Strategic Management in the Hospitality Industry

The safety and security are the main attribute of a successful hotel business in perspective of guest services. Safety and security procedures should be inculcated by every hospital services to ensure secure services to their customers that is free from crime, terrorism and manmade hazards. Strict measures incorporated within a hotel service can ensure the loyalty of customers, increased profitability and competitive advantage. This report will examine the safety and security challenges faced by one of the leading hotels Coogee Bay Hotel. The data analysis of this report will follow a secondary research methodology, by collecting adequate data, statistics and evidence that provide information about the challenges faced by the particular organization. The evidence collection will involve the incorporation of certain frameworks like PESTLE analysis, SWOT analysis and Porters Five Forces to depict their safety and security challenges. Based on the findings recommendations will be provided that will address the issue of safety and security in Coogee Bay Hotel.

The main aim of building a safe and secured environment for customers in hotel services is cater to the needs of the customers, maintaining synchronized processes in the hospitality services. Thorough Research and Development can ensure safety and security; a risk management plan can chalk out the measures for the company in case of crises, natural disasters that will keep their employees as well as customers safe. Hotel Security includes good room services that are healthy and hygienic, secured room locking, pubic area security and maintaining safe practices while handing machineries within the hotel. A hotel can ensure a safe environment by providing efficient services to the customers as well as maintain a plan to adhere to the issues of securities like having a Front Office Department, a Research and Development (R&D) department to research about the various issues that can be faced by the company in forthcoming years. The cohesive operations of Front Office Department, Research and Development (R&D), Human Resource Department and the Security Department, will address the issues in the present scenario as well as in the forthcoming years. The cohesive operation can also ensure the pleasant stay of the guest, maintaining proficient and productive operations as well as building customer relationship.

Coogee Bay Hotel

Coogee was first established as a school and the hotel was first established in the year 1873 as a seaside retreat. It is owned by C.inc, which is a family operated business, and reflects historical grandeur due to its tenured period of operations, It is situated in Coogee Beach in East Sydney. The ratings of Coogee Bay Hotel are mostly ranging from 3.5 to 4 star, with many customers stating excellent and pleasant stay in the hotel, with cheapest services. In hotel Coogee Bay the average stay price is $61 per night, with room services and excellent staff to handle various issues of customers. They even have excellent reviews about their food, except for the fact that recently they are facing issues and complaints regarding food and crimes, which will be further discussed in other sections.

Safety and Security Challenges in Coogee Bay Hotel

According to Papulova and Gazova (2016), strategic Analysis plays a crucial role in sustainability and acquiring success in a company. Strategic analysis also ensures appropriate decision making of company stakeholders in operating their organization efficiently. Strategic Analysis involves the analysis of external and internal factors that may affect the operations, employees and well the guest of the hospitality enterprise. The analysis will later chalk out the threats and opportunities that may be beneficial in either the degradation or the development of the company. Decision making among the hotel enterprises managers and researchers will pave a proficient path of strategic operation in an organization (Bian, Li & Guo, 2016). The strategic analysis is necessary in examining the security and safety challenges of Coogee Bay hotel to understand whether they are operating in a efficient manner, and the measures they must take to address those issues to ensure good experiences for their guests and develop their core competencies.

Political: Australia being a constitutional monarchy as the head of the state is Elizabeth II, Sydney being the largest city in Australia, there are number of hotels and industries. The main economy of the country is through travel and tourism, with a contribution of 49.7 billion to the GDP by the year 2017(statista.com, 2020). The conditions of Australia has been quite beneficial for Coogee Bay Hotel, with being the seconded demanded hospitality services after Park Hyatt Hotel. The political environment is quite stable in Australia and has been preferable for Coogee Bay Hotel to operate, but they have acquired lot of criticisms due to issues related sexual harassment, food hazards, which have created controversies against the hotel.

Economic: Australia is the 13^th largest economy in the world, and Coogee Bay Hotel  has been acquiring the maximum revenues, even they went to modify their services and hotel investing $6 million, and upgraded their Victorian style hotel infrastructures with modernized equipment’s. although the tax rate which is 30 percent in Australia can affect the operations, especially the recent spread of COVID 19 Coronavirus, has affected their operations depleting their profit areas.

Social environment: Although the population is less in Australia with 22.9 billion people residing, as it is a place of multi-cultural and indigenous people, there are always the possibility of heated conflicts that can endanger the safety and security issues of the foreign peoples.

Technological: Coogee Bay Hotel, had the advanced technologies incorporated in their activities, and they have kept the essence of Victorian Hotel, which attracts more customers to their hotel. In the year, Australia is involved in 4 percent growth in the year 2019.

Coogee Bay Hotel: Overview and Historical Background

Environmental factors: Australia has beautiful beaches, and Coogee Bay hotel has the perfect location, for which customer prefer them mostly. However, keeping in focus the recent pandemic coronavirus environmental factors is heavily affecting Coogee Bay Hotel. On the other hand, the recent Senate Enquiry has stated that all the hotels and businesses will be effected by the environmental hazards.

Legal: According to the Australian Government impositions, every hotel service industries must adhere to Food Standards Code and Occupational Health and Safety act (foodsafety.com.au (2020). Although, recently they have been facing issue with food qualities, especially the incident of a couple complaining of finding faeces in their drink in the year 2008. (business.gov.au, 2020).

It is the most effective tool for understanding the competencies of an organization. A competitive analysis is done for analyzing the competitors and position of the company.  The porter’s five forces are as follows:

Competitive Rivalry: The potential competitor of Coogee Bay Hotel is Park Hyatt hotel, but they have a different customer segment, Hyatt targeting only elite customers. The competitive rivalry is comparatively low for Coogee Bay Hotel, as they have unique features of seaside hotel; they arrange parties and they have a mixed customer targeting strategy, which indulges in attracting all levels of customers (Aithal, 2016).

Supplier Power: Australia is rich in food and supplies, which tend in Coogee Bay hotel to provide fresh stuffs, they have their own agricultural department as well. Supplier Power is low a hey would like to be in acquaintance with such a demanded hotel

Buyer Power: The Buyer power is high, as they depend on customer for revenue collection. The Coogee bay hotel incident were couple complained about their food, led them in prolonged inspection from food department, leading to disruption in their activities.

Threat of Substitution: the threat of substitutes is medium, as they have financial stability, which will enable them to bring changes to their company (Cheng, 2019)

Threat of New Entry: the new hotel industries are attracting customers, but to acquire that type of market space whereas the location of Coogee Bay Hotel acts as an advantage to the company. The threats of new entrants is quite low for Coogee Bay Hotel.

Table 1: The SWOT Analysis of the Coogee Bay Hotel

(Source: Created by author)

• Involving research and development for analyzing about competitors, hazards, and ensuring security of the organization
• Risk Assessment plan that involve managers and higher authorities
• Practice should be involved among employees to ensure the safe place for guests

Conclusion

The fundamental point of convergence of the examination is identified with the wellbeing and security gives that is taken care of and looked by the cordiality divisions. Satisfactory proof and information’s will be gathered which will make an understood comprehension about the issues that are looked by the association. The adherence to different systems, as PESTEL structure, Porters investigation and SWOT is thought about to comprehend the approaching provokes identified with wellbeing and security issues looked by the picked organization. required suggestions are given too which will assist the organization with eradicating those issues and increment their center capabilities.

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