Hospitality Strategic Management - Case Study Example

Tourism Case 2: Building Capabilities at the Westward Hilton Question Key among the advantages of the hotel is thefact that it looks new owing to the recent renovation. This improves its value. Additionally, the location of the hotel makes it visible a feature that makes marketing the hotel easier. Both advantages are sustainable. They will therefore enhance the profitability of the hotel. Strategic location as explained earlier is a fundamental factor that makes the hotel a preference to most travelers. This provides an opportunity for the hotel to grow its market share. The hotel has desirable human resource management practices. With trainings who share values, reliable channels of communication between the employees and the managers and training opportunities, the company has succeeded in developing a highly motivated workforce. The employees thus enhance the profitability of the business (Olsen, Joseph and Eliza 102). The strategies are costly and enjoy confidentiality from the hotel’s management. The human resource practices are effective; they contribute to the profitability and longevity of the hotel. The hotel has defined target group and enjoys a substantial number of loyal customers. The human resource practices will ensure the hotel retains its current customers and attracts new customers through effective marketing strategies. Question 2 The most appropriate recommendation is to sell the hotel. The eminent recession is a key factor that should inform the decision to sell the hotel. Managing the hotel during the recession is likely to cause immense financial loses for the investors. Selling the hotel is therefore the surest way of increasing shareholder value (Enz 76). However, the process of selling the hotel is likely to encounter a number of difficulties key among which is a possible low price. The company has owned the hotel for a long time and has undertaken an extensive renovation of the property. Such factors contribute to the price of a property. Unfortunately, the market continues to experience financial difficulties owing to the eminent recession. As such, the company is likely to sell the hotel as a lower price thus incur loses. Retaining the hotel in its current portfolio has a number of consequences key among which is the high cost of maintaining the employees. Maintaining the employees especially during a recession will cause major financial loses. Additionally, the company will take a long time before they can develop a desirable reputation for the hotel following the renovations. The company risks incurring loses while building a reputation for the hotel. Question 3 Hiller Hotels Enterprises has a unique strategy of buying dilapidated properties, which they renovate for resale. Such is an effective strategy that ensures the company enjoys immense profitability. The strategy is less costly and promises high returns. The minimal risks and the constant resale is an effective way of enhance shareholder value. Alongside the business strategy, the company has equally effective human resource management strategies that are not only compatible to the business strategy but also a major competitive advantage. The company has created effective structures for communication thereby enhancing interactions between employees and the managers. Additionally, the company provides effective training for its employees thereby ensuring that they possess the most appropriate training. Such human resource practices are appropriate in enhancing the productivity of a hotel. Hiller Hotels Enterprises purchases rundown properties alongside with their employees. The company then renovates such properties and rejuvenates the employees thereby creating a holistically new business venture with fresh, professional and highly motivated employees who help create the new image for the renovated property. As such, the employees thus became a major competitive advantage during the resale of such properties (Dessler 112). The employees contribute to the high cost of resale of the properties. Case 6: Starwood Hotels and Resorts Brings Aloft to India Question 1 India continues to enjoy an economic boom with more foreign companies venturing into the market. Besides increasing investments from foreigners, other factors responsible for the boom are the country’s large population that makes it a viable market for businesses. Additionally, the large population makes India a source of cheap human resource. Most multinational companies have manufacturing plants in India owing to the low labor and electricity costs. Additionally, the Indian government understands the need for foreign investors in enhancing the economic boom. The government continues to attract foreign investors and enhancing bilateral relations with numerous other countries globally. The government appreciates the role of foreign investors and is not likely to change the policies that accommodate foreign investors in the market. Question 2 Having a lot of money among other resources is indeed a competitive advantage in any market, international hotels with more financial among other resources that domestic hotels are more likely to enjoy profitability than the domestic hotels are. Adequate financial resources provide the international hotels with the ability to carry out extensive international marketing of their hotels. Furthermore, they can create world-class facilities and employ the best human resource management practices thereby safeguarding both their profitability and longevity. Most international hotels enjoy substantial market shares since they offer high quality services and market their products and services extensively. As such, they always create a reputation for their facilities thus attract international customers who may have used their other facilities in other countries. Question 3 The logic of supply and demand dictates that an increased demand elicits an increase in supply. As the reputation of the Indian market continues to grow, the market is likely to attract new players with the existing players also diversifying their products and services in order to increase their market share. The companies operating in the market will increase their aggressiveness a feature that may pose enhanced competitive threats. However, the trend in other developed economies show that increased aggressiveness may not always limit the size of the market. Increased popularity of the market will imply a substantial economic growth. This grows the market thus making it capable of sustaining the growing aggressiveness. Additionally, hotels operate in a service industry. Success in the service industry relies on the innovativeness of the investors (Olsen, Joseph and Eliza 99). As such, the competitors will create diverse products and services capable of safeguarding both their longevity and profitability. Question 4 As explained earlier, success in the hospitality industry relies on the creativity of the investors. Aloft is a boutique hotel brand with an urban style of business. Starwood introduced the brand in the United States where in enjoyed immense success owing to the large size of the country’s middle class. Starwood has since introduced the brand in numerous other global destinations such as Kuala Lumpur, Liverpool in the United Kingdom and in London among many others. The brand prides in offering tailored services and high quality products at affordable prices. The uniqueness of the brand enhances the success it enjoys both in the United States and globally. Question 5 As an emerging economy, Indian’s middle class continues to expand. Such is an important factor that portrays the ability of the economy to sustain Aloft. India continues to have a large number of wealthy citizens and an equally large number of foreign executives who work as managers in the country. Aloft is a unique brand that offers tailored services and products in an urban style. Its western theme is a major attraction to the thousands of foreigners working in India. Additionally, the country has a number of middle-income cities and urban centers. Such will offer the company an opportunity to carry out extensive market researches thereby expanding the hotels throughout India (Longenecker 55). Expansion and diversification is a major operational strategy for the company and India offers such an opportunity. Works cited Dessler, Gary. Human Resource Management. Upper Saddle River, NJ: Prentice Hall, 2000. Print. Enz, Cathy A. Hospitality Strategic Management: Concepts and Cases. Hoboken, N.J: John Wiley & Sons, 2010. Print. Longenecker, Justin G. Small Business Management: Launching and Growing Entrepreneurial Ventures. Mason, OH: South-Western Cengage Learning, 2012. Print. Olsen, Michael D, Joseph J. West, and Eliza C. Y. Tse. Strategic Management in the Hospitality Industry. Harlow: Pearson, 2014. Print. Read More