Wild Beast Tourist Hotel Strategies in Business - Example

BUSINESS STRATEGIC PROPOSAL 2011 – 2012. THE WILD BEAST TOURISM HOTEL A Business Strategic Proposal to Reinforce Their Current and Future Business Status And Implications (Draft) Running Header: The Wild Beast Tourism Hotel Student’s Name: Instructor’s Name: Course Name & Code: Date of Submission: TABLE OF CONTENTS 1.0 Table Of Contents ii 2.0 Introduction And Overview 1 2. Executive Summary 1 3.0 Current Strategies 2 4.0 External Analysis 3 5.0 Internal Analysis 4 5.1 Financial Performance, Sales And Profitability 4 5.2 Organizational Assets And Competencies 4 6.0 Gap(Performance) Analysis 5 6.0 Swot Analysis 6 7.0 Recommended Strategies 6 7.1 The First Strategy 7 7.2 The Second Strategy 7 8.0 Reference List 9 Appendices 10 1.0 Introduction and Overview 1.1. Executive Summary Wild Beast Tourist Hotel is situated in the vast countryside of Australia offering a clear view of wild animals on the green grassland and coastal beaches giving it an edge of tourist attractions from the daily visiting tourists from all corners of the world. It boasts of colourful scenarios, diverse cultures and a variety of beverages, high class cultural calendar, accommodation, beverages, sporting and event experiences that rivals other players in the industry. The Wild Beast Tourist Hotel strategic business plan was purposefully crafted in consultation with all the business stakeholders and its representatives to offer an exceptional quality products, services and utmost experience. The ambitions of the Wild Beast tourist Hotel is to become the all year round stop-over destination hotel offering high quality services and products with the utmost experience ever for both its potential and existing customers. The Wild Beast Tourist Hotel boasts of unexploited tourism products and services and that is its main reasons of aiming to surpass the challenges and draw backs of the growing high-value products and services and delivering to the to the highly competitive market with other like minded players in the same industry. These strategies are perceived that they will be achieved through innovations, partnerships and smarter Working Corporation of all the sake holders while taking into account of the market realities. With all this plans in mind, The Wild Beast Tourist Hotel will be able to convince its visitors and existing clients alike that: The Wild Beast Tourist Hotel is the destination for all year round visiting for both the peak and non-peak seasons. That what they spend at Wild Beast Tourist Hotel in terms of time and money is worth it. Fig 1.0 The close view of the hotel 2.0. Current strategies The term strategy as defined by Roy and Bob from the business point of view (2008, p. 168) is the course of action aimed at ensuring that the organization will achieve its objectives in sustainable advantage over its competitors. The Wild Beast Tourist Hotel current strategic plans are to grow, achieve and remain the most successful Hotel in the tourism industry and also to remain the market leader of service provision. In three years to come, The Wild Beast Tourist Hotel has lain down a bit by bit strategic plans that will foresee its service and product delivery to its client’s sky rocket to larger volumes and also to effects its business success plans to greater levels. The first strategy that will be dealt with in the first year will focus on reduction in making loses. The hotel will also focus on service quality to give it a competitive advantage within the hotel industry. The Hotel will ensure this by hiring well trained and professional workforce that is committed to the achievement of quality goals (Kim, 2002). The hotel will also invest in training in the proper applications of personnel management to reduce the business’ satisfaction problems and chronic activities. The other strategy will involve the reviewing of the staff salaries and paying them the decent salaries in accordance to their skill and knowledge of their respective job position in the business. The third strategy will involve improving and expanding the marketing and PR campaigns to reach a wider potential clientele to boost the business sales (Duane et al, 2008). The business will then be expanded to become a more corporate level and to be able to handle even bigger clients and to offer many services and products and also accommodate business functions and events by offering ballrooms and meeting halls. 3.0. External Analysis The Wild Beast Tourist Hotel is still a medium size enterprise and in the process of expansion. The Hotel’s clients increased by more than 60% from the year 2008 to 2009 and the industry s estimated $20 billion annually. The number of hotels grew from 200 units to 900 units making the industry highly competitive and fragmented. This growth was attributed to the rise in visiting tourist and rise in demand for lodging accommodations and quality food. An external analysis of any business is normally carried out to Identify is opportunities and threats and then influencing those opportunities and alleviating the threats (Gary & Marie, 2008, p. 212). And given that The Wild Beast Tourist Hotel is situated where there are numerous similar businesses and also offering almost the same services and goods as it offers. This is an external thereat which need to be addressed. To obtain a competitive advantage, the Hotel will have to obtain a competency that will allow it to create a higher perceived value that its competitors and also producing the same products at lower costs or even taking both actions. This will allow the managers to exploit on the opportunities s and mitigate the threats on the organizations external environment (Gary & Marie, 2008, p. 212). Some of the external environmental factors of the Hotel include: Politics/Legal: the political environment is very friendly because there is political stability and very viable laws protecting business in the country. Trade and industry: although the industry is financially viable and very rewarding, it is highly competitive and saturated. Social: the community around the area is very friendly and the occasionally volunteer to work with the hotel industry organization to clean and conserve the environment. Technology: the hotel has the necessary equipments, knowledge, skill and expertise to both internally and externally to carry out its daily activities and operations. Fig. 1.1 The external view of the beach around the hotel environment 4.0. Internal Analysis 4.1. Financial Performance, Sales and Profitability The current financial measures of the hotel are not very high because the business is still a small enterprise (Damien and David, 2010). Organizational Capabilities All the assets and competencies to which the organization has access to are referred to as the organizational sources. The assets include both the tangible and intangible capital of the organization. Competencies comprise of the skills In the organization and corporate capabilities are the assets and competencies combination that represents the competitive capacity of the organization (Graeme et al, 2008). Fig 1.2 The external view of the hotel environment 4.2. Organizational Assets and Competencies Financial assets: The Wild Beast Tourist Hotel has a sound and enough working capital, credit worthiness and access its current investment finance at the small enterprise level. Physical Assets: The Wild Beast Tourist Hotel does not own the premises in which it conducts its business but owns the facilities that it uses in the premises. Operational assets: the facilities and the machineries used in the business are the properties of The Wild Beast Tourist Hotel. People Assets: The Wild Beast Tourist Hotel has employed resourceful six employees and two Hotel and financial managers respectively. A few of the employees are not very skilled for the job. Legally enforceable assets: The Wild Beast Tourist Hotel owns all the patents, copyrights of its assets and licence agreements with the government authorities. Systems: The Wild Beast Tourist Hotel has put in place the necessary IT data bases, management information systems and the general infrastructure for the smooth running and supporting of decision making activities. Marketing Assets: The Wild Beast Tourist Hotel has the market assets infrastructure necessary for the development of marketing strategies. Strategic Competencies: The Wild Beast Tourist Hotel has a fairly enough management skills full of vigour, energy and skills. 5.0. Gap (Performance) Analysis According to Maren (2008, p. 16), gap analysis is the process used to determine where the organization is or intends to be. It is the discrepancy between how the business wishes to perform and how it actually performs. The current performance of The Wild Beast Tourist Hotel is not good owing to the fact that there is an increased competition in the industry. The business is also currently a small enterprise and expanding. There is future plan to expand it to the ranks of five star hotels so that it will be able to compete with the big Hotel in the industry and cope up with the very stiff competition in the market. In order to achieve this, the business will have to invest in the much needed motivation, strategic vision, communication, implementation strategy and innovation learning (Peter & Robert, 2007). It will have to pay its staff well and incorporate a very good organizational culture that will make the employees perform well in their relevant duties. The SWOT analysis components are described below. 6.0. SWOT Analysis Strengths: The Wild Beast Tourist Hotel is in a location where there are good customer network. Their product packaging are good and attractive They have a potential of expanding the business Weaknesses: They usually experience low and few stock levels during the customer peak hours most of the available products in stock have constricted product life Some of its staff have low level of work experience Opportunities: They have a steady rising income of their market target The government policies available are favourable to the business The available and offered goods and services at the Hotel have a growing demand Threats: There is a rise in competition in the in the Hotel industry in the surrounding location The area experiences poor infrastructure owing to the fact that it s located in the countryside. The frequent occurrence of shortages of raw materials. 7.0. Recommended Strategies 7.1. The first Strategy The business should embark on training of its staff and also to hire very skilled staff for their respective job positions. The business may first identify the segment which is likely to remain in a stable demand and which other businesses are not likely to invade. They can also track leadership strategy so as to establish the dominance within the segment. They should also apply for small business grants to enable them finance and expand the business so as to accommodate the rising business demands. They should also introduce and develop a code of practise. This will aid their staff to effectively respond to programmes such as doors and scores. 7.2. The second Strategy For them to obtain a balance of growth hotel and tourism industry by strengthening its culture, maximizing on its benefit like theatres, museums product diversification and community participation, they will need to diversify and make improvement on the standard of quality for their products and services. They need to enhance the accessibility and quality of the existing tourism and hotel infrastructure to cope with the high class tourism demands. Concentrate on the promotional programs, formulate and develop marketing plans that maximizes the economic and financial revenues, positive environmental impacts, social and economic activities. Address the daunting issues affecting the hotel sales and activities like tourism and other client low seasonality’s and contributing to the quality lives of the surrounding local people by stimulating their participation in the development process and security concerns in relation to government policies, and also managing business impacts to balance benefits and operating costs. 8.0. Reference List 1. Anja B. 2009 The SWOT Analysis, Druck und Bindug: Books on Demand, GmbH, Nordertedt, Germany. 2. Damien M. & David A. A. 2010 Strategic Market management: Global Perspectives, John Wiley & Sons L.t.d., United Kingdom. 3. Duane R. et al, 2008 Understanding Business Strategy: Concepts & Cases, South-Western Cengage Learning, USA. 4. Gary D. L. & Marie T., 2008 Technological innovation: generating economic results, Elsevier Ltd, United Kingdom. 5. Graeme D. et al, 2008 Strategic Marketing: Planning and Control, Third edition, Elsevier ltd, Slovania. 6. Kesho Prasad, 2009 Strategic Management: Text and cases, Jay Print Pack private Limited, New delhi-110015, India. 7. Kim H. 2002 Human Resources in the Hotel Industry: Strategy, Innovation and Performance, Routledge Studies In Employment Relations, Canada and USA. 8. Maren F. 2006 Performance Gap Analysis Tips, Tools, and intelligence for Trainers, ASTD Press, USA. 9. Nadine P. & Anne R. 2009 SWOT Analysis-Idea, Methodology and A Practical Approach, Books on Demand GmbH, Nordertedt Germany. 10. Peter & Robert, 2007 Supply Chain Excellence: a Handbook for Dramatic Improvement using the SCOR Model, Second edition, Library of Congress Cataloging-in Publication Data, USA 11. Robert M. Grant, 2005 Contemporary Strategy analysis, fifth edition, Blackwell publishing, Unite kingdom. 12. Roy C. W. & Bob B. 2008 The Sage handbook of hospitality management, sage publication Inc. London. 13. T. Richard D. Dynamic SWOT analysis: developer’s guide, DSA Publications, United Kingdom. Appendices 1. Current Strategies 1. Make available the strategic plans which will guide and foresees the delivery of products and services improve and also allow room for business expansion. Reduce the losses incurred in the business. 2. Training of the staff and hiring of highly qualified members of staff to take up the jobs. 3. Paying good incentives and rewarding of its staff to boost their working morale. 4. Expansion of the business from small enterprise to major corporate status. 2. External Analysis Politics/Legal: the political environment is very friendly for the business. Trade and industry: the industry is highly competitive and flooded. Social: supportive surrounding community around the business environment Technology: the necessary technology needed for the business is viable 3. Internal Analysis Financial assets: The Wild Beast Tourist Hotel has a sound and enough working capital. Physical Assets: The Hotel does not own the premises in which it conducts its business but owns the facilities that it uses in the premises. Operational assets: the facilities and the machineries used in the business are the properties of The Wild Beast Tourist Hotel. Legally enforceable assets: good legal framework to conduct its business. Systems: The Hotel has put in place the necessary IT data bases to manage its business. Strategic Competencies: The Hotel does not have enough management skills. 4. GAP(Performance Analysis) 1.Incorporate good working culture 2. Encourage staff motivational activities such us bonuses, increasing salaries for hardworking staff and accepting all types of cultural background of different employees. 5. SWOT Analysis Strengths Weaknesses Opportunities Strengths 1. Good customer network. 2. Good and attractive product packaging. 3. Business expansion potentials. 1. Low stock levels during peak hours. 2. limited shelf life of products. 3. Low level experience for some staff members. 1. Steady rising income in the industry. 2. Favourable government policies. 3. Growing demand for the goods and services. 1. Raw materials shortages. 2. High competition in the industry. 3. Poor infrastructure. 6. Recommendations 1. Identify the business segment which is likely to remain in a stable demand and of course other businesses will not be able to overrun. 2. Track the leadership strategy to establish the market dominance in the surrounding environment. 3. apply for business grand and use them for expansion 4. Diversify and improve the product’s standard qualities. 5. Conduct product and services promotional programmes. 6. Develop marketing plans to maximise the economic plans and financial revenues. Read More