Pay someone to write your paper and get a speedy homework service. Research paper writing. Term paper writing. Do my homework. Help my essay. Write my research paper service.Order my paper
Hotel X operates in a fragmented industry largely controlled by the guests and their preferential needs. The strategic audit involved analyzing; the macro-environment by the PESTEL model, the competitive industry environment by the Porter’s Five Forces model, the key stakeholders expectations and the internal strengths and weaknesses.
This SWOT analysis concludes the strengths (products, brand, people, VmV and accreditation/certification), the weaknesses (location, classic rooms, car parking, performance management and technology), the opportunities (BRIC, Rugby World Cup 2011, market demographics, corporate responsibility pressure, and the 90 day trial period law) and the threats (new National, Conference Centre, long-term contracts with buyers/suppliers, economy, and technology).
Hotel X should plan its strategy around differentiation by providing the highest quality products and services unique from the rest of the industry. Improving the hotels weaknesses is a realistic way to improve the growth and profitability for the organization. Recommendations are provided for the improvement of Hotel X’s weaknesses.
‘If you don’t know where your business is going, any road will get you there.’ (TÜVRheinland Group). Business strategy is a driving force in the success of organizations; as long as the strategy for the organization is analyzed in terms of the environments. This paper is a strategic analysis of the environments for Hotel X  .
Hotel X is a leading hotel in Auckland. The services and products provided include accommodation, food and beverage, event venues, spa and health club facilities. Their aim is to grow market share and profitability by maintaining 5 star level services  . This is supported by Hotel X’s vision statement: Know Our Guests, Build Great Memories.
Hotel X is positioned in the high-end  hotel  industry within Auckland City  . ‘The hotel industry is a sub-section of the Travel and Tourism industry…one of the most rapidly expanding fields’ (Go & Pine, 1995, p. 26). It is a fragmented industry as hotels are driven by the services they provide and the consumers they can attract. Factors that influence this consumer selection are; the location of the hotel, the facilities available, the price per night and the size of the facility. High-end hotels in Auckland compete for independent and corporate travelers, both domestic and international.
The PESTEL model was used for analysing opportunities and threats to Hotel X and the summary of the major factors can be found in Appendix 2.
The Porters model  was used for analysing the industry competition for Hotel X and the summary of the major factors can be found in Appendix 9.
Hotel X has one of the largest function rooms in Auckland with capacity of 1500. This attracts some of New Zealand’s significant functions such as the upcoming Rugby World Cup Prize giving. The proposed National Convention Centre will threaten Hotel X’s long-term market share of functions.
Employees provide most of the service for guests. Hotel suppliers do not hold much power, there are often a large number of suppliers available. Many high-end hotels have contracts with taxi companies. The cost of switching these contracts is high.
Hotels provide the same item to the same market so need a strong brand to differentiate from competition. There are limited times that customer’s basic needs cannot be met  .
There are large numbers of corporate travelers who stay in a hotel that they have long-term contracts with. Hotel X may struggle to renew its contract with Telecom due to Telecoms move to the lower CBD.
The threat of substitutes depends on the demands of the customer. As most guests wanting to stay in high-end hotels are expecting quality over cost, it could be expected that substitutes to this industry do not pose a large threat.
The strong industry growth in the tourism sector (Go & Pine, 1995) should mean that there is a low rivalry amongst hotels as there are an increasing number of guests. However, the products that hotels provide are identical on a basic level (the quality may vary) and this low differentiation and ease switching leads to a strong competition.
The expectations of the individuals and groups that influence the business strategy for Hotel X are summarized in Appendix 11.
The strategy for Hotel X was developed by the director and is entwined with his personal values; his dedication to the organization ensures he retains control over strategy and growth.
The guests and clients of Hotel X may see the hotel as important to them during their short term relationship however only the business clients and guests who are engaging with the organization on a regular basis hold any importance for quality service on a long-term basis.
Attitudes of the employees are orientated around providing quality service but the importance of the hotel to them is more for the opportunity of employment it provides.
Hotel X understands the importance of the media in providing marketing opportunities however the media do not have the same inverse need.
Hotel X is also not of large importance for the local government as, while the hotel provides local taxes and jobs, it does not have any impact on the growth of local government revenue. The attitudes of this stakeholder are consistent with the hotel on factors like environmental responsibility however not consistent with profit factors.
The summary of the SWOT analysis can be referred to in Appendix 12.
Hotel X, seeks high levels of growth and profitability. While the product, brand and people are strengths, there is an issue keeping services consistent without good performance management. Organizations now have the advantage of a 90 day trial period to maximize the job-person fit in the organization which should correlate to lower costs and higher profitability. The location of Hotel X will place a limitation on the growth of the organization.
The current products that the hotel provides are strengths. The 5 star quality of these products and services create value for guests. There are some weaknesses however with the décor of the Classic rooms, lack of car parking and limited use of technology. The hotel needs to remain on top of new innovations to ensure the products and services are continuously upgraded.
Hotel X has the opportunity of the growing BRIC market and the upcoming Rugby World Cup. It plans to service these growth opportunities while still maintaining a hold in the domestic markets as a buffer to the threat of the economy restricting international tourism.
The generic strategy that Hotel X should follow is differentiation. Already Hotel X has started to differentiate their product from the industry as supported by the strength of its accreditations and certifications. It is possible for Hotel X to differentiate not only through the strength of its products but also its people and the Vision, Mission and Values.
The strong brand and opportunity for recognition of corporate responsibility will allow Hotel X to develop a dominant position. The threat to this is the competitiveness of the industry difficulties with long-term contracts and the threat of a National Conference Centre.
These recommendations will focus on improving the weaknesses of Hotel X,
Performance management schemes for employees should be introduced to maintain 5 star standards, as services the hotel provides involve guest/employee interaction. Goals set to manage performance must be decided on jointly between organization and employee in order to empower colleagues. Special salary and wage reviews should be initiated as well as an incentive scheme based around achieving key performance indicators.
The classic room product needs to be redecorated to maintain product consistency to satisfy customer requirements.
Technology in particular, a hotel wide Wi-Fi system needs to be developed, to keep up with 5 star international standards.
Car parking needs to be addressed by negotiating with Wilson Parking to either take back the management of the car park or rent additional car parks. The extra car parks would have to satisfy the guest needs first.
Location is one weakness that cannot be changed so the best recommendation for this is to increase the areas the shuttle bus drives to and renegotiating the taxi contract so that fares are cheaper for guests going between the upper and lower CBD.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more