Strategic Plan of HOTS Hotel Samples for Students †MyAssignmenthelp.c

Question: Discuss about the Strategic Plan of HOTS Hotel in Australia. Answer: Introduction HOTS Hotel is located at 150 from the famous Bondi beach, Australia. The HOTS hotel provides budget boutique hotel room. The hotel consists of 250 guest rooms and it has a terrace for al fesco dining, free local telephone calls and Wi-Fi. The rooms are spacious and attached bathrooms are available for each room. The hotel is surrounded by bars, cafes and restaurants of Bondi. Bondi is famous for its scenic beauty and a great shopping hub for the travelers (Australian Hotel Sector Outlook, 2017). This paper will highlight thestrategic management plan of HOTS hotel using the various theoretical models. Further these model will be used to evaluate its influence on the decision making plan of the organization. The hotel has the scope of becoming a leader in that surrounding defeating its competitors with its service and price. However, it will have to move according to the internal and external environment that influence the hotels future growth. Theoretical models for analyzing the internal and external environment of the hotel Macro Environmental Analysis using PESTLE Political environment of Australia Australia is a very stable economy and it is very suitable for starting any business venture. It is one of the most prosperous economies where people enjoy a decent standard of living. The economy also shares a close political relationship with the neighboring countries which is an additional benefit for HOTS Hotel to operate its business. Australia is ranked 15th out of 190 countries in the ease of doing business. Thus, it can be said that HOTs can operate its business in Bondi without much political restrictions (Australian Government, 2017). Economic Environment of Australia Australia is a developed and wealthy economy. It has least market barriers and an open market environment for business. Australias stood fifth in the index of economic freedom. The sustained growth of the economy of Australia provides an attractive, competitive and safe market. The cross border trade in Australia will facilitate HOTS hotel to set their business easily in the Australian market. Thus, the economic environment of Australia is suitable for HOTS Hotel (Prideaux, 2013). Social Factors of Australia Australia is ranked tenth among the top 10 countries with high literacy rates. The economy of Australia has a great fondness of western culture. This is beneficial for HOTS Hotel online marketing strategy as it will be easily accepted by the people. However, there is a great preference for food items, luxury products and entertainment. Thus HOTS hotel can attract the customers by offering services at a discounted price in its official website. Technological Factor of Australia Australia ranks 23rd in the global innovation index according to 2017 Global Innovation Report. There has been a decline in the investment on research and development. All these factors will lay impact on HOTS Hotel as it will facilitate the company to take up new innovation from time to time for their growth. The increase in the internet usage by the customers of Australia will accelerate the demand for HOT Hotels online marketing. Legal factor of Australia The economy of Australia charges a corporate tax of 30% on the total revenue of the company. This arte is high compared to the tax rate of other countries. Thus, this can be the challenging factor for HOTS Hotel as it will have to earn higher profit after paying off these taxes. Moreover, the hotel also needs to provide quality service in order to survive in the Australian economy. Environmental factor of Australia Australia is among the top polluted nation and air pollution lays harmful effect on the people of Australia. This may affect the business operation of HOTS hotel in Australia. However, as the hotel is located near the sea beach, this may not pose harmful impact on the business. The hotel must also abide by the environmental laws of the nation which aims to maintain environmental sustainability (Yang Sai, 2016). Porters Five Forces Bargaining power of the buyers The bargaining power of the buyers affects the hotel industry to a large extent. Customers have large number of substitutes available due to many hotels in Bondi beach. As a result, the customers can easily switch from one industry to another without any switching cost. Thus, the bargaining power of the customers is high (Jean Paolo G Lacap RMP, 2014). Bargaining power of the suppliers The bargaining power of the supplier is relatively less in the hotel industry. This is due to the reason that there are many hotels and the suppliers do not want to lose their customers. Thus, the bargaining power of the suppliers is low in this industry. Threat of new entrant In order to enter the hotel industry in Bondi, a company will have to be ready to invest a huge amount, incur huge cost initially and should a good financial backup. Thus, the threat of new entrant is comparatively low in this industry. Threat of substitutes The hotel industry is not threatened by any major substitute products except in times of recession in domestic travel which replaces overseas or international travel. The hotel will subject to powerful customers if the marketing strategy of the hotel concentrates on attracting tourist which is the case of HOTS hotel (Mose, 2015). Rivalry among firms There are many hotels in Bondi which implies that the threat of rival is high in this case. This is because all of them are striving to stay in competition in the market at the expense of others which imposing a huge threat on HOTS Hotel. Value Chain Analysis The value chain analysis of HOTS Hotel is discussed in the table below which shows the internal activities of the hotel and the activities that requires improvement (Mitchell, Font Li, 2015): Primary Activities Inbound Logistics Contract with the supplier for delivering food and beverages Provision of laundry services Stock requisition and Inventory control Operations Equipments and tools used for delivering the services in the hotel Outbound logistics Services and final products offered to the customers Marketing and Sales Activities which are attracting the customers such as happy hours, honeymoon packages, free conference rooms. Service Free complementary dinner and lunch Seasonal discounts Free spa treatment Good reception service Support Services Firm Infrastructure Long term planning, finance and accounting, qualitymanagement Human Resource Executives, staffs and customers of the hotel Technology Development Software to manage the operations of the hotel on real time basis Procurement Facilities offered to the customers which makes the operation of the services smooth Mission and vision of HOTS Hotel The mission of the hotel is to be a leader in the hotel industry of Bondi by creating heart-filled experiences for the guests. In addition to this, it also aims to abide by the environmental needs of the region it is operating (Touboulic, Walker, 2015). To do this the company vision to give the customers the warmth of hospitality by offering them exceptional personalized and professional services every time. Along with this it also focuses to build some environmental friendly technology and wastemanagement plan in their organization (Stentoft Arlbjrn, Vagn Freytag, 2013). Impact of the above analysis on decision making of the business HOTS Hotel aims at making significant progress in the three areas- service, environment and communities. Their main aim is to stand out of their competitors. For this, the hotel needs to employ unique facilities and innovation plan to gain competitive advantage (De Vries, Bekkers, Tummers, 2016). This will give the visitors an incentive to visit HOTS Hotel. The company can employ young staffs in the reception and management service. This will help in adding a new touch to the system that the modern society demands. The hotel can include pick up and drop facility for the tourists that are new to that place. The hotel will also induce some green technology in their restaurant service and waste management to reduce the energy use, carbon output, water use and waste output (Krass, Nedorezov, Ovchinnikov, 2013). The hotel will also start recycling of various products so that they can pose less threat to the environment (Benavides-Velasco,Quintana-Garca Marchante-Lara, 2014). It will be easy to incorporate this technology because of the increased innovation initiative of the region. This will help them give a clean and beautiful environment to the guests. Moreover, the hotel can offer hospital facility by collaborating with a nearby hospital in case f emergency. This will give a feeling of security to the customers. Conclusion Thus, it can be said that HOTS Hotel can operate its business successfully in Bondi if it manages the efficient use of resources and incorporate new technologies supporting the needs of the customers. A close study of the political and economic environment, legal, technological and other factors of Australia plays a vital role on the progress of the hotel. The value chain analysis helped the organization to realize the areas it is lacking such as transportation facility and hospital facility. This will help them be unique then their competitors and fight the competitive environment of the hotel industry. References Australian Government. (2017).austrade.gov.au. Retrieved 31 July 2017, from https://www.austrade.gov.au/International/Invest/Why-Australia/Business Australian hotel sector outlook. (2017).folkestone.com.au. Retrieved 31 July 2017, from https://folkestone.com.au/wp-content/uploads/2016/07/Australian-Hotel-Sector-Oct-2015.pdf Benavides-Velasco, C. A., Quintana-Garca, C., Marchante-Lara, M. (2014). Total quality management, corporate social responsibility and performance in the hotel industry.International Journal of Hospitality Management,41, 77-87. 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