Strategic Planning for the Hospitality Industry: Ritz-Carlton

This report delves into the intricacies of strategic planning within the hospitality industry, using the Ritz-Carlton Hotel as a case study. It begins by analyzing key factors influencing strategic plan formulation, including market strategies, competitor identification, design and development considerations, operational and management plans, and financial factors. The report then assesses strategic positioning through organizational audits, such as gap analysis, SWOT analysis, and evaluations of organizational culture and quality improvement initiatives. Furthermore, it examines environmental audits, emphasizing energy management, water management, solid waste management, and chemical process management. The report highlights the importance of these audits in minimizing environmental impact and promoting sustainable practices within the hospitality sector, offering a comprehensive overview of strategic planning principles and their practical application in the hotel industry, focusing on how to improve the business.

Strategic Planning for Hospitality Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Analysing the factors during formulation of strategic plans...................................................1
2. Assessment of strategic positioning with respect to organisational audit...............................3
3. Environmental audit with the help of appropriate models......................................................4
Organisation's vision, mission, values, structures and hospitality activities of concern Hotel...6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Strategic planning is the process of directing and making decision to lead an organisation
by managing all the mechanisms and plans (De Baerdemaeker and Bruggeman, 2015). This
planning strategy include every required component for the development and growth of industry.
Managements are the main pillar of strategic planning that provide strengths and research
resources to compete the industry in market. In this section all the factors that are involved
during strategy planning is to be discussed. Different types of organisational audits are
implemented here to make an industry in a good position including the environmental audit. In
this context the hospitality industry is taklen with the example of Ritz-Carton hotel.
1. Analysing the factors during formulation of strategic plans
Strategic plans are the key components of a successful organisation because these plans
design the directions of firm. There are various factors that influence the strategic planning.
Managers of Ritz- Carton Hotel are responsible for minimizing these factors to make better
plans. Plans are not made to apply for one day, but it is applied day to day for the better growth
of a business or an organisation.
Various strategies are described as follows:
Market strategies
The market strategies are analysed to know the precise trend of hospitality sectors. Ritz -
Carton Hotel is not going to cover whole market and so, it is necessary to know about all the
updated trends before entering in this sector including customer’s choices and their demands. In
initial state, it must have plans to grab the local market and after that, it should expand through
whole hospitality market with the current changing trends of customers.
Competitor’s identification
Before taking part in a race, everyone should know the nature of tracks and the
surroundings competitors. Markets are tracks and the other hotel organisations are competitors.
Main thing is to analyse the customers of markets who are paying to them. The aim behind to
know about its customers is to find out the physiology, nature, demands and needs of customers.
It is because; the trends of market are run by customers and it is maintained by hotel industries
(Fraj, Matute and Melero, 2015).
This will be helpful in finding out the negative and positive nature of market. Innovative
ideas may be applied after this and it would create the uniqueness of hotel. If any innovative idea
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is applied in market without investigation of others, it may be happen that the same idea has been
applied to any other competitor. Maybe it will happen that customers will come but there will be
a physiological thinking of customers that this hotel has a copied idea.
Design and development
In hotel industry, design and development plans are very important. In other sectors, it
means this may be different but in hotel industry it mainly deals with the design and
development of the hotel rooms, parking, gardens and other interior designings. The hotel rooms
may have a fabulous interior designing with all required necessities of customers. It must have
different types of lights and decoration so that it may attract the customers. The most important
thing is the development of internal environment of hotel that must be friendly and cooperative
with efficient manners. This will be the strength of Ritz- Carton.
Operation and management plan
Smooth operations deal with proper management. If the management of hotel will be
standard then all the functions and operations will be performed in a dedicated and smooth way.
The plan should contain every prominent factor. The management teams must have category
wise responsibilities so that it can be managed in an arranged way.
This will prevent the jig-zag arrangement and functioning of management teams. It is
often heard that the management of that hotel or organisation was not satisfactory. Bad
management can never create a loyal interaction with the customers. Providing satisfactory
services and good behaviour natures of management teams are the key factor to make their
customers loyal for hotel to visit next time.
Financial factors
Financial strategic planning is the background profile but it is backbone or
establishment of Ritz-Carton Hotel. The exact amount of forehand investment will give a clear
idea of future. The investment is first part after entering in the market because without it nothing
can be done in hotel industry (Plambeck and Taylor, 2015.).
This department of hospitality sector can run without financial support. This hotel
industry demands for investment in its beginning time. The investment that is made over
selection of suitable place is variable because for hotel setup, the location matters a lot. The
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natural, greenery location and tourist place are good known for hotel. The money needed to
start a hotel in such a place is the matter of concern.
2. Assessment of strategic positioning with respect to organisational audit
Organisational audit is a process which is created to add the additional value services to
enhance the facilities and operations of an organisation. It helps in bringing the systemic and
disciplined approach to evaluate and improve the risk management and controlling process of the
firm. There are following organisational audits that show the strategic positioning of Ritz- Carton
hotel.
Gap analysis is the first audit that is to be studied about any organisation. It is a type of
internal audit that is helpful in measuring the gap between organisation's current situation and its
desired positioning. For example: the gap between the current financial collection and the desired
gathering. The main reasons behind it my the inadequate or poor customers' attraction toward
hotel due to bad management and services of hotel. It is necessary to find out the gap between
customers and Ritz-Carton hotel's management.
Swot analysis may be done so that the weaknesses and strengths of hotel management
can be found out. It is better to find out the weaknesses of all sections of management including
services, marketing, financial and other operational teams.
Organisational cultures- This is the organisational internal analysis which is to be done to
evaluate the current cultural environment of the organisation and then it is determined that what
types of aspects are there that must be changed in order to support the strategic positioning of
hotel (Nieves and Segarra-Ciprés , 2015). This audit includes the employee’s survey to analyse
their behaviours towards customers and the internal satisfaction of working staff who are
working there.
Quality improvement- Customers are always in search of something new. So, there must be
continuous quality improvement in the process of their services. There are many ways to
improve the quality. The quality must be assessed and new plans are made. Implementation of
the plans are most important step to make a change. All positive and negative feedbacks must be
evaluated to make the plans and services better.
Innovations- Services must be provided in a different way that may cause the happiness of their
customers. One of the factor can be considered as the innovative services that must be given by
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Ritz-Carton Hotel. The management staffs must welcome their customers at airport and other
pick up place with flowers or gifts.
Fraud audit- A hotel management always be care full about the fraud challenges that are faced
by customers. Never promise the false services to their customers otherwise this may obliviously
lead to the drastic fall in business. Customers must be given advice to choose the best services
and avoid the fraud hotel bookings. The hotel physical evidence must be displayed at the
reception place so that customer can trust the services of hotel and they always will to come
there.
3. Environmental audit with the help of appropriate models.
Environmental audit is the process that is taken to fill the gap of environmental damage
cause due to the environment. This include all the studies of technical and organisational
activities that aim to reduce the environmental impact by the organisational operations and
activities. The manager of hotel is responsible to reduce all the risks that cause the environmental
damage. In 19995, the International Hotel and Association announced the comprehensive check
list for environmental and development actions for small and medium business. Environmental
management at the hotel should include all activities that support the development of all
practices reducing the bad effects to our environment. There are various models and practices
that are used by hotels to reduce the environmental issues.
Process of Energy Management-
Ritz-Carton Hotel is fully aware to save the energy. Energy is needed to meet the needs
of guest. The hotel management should always try to save the energy resources so there are
many technologies are used to reduce the consumption of hotel. Every hotel consists of air
conditions that need more energy to run and enormous amount of heat is liberated by them on
daily basis.
Now there are updated air conditioners are available in market that consume less energy
and also liberate less amount of heat. All the electric appliances that are used in hotel must be
government approved. The insulators used in kitchen in bath room to heat water must have less
consumption of energy. The other option is to save energy is to use solar energy to full fill the
need of customers. Rooms and galleries must have proper ventilation so that lights and air can
enter to rooms. This may prevent the consumption of energy during day time. Sensors and timers
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must be used in hotels so that when there is no one in room the energy consumption is paused by
the electric appendices.
Water management-
The customers must be given advice regarding use of water. The use of water in toilets
and flush must be reduced by customers by following the advice of hotel management. There
technological systems that are implanted within hotel to separate the solids from liquid. This
process prevents the contamination of water and it is easy to filter it. Technological disinfectant
machines are used in hotel so that the water that is used in hand washing can be prevented.
Solid waste management-
Hotel is a place where there are different types of solid wastes are occurred every day
including metals, scarps, aluminium, plastics, papers and glass. Hotel management must have
separate dust bin to collect different types of solid waste products. All waste products should not
mic with each other because this leads to the formation of poisonous gases, This may also lead to
many problems during land fill of waste products.
A proper advice should be given to the customers regarding taking of food so that the
wastage of foods can be prevented. This sector is one of the most common place where the
accumulation of solid wastes are occurred due to excess of cooking, servings and packaging
failures of food
Solid waste management programs must be adopted by hotel management that is called Reduce,
Recycle and Reuse. There must be the availability of dust bins at the major places of hotels.
Process management of chemicals-
A huge amount of chemicals are used in star hotels including salts, vinegars, shampoos,
soaps and liquid disinfectant. Cleaner machines should be used at the place of liquid disinfects or
surfactant to clean the utensils and floor. Because doors, windows, desks tables and other things
are cleaned to maintain the hygienic conditions in hotels.
So it is necessary to buy all these types of products from an authorized dealer who have given the
recognition related to environment practices and concerns. All the papers and plastics should be
used that have biodegradable;e properties so that it can be recycled easily.
Environmental audit is very important to save the environment from all harmful practices
. These environmental audit must be followed by Ritz-Carton Hotel to get the best star ranking in
hotel industry. These star rankings are very helpful in increasing the numbers of customers.
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Organisation's vision, mission, values, structures and hospitality activities of concern Hotel.
Mission of Ritz-Carton Hotel is to full fill al the needs and requirements of their
customers. It is a grand hotel that is applying all the tools and techniques to ensure their
customers that they are loyal to them even after facing too much competition in market. They are
always reedy to greet and provide good services with all its sincerity to the customers. The vision
of this hotel to give satisfactory result to their customers with their all committed promises in
future too. Each and every need of customer is needed to be full filled(Teng, Horng, and H u,
2015.,). Its values is defined by the satisfaction of their customers and their strong wishes to visit
there again and again.
They try to maintain the culture and this environment beautiful with their own cooperation. They
also care their management and staffs with the prosperity of love and affections. There are many
structural units of Ritz-Carton hotel across the world. Different kinds of hospitalities are
provided by this hotel like family tour, couples' holiday and many adventurous programs for
adults with the facility of fabulous accommodations.
CONCLUSION
It has been concluded here that the strategic planning is very necessary for the better
development and growth of an organisation. In this context the planning of selected hospitality
industry has been discussed here. The customer satisfaction is the best thing for a hospitality
industry and this has been depicted here with the help of all analysing factors and organisational
audit that are helpful in enhancing the services of hotel industry. Along with this environmental
audit is given importance for the standardisation of organisation. These all informative
knowledge about the all types of management and audits would be very helpful in assessing the
industry.
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REFERENCES
Books and journals
Boella, M., 2017. Human resource management in the hotel and catering industry. Routledge.
De Baerdemaeker, J. and Bruggeman, W., 2015. The impact of participation in strategic planning
on managers’ creation of budgetary slack: The mediating role of autonomous motivation
and affective organisational commitment. Management Accounting Research, 29, pp.1-
12.
Elbanna, S., 2016. Managers' autonomy, strategic control, organizational politics and strategic
planning effectiveness: An empirical investigation into missing links in the hotel
sector. Tourism Management, 52, pp.210-220.
Fraj, E., Matute, J. and Melero, I., 2015. Environmental strategies and organizational
competitiveness in the hotel industry: The role of learning and innovation as determinants
of environmental success. Tourism Management, 46, pp.30-42.
Heinelt, H., 2018. European Union Environment Policy and New Forms of Governance: A Study
of the Implementation of the Environmental Impact Assessment Directive and the Eco-
management and Audit Scheme Regulation in Three Member States: A Study of the
Implementation of the Environmental Impact Assessment Directive and the Eco-
management and Audit Scheme Regulation in Three Member States. Routledge.
Karatepe, O. M. and Kaviti, R., 2016. Test of a mediational model of organization mission
fulfillment: evidence from the hotel industry. International Journal of Contemporary
Hospitality Management. 28(5). pp.988-1008.
Nieves and Segarra-Ciprés 2015., J.Nieves and Segarra-Ciprés 2015., M.,Nieves and Segarra-
Ciprés 2015. Management innovation in the hotel industry. Tourism Management. 46.
pp.51-58.
Phillips, P. and Moutinho, L., 2014. Critical review of strategic planning research in hospitality
and tourism. Annals of Tourism Research, 48, pp.96-120.
Plambeck, E. L. and Taylor, T. A., 2015. Supplier evasion of a buyer’s audit: Implications for
motivating supplier social and environmental responsibility. Manufacturing & Service
Operations Management. 18(2). pp.184-197.
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Teng, C. C., Horng, J. S. and Hu, I. C., 2015. Hotel environmental management decisions: The
stakeholder perspective. International Journal of Hospitality & Tourism
Administration. 16(1). pp.78-98.
Wan, Y. K. P., Chan, S. H. J. and Huang, H. L. W., 2017. Environmental awareness, initiatives
and performance in the hotel industry of Macau. Tourism Review. 72(1). pp.87-103.
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