, it include the various aspect
which required to measure such as quality of food, accommodation facility, customer

sanctification etc. These elements affect the business strategies or make them capable to achieve
desired goals & objectives.
3. Critically evaluate the key elements of managing strategic change and leading types of
strategic change
Strategic change management: In context of hospitality sector, they need to adopt
changes after some times in order to retain their customers. In the service sector organization
such as Park Plaza hotel, they need doe some changes in order to maximise their employees
efficiency as well as performance of the entire organization in terms of productivity as well as
profitability. There are some key elements which required to manage strategic change and
leading types both are mentioned below:
Key elements of managing strategic change:
Change agents: In context of hospitality industry managers of hotels need to be
responsible for every change in the operations. Manager perform as a change agent because
whenever organization adopt or implement any changes they need to inform the information to
the entire staff members (Phillips and Moutinho, 2014). Along with this, managers have to guide
them and provide a clear path that how to perform their task after change in the operational
activities. In context of Park Plaza, when managers change in their strategy such as introduce
new food item so they need to inform their staff members and provide them each and every
details so they can make aware our guest to try once.
Managing change programs: Hotel managers have to conduct a proper program where
they inform regarding changes to the staff member and every person who linked with the
organization. Information should be clear or authentic which make employees capable to
perform with full of efficiency as well as effectiveness. Hotel managers of Park Plaza conduct a
program whenever they implement any new strategy to maximise their revenue. They provide
clear information regarding process of work and managers have to monitor or make control all
over the activities which perform by the staff member after change in the strategies.
Levers for change: It is the strategy which is used for the change in the society and
which was the biggest challenge for the world. In order to implement the change in the
organizations, managers have to implement some tools. Such as communication plan,
sponsorship roadmap, coaching plan, training plan and resistance management plan. These levers
for change allow the organization to put their efforts in single direction which helps in increasing

final outcomes. Managers have to ensure that employees adopt these plans in well manner or try
to achieve organizational goals & objectives.
These are the key elements which required to implement for the strategic change in the
organization (Rok and Mulej, 2014). It is not only beneficial for the organizations but also
beneficial for the staff members to understand the requirement of change and perform
accordingly which maximise the efficiency as well as effectiveness of the individual.
Types of leading change:
In context of organization, management has to adopt changes in the operations in order to
maximise the individual performance as well as productivity. There are some types of changes
which mentioned below:
Adaption: In order to improve business process and operational activities organisation
have to adopt changes and it can be related to the product or services which provide the long
term success. In context of hospitality industry such as Park Plaza hotel, management modify
their existing strategy because they face lot of compliance from the customers regarding hotel
services.
Reconstruction: As a manager of Park Plaza they have to implement necessary changes
regarding accommodations, new programs, events etc. It helps in maximising the efficiency as
well as effectiveness. In order to maximise their operational activities or revenue of the company
they need to reconstruction the organization or make strategies regarding change in the business
operations.
Revolution: It is refer to the sudden change which required in the organization that's why
company need to adopt changes in order to overcome those situations. In context of hospitality
sector such as Park Plaza can face sudden changes such as modification in the food standards
will lead to change the strategies of the company (Solnet, Kralj and Baum, 2015). These kind of
conditions also encourage the change in the operations.
Evaluation: It is the analysis of overall results as well as objectives of the company
which further helps in making strategies in order to enhance the productivity as well as
profitability of the company. Managers of Park Plaza follow the systematic process in order to
enhance the individual as well as entire organizational performance.

CONCLUSION
On the basis of above discussion it has been concluded that strategic planning is very
essential for the organization. With the help of it, managers able to implement their plans in
order to maximise operational efficiency as well as effectiveness. Furtherer it is used to achieve
their strategic objectives which provide the huge growth in the market. In context of hospitality
industry, there are various factors such as human resources, leadership etc. which affect the
implementation of strategies which helps in maximising revenue of the hotels. In order to
measure their performance as well as progress organization follow the various performance
measurement tools such as key performance indicator, balance scorecard etc. After some times,
management need to adopt changes in order to enhance operational efficiency which further
increases the revenue of the business.

REFERENCES
Books & Journals
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