Strategic Hotel Management: Environmental & Strategic Analysis of XYZ

This report provides a strategic analysis of XYZ Hotel, a hospitality corporation, using various strategic management tools. It begins with external analysis using Porter's Five Forces, assessing the threats of new entrants, competitive rivalry, supplier and buyer power, and substitutes. A SWOT analysis identifies the hotel's strengths, weaknesses, opportunities, and threats, followed by an examination of Porter's generic strategies (cost leadership, differentiation, and focus). The report also covers the hotel's mission, vision, and CSR activities, linking these to the United Nations Sustainable Development Goals. The analysis reveals that while XYZ Hotel provides premium services, limiting its reach, and recommends adopting cost leadership strategies and technology integration to enhance room standards and attract a broader customer base. The report concludes that by implementing these strategies, XYZ Hotel can improve its competitive advantage and achieve greater success in the hospitality industry. Desklib provides access to this and other solved assignments for students.

STRATEGIC HOTEL MANAGEMENT

STRATEGIC HOTEL MANAGEMEN 1
Contents
Introduction................................................................................................................................2
Environmental Analysis.............................................................................................................2
Macro-environmental Analysis..............................................................................................2
Porter’s five forces..............................................................................................................2
SWOT Analysis..................................................................................................................4
Porter’s Generic Strategy....................................................................................................5
Micro-environmental Analysis...............................................................................................6
Mission, vision...........................................................................................................................6
CSR............................................................................................................................................6
Objective and Goals...................................................................................................................6
Strategic Direction.....................................................................................................................7
Conclusion..................................................................................................................................7
References..................................................................................................................................8

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Introduction
Strategic management is the process of analysing, monitoring and evaluating the
performance of an organisation. The process helps to attain the success in the organisation by
adopting effective strategies by analysing the environment. In this report, the discussion is
made on the strategic management (Noe, Hollenbeck, Gerhart, & Wright, 2017). XYZ Hotel
has been taken into consideration in order to analyse the environment. XYZ Hotel
Corporation is a hotel that operates under the hospitality industry offers the services of hotels,
resorts and vacation properties. It also implemented that the HOTS framework in the
organisation in order to train the staff to provide effective services to consumer. HOTS is a
framework to provide the training to employees (Cox, 2018).
At the beginning of this report, the external and internal analysis of XYZ Hotel will
be discusses. After that, the report focuses on mission, vision, and CSR activities of an
organisation. At the end, the recommendation is given in order to provide the strategic
direction in order to overcome the challenges and issues.
Environmental Analysis
Macro-environmental Analysis
Porter’s five forces
The threat of new entrants
The threat of new entrants of the company is high as there is minimum capital is
required to enter the industry. It is observed that the government also support the hospitality
industry in terms of providing the subsidies. As per the hotel, it expanded the business in
different regions due to which it has to adopt the different rules and regulation. It is also

STRATEGIC HOTEL MANAGEMEN 3
difficult to expand the business in this industry as it difficult to follows the rules and
regulation of different region (Jarzabkowski, & Kaplan, 2015).
The Rivalry among existing competitors
It has been seen that the hotel has high level of threat of the competitors as there are
many organisations in same industry that have high brand image in the market. Hilton Hotels
& Resorts, Marriott, IHG, Starwood Hotels, & Resorts are the top competitors of the hotel
that beat the company by providing the multiple services to consumers (Madera, Dawson,
Guchait, & Belarmino, 2017).
Bargaining power of suppliers
It has been analysed that the suppliers are attracted towards the hospitality industry as
there is huge demand in the market. The hotel can easily switch with the other suppliers as
there are large numbers of suppliers. That is why; it can be said that the suppliers of XYZ
Hotel have less bargaining power (Ansoff, Kipley, Lewis, Helm-Stevens, & Ansoff, 2018).
Bargaining power of buyers
The bargaining power of buyer of the hospitality industry is high just because there
are many buyers in the market that provides the similar nature of services to consumer. XYZ
Hotel trained the employees as by implementing the HOTS in the organisation (Yusuf, &
Widyaningsih, 2019). Experts and qualified employees help to attracts towards the hotel. The
hotel provides the premium services to consumers to attract the higher and middle class
people towards its services. These strategies helps to gain the competitive advantage but there
are many companies who also provides the different services to attracts the consumers that is
why; it can be said that the buyer have many options to adopt the services.
The threat of substitute

STRATEGIC HOTEL MANAGEMEN 4
The threat of substitute is high to moderate as there are many hotels; bars and
restaurant provide the similar services and products as per the location. XYZ Hotel services
have differentiation in their services as they provide the training to its employees and provide
the various services under a brand name such as bars, restaurants, hotels and vacation
properties. It is difficult for new companies to beat the company and replace it’s high level of
services.
SWOT Analysis
Strength
High Brand Image
Qualified and Trained staff
Variety of services such as hotel, restaurant,
bars, spa, etc.
Open 24 hours
Online bookings
Strong finance condition
Weaknesses
Competitors provide similar services
High cost as it provides the premium services
Different regions adopt the different rules
and regulation (Phadermrod, Crowder, &
Wills, 2019).
Opportunities
As it have high brand image, it can expand
the business in large number of nation.
Provide the personal facilities to employees
to retain them for long time.
Provide the more and unique services by
using the strength such as cinema in hotels,
or set the high standards for room by setting
the digital projectors in rooms
Threat
High level of threat of competitors
Hilton Hotels & Resorts, Marriott, IHG,
Omni Hotels & Resorts, and Pyramid Hotel
Group are the top competitors

STRATEGIC HOTEL MANAGEMEN 5
Porter’s Generic Strategy
Cost Leadership strategy
Cost leadership strategy states that the company offers the low prices services to
attract the consumers. XYZ Hotel adopts the premium services to attract the consumers
towards its services (Kabue, & Kilika, 2016).
Differentiation strategy
This strategy refers that the company offers the different product so that the
consumers will attracted towards the services. The company adopt the HOTS framework in
order to train the staff so that they provide the high level of services to consumers (Pratt, M.
& Hahn, 2015).
Focus Strategy
The main aim of this strategy to focuses on the existing product in order to improve it
and attain the success. The company have strong presence at online platform that helps to
attract the guest towards its attractive websites to enjoy the services (Namada, 2018).
Micro-environmental Analysis
Mission, vision
Vision of the XYZ Hotel is to provide the authentic hospitality by developing the
living standard of the people. The mission of the XYZ Hotel is to touches every day,
including our associates, guest and owners by providing the variety of services. It is observed
that the hotel attain success at the moderate level by providing the luxurious services to
consumers such as bar, vacation places, dinner, spa and restaurant (Lasserre, 2017). But as

STRATEGIC HOTEL MANAGEMEN 6
these services, the only higher level and middle class afford it. Middle class enjoy the lower
slab services providing by organisation that’s why, the company attain its mission at a
certain.
CSR
The corporate responsibility work of the XYZ Hotel to supports the mission of the
United Nations Sustainability Development Goals (Tran, 2019). It also contributes in the
hospitality industry by setting the goals lead by ITP, that helps to drive the industry forward
in the areas of youth employment, carbon emissions, human rights, and water. The CSR
activities of the organisation helps to build the social image due to which large number of
consumer aware with its brand name that is beneficial factor for the organisation. It also helps
to reduce the external challenges as the government support the hotel as pre its CSR
activities.
Objective and Goals
The main goal of the XYZ Hotel is to care for people by providing the best services to
them. It has been seen that the company main objective is to provide effective services to
employees so that they provide their best in their responsibilities.
Strategic Direction
As discussed above, the hotel provides the luxurious services to consumers. It
provides the services to only upper and middle class that are why; it is difficult to gain the
competitive advantage in the market. It is recommended that the organisation has to adopt the
cost leadership strategies to provide the services at low cost prices so that the large number of
consumers can enjoy its services (Namada, 2018).

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The hotel has to adopt the technology in order to enhance the room’s standards and
the other facilities. As per the above analysis, it has been seen that the company has the
opportunity to set the rooms standard to achieve the success in the organisation. The hotel has
to implement the digital projectors in rooms to make the best experience for guest. The
services are unique that helps to gain the competitive advantage in the industry.
Conclusion
From the above analysis, it is concluded that XYZ Hotel is one of the hotel in the
hospitality industry that implements the HOTS to train the employees. In this report, the
external and internal analysis has been done by using the strategic tools such as Porters five
forces, porter’s generic strategies and SWOT Analysis. It is observed that the hotel attain
success at the moderate level in its mission and vision statement. CSR activities of hotel help
the hospitality industry to grow at the higher level or adopt the new things to improve the
living standard of people.

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References
Ansoff, H. I., Kipley, D., Lewis, A. O., Helm-Stevens, R., & Ansoff, R. (2018).
Implanting strategic management. Springer.
Cox, C. (2018). A simulation approach to hotel revenue management training. Journal of
Revenue and Pricing Management, 17(5), 356-364.
Jarzabkowski, P., & Kaplan, S. (2015). Strategy tools‐in‐use: A framework for understanding
“technologies of rationality” in practice. Strategic Management Journal, 36(4), 537-558.
Kabue, L. W., & Kilika, J. M. (2016). Firm resources, core competencies and sustainable
competitive advantage: An integrative theoretical framework. Journal of management
and strategy, 7(1), 98-108.
Lasserre, P. (2017). Global strategic management. Macmillan International Higher
Education.
Madera, J. M., Dawson, M., Guchait, P., & Belarmino, A. M. (2017). Strategic human
resources management research in hospitality and tourism: A review of current
literature and suggestions for the future. International Journal of Contemporary
Hospitality Management, 29(1), 48-67.
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Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
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STRATEGIC HOTEL MANAGEMEN 9
Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance
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Pratt, M. A., & Hahn, S. (2015). Effects of simulation on student satisfaction with a
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Tran, B. (2019). Corporate social responsibility. In Advanced Methodologies and
Technologies in Business Operations and Management (pp. 270-281). IGI Global.
Yusuf, I., & Widyaningsih, S. W. (2019). HOTS profile of physics education students in
STEM-based classes using PhET media. In Journal of Physics: Conference Series
(Vol. 1157, No. 3, p. 032021). IOP Publishing.