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MHC610 Strategic Hotel Management
O’Brien is a historic luxurious hotel, in the heart of Downtown San Antonio. It provides all the luxuries comfort and make the trip memorable for the weekend. It provides the visitors an excellent ambience and other facilities that would fulfil the demand of the customer. The room and interior decorates are quite innovative and modern that competitors with other hotels in the market. These concern hotels are renowned and established and their decorative and affordable prices attract a large of the visitors towards their hotel (obrienhotel.com, 2017). Therefore, the main objective of this project is to identify thebusiness environmentalong with the strategies that are required for modification for future course. For this reason, the project would help to determine the mission, vision along with the objectives on CSR. It would also focus on ethical issues that determine various level of management, which mainly comprises the top levels, middle level along with the lower level of management. Hence, all the information is evaluated from the online activities by using the HOTS software accordingly.
Micro and macro environmental factors of the hotel
Macro environment: The model of PESTLE is being incorporated in order to assess the macro environmental factors concerning the hotel. However, the various macro environmental factors mainly include the political, environmental and social along with the various technological environmental factors (Ghemawat, 2017). Thus the different micro and macro environmental factors are analysed below:
- Political-The Australian government which is operating in the tourism sector have been playing a dominant role in upgrading the prospects of the hotel industry. Thus, the initiative of investing a huge amount of money has been quite prevalent in context of the tourism sector (Gamble, Thompson & Peteraf, 2013). However, the collaboration with that of the different countries, have helped in improving the various facilities for infrastructure, which may provide easy access to the tourists, who are visiting the hotel. With rise of the turmoil across the global scenario, there had been found evidences of the economic slowdown of the country’s hospitality sector on the global basis.
- Economical:The various banking institutions that are mainly operating in Australia have been playing a huge role when it comes to an enhancement of the various financial as well as economic growth of the hotel and hospitality industry (Frynas & Mellahi, 2011). This is a positive sign for the growth of the hospitality industry in Australia.
- Social:The various populations mainly comprises of the various corporate and businessmen. On the other hand, the target market of the luxurious hotel experienced a huge increase in terms of customer base.
- Technological:There has been up-gradation of various facilities in the hotel that mainly involves an established wi-fi connection providing internet facilities to the visitors. Along with that, there are facilities for shopping malls, sound development of the various infrastructural facilities (Enz, 2010).
Micro environment : There are certain micro-environmental factors that have been playing a significant role in case of assessing the various aspects of the Australian hotel industry. Some of the main factors in determining the micro environmental factors includes Porter's five forces model. However, some of the different factors mainly involve the buying power of the suppliers, threat of rivalry along with the new entrants, a power of the substitutes and lastly, the bargaining power of the buyers. With reference to the particular case, the various stakeholders mainly involve the different stakeholders who are associated with the renowned Australian hotel. Thus, the functions of the competitors along with the customers in case of modernization and development of the hotel have gained limelight (Gupta, Wakayama & Rangan, 2012). The customer ranges from various middle aged businessmen who visit the hotel more often to the common people who come along with their friends, families along with the relatives (Mok, Sparks & Kadampully, 2013).
In addition to these, there are certain other competitors or the key players, who are prevailing in the hotel andStrategic hospitalityindustry. This is causing a growth in the market share of the company in the short run as well as in the long run phenomenon. Furthermore, in various instances, the degree of rivalries among the competitors seems to be on the higher side, with respect to the market. As a result of an intense amount of competitions, there has been experienced a gradual decrease in the market share of the above-mentioned hotel.
Theoretical models implemented for strategic recommendations for the hotel:
Application of the overarching strategies: This model mainly brings into limelight the various aspects of cost leadership along with the different policies that are assessed for cost leadership. Moreover, the competitors of the hotel are not showing any amount of strategic growth. The luxurious hotel O’Brien is considerably gaining a higher amount of goodwill and at the same time experiencing a competitive edge over others. Hence, the concerned hotel industry has been quite successful when it comes to offering high-quality services along with the sound facilities (Hill & Jones, 2012).
Here, the target customers of the hotel mainly include highly established Australian businessman. On the other hand, the strategy mainly includes providing sound services to the different customers(Dawson, Abbott & Shoemaker, 2011). At the same, it aims to provide the high quality of services to its target customers. The two main competitors of the hotel include Hotel pearl and hotel Pacific. There had been cases for market segmentation in the present scenario. The different aspects of market segmentation mainly focus upon the various strategy of a marketing mix. There may raise a huge level of competition in the hotel industry (Hu, Horng & Sun, 2009).
Formulating a strategic direction
In the context of the above objectives, there are various strategic directions which are formulated. Some of them are as follows:
- Mission- The main mission of the organisation to target the customer by proving them ne and modern techniques that requires to delivery and presents a refreshment plan. However, the focus would to deliver the plan along with provided facilities in proper way.
- Vision- To provide different offers and other facilities within affordable prices. It would fortune for providing more and more employees to get job opportunity within the organisation.
- Goals and objectives: Some of the main goals that are underlined are: (a) providing various innovative hotel facilities. (b) Enhancement of the star rating of the hotel (c) Promoting the various aspects of innovativeness in the minds of people.
- Ethical Value- It is very much important to maintain ethics and protocols of the organization. The workforce must be diversified, thus promoting the various aspects of equality and sustainability.
HOTS Decision Categories:
Training: Providing training would help to improve the performances of the employee and staff of the hotel. Not only staff, manager and management also to get updated with the new modern techniques and tools that are used for improve the strategies of the hotels (Jones et al.2016). Therefore, experts are required to provide training and improve the strategies of the firm.
Finance: Finance managementrequired to perform their best service and keep the records in proper way. It would generate the plan and operate the in security purpose for future use. This would help to operate the management plan in different way to operate the file in different way (Blomme, Van Rheede & Tromp, 2010).
Advertising: These strategies would help to advertise and generate the plan in different way to operate attract the customer by providing their best service. Promoting different strategies and plan different program of the firm.
Guest comfort: Customer satisfaction is the first priority for maintain the guest comfort and fulfil the demand with their best knowledge. In this regards, the required detail information to be filled by the management and have a look over the requirement plan.
F&B: The quality of food service should be good and serve their quality for their customer within the firm.
Staff: Staff in hotel required to manage the organisation and provide their best service to customers. Customer service would their first priority to develop management plan and attract more and more customer within the place.
Environmental Management system (EMS): EMS management plan required to be updated and manage the plan in different way for getting the system in proper way. This would help to improve and develop new strategies within the company.
Extra Facilities: For customer different and creative facilities are required to plan that help to increase the facilities to operate the management plan in proper way. It required to plan and genarte the management plan in different way.
Resource-based view approach
The various aspects of the resource-based theory ascertain the various resources that play a greater role in enhancing the performance of the firm. Moreover, the incorporation of this approach helps a great deal in assessing the resource-based view objectives of the organization. This help in developing various aspects of sustainability of the organization. Another important aspect for incorporation of this type of model is to evaluate the various competitive advantages of the hotel industry(Nadiri & Tanova, 2010).Thus, the implementations of the strategic management approach of the resource-based view model help in evaluating the hotel industry, which would enhance the organizational performances of the company (MacIntosh & Doherty, 2010).
Application of the differentiation strategy
There are certain aspects for determining the different aspects of differentiation, which are determined as follows:
- Enhancement of the customer base of the company.
- Providing the various activities of leisure to the visitors. This should be in contrast to the strategies or the policies that are implemented by the competitors.
- Providing good facilities of rooms to the different customers (Gupta, Wakayama & Rangan, 2012).
- Providing an extra facility of a conference room, in order to attract more and more customers.
The various aspects of the above-mentioned hotel must be formulated in such a procedure in order to increase the goodwill or the reputation of the company. Above all, there must be a creation of a comfort zone for the customers. Thus, the main objective based hotel is to provide the huge amount of benefits to the customers. In addition to these, the prices of the hotel must be made on a reasonable basis for the main purpose of attracting more and more customers.
At the end, it is concluded that O’Brien hotel have been one of the renowned hotel in the country along with their different aspect of macro and micro environmental factors. Apart from these, the hotel mainly aims to develop a well-renowned brand. In this regards, the different strategies are required that aims to develop and understand the rapid stride on that field to generate the various degree meet the long term goal. Therefore, this would help to gain the profitability growth as well as deals with the pricing techniques for generating the management plan. In the present situations,recent trends the hotel also wanted to meet the long-term as well as short-term goals and objectives of the organization. Thus, there are various strategies are formulated for the sole purpose of enhancing the revenue of the company in order to meet the ever-increasing demands and wants of its target customers in the short as well as in the long run. However, the strategies for development and promoting the demand can only be possible while generating the plan in different way.
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