HOSPITALITY AND TOURISM STRATEGIC PLANNING

Holiday Inn Hotel

Index Task -1

Business strategy Introduction Theories in relation with business strategy

Different approaches to business strategy

Comparison of different approaches of business strategies Applications of these approaches within the hospitality and Tourism sector

Task -2

Introduction- Holiday Inn Various strategies adopted by the Hotel Internal and external environmental factors affecting the Hotel PEST analysis SWOT analysis Competitors analysis of Hotel Strategic options available for Holiday Inn Recommendations

Task -1

Business Strategy

Business strategy is a type of action plan. It is designed for long term period. Main aim of this strategy is to achieve the pre-determined goals and objectives of the firm. It answers many questions like, the scope of the business, future needs and desire of the customers. It also helps in maintaining the performance of the business.

Theories in relation with business strategy

The classical approach to strategy Processual approach to strategy

Evolutionary approach on strategy

Systemic approach on strategy

Different approaches to business strategies

Cost leadership Differentiation Market focus

Comparison of Different Approaches of Business Strategies

Task 2

Introduction of Holiday Inn

Subsidiary of the InterContinental Hotels Group. International brand of upscale medium budget hotels. Provides services by being proactive in offering guests the most valued assistance in distinctively affectionate and considerate way

Various Strategies adopted by the Hotel

Managing Demand and Supply

E-Marketing Strategies Social-Media Marketing

Internal and external environmental factors affecting the Hotel

Internal factors Organizational structure Internal communication Human resource External factors Competition Suppliers

PEST Analysis

Political Environment It is very critical to maintain good relations with ruling political party in order to carry out the business smoothly. Certain legislative mandates like nosmoking influence the hotel industry in a great manner.

Economical Environment Economic conditions like downturn or boom have a strong impact on the decisions of hotel. Managing the commodity prices and maintaining service quality standards at the same time becomes very difficult.

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Social Environment Social environment of the hotel encompasses the living standard and income level of the people. As it is a luxury four star hotel and specifically caters to high end customers, their income level is very important for the hotel. Any fall in income level will have a notable impact on the hotels business. Technology Environment Technology is very significant for every type of industry. Hospitality industry is no exception. The hotel has wisely adopted the latest technologies in terms of its inventory, data interfaces, services and etc

SWOT Analysis

Strengths The major strength of the hotel is its brand name. The hotel enjoys a reputable brand name and is a subsidiary of one of the leading brands i.e. InterContinental Hotels Group. In addition to this, Holiday Inn maintains competitive edge owing to its competitive pricing strategy. Weaknesses One of the major weaknesses of the hotel is lack of proper parking place. Absence of parking space sometimes leaves its customers dissatisfied. In addition to this, parking area is a bit far away from the hotel

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Opportunities Holiday Inn enjoys a variety of opportunities due to its prime location. A number of events both national and international take place in London. Due to its strategic location, prospects of appealing to mass audiences are available to the hotel. Threats - Clouded economic picture, mature product market, increased competition in all market segments, massive federal budget deficit, possibility of collapse of hospitality industry due to world recession caused by business downturn. Having boasted about the inherent strengths as well as potential opportunities for hotel, the impending threats also cannot be ignored

Competitors analysis of Hotel

Strategic options available for Holiday Inn

Market development

Market penetration
New product development

Recommendations

Cost leadership strategy is recommended to Holiday Inn

References

Analoui, F., and Karami, A., 2003. Strategic Management in Small and Medium Enterprises. Cengage Learning EMEA. Daft, R., and Marcic, D., 2006. Understanding Management. 5th ed. Cengage Learning. Enz, C., 2009. Hospitality Strategic Management: Concepts and Cases. 2nded. John Wiley & Sons. Hill, C., and Jones, G., 2009. Strategic Management Theory: An Integrated Approach. 9th ed. Cengage Learning. Holiday Inn. 2012. Holiday Inn hotels, [Online]. Available through: <http://www.holidayinn.com/hotels/us/en/london/lonrp/hoteld etail>. [Accessed on 15thNovember 2012].

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Competitive analysis and strategies. n.d. [Online]. Available at: <http://www.egyankosh.ac.in/bitstream/123456789/36301/1/U nit-5.pdf>. [Accessed on 16thNovember 2012]. Henry, A., 2008. Understanding Strategic Management. Oxford University Press. PESTEL analysis. n.d. [Online]. Available at: <http://pestelanalysis.com/>. [Accessed on 15thNovember 2012].

Thank you