LT6018GN: Strategic Planning for the Hospitality Industry Report

This report provides a comprehensive analysis of strategic planning within the hospitality industry, focusing on the practical application of strategic management principles within the context of the TAJ Hotel in London. The report begins by defining strategic planning and its importance, particularly in a competitive industry. It then delves into the critical analysis of factors that influence the successful implementation of business strategies, including leadership styles, organizational structure, and information systems. Furthermore, the report evaluates various performance metrics, such as critical success factors, key performance indicators, and balanced scorecards, assessing their impact on the effectiveness of business strategies. Finally, the report critically examines key elements in managing strategic change and leading different types of change within the hospitality sector, providing a holistic view of strategic planning and its practical implications.

Strategic Planning For
The Hospitality Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 4............................................................................................................................................1
Critically analyse the factors which helps in influencing the successful implementation of the
strategies in business functions...................................................................................................1
TASK 5............................................................................................................................................4
Evaluation of the different performance metrics and how they influences the effectiveness of
business strategies.......................................................................................................................4
Critically evaluate the various key elements in order to manage the strategic change and also
leading the different types of change..........................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic planning is defined as a process through which a plan based on mission, vision,
values and goals of organisation is initiated and using specific strategies and tactics these goals
are achieved. Through strategic management services in hospitality industry are provided on the
recreational basis to consumers for their leisure. Priorities are set, focus is made on energy and
resources, operations are strengthen and it is ensured that all the activities are performed I such
manner so that goals and objectives of the targeted organisations are achieved. Hospitality
industry is one of the fastest growing industry and involving a huge amount of competition (Ali,
2018). In order to perform each activity as per plans and to increase positive image of business
strategic planning will be applied on TAJ Hotel, London. This is one of the largest hotel chain
organisation which is located in 100 destinations. This report is focused on factors affecting
successful implementation of strategies and analysis of different performance metrics. Together
with this certain key elements in managing strategic change and leading type is evaluated.
TASK 4
Critically analyse the factors which helps in influencing the successful implementation of the
strategies in business functions
Implementation of strategies in conducting business operations involves number of
activities that needs to be performed as per plans in order to accomplish targeted objectives.
Strategic planning of TAJ Hotel is presented in a written form so that a complete description can
be presented for performing number of activities. After completion of activities feedbacks are
collected to ensure that variations can be noted and appropriate steps are taken to minimise these
variations. Introduction of strategic planning is important so that a path can be designed to follow
and employees at each level of organisation are well aware regarding their role and
responsibilities as per goals and objectives (Belias and et. al., 2017). Effective involvement of
employees are initiated through strategic planning so that employees in long run can be
motivated to improve their performance. Factors that affects implementation of these strategies
are as follows-
Leadership: It is an art through which an individual motivates and influence a group of
individual to perform certain activities in a pre determined manner. Leadership creates a quality
in an individual which make person able to influence others in order to achieve organisational
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goals. Leaders in hospitality industry business plays important role to inspire their followers and
make them do certain work as planned. Leaders while working in Hotel TAJ make are focused to
bring available talent best of its use. This is performed through identifying potential and quality
of each employee working their and motivating and guiding them to improve their performance
level. TAJ hotels are based and developed on democratic style of leadership (Bouranta, Psomas
and Pantouvakis, 2017). In this form of leadership style employees of the organisation are
provided an opportunity to participated in decision making process. As employees working in the
organisation and they are the one who can make suggestions in more better manner. Application
of this form of leadership provides improved communication and participation of employees and
goals and objectives of business organisation are achieved in more appropriate manner. This
leadership style have influence on-
Employees performance: Providing opportunity to participate and communicate leads to
high amount of motivation among employees and level of their performance will improve.
Sustainability: Business organisations are established to earn profits and sustain for long
duration of time. Meeting all the targets as required and highly motivated employees will provide
sustainability to organisation.
Structural Design: It is a well established process through which organisational
hierarchical system is designed in appropriate manner to accomplish all the activities in targeted
manner. Structure established in businesses helps in allocation of roles and responsibilities to
employees at each level on the basis of their performance. Organisational structure of hotel TAJ
is delegated to the lowest level and flexibility is granted (Buhalis and Leung, 2018). This helps
business organisation to sustain in long run with improved coordination at all the levels. A
divisional organisational structure is used in TAJ hotels and through this all the functions are
performed by a particular department and all the responsibilities for that particular activity
belongs to a particular department only. Factors that influences business strategy thorough
organisational structure are-
 Size of organisation: Availability of size of the organisation affects the organisational
structure. As a small size organisation choose an easy and informal organisational
structure on the other hand large organisations chooses a structured design in order to
perform various activities.
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 Valuable: Through this value of divisional structure is identified for TAJ hotel as
competition is generated within the organisation and leads to more and more
improvement in internal performance.
Information and Control System: In large organisations like TAJ hotels a system is
developed through which information is grabbed and controlling is made to improve
performance. This system is important to control and monitoring performance at different level
of business organisation (Camilleri, 2018). Monitoring leads to identification of variations and
together with this all the corrective actions are introduced to improve performance. In order to
become more effective and to monitor overall performance of TAJ organisation Management
Information System is used. This is a tool for managers of organisation to evaluate and
efficiently manage various activities in business organisation. Together with this a strategic
surveillance control system needs to be introduced to analyse all the performance and making all
possible moves towards attainment of set objectives. Factors affecting strategies are as follows-
Formulation: Organisational system and activities must be developed in such manner so
that requirement of control and monitoring can be avoided.
Implementation: Strategies or systems that are introduced in order to control and
monitor performance of business organisation must be done in such manner so that effective
results can be acquired.
Human Resources: This is one of the most important factor through which all the goals
and objectives of business organisations are performed. In order to implement strategies and
achieve targeted objectives management of TAJ hotel must develop policies through which
positive relationships can be generated among employees (Claveria, Monte and Torra, 2015). In
order to improve employees on the job training will be provided to them so that their efficiency
is created while working in the real environment. Factors that affects strategies are as follows-
Cost: Trained employees are turned out as an asset for business organisation in order to
improve performance with their efficiency and quality of work. This leads to cost reduction and
profits are generated.
Maximising resource utilisation: New employees and already existing employees are
trained as per changing market scenario and this leads to utilisation of various resources in the
market in the best manner.
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TASK 5
Evaluation of the different performance metrics and how they influences the effectiveness of
business strategies
Performance matrices are defined as figures and data through which actions, abilities and
overall quality of business organisation are represented. Implementation of a good matrices is
importance so that a process through which consumers requirements are meet in best possible
manner. A matrices transforms all the information in relation to consumers requirements and as
well as operational performance in form of numbers which is comparable (Hassanien and Dale,
2019). Different matrices that can be implemented to TAJ organisation are as follows-
Critical success factors: It is a management term which is used to define an element that
is necessary for business organisation in order to achieve targeted goals and objectives. Analysis
of success factor is important in order to achieve goals and objectives by taking required
corrective actions in order to perform as per plans. A business or a project is initiated to
accomplish various objectives but there is one factor which is very critical to ensure success.
Accessing the critical factor helps in taking all the decision in such manner so that
accomplishment of objective is taken as primary concern. Analysis of a critical success factor is
done on the basis of control and monitoring performed through management information system
ad through critical surveillance system. Monitoring and controlling leads to formulation of
success factor and after that implementation is made in effective manner. Monitoring leads to
assessment of internal and external business environment and on the basis of observations
employees in TAJ organisation are induced to improve their performance (Critical Success
Factors, 2012). All the corrective actions will be taken so that goals and objective is achieved
and level of employees performance working with TAJ is improved.
Key performance indicators: It is a measurable value that demonstrate how effectively
a company is achieving key business objectives established to gain long term success. A business
is established with a motive to achieve number of objectives and all the objectives are important
but there are certain key performance indicators which are used to evaluate rate of achievement
of goals. Key performance indicators relies and influenced through effective performance also it
helps to understand importance of various factors aiming requirement of success of various
organisational factors. Through key performance indicators level of performance is established
and also helps in measuring current performance on the basis of targeted objectives. In order to
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establish key performance indicators in TAJ hotel business structure is established in divisional
manner. Each division will be provided with there performance level and importance of a
particular division can be identified on the basis of key performance indicator. Performance of
employees working in a department will be measured on the basis of performance targets.
Establishment of performance indicators helps in assigning work in easy manner on the basis of
facts available (Hertzman, Moreo and Wiener, 2015).
The balanced scorecard: It is a strategic planning and management system method
which is used in the organisational structure. Usage is made in relation to communicate goals and
objectives that needs to be accomplish, work or activities that each individual is going to perform
while conducting day-to-day operations. Through this system project, product and services of
business are prioritized on the basis of their importance. A balanced scorecard also helps in
measuring and monitoring progress towards strategic targets established by business
organisations. It is a performance matrices used in the strategic management to identify and
improve various internal functions of a business that helps to enhance external results. Measuring
performance level on the basis of targets helps in finding variations and appropriate actions are
taken to minimise its effect. Using balance scorecard method helps to collect and analyse data
that helps to analyse results and on the basis of results actions required to achieve targets are
taken. Availability of information and accurate data helps managers of business in effective
decision making process through which growth and development of business can be maintained
effectively (Rok and Mulej, 2014). Growth and arrangement of finances for business
organisation helps in implementing required training and development programmes for
employees in TAJ hotel and level of overall organisational performance can be improved.
Business organisation takes decision based on information which is available to them and
introduction of balanced scorecards system will provide all the relevant information. All the
business operations are directed on the basis of information in such direction through which
performance is improved. Cost is controlled and minimised and effective training is provided on
the basis of information generated with scorecard.
Critically evaluate the various key elements in order to manage the strategic change and also
leading the different types of change
Business environment is changing on continuous basis and in order to sustain and survive
in competitive market adaptation to these changes will be made by TAJ hotel. Change is useful
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as introduction of changes helps to modify ineffective systems in some advanced methods
through which goals and objectives of business is achieved. Change helps in modifying TAJ
organisation and leads to provide a new shape to its operations so that efficiency and
effectiveness of operations can be improved. Change influence a business organisation and it can
be in positive or in negative form. Introduction of changes needs to be done in required manner
so that modification can be introduced in organisational structure, culture, policies and target
market as demanded by competitive market scenario (Smith, 2017). Introduction of changes in
effective manners needs to be done with proper planning and on the basis of strategies which is
analysed and evaluated effectively. This will help in upgrading level of performance of business
activities and results in generating more and more amount of success. Introduction of changes is
not an easy task and at each level some amount of rigidity is faced form employees to adopt
changes as it will modify the manner of performance which is difficult to make. Some of the key
elements in order to critically evaluate key elements and in managing strategic change and
leading type are as follows-
Diagnosis: This is a method which helps to analyse the whole situation in complete
manner and leads to identification of issues available to business organisation and reasons for
such issues. Identification of reasons for issues will help in providing solutions on the basis of
situations. Through this method complete analysis is made on variations which arises among
current performance and set targets due in ineffective performance. Implementing a diagnosis
process will help in introducing a system through which change can be completely analysed and
improvement in performance is introduced on continuous basis to achieve success. TAJ
organisation needs to become adoptive towards strategies surveillance control so that
performance can be measured effectively and controlling is made productively (Solnet, Kralj and
Baum, 2015). Through diagnosis effective controlled is introduced through which level of
performance is improved and targets are achieved.
Change agents: Change in an organisation can be made with an individual or group of
persons. Sometimes a mediator is appointed so that introduction and implementation of change
can be done in effective manner. Implementation of change is ensured in effective manner so that
goals and objectives are achieved to generate productive results. Mediators who are introducing
changes to business organisations introduce them in such manner so that efficiency of
organisation can be improved and together with this development can be made in effective
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manner. Change is an important activity which is important to enhance quality, efficiency and
leads to generation of sustainability for business so that all the long term goals and objectives in
business is achieved in complete manner. Agents while implementing changes ensures that all
the changes are implemented on appropriate so that effect can be maximised and more and more
productive results can be achieved. Adaptation of reconstruction structure through establishing
divisions in the business organisation will generate more and more amount of efficiency in
performance. Change make employees effective and develop them to work more efficiently in
the challenging working environment.
Managing change programmes: As change is introduced by business organisation on
continuous basis and in order to maintain its positive effect managers in business needs to
introduce a program which leads to managing changes. A effective approach is introduced in
business organisation so that change can be managed for current and future businesses activities.
Managing changes in effective manner leads to boost employees moral as roles and
responsibilities performed by them will be made in effective and efficient manner. Change
management and level of performance of employees both possess a positive relationship.
Managing change helps to generate positive results by performing all the activities in effective
manner (Titomir and Danylova, 2018). All the corrective actions are taken on time so that
negative influence of them can be minimised and positivity is introduced. Revolution needs to be
made when control and monitoring activity is performed through strategic surveillance method.
In TAJ hotels change management will help in introducing complex system in effective manner
to generate desired results form change.
Levers for change: It is a management which helps business organisations to transform
their activities in such manner so that level of profits and growth can be increased. Leaders of
TAJ hotel will take decision in relation to introduction for change and also for time period in
which change will be implemented. Evolution of on the job training needs to be made in TAJ
hotels so that performance is improved through training in real business situations. Overall
performance of the organisation will improve through efficient employees working towards
organisational goals and objective to sustain in long run. Training will develop an employee in
personal and professional terms and each of them will work with more and more efforts so that
organisational goals can be achieved and to accomplish targeted objectives.
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CONCLUSION
From the above project report it has been concluded that planning provides basis for
performance of various activities and leads to accomplishment of targeted goals and objectives
as per plans. Strategies are implemented on business organisation to accomplish various
activities and in order to generate positive results factors affecting strategic planning needs to be
analysed. This analysis will help in minimising negative effect of these factors and move towards
achievement of organisational goals and objectives. A effective strategic planning will provide
achievement of goals ad objectives and together with this it will leads to gain more and more
amount of market growth for business. Performance measurement tools needs to be identified so
that progress can be made in organisational performance and required improvements can be
made. Control and measurement on the basis of targets helps in variance identification and
actions taken to minimise these variation will leads to enhancement of operational efficiency of
business activity through more success and revenues.
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REFERENCES
Books and Journals
Ali, A. A., 2018. Strategic planning–organizational performance relationship: Perspectives of
previous studies and literature review. International Journal of Healthcare
Management. 11(1). pp.8-24.
Belias, D., and et. al., 2017. Human resource management, strategic leadership development and
the Greek tourism sector. In Tourism, Culture and Heritage in a Smart Economy(pp.
189-205). Springer, Cham.
Bouranta, N., Psomas, E.L. and Pantouvakis, A., 2017. Identifying the critical determinants of
TQM and their impact on company performance: Evidence from the hotel industry of
Greece. The TQM Journal. 29(1). pp.147-166.
Buhalis, D. and Leung, R., 2018. Smart hospitality—Interconnectivity and interoperability
towards an ecosystem. International Journal of Hospitality Management. 71. pp.41-50.
Camilleri, M. A. ed., 2018. Strategic perspectives in destination marketing. IGI Global.
Claveria, O., Monte, E. and Torra, S., 2015. A new forecasting approach for the hospitality
industry. International Journal of Contemporary Hospitality Management. 27(7).
pp.1520-1538.
Hassanien, A. and Dale, C., 2019. Hospitality business development. Routledge.
Hertzman, J. L., Moreo, A. P. and Wiener, P. J., 2015. Career planning strategies and skills of
hospitality management students. Journal of Human Resources in Hospitality &
Tourism. 14(4). pp.423-443.
Rok, M. and Mulej, M., 2014. CSR-based model for HRM in tourism and
hospitality. Kybernetes. 43(3/4). pp.346-362.
Smith, R.D., 2017. Strategic planning for public relations. Routledge.
Solnet, D., Kralj, A. and Baum, T., 2015. 360 degrees of pressure: The changing role of the HR
professional in the hospitality industry. Journal of Hospitality & Tourism Research.
39(2). pp.271-292.
Titomir, L. and Danylova, O., 2018. Investigation of backgrounds for the innovative
development of the hospitality industry in various regions of Ukraine. Technology audit
and production reserves. 4(2 (42)). pp.16-23.
Online
Critical Success Factors. 2012. [Online]. Available through:
<https://kfknowledgebank.kaplan.co.uk/business-strategy/strategic-analysis/critical-success-
factors-and-core-competences>
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