Strategy and Governance Report: Holtwhites Hotel, Hospitality Sector

This report provides a comprehensive analysis of the strategy and governance of Holtwhites Hotel, a hospitality sector organization. It begins with an introduction outlining the background of the hotel, the corporate governance problems it faces, the aims, objectives, and research questions. The report then delves into a literature review, exploring the concept of corporate governance, challenges like conflicts of interest and oversight issues, and strategies for improvement. It emphasizes the importance of corporate governance for balancing stakeholder interests and building trust. The report also examines the challenges the hotel may suffer due to corporate governance issues. The methodology used in this research is also discussed. Overall, the report aims to determine the strategy and governance of the hospitality sector company using Holtwhites Hotel as a case study.

Strategy and Governance
Report with action plan

Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Background to industry organisation.....................................................................................1
1.2 Corporate governance problem..............................................................................................1
1.3 Aims.......................................................................................................................................1
1.4 Objectives..............................................................................................................................1
1.5 Research questions.................................................................................................................2
Structure of the report..................................................................................................................2
1.6 Limitations.............................................................................................................................2
CHAPTER 2: LITERATURE REVIEW.........................................................................................2
The concept of corporate governance..........................................................................................3
The challenges that can be suffered by Holtwhites Hotel in due to corporate governance.........4
The strategies which can be utilised by the Holtwhites Hotel regarding corporate governance. 6
The importance of corporate governance....................................................................................8
CHAPTER 3: RESEARCH METHDOLOGY..............................................................................10
REFERENCES..............................................................................................................................10

CHAPTER 1: INTRODUCTION
1.1 Background to industry organisation
The Holtwhites Hotel is basically situated on the junction of Holtwhites ill and Chase Side,
approximately 10 minutes walking distance form Enfield Town Centre and its shopping services,
This hospitality sector organisation is designed for both business persons and visitors to Enfield
who need quality en suite accommodation at reasonable costs. The particular establishment
provides a range of services to its guests considering direct dial telephone, teletext and colour TV
with SKY news and sports, guest’s car park, complimentary hospitality tray, complimentary
daily newspaper accessible, weekends and a writing desk in most rooms (World Health
Organization, 2019). It also offer photocopying and fax services when it’s targeted people
demand for it and requested. There are presently 2 cafeterias, 4 restaurants, 4 pubs and 3
takeaways serving a range of variety of dishes within 2 minutes walking distance from the hotel.
1.2 Corporate governance problem
Corporate governance essentially considers balancing the interests of a firm’s several
stakeholders like shareholders, senior management executives, consumers, suppliers, financiers,
the government and the society. There are several corporate governance problems such as
conflicts of interest, oversight issues, accountability issues, transparency and ethics violations etc
(Vith and et. al., 2019). These kinds of issues can also faced by the management of Holtwhites
Hotel in term of operating its business activities and operations in hospitality industry.
1.3 Aims
The aim of the company is to determine the strategy and governance of the hospitality
sector company. A case study on Holtwhites Hotel.
1.4 Objectives
 To understand the concept of corporate governance.
 To determine the challenges that can face by Holtwhites Hotel regarding corporate
governance.
 To monitor the strategies that can be used by the Holtwhites Hotel in term of corporate
governance.
 To acknowledge of the importance of corporate governance.
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1.5 Research questions
 What is the concept of corporate governance?
 What are the challenges that can be suffered by Holtwhites Hotel in form of corporate
governance?
 What are the strategies which can be utilised by the Holtwhites Hotel regarding corporate
governance?
 What is the importance of corporate governance?
Structure of the report
This research project is segregated into 3 chapters. Chapter one offers an introduction to
this study, considering the overview of hospitality form, corporate governance problem, aims,
objectives and research questions (Selig, 2018). Chapter two demonstrates a review of the
literature on corporate governance understanding, challenges, plans or strategies to overcome
that issues as well as the importance of corporate governance in business. Chapter three discuss
the data selection process and research methodologies utilised in this research.
1.6 Limitations
It refers to those components and aspects which influence the effective execution of the
report and affect its particular area. In this research project, the limitations can be lack of time,
lack of fun and collection of effective information regarding particular topic of report which can
be affected the effective execution and completion of the document in more appropriate manner.
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CHAPTER 2: LITERATURE REVIEW
It really states to the interest of amassing statistics of various pupils and authors which
assists the surveyor in sporting out intensive take a look at about any topic on which the general
research is primarily based. This segment of studies enable in figuring out the research through
theoretical framework due to the fact it is green in analysing the view factors of several authors
and writes who are having huge understanding on a few specific subject matter (Padiyara, Inoue
and Sprenger, 2018). Here, records is amassed by using taking assist of secondary sources
inclusive of books, journals from distinct webpages existed over internet, magazines, newspaper,
studies paper etc. In this segment of studies secondary source of facts is powerful as in this
proper description approximately research trouble must be provided by using the view factors of
numerous authors.
The concept of corporate governance
Corporate governance is the system is the system of rules, practices and processes through
which a company is directed and controlled. Corporate governance essentially considers
balancing the interests of a business venture’s many stakeholders, such as shareholders, senior
management executives, consumers, suppliers, financiers, the government and society. Corporate
governance also offers the structure for accomplishing an organisation’s objectives; it includes
practically every sphere of administrator from action plans and internal controls to execution
assessment and corporate disclosure (Badia and et. al., 2019). Basically, governance denotes to
the set of rules, controls, policies and resolutions put in place to state corporate behaviour. Proxy
advisors and shareholders are essential stakeholders who instantly impact governance, but these
are not instances of governance itself. The board of directors is pivotal in governance and it can
have main consequences for equality assessment. As per the view of Chen J. (2020), an
organisation’s corporate governance is essential to investors since it shows an establishment’s
direction and business reliability. Good corporate governance assists enterprises make trust with
investors and the community. As a result, corporate governance enables promote fiscal feasibility
by creating a long term investment opportunity for market participants. Generally corporate
governance indicates to the form and manner a corporation s governed. It is the tool and method
through which organisations are directed and administrated. Corporate governance contracts with
analysing ways to take efficient strategic decisions. It provides ultimate authority and inclusive
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accountability to the Board of Directors. Corporate governance assures transparency that makes
sure strong and balanced economic development. This also ensures that the interests of all
shareholders are defended. It assures that all shareholders fully exercise their rights and that the
company fully observes their rights.
According to the view of Rouse M. (2020), corporate governance is the amalgamation of
rules, processes to laws through which businesses are driven, regulated and managed. The term
includes the internal and external aspects which influence the interest of a venture’s stakeholders
considering consumer, dealers and management etc. The main motive and objective of corporate
governance is to enhance and maximise shareholder value and protect the interest of other
stakeholders (Dietz and et. al., 2018). Corporate governance has several objectives to strengthen
investor’s confidence ad intern guides to fast development and profits of companies. For
example, a correctly constructed Board proficient of taking independent and purpose decisions is
n place at the controls of affairs and adopts transparent processes and activities as well as arrives
at decision on the strength of appropriate information. Apart from this, there are several principle
of corporate governance which are crucial for effective running of business establishment. They
are as:
 All stakeholders should be treated fairly and similarly. Along with this is assuring
shareholders are aware of their rights and how to exercise them.
 Legitimate, contractual and social commitments to non shareholder stakeholders must be
upheld (Ringel and Knodt, 2018). It considers always communicating pertinent data to
workers, capitalists, suppliers and people of the community.
 The board of directors must manage a commitment to assure responsibility, fairness,
diversity and transparency within corporate governance. Member of board must also
possess the appropriate abilities require to review administration activities.
 Companies should explain a code of conduct for board members and executives, only
appointing new people if they meet that benchmark.
 All corporate governance policies and processes should be transparent or disclosed to
reliable stakeholders.
The key purpose of corporate governance is t execute a checks and balances system which
reduces issues and conflicts of interest. In context of business, corporate supremacy states to the
systems of rules, activities and processes through which ventures are overseen. In this way, the
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corporate governance model followed by a particular venture is the allocation of rights and
accountabilities through all participants in the firm. Governance assures everyone in a form
considers effective and transparent determination devising processes and that the interests of all
stakeholders are secured and protected.
The challenges that can be suffered by Holtwhites Hotel in due to corporate governance
Rules and policies are critically essential and necessary in business. So to operate the
business of venture in more developed manner, so to run it in appropriate manner, effective and
good corporate governance is required (Dale and et. al., 2018). It, encompassing all the principle
of open and accountable management, is a way of assuring that a firm keeps within clear ethical
lines. It has been top of the policymaker’s agenda for some time now, but can be a challenge for
businesses on several levels. As per the view of Thompson J. (2018), the board of directors is
crucial for the governance of its establishment as they assist in resolving issues and dealing with
the challenges of corporate governance. There are diverse issues and challenges which can be
faced and suffered by a business venture like Holtwhites hotel. The description of some of them
as under:
Conflict of interest- this kind of issue arises when a controlling member of the
organisation has other fiscal interests that could impact his/her decision making or conflict with
the aims of the establishment (Orenstein and et. al., 2018). For instance, a board member of
respective hospitality form Holtwhites hotel who owns a significant amount of stock in a food
company is likely to be clashed as the individual has a fiscal interest in not representing the
advancement. Conflicts of interest erode the trust of stakeholders and the public and potentially
open the business up to litigation.
Governance standards- A board can have all the unbiased rules and policies it likes but if
it cannot propagate those benchmarks throughout the business what chance does the firm have.
Resistant administrators can subvert good corporate governance at the operational level, leaving
the business uncovered to state or federal law violations and reputational damage with
stakeholders. A policy of corporate governance demands a clear enforcement mechanism,
applied consistently as a check and balance against the activities of executive staff.
As per the view of Muir J. (2016), corporate governance is the term utilised to define the
balance among the participants in the corporate structure who have an interest in the way within
the establishment is operate, like executive staff, shareholders and members of the community.
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Corporate governance instantly influence the profits and reputation of the firm and having poor
policies can expose the venture to lawsuits, fines, reputational damage and loss of fund
investment. There are some common pitfalls and challenges are as under:
Oversight issues- Good corporate governance needs the board of directors to have
substantial oversight of the firm’s process and activities. Oversight is a board term which
includes executive staff reporting to the board and the board’s awareness of the daily operations
of the business organisations like Holtwhites hotel and the form within its aims and goals are
being accomplished (Sonnino, 2019). The board defends the interest of the shareholders, acting
as a check and balance regarding the executive staff. Without this oversight, the staff of the firm
might violate state or federal law, facing considerable fines from authoritarian agencies and
suffering reputational damage with the public.
Accountability issues- It is needed for effective governance. From the top level executives
to lower level workers, each level and department of the corporation should report and be
responsible to another as a system of checks and balances. Apart from this, the actions of each
extent of the organisation are responsible to the shareholders and the public (Oberthür, 2019).
Without liability, one department of the particular hospitality firm might imperil the success of
the whole firm or cause stockholders to lose the need to constant their investment.
Transparency- To be transparent, a corporation must effectively report their profitability
and losses as well as make those figures accessible to those who invest in their firm.
Overinflating profits or reducing losses can seriously injure the firm’s relations with stockholders
in that they are attracted to invest under false pretenses. Lacks of clearness can also depiction the
firm to fines from regulatory agencies.
Ethics violations- The people and members o the executive board have an ethical duty to
make decisions supported to the best interest of the stakeholders. Moreover, a company has an
ethical duty to prevent and guard the social welfare of others, considering the greater community
within they operate. For example, if the management of the respective firm Holtwhites hotel do
not make focus on the ethics of the business like minimising pollution and many more then it can
affect and create a challenge for the business of a firm. So by considering effective and good
polices of corporate governance, the administration can deal with different challenges.
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The strategies which can be utilised by the Holtwhites Hotel regarding corporate governance
There are several kinds of issues and challenges which are faced by a business organisation
due to corporate governance. Organisations require developing corporate governance. As per the
view of Volkov M. (2013), in the absence of effective governance, ventures will suffer in
monetary term, legal and reputational harm. From the risk perspective, there is no greater risk to
a venture than poor governance (Gutenbrunner and Nugraha, 2018). There are some strategies
which can be considered by the management of an organisation like Holtwhites hotel, the
explanation of some of them as below:
Increase diversity- It is one of the effective strategy which can be considered by the
management of the corporation in term of managing with the challenges of corporate
governance. Holtwhites hotel is a hospitality firm which provide its services to both male and
female. By considering the diversity in term of hiring both men and women, to operate the
business operations and actions in effective manner which assist in making successful operation
of venture. The venture need to disclose their diversity policies and such disclosures should lead
to maximise emphasis on diversity.
Appoint competent Board members- he nominating committee should devote
appropriately time to find out board members who have the abilities and industry knowledge to
enable the board. That does not mean that there is one kind of board member that would qualify.
There should be a balance among those board people who know the company, those board
members who have a helpful expertise and those who provide a fresh insight (Moon, Walmsley
and Apostolopoulos, 2018). This individual can assist the venture in dealing with diverse
challenges of which can be faced by the firm due to corporate governance. A board member
should also be assessed on his/her interpersonal abilities since board interactions and
relationships will be essential to entire board execution.
Ensure timely information- Timely information results in better decision making. Senior
management has to offer on time data to assure effective and accurate board supervision and
direction. Board members however should not be overpowered with information. There is a
balance which requires to be accomplished among needed data and unnecessary information.
Interactions among senior managers and the board are significant to assuring that appropriate
data is offered to the board. If a board member requests information then senior managers must
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answer quickly to the request. This will assist in managing the challenges and overcoming them
within the business so that it can operate in more developed manner.
Prioritise risk management- Within each firm; every board should establish an efficient
system for risk oversight and management, Risk is not defined to compliance risks. It is a
broader term that incorporates all of the risks to the business organisation. For example, if
Holtwhites Hotel face issues like financial risks, cyber security and other threats externally the
compliance with law and policy demands then with the process of risk management, these
compliances can be manage and overcome (World Health Organization, 2019). Efficient risk
management directs to better determination devising and effective cost benefit or risk reward
decisions.
Evaluate board performance- Boards must be willing to determine their own capabilities
and shortcomings. On a permanent base, the board should organise self assessment activity,
considering the execution of individual directors. The assessment process be utilised to find out
weaknesses in board execution and accept reforms required to develop board execution. In
Holtwhites hotel, the management can organise and make a broad evaluation so that it can cut
across all issues and personnel as well as consider senior management interactions with board
members.
In term of dealing and getting over the challenges, a company’s board of directors play an
effective role in term of a range of advisory and control functions (Vith and et. al., 2019). It
considers strategic direction and risk/control supervision, along with the monitoring and reward
of executive administration. With the effective and proper support of them, the management of
respective firm can deal with the corporate governance complexities in more amended manner.
The importance of corporate governance
As per the view of Tsoi P. (2017), corporate governance is the structures and activities for
the direction and control of ventures; It is also regarding the relationships between the
administration boards of directors controlling shareholder, minority shareholders and other
stakeholders. Open to public information disclosure, high clarity and responsibility are basic
significance aspects of best corporate governance which attempts the sustainability of ventures
and community. To neglect mismanagement, good corporate governance is needed to assists
organisations operate more effectively, to develop access to capital, mitigate risk and safeguard
stakeholders. It also makes organisations more responsible and clarity to investors so as to
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reduce expropriation and unfairness for shareholders. Corporate governance makes ventures
more responsible and transparent to capitalists and offers them the techniques to respond to
lawful stakeholder concerns such as sustainable ecological and social development. It contributes
to development and maximised access to capital motivates new investments, increases economic
development and offers job options. A lack of corporate governance can lead to profit loss,
corruption and tarnished image, not only to the corporation, but to the community, or even worse
will impact international as a whole. This form of corporate governance management is also
designed to limit hazard and eliminate corrosive elements within an establishment.
One principle of corporate governance is shareholder recognition that is a policy which
assures that all shareholders have a say in the inner workings of a venture, Shareholder
recognition also secures the value of a venture’s stock. The rules and accountabilities of board
members must also be made clear to assure that everyone shares a consistent vision of the
establishment’ future (Selig, 2018). Stakeholder interest addresses the demands of participants
who are not shareholders. Arriving out to non-members thus fosters better communication and
relationship with members of the press and the community. Ethical guidelines of corporate
governance are also important to secure higher profitability and maintain the firm out of legal
trouble. These rules apply to workers and board members. Transparency must be apparent that
should take the form of record keeping and reports on earnings. Poor corporate governance can
create potential issues of interests, expropriation and unfair of minority shareholders (Padiyara,
Inoue and Sprenger, 2018). It only benefits the parties engaged but do not influence value to
other stakeholders, small shareholders with little impact on the stock price are encountered aside
to make way for the interest of majority shareholders and the executive board. It can highly
eroded public confidence and stained community or globally as a whole.
Corporate governance aims to ease effective, entrepreneurial and prudent management
which can deliver the long term success of the enterprise. As per the view of Sharma S. (2020),
corporate governance is significant and important for the effective running of a business
enterprise. The importance of corporate governance can be considered through some point
regarding the business of particular firm. They are as:
Improved organisational efficiency- Corporate governance is an essential and significant
determinant of industrial competitiveness. Effective governance assures enhanced corporate
execution and better economic outcomes. Corporate governance lays the foundation for the
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behaviour of the firm, the use of assets, goods/services innovation and entire corporate plan of
actions.
Strengthen shareholder value- There is no established relationship among corporate
governance and the ventures value n market, but corporate governance strengthens the
shareholder contentment. It plays an important role in safeguarding the valuations of a firm as
the ultimate aim of good governance is to increase the concerns of the venture’s valued
shareholders.
Culture of integrity- Effective corporate governance fosters a culture of reliability.
Covering professional execution and the system through which a business operates as per to a set
of policies, processes and rules, an establishment like Holtwhits Hotel can position itself within
the market as a force to be trusted (Badia and et. al., 2019). Supporting the interests of
administration with those of key stakeholders, shareholders and its Board of directors, a
company practicing good corporate governance will set itself apart from rivals.
Acquisition and retention of talent- Well organised and governed ventures have a frame in
drawing, retaining and involving well qualified workers. Hardworking ambitious and competent
individual want to join and continue in a firm that treats them as valuable assets.
Risk cover- Organisations are now represented to higher risks due to price deregulation,
developing competition and structural reforms (Dietz and et. al., 2018). Good corporate
governance assists to offer a threat cove through creating and maintaining mutual trust with
diverse sections of community. It directs to maximise in profit and earnings.
Public and market image- Good governance of a business establishment assists to develop
its goodwill and build brand image or position. Corporate governance also assists in creating a
effective position and image of the firm in the particular business sector. Due to effective image
of firm, it creates consumer loyalty that in turn assists to develop market share of the
establishment.
CHAPTER 3: RESEARCH METHDOLOGY
Research methodologies are considered as the most necessary aspect of a thesis. In addition,
it is on the whole categorised as systematised, textual survey of technique which are put to use to
a great extent in the investigation field as well as take in elementally abstractive or systematic
investigation of hypothesis body linked with particular surroundings of understanding. In
addition to this, this is superior in enlarging essential parts of learning for soothing the path of an
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