Strategic Plan Development of HOTS (Term Paper Sample)
Your hotel is a luxury sustainable development hotel. The three-year contract of your hotel with the property owner has now expired and you are attempting to make the case to secure a renewal of the contract for your services for the next two years based on your 3-year performance to date.
Drawing on the situation your hotel was in when you took it over, critically evaluate your plans for the last three years and how well you realised them in the market place, and, most importantly, your proposed plans for the hotel for the coming two years.
For this assessment, you must critically evaluate the implemented strategies, plans and actions of the last three years and provide justifications for all business recommendations for your hotel (used in the HOTS) to move forward. Application of theoretical models and other theories from your whole course is imperative. Your arguments must be supported by credible academic resources.
Note: You need to make an objective case, so a wholly positive report will come across as unbelievable. Use examples of planning and outcomes that might not have gone as planned to highlight how you have learned and adapted to the market. You will need to show critical thinking throughout the report in the assessment of the applied strategy, this will allow your recommendations to be built on strong objective grounds. Graphs should be used but are not included in the word count.
Please utilise academic research throughout your report, appropriately referenced in APA style.
STRATEGIC BUSINESS REPORT
3: STRATEGIC PLAN DEVELOPMENT
HOTS is a hotels with goals of ensuring quality service to customers with determination of meeting customers’ expectation and even going beyond. The mission of the firm is to attract and attain high quality services to customers and to satisfy them beyond expectation. While our vision is to become a global hotel, the most successful and respectable around the world.
We are focused and ensure our core values are always adhered to. Most of the used core values include team working, positive leadership, and integrity. This is in management of both internal and external business environment as reported by Scott & Mar (2013) as the best values in the service industry. The vales have been a guide for the firm to achievement of its mission and vision since consistence in achievement requires commitment to core culture acceptable within the firm.
The primary objective of the firm has been to ensure quality tourism experience to its customers through the bounding services like has been done by Hilton (Scott & 2013). They have also had a community responsibility of ensuring a safe environment as well as contributing to CSR works. On top of that, the firm has been working in order to maximise shareholders wealth by ensuring high returns on investment from generated profits. Therefore, the strategic direction of the firm has been to achieve its mission and visions through investments and to grow its market share by 3% per annum.
The firm over the years has had great commitment to the community in response to the work of Thompson et.al (2015), this is by use of bin around to ensure a clean environment through reduced littering. In addition, they have integrated the community into the firm by offering first priority to skilled personnel within the community for any job opening. The firm has also been carrying out field trips where the employees together with the community are involved in clean-ups as well as tree planting. In addition, they have education scholarship programs for the community around to ensure community empowerment which has helped reduce the public awareness variance.
3.2: ANALYSIS OF HOT PERFORMANCE
The firm three years had set a goal of ensuring income growth of 15% per annum, a room market share improvement of 6%. In order to ensure customers are well served, the firm set a goal of ensuring they grew their customer base by 1.3% per annum. The strategic goal of ensuring they are able to integrate with the community through campaigns was meant to improve public awareness by 0.8% per annum.
Through the performance of the firm last year, the revenue was 1506802 and this year it was at 1790227, which represents a revenue growth of 18.81%. Looking at the variances, operating profit for the first, second and third year were above the set target. However, in the fourth and fifth year projections, the difference is below the set grow which is an indication that the firm needed to engage in more differentiated activities. The decline for the last years was majorly because the firm had reached maturity and no differentiation activities had been done to remain competitive. Hence moving forward differentiation will be one of the major goals.
The room market share of the firms the firm has been improving over the years although it fell in year two mainly because of reduced travels as the government had placed high restrictions which reduced business operations and need to bound . In year 4 projections, is below the estimated growth of 6% as the firm is straggling with high debts clearance. There were also health concerns around. Going forward the firm aims to achieving and supporting the goal by ensuring health and safety measures are adhered to. In addition, a balance will be placed between equity and debt financing so that the firm does not have difficulties settling its debts.
Over the years, the customer base has been declining which is evident through the decline in customer satisfaction. Worst is the projection in year 4 where the variance is -16.67%. This has mainly been attributed to low employees satisfaction and poor management staff relations as shown by the declining average daily rate which is estimated to be negative. Moving forward, the firm aims at ensuring positive leadership as a core value as well as ensuring regular employees training to boost their service to customers.
Community initiatives and public awareness has been a core goal for the firm. However, over the years there has been a decline in the level of awareness mainly due to reduced community programs and campaigns. On the other hand ROE has been positive which means that the firm has been able to maximise profits over the years.
3.3: COMPETITIVE ADVANTAGE
Broad（hotel industry wide）：
Product Uniqueness：Differentiation Strategy
Target market: high business class people (Aaker & Adler, 2001)
Competitive advantage attained through high customers satisfaction and high pricing strategy
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