Strategic Planning for the Hospitality Industry: Holiday Inn Analysis

This report provides a comprehensive analysis of strategic planning within the context of Holiday Inn, a leading hotel chain. It begins with an introduction to strategic planning and its importance in the hospitality industry, specifically focusing on Holiday Inn London. The report then delves into a critical evaluation of factors influencing the successful implementation of strategies, including leadership styles (transactional vs. transformational), organizational structural design (divisional vs. functional), and information and control systems, with a focus on the impact of technology and human resources. The analysis further evaluates different performance metrics used by Holiday Inn London, such as Critical Success Factors (CSF), Revenue per Available Room (RevPAR), and Customer Satisfaction Scores (CSAT), and assesses their effectiveness in measuring strategic success. Finally, the report critically evaluates key elements in managing strategic change, including the importance of employee engagement, adaptability, and the ability to anticipate and respond to market trends. The conclusion summarizes the key findings and provides recommendations for future strategic planning within the organization.

STRATEGIC
PLANNING FOR
THE HOSPITALITY

Table of Contents
INTRODUCTION ..........................................................................................................................1
LO 4.................................................................................................................................................1
Critical analysis of factors affecting successful implementation of strategies.......................1
LO 5.................................................................................................................................................5
Analysis and Evaluation of Different Performance Metrics in Holiday Inn London.............5
Critical Evaluation of Key Elements In Managing Strategic Change and Leading Types...8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic planning is a process that includes formulation of business strategies and polices
to have better performance of organisation and also include proper execution of these strategies.
Strategic planning is mainly associated with the management activity of organisation that aim at
setting priorities, optimum utilisation of resources and strengthening business operations to
ensure that all the efforts made by employees and other functional unit of organisation must be
directed towards accomplishment of a common goal and achieving overall objectives (Evans,
2015). This assignment is based on a British owned American brand of hotel i.e. Holiday inn
which was founded as US motel chain and has grown as one of the leading hotel chain of world
headquartered in Buckinghamshire, UK. The Holiday INN hotel located at Camden town,
London is a trendy hotel with stylish rooms and attractive features and facilities that include free
Wi-Fi, canal views, flat screen satellite TVs and many more.
This assignment includes a critical evaluation of various factors affecting successful
implementation of strategies on business functions including leadership, structural design,
information and control systems and HR. Beside this, evaluation and analysis of different
performance metrics that affect effectiveness of business strategies are also included together
with critical evaluation of key elements in managing strategic change.
LO 4
Critical analysis of factors affecting successful implementation of strategies
Strategic planning is mainly associated with the formulation of business strategies and
plans and effective implementation and execution of theses plans and polices in order to evaluate
their impacts and influence on over all organisational objectives and success of an organisation
(Gkliatis. and Koufopoulos, 2013). Strategic planning is a complex and vital process that
includes clarification of vision, gathering and analysis of all relevant information, formulation of
a business strategy, implementation of business strategy and finally having a check and proper
control over these strategic plans and strategies to achieve organisational goal and targets in a
effective way.
The branch of Holiday INN hotel situated at Camden town is a 4 star hotel which is
centrally located and easily approachable by its customers. It is situated close to Museum of
London and Chinatown thus, offering better opportunity for customers to travel and visit together
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with well maintained, furnished and air conditioned rooms having complimentary wireless
internet and Flat screen TV along with satellite program for entrainment purpose (HOLIDAY
INN LONDON-CAMDEN LOCK, 2019). Beside this, facilities like funky lobby with restaurant,
guest computers, a fireplace, pop-up cinema together with 24 hour cafe is also provided to
customer to make them feel comfortable. To provide better facilities and services to its customer
some strategic planning and modification and planned by Holiday Inn. Implementation of these
strategic planning and modification lead to some radical changes and effects up on overall
business functions of an organisation. A critical evaluation of factors that would lead an affect on
successful implementation of these strategies on following four functions of Holiday inn is
provided below:
Leadership
Leadership is mainly associated with influencing and directing employees for better
performance to ensure the timely achievement of targets and goals. Therefore, the leaders plays
an important role in motivating and encouraging employees for adoption of a strategical change.
The leaders of Holiday INN are making use of transactional leadership style that includes use of
rewards and punishment by leaders in order to motivate and guide employees (Kotler, Bowen,
and Baloglu,2017). Use of rewards has motivated employees for better performance but the
threat of punishment makes employees a little worried and hamper their performance especially
at the time of implementation of change. Therefore, it has been decided by the leaders of Holiday
inn to make use of Transformational leadership style in place of transnational leadership styler
as it facilitates better influence over values and attitudes of employees and provides a better way
to deliver and inspire vision of organisation among employees. Under transformational
leadership style leader promotes and facilitates teams work and create a vision to guide and
direct employees for change through setting inspiration (Hertzman, Moreo. and Wiener, 2015).
Under Transformational leadership style leaders perform their work more effectively in order to
gain trust, appreciation and respect from its employees which enhance loyalty and moral of
employees thus, motivates them to perform well. The factors that affecting the successful
implementation of strategies on leadership functions in context of Holiday inn are as follows:
Leaders performance- The implementation of strategic change under transformational
leadership style is depended on the performance of leaders as it the factor on which the loyalty,
trust and respect of employees depends. Only an efficient and well knowledgeable leader can
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effectively make use of transformational leadership style as under this performance and
motivation level of employees and implementation and execution of change is dependent on the
performance and efficiency of leaders as it the main factor that influence, motivate and direct
employees for better performance and effective execution of change.
Employee engagement and team bonding - The success of Transformational leadership
style is greatly dependent on the the relation and integration of leaders and employee as leaders
can only influence and direct employees when they themselves are able to set a example for
employees (Martínez, Pérez. and Del Bosque, 2014). Employee engagement enables employees
and leaders to look beyond their self interest and work mutually towards achievement of gaols
for betterment and success of organisation. In absence of employee engagement higher
employees turnover is faced by Hotel Holiday inn which negatively effects the implementation
of change and business operations. Thus, proper maintenances of employee engagement is a
crucial factor for successful execution of change and adoption of modification and strategic
planning in Holiday inn.
Structural Design
Structural design of a business organisation is mainly related with the flow of
responsibility and way of operations conducted within an organisation. It also denotes the chain
of responsibility and accountability reflecting the sequence that who is accountable and
responsible to whom together with flow of communication and direction (Saad, 2013). In hotel
Holiday inn use of divisional structure is made which divide the all activities and tasks on the
basis of divisions which lead to chaos and confusion among employees as it become difficult to
delegate role and responsibility to employees as per their relative functions. Therefore, it has
been finalised by Holiday INN hotel to make use of functional structure in place of divisional
structure. Use of functional structure by Holiday inn hotel facilitates better specialisation in its
operations through clearly stating the accountability and responsibility of each and every
employees on the basis of particular function that lead to increase in productivity and
performance of Holiday inn Hotel. The factors that are affecting successful implementation of
this structural design strategy in Holiday inn are as follows:
Planning of sequence- The first and foremost factor that affect structural design during
strategic planning is the planning of sequence set by top authority i.e. deciding which task and
activity is more crucial (Cvelbar and Dwyer, 2013). Use of functional structure by Holiday inn
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makes leaders and mangers able to properly plan sequence of activities in their particular
function to accomplish and achieve important task and activity on priority basis for betterment
implementation of change and success of organisation.
Size of organisations- The another factor that affect successful implementation of
structural design strategy is size of organisation as with the increase in size the organisation
complexity and level of chaos and conflicts also increased. Thus, use of functional structure lead
to better transparency and clarity in the Holiday inn hotel to effectively manage and coordinate
its employees for better implementation of strategic planning and success of organisation.
Information and Control Systems
This function of holiday inn is mainly associated with providing better facilities and
services to its customers which consists of free Wi-Fi network, satellite programmes on TV, etc.
It also includes use of system and methods to have better check and control over use of inventory
and performance of employees (Chen and Law, 2016). Holiday Inn has planned to provide better
customers services through adoption of latest technology that includes automation together with
use of AI and Robotics. The factors that facilitates impacts and affects successful planning of
information and control systems in Holiday inn are as follows:
Amount of resources- Automation of operations and use of robotics and AI is only
possible when there is availability of adequate amount of finance in Holiday inn for these
changes. In case of lack of resources it is not possible for Holiday inn to adopt automation and
use of AI.
Skills of employees- Another factor that lead to effect on successful implementation of
better information and control system in Holiday Inn is associated with the capability and skills
of its employees as only a highly skilled and talented employees can make effective use of AI
and automated systems.
Human resources
it is most important aspect of every organisation that is related with management of
employee and workforce which are the biggest assets of any organisation. To ensure proper
execution and implementation of strategic planning it is necessary to have a properly skilled and
qualified team of employees (Stansbie, Nash and Chang, 2016). For achieving that purpose and
to maintain competent level of skills and knowledge of its employees timely training and
learning programs are provided by Holiday inn. Use of Technological And Simulation Training
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is made by Holiday inn to make its employees to able to operate and work efficiency in this
competitive world to have better results through use of virtual training medium. The factors that
can effect successful implementation of this strategic change in HR management with in the
context of Holiday INN are as follows;
Resistance of change- The first factor that can lead to negative impact on successful
implementation of this change is resistance and non acceptance from employees of Holiday Inn
as it is the human behaviour to resist adaption of change and it might be possible that employees
feel that this training and development program might lead to increase in their burden and makes
their work more complex and difficult (Frías-Jamilena, Del Barrio-García. and López-Moreno,
2013).
Cost factor- The another factor that impact successful implementation of technological
and Simulation Training in holiday Inn is related with the cost required for managing and
conducting these training program. But this, training facilitates improvement in skill and
competencies of employees thus, overall it is beneficial for Holiday Inn in enhancing its
productivity and profitability.
LO 5
Analysis and Evaluation of Different Performance Metrics in Holiday Inn London
For an organisation such as Holiday Inn London, which operates at quite a large scale, it
becomes necessary to analyse, as well as evaluate certain performance metrics which the firm
implements in order to measure the effectiveness of their chosen strategies.
Performance Metrics refer to appropriate and effective measurement of activities,
behaviour, as well as overall performance of an organisation. In addition to this, such metrics are
very important in order to evaluate as to whether the business strategies are implemented in an
appropriate and required manner or not (Yoo. and Bai, 2013). Hence, in this context, there are
several performance metrics which the firm utilises that are analysed and evaluated below, along
with an explanation of how they impact the effectiveness of business strategies:
 Critical Success Factors (CSF):
These refer to the areas which are required to be accomplished, as well as excelled within
in order to sustain within the business environment. Moreover, these are crucial factors towards
ensuring success of business organisations, which is necessary for its survival.
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As for Holiday Inn London, there are certain critical success factors that are stated below:
◦ Customer Service: One of the most prominent success factors within Holiday Inn
London is its customers service. As mentioned above, the organisation is willing to
use adaptation to contemporary technologies to ensure better services for customers.
Hence, this factor positively impacts the effectiveness of business strategy stated
above as new technologies would provide a window for Holiday Inn London to
ensure better customer service (Ruhanen, Mclennan. and Moyle, 2013).
◦ Cost Control: Another appropriate success factor for the organisation is controlling its
cost. The company is planning to currently reviving its strategy to modify into
functional structure, with employees segregated as per different functions and units.
This contributes towards cutting up the cost due to enhanced operational control
within the senior level and better communication. However, within the hotel industry,
each department has interconnected roles which require frequent changes in
structures, that might not be effective towards cost cutting. Thus, a slightly negative
impact is imposed by this factor upon the effectiveness of strategy.
Evaluation of Critical Success Factor:
This metric is somewhat inappropriate for the company in context of contributing within
the enhancement of effectiveness of the strategy. This is because while it has a positive impact
on the customer service, this metric fails to impact the strategy in context of reducing cost in an
appropriate manner.
 Key Performance Indicators:
This metric is related to measurement of performance in quantifiable terms in order to
effectively evaluate the success of business and its strategies. Hence, in context of Holiday Inn
London, there are two basic and appropriate KPI's that are mentioned below:
◦ RevPAR Growth: One KPI which the hotel has adopted for quite some time is
Revenue per available room. This rate decides the firm's revenue within each room
that is available for customers (Placido and Cecil, 2014). In context with Holiday Inn,
AI would help the firm in enhancing its marketing efforts and ensure more attraction
to customers. Hence, this indicator would exhibit a positive impact upon this strategy
due to a quantifiable measurements provided to the efforts of the same.
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◦ Guest Satisfaction: Another KPI which Holiday Inn has adopted is Guest Satisfaction,
which is associated with appropriate feedbacks and recurred stays by the customers.
In this context, the hotel is emphasising on training its employees through
technological inputs such as AR, VR, as well as Simulation Training. Hence, guest
satisfaction would be having a positive impact on this strategy as appropriate training
would be enhancing the satisfaction rate of the customer.
Evaluation of Key Performance Indicators:
This extent of this metric impacts the effectiveness of strategies is very high. The reason
for this is because using RevPAR growth would be helping the company in enhancing the
adaptation to technology, as well as ensuring better training to employees.
 Balanced Scorecard:
A Balance Scorecard refers to an appropriate technique that is adopted and practised by a
company in order to improve its organisational functions and operations internally, as well as
enhancing the effective external outcomes from the same (Kotler, Bowen and Baloglu,2017)
(Gkliatis. and Koufopoulos, 2013). Hence, some of the perspectives that are linked with this
metric are discussed below with respect to the company:
◦ Learning and Growth Perspective: This is related to employees and their turnover
rates which the firm requires to decline. Hence, this relates with the company's human
resource strategy which is related to providing an environment of continuous
improvement within the hotel, that would be experiencing a positive impact with
learning and growth perspective as a factor for balance (Evans, 2015).
◦ Internal Process Perspective: This perspective is associated with the internal
processes of the company, such as, quality, maintenance costs and so forth. Hence,
this relates with the structural design of the company for which, functional structure is
being effectively used within the organisation. Thus, this metric would be having an
positive implication upon the strategy as this would allow the firm to maintain the
structure in a way which enhances quality and reduce cost of the organisation.
Evaluation of Balanced Scorecard:
Balanced Scorecard has a high extent up to which it impacts on the effectiveness of
strategies. This is because learning and growth perspectives helps the human resources strategy
to be subjected towards reducing employee turnover by giving an effective and progressive
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environment to the individuals. Moreover, internal process perspective would be ensuring better
structural design that would be leading to lower cost and better quality.
Critical Evaluation of Key Elements In Managing Strategic Change and Leading Types
Within the hospitality industry, there are certain strategic changes which are the
alterations or modifications that an organisation indulges within in order to help the company in
gaining high competitive position within the marketplace and better sustainability in the future
years to come.
In relation with Holiday Inn London, the whole organisation works in a rather traditional
format which requires the company to enhance its business practices and change its processes
and systems to ensure adherence to the contemporary demands of customers. For instance, quite
recently, Holiday Inn Northampton West underwent a £2 million makeover, which has enhanced
its effectiveness in customer service, better performance, as well as flexibility (Holiday Inn
Northampton West gets £2m makeover, 2019).
Hence, this presents a need for Holiday Inn London to ensure a structural change to shift
from its traditional service to a rather contemporary one. Hence, in this context, below is the
critical evaluation of several key elements in context of managing change, as well as leading
types of the strategic change:
 Diagnosis:
This element is related to a complete analysis associated with identification of reasons of
change. Moreover, the agenda of this element is related to ensuring that all the factors that are
currently being a roadblock for the organisation in maintaining a desired outcome is eradicated
(Hertzman, Moreo. and Wiener, 2015). Thus, for Holiday Inn London, the leading type that
would be implemented within the hotel is Reconstruction. The reason for the same is that the
organisation is operating in a very traditional manner and requires to improve its business
practices to support the change. Therefore, this element is very much appropriate in terms of
managing the change as it would be supporting the company longer due to consistent internal
and external diagnosis, which would help the company in changing strategically.
 Change Agents:
These are the reasons or factors that encourage or force the organisation to change. Some
of the factors related to Holiday Inn London are competition from companies such as Hilton,
along with the changing demands of customers in order to get an appropriate and technologically
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advanced services. Hence, the in this relation, the firm must ensure revolution of the culture
within the organisation that is related to continuous improvement. Moreover, this would be
supported by the strategy of the company related to human resources. However, this element is
not quite effective in managing strategic change as taking just a few factors at a time to drive the
change within the company, which could change in future according to changes in marketplace.
 Managing Change Programmes:
This element is related to managing different change programmes within the
organisation, which requires an active role of leaders within the company (Martínez, Pérez. and
Del Bosque, 2014). In context with Holiday Inn London, this element would be needing
evolution within the leadership of the firm, which could be supported by Transformational
Leadership. In relation to managing the change, this element is very effective as this leadership
style is required to keep the organisation flexible in terms of change that are likely to take place
within the future.
 Levers of Change:
These are the processes which the firm adopts in order to lead the change within the
organisation. In relation with the structural change within the organisation, the hotel is willing to
Adapt to technologies such as automation, robotics and AI. Thus, for this purpose, the firm must
use hiring expertise to ensure that the training provided to the individuals in this context is highly
valuable. Moreover, as for the organisation must also provide requisite infrastructure and tools to
employees in order to enhance their familiarity with the technology (Saad, 2013). In relation to
managing the change, this element would be very effective in context of managing strategic
change as it would help the firm in negotiate and influence the workforce into working in a better
manner each time the firm would be adopting change.
CONCLUSION
On the basis of above report it can be concluded that strategic planning is a complex but a
crucial part of every organisation that facilitates better strategies and plans for improvement in
performance and success of organisation. There are various function which are affected by
strategic planning and various elements that affect in successful implementation of strategies that
include size of organisation, availability of resources, cost factor, resistance to change, etc.
Analysis and evaluation of different performance metrics is necessary which would allow to
assess the impact they have on effectiveness of the business strategies. Lastly, critical evaluation
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of key elements is necessary to ensure their effectiveness towards managing strategic change as
well as leading types.
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