THE HYATT ORGANIZATION CASE STUDYINTRODUCTIONThis case study aims to compile an in-depth examination of the Hyatt organization’s current strategic situation and to demonstrate and evaluate information on the organization’s strategic management concepts, ideas and theories. This study required a methodical research that used all available resources and information found necessary to contribute to a profound comprehension of the Hyatt organization and its internal and external environments that had resulted to a recognizable accomplishment in the hospitality industry worldwide. COMPANY BACKGROUNDThe Global Hyatt Corporation is well known in the hospitality industry. It is one of the pioneers that establish and operate 5-star hotels, resorts and casinos around the globe.
The company name is formally launched in 2004. The Hyatt chain provides excellent services to the executive travelers and high-class visitors. The first hotel on its organization is established in 1957 that is originally owned by the Pritzker family located in Chicago. Jay Pritzker purchased the Hyatt House in 1957 that is located in Los Angeles Airport from a local entrepreneur named Hyatt R. von Dhen. Today, it has existing numerous luxury hotels and resorts that offer golf, spas, casinos and other upscale recreational and leisure interests in various countries and thus employing a diverse population of employees.
The company has several brand properties namely: Hyatt Regency, Grand Hyatt. Park Hyatt, Hyatt Place, Hyatt Summerfield Suites, Hyatt Resorts and Andaz that are strategically built near airports, resorts, and major and small cities worldwide, and yet Hyatt incessantly add new properties each year. The Hyatt StrategyIn May 2003 Hyatt developed a new strategy to combat the decline in the economy. The Hyatt organization took advantage of the low economic situation when the organization decided to consolidate operations and management and expanded its lodging reach both local and abroad.
The development team of the Hyatt organization saw the downturn as a great opportunity to expand the portfolio of hotels. Even the board was less enthusiastic about the scenario during that time, Hyatt was well positioned to deal with the economic fluctuations as being owned the wealthy Pritzker family who has invested more than $800 million in the hotel portfolio. (Edmunds, 2001) This gave birth to the Global Hyatt Corporation where Thomas J.
Pritzker is named the chairman and chief executive officer. One of the global Hyatt’s aims is to maximize company’s options wherein it focused first internally, positioned an opportunistic platform based on their history of finding the opportunity and build. The company had options to build from within, go after different segments to generate growth and other alternatives to finance it. Flexibility, choice and opportunity became the new motto of the company in order to address the globalization of the company’s customers. The company is aware that their customers travel around the world and they have to respond with brand consistency, service and technology without losing the cultures of the country.
Even it is a global hotel company, it made sure that the norms, practices and culture is preserved and respected. The mere acknowledgement of change to accommodate improvisations is a vital factor to keep on track in order to fulfill its mission and serve its purpose to its primary target market. The Hyatt organization had to be flexible. This flexibility involved looking at the external and internal environments and workforce practices in order to identify new and better ways to respond to the emergent needs of the industry and the clients.
The Global Hyatt Corporation decided to acquire ownership of existing hotel companies such as the Summerfield Suites and the AmeriSuites through partnership. The acquisition of the Summerfield Suites branded hotels together with six owned assets became possible through partnerships between affiliates of The Blackstone Group (a private investment group), the Gencom Group and Lehman Brothers. This became the Hyatt Summerfield Suites.
(Gilligan, 2006.)While the AmeriSuites, a limited service entity with 143 properties, is purchased from the Blackstone Group. (Meeting News, 2005.) Today, the Hyatt organization owns, operates, manages and franchises its hotel brands worldwide to share its mission in giving excellent services to hotel guests. To keep up with the modern times and conquer the personal and particular needs of its upscale guests, the Hyatt organization resulted to hotel branding each with unique services to offer. Flexibility is utilized by the diversity of hotel brands as these allowed Hyatt hotels in the same part of town because it has different target markets.